From 1 January 2026, you can become a Cyprus tax resident by spending just sixty days in Cyprus, carrying out business activity in Cyprus, and maintaining a permanent home—provided you do not spend more than 183 days in any other single country. If you’re planning a move through Cyprus relocation services, understanding these new rules is essential. The previous requirement to not be tax-resident in any other state has been removed, with dual residency now resolved under the tie-breaker rules of the applicable double tax treaty. The change makes Cyprus one of Europe’s most attractive tax residency jurisdictions for internationally mobile individuals.
What is the Cyprus 60-day rule?
Cyprus offers two routes to tax residency. The 183-day rule, which is the standard test in most jurisdictions, and the 60-day rule, which was introduced specifically to attract internationally mobile professionals. The 60-day rule allows an individual to become a Cyprus tax resident with materially less physical presence than the conventional test.
The rule has been in place since 2017. Its appeal is the lower presence threshold — sixty days rather than 183 — which suits directors, founders, consultants and entrepreneurs whose work takes them across multiple jurisdictions. The trade-off has historically been the additional conditions attached to the 60-day route.
What changed on 1 January 2026
From 1 January 2026, you can become a Cyprus tax resident by spending just sixty days in Cyprus, carrying out business activity in Cyprus, and maintaining a permanent home—provided you do not spend more than 183 days in any other single country. If you’re planning a move through <a href=”https://www.evidentrust.com/services/relocation-to-cyprus/”>Cyprus relocation services</a>, understanding these new rules is essential. The previous requirement to not be tax-resident in any other state has been removed, with dual residency now resolved under the tie-breaker rules of the applicable double tax treaty. The change makes Cyprus one of Europe’s most attractive tax residency jurisdictions for internationally mobile individuals.
Under the 2026 Cyprus Tax Reform, the requirement that the individual must not be tax resident in any other state was removed. From 1 January 2026, an individual can claim the 60-day rule even if another country also claims them as resident. Where dual residency arises, it is resolved under the tie-breaker rules of the applicable double tax treaty. 0
The change is administrative in form but significant in effect. Under the old rule, an internationally mobile individual had to demonstrate a clean break from any other tax-resident state — a high bar that few could meet without genuinely cutting ties. Under the new rule, the individual simply has to satisfy the four remaining 60-day conditions and let the treaty mechanism decide the position where overlap exists.
The four remaining conditions
To qualify under the simplified 60-day rule in any calendar year, the individual must:
- Spend at least sixty days physically present in Cyprus during the calendar year
- Carry out business activity in Cyprus — as an employee, self-employed individual, or director of a Cyprus tax-resident company
- Maintain a permanent home in Cyprus, which the individual owns or rents
- Not spend more than 183 days in any single other country during the calendar year
Each condition must be met. Failing any one disqualifies the individual under the 60-day route for that year, though they may still qualify under the 183-day rule if they exceed the physical presence threshold.
How dual residency is resolved
Where an individual qualifies as tax resident in Cyprus under the 60-day rule and also qualifies as tax resident in another state under that state’s own rules, the tie-breaker rules in the applicable double tax treaty determine which country has the primary taxing right on each category of income.
Typical treaty tie-breakers (modelled on the OECD Model Tax Convention) test, in order: where the individual has a permanent home available, where their centre of vital interests lies, where they habitually reside, and finally their nationality. The Cyprus tax authorities accept that an individual may be Cyprus tax resident under the 60-day rule even when treaty tie-breakers allocate part of their income to the other state.
Who benefits most from the change
The simplification removes a practical obstacle that previously blocked three groups from using the 60-day route.
Internationally mobile directors and founders
Individuals running cross-border businesses who could not commit to severing ties with another single jurisdiction can now structure Cyprus residency around their work pattern. Cyprus becomes the primary tax-residency base; treaty tie-breakers handle any overlap.
UK-origin relocators in transition
UK residents planning a phased move to Cyprus no longer need to time the UK cessation precisely against the Cyprus residency claim. For individuals relocating to Cyprus from the UK, the simplification accommodates a transitional year of overlap, with the UK-Cyprus double tax treaty determining the tax position on each category of income. This change has become even more relevant following the UK non-dom abolition, which has encouraged many internationally mobile professionals to consider Cyprus as their preferred tax residency destination.
Consultants with multi-country client bases
Independent professionals invoicing clients across multiple jurisdictions, who previously fell foul of the “no other tax residency” rule by virtue of source-based taxation in client countries, can now use the 60-day route without that complication.
How to apply
The practical steps are straightforward but must be sequenced correctly. The Cyprus tax authority can issue a 60-day rule certificate if Cyprus tax residency is established by meeting the conditions and confirmed through the annual personal income tax return.
- Establish a permanent home in Cyprus (owned or rented; rental agreement evidenced)
- Set up business activity in Cyprus — register as an employee with a Cyprus employer, register as self-employed with social insurance, or be appointed as a director of a Cyprus tax-resident company
- Register for a Tax Identification Certificate (TIC) with the Cyprus Tax Department
- Apply for the Yellow Slip (EU/EEA/Swiss nationals) or the appropriate residence permit (third-country nationals)
- Plan the calendar — track Cyprus days and other countries’ days carefully throughout the year
- File the first personal income tax return (Form IR1) by the relevant deadline and, where applicable, apply for the Cyprus non-domicile regime by submitting Form TD38 if eligible.
Common mistakes
Three errors come up repeatedly in our practice. First, individuals assume that day-counting starts with the residence-permit application — it does not; the calendar year is the test. Second, individuals rent rather than buy a permanent home and fail to keep the lease documentation in order — the permanent home test requires evidence. Third, individuals overlook the 183-day-in-any-other-country cap and inadvertently disqualify themselves by spending too long in a single second jurisdiction.
Speak with Evidentrust
Evidentrust is a Cyprus-based, ICPAC-member accounting, audit, tax and advisory firm. Whether you require assistance with the 60-day rule, the 183-day rule, or comprehensive Cyprus relocation services, our team can help you structure your move efficiently. Book a short scoping call to discuss your circumstances and receive tailored advice.
Frequently asked questions
What changed in the Cyprus 60-day rule in 2026?
From 1 January 2026, the requirement that the individual must not be tax resident in any other state was removed. The remaining four conditions — sixty days in Cyprus, business activity, permanent home, and a 183-day cap in any other single country — continue to apply.
Can I be a tax resident in two countries under the new rule?
Yes. Under the simplified rule, you may qualify as tax resident in Cyprus under the 60-day route while also being a tax resident in another state under that state’s own rules. Where this happens, the applicable double tax treaty’s tie-breaker rules allocate primary taxing rights on each category of income.
Do the sixty days have to be consecutive?
No. The sixty days are aggregated across the calendar year. Days do not need to be consecutive, and there is no minimum continuous-stay requirement.
What counts as business activity in Cyprus?
Employment with a Cyprus employer, registered self-employment with social insurance registration, or directorship of a Cyprus tax-resident company all qualify as business activity. Many internationally mobile consultants also choose a Ltd setup to meet this requirement while benefiting from Cyprus’s business-friendly tax environment. The activity must be genuine, as nominal appointments without real commercial activity may not be accepted during a tax audit.
How is a permanent home evidenced?
By a rental agreement (registered and stamped) or a property title deed. The home must be available to the individual throughout the year — short-term Airbnb-style arrangements do not satisfy the test.
Does the 60-day rule give me a residence permit?
No. The 60-day rule is a tax residency test only. Residence permits (Yellow Slip for EU nationals, Pink Slip or Category F for third-country nationals) are a separate immigration matter and must be applied for independently.
