How to Become a Cyprus Tax Resident in 60 Days: A Complete Guide

Becoming a tax resident of Cyprus is an attractive opportunity for those seeking a favorable tax environment and wanting to benefit from the special regimes the country offers. One of the key advantages is the ability to become a Cyprus tax resident in just 60 days and obtain Non-domicile status, provided certain conditions are met.

In this guide, we will explain in detail how to become a tax resident in Cyprus within 60 days and what benefits you can enjoy.

What is Tax Residency in Cyprus?

Tax residency refers to a status that allows an individual to pay taxes in the country where they primarily reside or have significant economic interests. In other words, tax residency determines which country you are obligated to pay taxes in. Cyprus has special regimes for foreign nationals, offering simplified ways to become a tax resident.

According to Cypriot law, an individual is considered a tax resident if they spend more than 183 days in the country during a calendar year. However, under the “60-Day Rule,” you can become a tax resident of Cyprus by spending significantly less time in the country.

Obtaining Cyprus tax residency in 60 days is a unique opportunity for those who want to benefit from Cyprus’ tax advantages without the need to spend more than 183 days in the country.

Benefits of Cyprus Tax Residency in 60 Days

This scheme is ideal for entrepreneurs and investors who want to leverage the benefits of Cyprus’ tax system while maintaining mobility and flexibility in their international activities.

• Non-Domicile Status with 17 Years of Tax Benefits: Foreign nationals who choose Cyprus as their tax residency can obtain Non-Domicile status, which provides significant tax advantages for up to 17 years. This status includes exemption from taxes on interest, dividends, and capital gains (except for gains from the sale of real estate located in Cyprus).
• Fast Track to Tax Residency: Instead of the standard requirement of staying 183 days, you only need to spend 60 days in Cyprus within the year, greatly reducing the time you are required to be physically present in the country.
• Flexibility in International Operations: The 60-Day Rule allows you to remain mobile and conduct active business abroad for most of the year while retaining your tax residency in Cyprus.
• Tax Optimization for Foreign Income: As a Cyprus tax resident, you are exempt from taxes on dividends, interest, and other passive income, both in Cyprus and abroad, making Cyprus especially appealing to international entrepreneurs.
• Exemption from CFC and CRS Reporting: Cyprus tax residents are not required to report Controlled Foreign Companies (CFCs) in their previous jurisdictions and can avoid automatic information exchange under the Common Reporting Standard (CRS).

Acquiring tax residency in Cyprus unlocks numerous advantages. Thanks to its flexible and favorable tax system, Cyprus offers attractive conditions for both business operations and personal financial management.

Read more in our article: Why Cyprus is the Ideal Place for Tax Minimization.

Key Conditions for Obtaining Cyprus Tax Residency in 60 Days

Under the “60-Day Rule,” an individual can obtain Cyprus tax residency by meeting the following conditions during the relevant tax year:

1. Residency in Cyprus for at Least 60 Days

The individual must spend at least 60 days in Cyprus during the calendar year. This time can be spread out, but the total must amount to a minimum of 60 days.

2. Immigration Status with the Right to Work

To qualify under the 60-Day Rule, the applicant must hold a status that permits them to work in Cyprus. Ukrainian citizens may also apply for temporary protection status, which provides similar rights to stay and work.

3. Economic Activity

The individual must engage in economic activity in Cyprus, such as owning a company that has a physical office and a registered address in the country.

4. Employment with a Cypriot Company

The applicant must be officially employed by a company registered in Cyprus. This can be their own company, where they serve as a director. It is essential that they receive a salary and contribute to social security.

5. Place of Residence in Cyprus

The applicant must have a permanent residence in Cyprus, whether owned or rented.

6. Bank Account

The applicant must have both a personal bank account and a registered company account in Cypriot banks.

7. No Tax Residency in Another Country

The individual must confirm that they are not a tax resident in any other country and that they do not spend more than 183 days in another country during the tax year.

By fulfilling these conditions, an individual can obtain Cyprus tax residency and take advantage of the benefits offered by the country’s tax system.

Procedure for Obtaining Cyprus Tax Residency in 60 Days

The process for obtaining Cyprus tax residency consists of several steps:

1. Application Submission
   After meeting the residency (60 days in Cyprus) and economic activity requirements, the individual must submit an application for tax residency to the Cyprus tax authorities.
2. Proof of Economic Activity
   Supporting documents must be submitted along with the application to confirm economic activity in Cyprus, including:
   • Company Ownership: Registration documents such as the Certificate of Incorporation, proof of a company address, office lease, and evidence of active operations (e.g., reports).
   • Employment: For company directors, documents confirming their position and at least two months’ salary details.
   • Proof of Residence: A rental agreement or proof of property ownership, along with utility bills (e.g., electricity or water) in the applicant’s name to confirm actual residence in Cyprus.
3. Issuance of Tax Residency Certificate
   Once the application and documents are reviewed, the individual will receive a Cyprus Tax Residency Certificate (Non-Dom), officially confirming their tax status and granting access to the tax benefits available to residents.

Important Points:

• The application must be completed accurately in Greek or English.
• All documents must be valid at the time of submission.

The process of obtaining Cyprus tax residency under the 60-Day Rule requires careful attention to all steps and the preparation of necessary documents. Proper documentation and adherence to the requirements allow the applicant to enjoy significant tax advantages.

Seeking professional legal assistance can simplify this process and ensure compliance with Cyprus law.

Our Feod Group team of lawyers and consultants in Cyprus is ready to provide full support at every stage of the process!

Feod Group offers a comprehensive range of services, including:

• Company, fund, and trust formation in Cyprus
• Investment consulting and assistance with purchasing ready-made businesses
• Tax planning and optimization services
• Development of personalized investment strategies in Cyprus
• Legal services for obtaining immigration statuses in Cyprus