Expat Tax Residency in Cyprus

Cyprus is an EU member state with one of the most straightforward individual tax residency frameworks in Europe. The Income Tax Law (Cap. 297) as amended by the 2017 and 2026 reforms provides two distinct tests, each sufficient on its own to establish Cyprus tax residency for a calendar year. Once resident, worldwide income is subject to Cyprus personal income tax at progressive rates, while the non-domiciled regime provides a significant exemption from the Special Defence Contribution (SDC) on passive income.

How do you become a tax resident of Cyprus?

Cyprus tax residency is established if an individual meets either of two statutory tests within the same calendar year. The first and simpler test is pure physical presence: spending more than 183 days in Cyprus during the calendar year, with no additional conditions [SC1]. The second test -- the 60-day rule introduced in 2017 -- was amended effective 1 January 2026 [SC2]. Days are counted from arrival to departure: the day of arrival counts as a day in Cyprus; the day of departure counts as a day outside Cyprus.

What is the 183-day rule?

An individual who is physically present in Cyprus for more than 183 days in any single calendar year is automatically treated as a Cyprus tax resident for that year under the Income Tax Law. No further conditions apply -- no requirement for a permanent home, no employment nexus, no nationality test. The 183-day count is assessed on a calendar-year basis, from 1 January to 31 December [SC1]. This rule operates independently of the individual's tax status in any other jurisdiction; Cyprus double-tax treaties provide tie-breaker rules to resolve dual-residency conflicts where they arise.

What is the 60-day rule?

The 60-day rule allows an individual to qualify as a Cyprus tax resident while spending far less time on the island, provided four cumulative conditions are all met in the same calendar year [SC2]:

From 1 January 2026, a fifth condition -- that the individual must not be a tax resident of any other state in the same year -- was removed. An individual may now qualify under the 60-day rule even if they are simultaneously considered tax-resident in another jurisdiction; Cyprus double-tax treaty tie-breaker provisions then determine which state has primary taxing rights [SC2]. The business-connection condition requires carrying on business in Cyprus, being employed by a Cyprus-based employer, or holding a directorship in a Cyprus tax-resident company.

What is the non-domiciled regime?

Cyprus distinguishes between residents who are domiciled in Cyprus and those who are not. For SDC purposes, an individual is treated as domiciled in Cyprus once they have been tax-resident in Cyprus for 17 out of the preceding 20 years [SC1]. A non-domiciled (non-dom) resident -- that is, one who has not yet accumulated 17 years of Cyprus tax residency within the prior 20 -- is fully exempt from the Special Defence Contribution on dividends and interest income from all sources worldwide, for as long as the non-dom status holds [SC3]. This exemption is automatic; no separate election is required. From 2026, an individual whose domicile of origin is outside Cyprus may apply to extend non-dom status beyond 17 years by paying a lump-sum levy of EUR 250,000 per additional five-year period [SC3]. All Cyprus tax residents, including non-doms, remain subject to the General Health System (GeSY) levy of 2.65% on dividends, interest, and rental income, capped at a maximum annual contribution of EUR 4,770 (on income up to EUR 180,000).

How is a Cyprus tax resident taxed on income?

Cyprus tax residents are taxed on worldwide income. Personal income tax is charged at progressive rates under the 2026 brackets, which apply from 1 January 2026 and represent an upward revision of the thresholds compared to the 2025 brackets [SC1]:

• EUR 0 to EUR 22,000: 0% (tax-free band)
• EUR 22,001 to EUR 32,000: 20%
• EUR 32,001 to EUR 42,000: 25%
• EUR 42,001 to EUR 72,000: 30%
• Above EUR 72,000: 35%

For domiciled residents, SDC applies on top of income tax: dividends are subject to 5% SDC (reduced from 17% effective 1 January 2026), and interest is subject to 17% SDC [SC3]. Non-dom residents pay 0% SDC on both. Capital gains from the disposal of securities (shares, bonds, debentures) are exempt from Cyprus capital gains tax; gains from immovable property situated in Cyprus are subject to CGT at 20%. Non-residents are taxed by Cyprus only on Cyprus-source income.

For jurisdiction comparisons and to find a Cyprus-qualified tax professional, see the Cyprus country overview or browse the Cyprus tax-pros directory. The rules above are informational only -- consult a registered Cyprus tax professional for guidance specific to your circumstances.