ResidencyEuropeCyprus tax residency and relocation
Cyprus tax residency is available to people who spend more than 183 days a year on the island or meet the 60-day rule through local work, a home and limited time elsewhere. As of 2026, non-domiciled residents pay no defence contribution on dividends and interest for up to 17 years.
Updated
Under the 60-day rule you are Cyprus tax resident for a year if you spend at least 60 days in Cyprus, do not stay more than 183 days in any other single country, carry on a business, job or directorship in Cyprus that continues through the year, and keep a home in Cyprus that you own or rent. If the Cyprus activity ends during the year, residency for that year falls away.
Non-domicile status is what makes Cyprus interesting for founders and investors. Residents without a Cyprus domicile pay no special defence contribution on dividends and interest. After 17 of the previous 20 years of residence you are deemed domiciled; since 2026 the exemption can be extended by two further five-year periods for a fixed payment of EUR 250,000 each.
Employees taking up a first job in Cyprus can exempt 50% of employment income in years when it exceeds EUR 55,000, for up to 17 years, provided they were not resident for the 15 consecutive years before. Other reliefs exist for lower salaries.
EU citizens register their residence with the Civil Registry and Migration Department and receive a registration certificate, commonly called the yellow slip; in our experience it is issued at the appointment itself. Non-EU nationals need a residence permit, which depends on their circumstances.
We coordinate the move; Cypriot lawyers and tax advisers confirm residency and non-dom positions.
Who it suits
EU founders relocating with their company
You will be a director of your Cyprus company and live there for part of the year.
Employees of international employers
You move for a job exercised in Cyprus and can use the salary exemption.
Investors living on dividends and interest
Your income is mainly passive and you want the non-dom position.
Founders planning a share sale
You want residency settled before an exit; gains on shares are generally exempt in Cyprus, though your former country may still claim tax.
Requirements
- Required
Home in Cyprus
Owned or rented for the tax year; leases are commonly certified with the municipality.
- Required
Business, job or directorship in Cyprus
Must continue through the year for the 60-day rule to apply.
- Required
Day-count evidence
Flight records and proof that you spent no more than 183 days in any other single country.
- Required
Immigration registration
A registration certificate for EU citizens; a residence permit for everyone else.
- Depends on your case
Non-dom application
Filed with the Tax Department when you consider you are not domiciled in Cyprus.
- Depends on your case
Tax residency certificate
Useful for banks and treaty claims once the conditions are met.
Documents
- Certified rental agreement or title deedEvidence of the permanent home in Cyprus.
- Employment contract or directorship documentsShows the Cyprus activity behind the 60-day rule.
- Passport or EU identity cardFor immigration registration and tax registration.
- Proof of address in CyprusUtility bills in your own name.
- Evidence of days abroadBoarding passes, flight records and entry or exit stamps.
Timeline
- 1Find a homeSign a lease and have it certified where required.
- 2Prepare documentsEmployment contract or directorship, lease and identity documents.
- 3Immigration appointmentEU citizens receive the registration certificate; in our experience at the appointment itself.
- 4Tax registrationApply for a tax identification number; in our experience this takes about a week.
- 5Non-dom and residency evidenceClaim non-dom status, keep day-count records and apply for a residency certificate once eligible.
Tax notes
- Residents are taxed on worldwide income at personal rates from 0% up to EUR 22,000 rising to 35% above EUR 72,000, after exemptions.
- Non-domiciled residents pay no special defence contribution on dividends and interest. Rental income is no longer subject to the contribution from the 2026 tax year.
- Gains on the sale of shares are generally exempt from Cyprus income tax, while gains on Cyprus real estate fall under capital gains tax.
- Leaving your former country is a separate exercise. Its exit rules and treaty tie-breakers decide whether it still taxes you.
General information, not tax advice. Your position depends on your circumstances.
Banking fit
- A Cyprus bank account in your name helps evidence residence and day-to-day life on the island.
- Banks typically open personal accounts after you have registered residence and have a local address; each applies its own due diligence.
Questions
How does the Cyprus 60-day rule work?
You need at least 60 days in Cyprus in the tax year, no more than 183 days in any other single country, a business, job or directorship in Cyprus that lasts through the year, and a home there that you own or rent.
How long does Cyprus non-dom status last?
Until you are deemed domiciled after 17 of the previous 20 years of tax residence. From 2026 the exemption can be extended for two further five-year periods by paying EUR 250,000 for each period.
Do non-doms pay tax on dividends in Cyprus?
Non-domiciled residents are exempt from special defence contribution on dividends and interest, and dividends are also exempt from income tax, so in practice they are not taxed in Cyprus. The country where the dividend comes from may still withhold tax.
What is the 50% tax exemption in Cyprus?
Individuals starting a first job in Cyprus after at least 15 consecutive years of non-residence can exempt half of their employment income in any year it exceeds EUR 55,000, for up to 17 years.
Can non-EU citizens use the 60-day rule?
The tax rule itself does not depend on nationality, but you must be allowed to live in Cyprus and meet every condition. Non-EU nationals therefore need a residence permit, which shapes the timing.
Does Cyprus residency end my tax obligations at home?
Not automatically. Your former country's rules and any tax treaty decide whether it still taxes you. Plan the departure there with an adviser before relying on Cyprus treatment.
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Malta
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Sources
- Cyprus Tax Department: Tax residency and domicile, retrieved 2026-10-25
- Government of Cyprus: Tax reform in force from 1 January 2026, retrieved 2026-10-25
- KPMG Cyprus: Main provisions of the tax reform, retrieved 2026-10-25
- EY Global Tax News: Cyprus enacts major tax reform legislation, retrieved 2026-10-25
- PwC Worldwide Tax Summaries: Cyprus, individual income determination, retrieved 2026-10-25
- PwC Worldwide Tax Summaries: Cyprus, corporate withholding taxes, retrieved 2026-10-25
- PwC Cyprus: Tax Facts & Figures 2026, retrieved 2026-10-25
- Redomiciled case experience: Cyprus company and banking files (internal), retrieved 2026-10-25
- Redomiciled case experience: relocations to Cyprus (internal), retrieved 2026-10-25
Reviewed by the Redomiciled team on .
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