Cyprus operates two separate tests for establishing individual tax residency. Under the 183-day rule, any individual who spends more than 183 days in Cyprus during a calendar year is automatically treated as a Cyprus tax resident. Under the 60-day rule, introduced to attract internationally mobile professionals, an individual may qualify as a Cyprus tax resident by spending at least 60 days in Cyprus, provided they are not a tax resident in any other country, are not present in any other single country for more than 183 days, and maintain defined ties to Cyprus such as employment, business activity, or permanent residence.
Cyprus tax residents are liable to income tax on their worldwide income. However, the combination of the non-domicile status, the 50% exemption for high earners, and the favourable income tax brackets makes Cyprus one of the most competitive jurisdictions in the European Union for internationally mobile employees and holding-company directors. These rules are particularly relevant for expats relocating to Cyprus as part of a corporate restructuring or IP-holding strategy.
The 60-day rule is assessed on a calendar-year basis. Days of presence are counted using the standard international convention: arrival and departure days each count as a day in Cyprus.