Case Study: Cyprus 60-Day Tax Residency & Non-Dom Status

The Client and His Objective

In 2025, an international entrepreneur approached Feod Group with the following request: “I want to become a Cyprus tax resident under the 60-day rule and obtain Non-Dom status.”

The client had already done considerable research. He knew about the 60-day rule, understood the benefits of the Cyprus Non-Dom regime, and was prepared to rent a property in Cyprus and establish a Cyprus company.

His initial plan seemed straightforward: “I will come to Cyprus for 60 days, obtain Non-Dom status and deal with everything else once I am there.” This is where our work began.

This case demonstrates why planning Cyprus tax residency requires more than simply knowing the requirements of the 60-day rule. It is essential to establish in advance how those requirements apply to your individual circumstances.

In our client’s case, a timely assessment prevented him from pursuing an unworkable strategy in 2025 and allowed us to prepare the entire structure in advance for 2026.

Misunderstanding No. 1: “I Only Need to Spend 60 Days in Cyprus”

The first question we asked the client was not: “When are you planning to come to Cyprus?”

Instead, we asked: “Which countries have you already spent time in during the current tax year, and how many days have you spent in each?”

It became clear that during 2025 the client had already spent more than 183 days in another single country. This completely changed the strategy. To qualify under the Cyprus 60-day tax residency rule, an individual must satisfy a number of conditions. In particular, the individual must not spend more than 183 days in any other single country during the relevant tax year.

Therefore, despite being prepared to spend the required 60 days in Cyprus, the client could no longer rely on the 60-day rule to establish Cyprus tax residency in 2025.

What Did This Mean for the Client?

We advised the client not to try to force the structure into the remaining months of 2025. Instead, we began preparing him for the following tax year so that the necessary elements of the structure would already be in place when the new year began.

The client received a clear preparation plan for the next tax year, with defined timelines and a structured sequence of actions.

Misunderstanding No. 2: “60-Day Tax Residency and Non-Dom Are the Same Thing”

They are not. These are separate legal and tax concepts, and this is one of the most common areas of confusion we encounter during initial consultations.

Cyprus tax residency determines whether an individual qualifies as a tax resident of the Republic of Cyprus.

Non-Dom is a separate tax status relevant, in particular, to the application of Cyprus Special Defence Contribution (SDC) rules.

The correct sequence is therefore:

1. Step 1. Establish the basis for Cyprus tax residency
2. Step 2. Meet the requirements of the 60-day rule
3. Step 3. Confirm Cyprus tax residency
4. Step 4. Assess and document eligibility for Non-Dom treatment

The client therefore needed more than simply to “apply for Non-Dom in Cyprus.” He required a comprehensive roadmap covering relocation, tax residency and Non-Dom status.

Misunderstanding No. 3: “If I Can Legally Enter Cyprus, Immigration Is Already Taken Care Of”

The client was able to enter Cyprus without obtaining a visa in advance, so his question was understandable: “If I am allowed to stay in Cyprus, why do I need to deal separately with immigration status?”

Because these are different legal matters.

The right to enter Cyprus does not automatically mean:

• having the appropriate residence status in Cyprus;
• having the right to work or carry on a particular activity where such a right is required;
• becoming a Cyprus tax resident;
• qualifying for Non-Dom treatment.

For every case, we therefore assess the following elements separately: Immigration status → Right to work or carry on the proposed activity → Tax residency → Non-Dom

The appropriate immigration procedure also depends on the client’s nationality and individual circumstances. For example, an EU citizen is subject to a different residence and registration framework from a non-EU citizen.

Practical Benefit for the Client

Instead of dealing with immigration, employment and tax matters separately, the client received one coordinated structure in which each stage was connected to the next.

This is particularly important in an international relocation: the right to enter, reside and work in Cyprus and the client’s intended tax status must be coordinated in advance.

Misunderstanding No. 4: “I Will Set Up My Company and Open My Bank Account After I Arrive”

A Cyprus bank account is not, in itself, a statutory condition of the 60-day tax residency rule. In practice, however, postponing corporate and banking matters until the relocation takes place can result in unnecessary delays.

Our client intended to use a Cyprus company as part of his business and employment structure. We therefore recommended beginning the preparation before the planned relocation period.

Why? Because company incorporation, preparation of corporate documents, KYC and compliance procedures, as well as banking processes, take time.

What Did This Mean for the Client?

Part of the process was prepared in advance, so the client did not have to start dealing with all corporate, banking and registration matters only after arriving in Cyprus.

Misunderstanding No. 5: “As Soon as I Arrive, We Simply Start Counting the 60 Days”

Not quite. Physical presence in Cyprus is essential, but the 60 days are only one part of the test.

To qualify under the 60-day rule, the client also needed, among other requirements, to maintain a permanent home in Cyprus (whether owned or rented) and have the required connection with Cyprus through business, employment or holding an office.

Before focusing on the number “60”, we therefore assessed whether the client’s overall structure would meet the applicable requirements.

It is also important to understand that days spent in Cyprus are determined by the client’s actual physical presence. They do not begin to count only from the date an immigration permit is issued or a tax registration is completed. This is why travel, documentation and the timing of each stage must be coordinated from the outset.

Implementation of the Project by Feod Group

The main value of our work was not the completion of one document or registration. We brought the corporate, immigration, tax and practical aspects together into one coordinated plan so that the client understood:

what needed to be done → in what order → within what timeframe → which documents were required → which days had to be monitored → when to move to the next stage.

Instead of coordinating multiple procedures and advisers independently, the client received a single roadmap for his relocation and tax structuring.

Implementation of the Strategy: 2025–2026

Stage 1. Preparation in 2025

Step 1. Calendar-Year Review: Where had the client already spent time during the year, and for how long?

Step 2. Tax Residency Assessment: Could the 60-day rule actually be applied for the intended tax year?

Step 3. Corporate Structure: Did the client need a Cyprus company? What position would he hold within it? Was an employment or directorship structure required?

Step 4. KYC and Banking Preparation: We started the necessary processes in advance to avoid losing valuable time once the relocation began.

Stage 2. Implementation of the Strategy in 2026

Step 5. Immigration and Registration: We established the appropriate legal basis for the client’s residence and activities in Cyprus.

Step 6. Permanent Home: We ensured that suitable owned or rented accommodation and the relevant supporting documentation were in place.

Step 7. Employment, Tax and Social Insurance: We completed the necessary arrangements and registrations connected with the client’s activities in Cyprus.

Step 8. Physical Presence Monitoring: We monitored the client’s days in Cyprus and abroad.

Stage 3. Cyprus Tax Residency and Non-Dom

Step 9. Cyprus Tax Residency: Once the necessary conditions had been satisfied, the supporting evidence was compiled and the relevant documentation for confirming Cyprus tax residency was completed.

Step 10. Non-Dom: Once the client’s eligibility had been confirmed, his Non-Dom status was completed.

The Result for the Client

The client successfully met the requirements of the 60-day rule, established Cyprus tax residency and obtained Non-Dom status.

As a result, the client:

• avoided spending time and resources on an unworkable strategy in 2025;
• prepared the necessary elements of his structure in advance for the new tax year;
• completed the corporate, immigration and tax stages in the correct sequence;
• satisfied the requirements of the 60-day rule in 2026;
• established Cyprus tax residency;
• obtained Non-Dom status.

From the client’s initial request in 2025 to an implemented structure, Cyprus tax residency and Non-Dom status in 2026.

The key value for the client was not simply assistance with individual procedures, but a strategy planned in advance that helped him avoid a critical timing mistake and the risk of losing another tax year.

Get a Consultation

If you are planning to establish Cyprus tax residency under the 60-day rule and obtain Non-Dom status, contact Feod Group before you begin your relocation.

We will assess your circumstances, determine the appropriate sequence of actions and prepare a step-by-step plan for establishing Cyprus tax residency and obtaining Non-Dom status.

Contact Feod Group to start planning your Cyprus tax residency strategy.

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Every tax residency and Non-Dom case depends on the client’s individual circumstances. This material is provided for general information purposes only and does not constitute individual tax or legal advice.