I.INTRODUCTION
A new amendment to the current Income Tax Law of the Republic of Cyprus has been voted by the Parliament on 21st July 2017.
The amendment relates in determining Cyprus tax residency for individuals by adding a second test to the existing 183-day tax residency rule, known as the 60-day rule.
Based on the second test, a foreign national is able to gain Cyprus tax residency status provided that he/she remains in the Republic of Cyprus for at least 60 days of the assessment tax year.
The application of the rule is retroactive as from 1st January 2017.
The 60-day rule has since been amended under Cyprus’ wider tax reform, enacted by Parliament on 22nd December 2025 and published in the Official Gazette on 31st December 2025. The revised rule applies from tax years commencing 1st January 2026, as set out in Section II below.
II.CRITERIA
All the following criteria must be met by the applicant:
– Reside in Cyprus for at least 60 days cumulatively during the tax year; and
– Has a permanent residence in the Republic of Cyprus, owned or rented by the individual in question; and
– Is an officer of a tax resident of the Republic of Cyprus and/or conducts business in the Republic of Cyprus and/or is employed in the Republic of Cyprus; and
– Not reside in any other country for a period exceeding 183 days in total;