Cyprus Tax Residency Under the 60‑Day Rule

Cyprus offers one of the most flexible tax residency regimes in Europe. Individuals may become Cyprus tax residents either by spending more than 183 days in Cyprus in a calendar year or by qualifying under the alternative 60‑day tax residency rule.

The 60‑day rule was introduced to accommodate internationally mobile professionals, entrepreneurs and investors who divide their time between multiple jurisdictions but maintain economic and residential ties with Cyprus.

The rule allows individuals to become Cyprus tax residents with a relatively limited physical presence in the country, provided that certain conditions are met.

Conditions for the Cyprus 60‑Day Tax Residency Rule

An individual may qualify as a Cyprus tax resident under the 60‑day rule if all of the following conditions are satisfied during the relevant tax year:

1. The individual spends at least 60 days in Cyprus during the tax year.

2. The individual does not spend more than 183 days in any other single country during the same tax year.

3. The individual carries on business in Cyprus, is employed in Cyprus, or holds an office (such as a directorship) in a Cyprus tax‑resident company.

4. The individual maintains a permanent residence in Cyprus, which may be either owned or rented.

All of the above conditions must be satisfied within the same tax year (1 January – 31 December).

If the employment, business activity or directorship in Cyprus terminates during the year, the individual may cease to qualify under the 60‑day rule for that tax year.

Amendment Introduced by the Cyprus Tax Reform 2026

The Cyprus tax reform introduced an important simplification to the 60‑day rule.

Prior to the reform, an additional condition applied: the individual had to not be tax resident in any other country during the same tax year.

The 2026 tax reform removed this requirement.

As a result, individuals may now qualify as Cyprus tax residents under the 60‑day rule without having to demonstrate that they are not tax resident elsewhere under the domestic laws of another jurisdiction.

All other conditions of the 60‑day rule remain unchanged.

Practical Implications of the Reform

The removal of the “not tax resident elsewhere” condition simplifies the application of the rule and reduces administrative uncertainty.

Previously, individuals often had to analyse the domestic tax residence rules of other countries in order to demonstrate that they were not considered tax resident there.

Following the reform, the focus is now primarily on the objective criteria of presence, activity in Cyprus and residential ties.

However, individuals should note that:

• They must still ensure that they do not spend more than 183 days in any other single country.

• If another jurisdiction also considers the individual tax resident under its domestic law, the final determination of treaty tax residence may depend on the tie‑breaker rules of the relevant double taxation agreement.

The 183‑Day Rule

The Cyprus tax residency framework continues to include the standard 183‑day rule.

Under this rule, an individual becomes a Cyprus tax resident if they spend more than 183 days in Cyprus during the tax year, regardless of employment status or other connections with the country.

The 60‑day rule therefore operates as an alternative pathway to tax residency, designed primarily for individuals who maintain international mobility but have economic substance in Cyprus.

Why the Cyprus 60‑Day Rule Remains Attractive

The Cyprus tax residency regime remains particularly attractive for internationally active individuals due to:

• the flexibility of the 60‑day tax residency rule

• the availability of the Cyprus non‑dom regime, which may exempt certain dividend and interest income from Special Defence Contribution

• the stability and predictability of the Cyprus tax system within the European Union

When properly structured, the 60‑day rule allows individuals to establish Cyprus tax residency while maintaining international business activities.

Conclusion

The Cyprus Tax Reform 2026 did not change the fundamental structure of the 60‑day tax residency rule. Instead, it removed the requirement that the individual must not be tax resident in another country, thereby simplifying the rule and reducing administrative complexity.

With this amendment, the Cyprus 60‑day rule continues to provide one of the most flexible and practical pathways to tax residency within the European Union, particularly for entrepreneurs, executives and internationally mobile professionals.

How can we help

Our team at Rightax is equipped to guide individuals through the complexities of achieving Cyprus tax residency. Let us help you understand the nuances and ensure adherence to the regulations, optimizing the benefits accessible to Cyprus tax residents.

Contact details

Tel. +357 22 340000

Email: [email protected]

The authors expressly disclaim all and any liability and responsibility to any person, entity, or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of the contents of this publication.

Accordingly, no person, entity, or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances.