60-day tax residency rule (Cyprus)

The 60-day tax residency rule is a provision in Cypriot tax law that allows individuals to become tax resident in Cyprus by spending as few as 60 days per year in the country, provided they meet specific conditions. Introduced in 2017 through an amendment to the Income Tax Law, it offers an alternative to the standard 183-day residency threshold used by most countries.

Background

Most countries determine individual tax residence based on the 183-day rule, where an individual who spends 183 or more days in a country during a calendar year is considered tax resident there. Cyprus also applies this standard rule but introduced the 60-day alternative to attract international business professionals, entrepreneurs, and investors who divide their time between multiple jurisdictions.

The rule was enacted through an amendment to Article 2 of the Cyprus Income Tax Law (L.118(I)/2002) and became effective from January 1, 2017.

Conditions

To qualify for tax residency under the 60-day rule, an individual must satisfy all of the following conditions during the relevant tax year:

1. Remain in Cyprus for at least 60 days during the calendar year
2. Not reside in any other single state for more than 183 days in aggregate during the same year
3. Not be tax resident in any other state during the same year
4. Carry on business in Cyprus, and/or be employed in Cyprus, and/or hold office (such as a directorship) in a company that is tax resident in Cyprus, at any time during the tax year
5. Maintain a permanent residence in Cyprus, which can be either owned or rented by the individual

The days of arrival and departure from Cyprus are counted as follows: the day of departure from Cyprus counts as a day outside Cyprus, while the day of arrival counts as a day in Cyprus.

Practical applications

The 60-day rule is particularly relevant for:

Digital entrepreneurs and remote workers

Individuals who work remotely and travel frequently can establish tax residency in Cyprus while spending the majority of their time in other countries, provided no other single country exceeds the 183-day threshold.

Business owners with multi-country operations

Entrepreneurs who manage businesses across several jurisdictions can use the rule to establish a tax base in Cyprus while maintaining operations elsewhere.

High-net-worth individuals

Combined with the non-dom regime, the 60-day rule allows individuals to achieve an effective tax rate of approximately 5% on business income distributed as dividends, while spending as little as two months per year in Cyprus.

Tax implications

Individuals who become Cyprus tax residents under the 60-day rule have the same tax obligations and benefits as those who qualify under the standard 183-day rule:

• Subject to income tax on worldwide income (with exemptions available under the non-dom regime)
• Eligible for all Cyprus tax treaty benefits under the country's network of 65+ double taxation agreements
• Required to register with the Cyprus Tax Department and file annual tax returns
• Subject to social insurance and GESY (General Healthcare System) contributions if employed or self-employed in Cyprus

The combination of the 60-day rule with the non-dom status creates one of the most favorable tax environments in the European Union for international professionals.

Comparison with other jurisdictions

Country	Minimum days for tax residency	Special conditions	Non-dom available
Cyprus (60-day rule)	60	Business/employment tie, no other tax residency	Yes
Cyprus (standard)	183	None	Yes
United Kingdom	16-183 (statutory residence test)	Complex tiered test	No (abolished 2025)
Malta	183	None	Yes (remittance basis)
Portugal	183	None	NHR ended 2024
Ireland	183 (or 280 over 2 years)	None	Yes (remittance basis)
United Arab Emirates	90	Income/property/employment tie	N/A (no income tax)

See also

• Taxation in Cyprus
• Non-domiciled tax status
• Tax residence
• Digital nomad visa
• Double taxation

External links

• Cyprus Tax Life - 60-Day Rule Guide
• Cyprus Tax Department