Cyprus tax residency – “60 day” rule

The Cyprus legislation recently amended where an individual can be considered as a Cyprus Tax resident if all of the following conditions are met:
• stays in Cyprus for one or more periods of at least 60 days;
• does not stay in another state for one or more periods exceeding a total of 183 days;
• is not a tax resident in another state;
• carries on a business in Cyprus or is employed in Cyprus or holds an office in a Cypriot tax resident company on 31 December of each tax year, that is, the business or employment or the holding of an office does not end before the end of the tax year;
• maintains permanent residence in Cyprus owned or rented

The law is effective from 01/01/2017. Being a Cyprus Tax resident, an individual will be benefited from the extensive double tax treaties of Cyprus and have tax efficiencies on the receipt of dividends, interest and royalties.

For the purposes of issuing a tax residency certificate for a person who meets the 60
days residence rule in Cyprus, a declaration must be submitted [Form Τ.D.126 (2017)].

It is noted that the certificate may be issued before the 60 days of stay in Cyprus,
provided that:
• all the other conditions of the 60 days residence rule in Cyprus are met;
• the application for the issue of the certificate concerns the receipt of dividends or
interest from sources abroad and the relevant proof for the imminent receipt of income
is submitted; and
• is shown on the certificate to be produced (to which tax authority or to which


The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Our tax specialists are at your disposal should you require any further information or clarifications.