K.P.S. Services Ltd
Cyprus Tax Residency and Non-Dom for Individuals
Cyprus Individual Tax Residency
Qualify for Cyprus tax residency and non-dom status under the 183-day or 60-day rule
“The 183 Day Rule”
An individual is tax resident in Cyprus for a tax year if they spend more than 183 days in Cyprus during that calendar year.
People who move to Cyprus to live there, including permanent residents and Cypriot citizens, usually qualify under this rule and do not need the 60-day rule.
“The 60 Day Rule”
The 60-day rule has applied since 1 January 2017 and was simplified by the 2026 tax reform. An individual who does not meet the 183-day rule is tax resident in Cyprus for a tax year if all of the following apply in that year:
The individual spends at least 60 days in Cyprus.
The individual does not spend more than 183 days in total in any other single country.
The individual owns or rents a permanent home in Cyprus.
The individual carries on a business in Cyprus, is employed in Cyprus, or is a director of a company that is tax resident in Cyprus, at any time in the year, and this is not terminated during the year.
Before 2026, the individual also had to show they were not tax resident in any other country. The 2026 tax reform removed that condition.
For counting days, the day of arrival in Cyprus counts as a day in Cyprus, and the day of departure counts as a day outside Cyprus. Make sure your passport is stamped on entry and exit, and keep your tickets and boarding passes, as you may need to prove your days.
Benefits for becoming a Cyprus Tax Resident
Tax residents who are not domiciled in Cyprus (non-doms) are exempt from Special Defence Contribution on dividends and interest, wherever that income arises. Non-dom status can apply for up to 17 years, and the 2026 reform added the option to extend it for up to two further five-year periods by paying a lump sum of €250,000 per period.
The first €22,000 of annual income is tax free under the personal income tax bands in force from 2026. Gains from the sale of shares, bonds and similar securities are generally exempt from tax, except gains connected with real estate in Cyprus. Cyprus has no inheritance tax, and residents with pension income from abroad can choose a flat 5% rate on amounts above €5,000 a year.
Many of the individuals we advise are moving from the United Kingdom or South Africa. Since the UK non-dom regime ended in April 2025, UK residents with foreign income and gains are reassessing where they are tax resident. South African residents are taxed on worldwide income and face exchange controls on funds sent abroad. We can advise whether the Cyprus 60-day rule and non-dom status suit your circumstances.