Background to the “60 Day” Tax Residency Rule
Posted: Wed Feb 19, 2025 9:24 am
In July 2017, the Cyprus Parliament voted for an amendment to the then criteria used to determine Cyprus tax residency. In addition to the 183 day rule, a second test was introduced in relation to an individual’s tax position in Cyprus: the 60 Day Tax Residency Rule.
The “183 day rule” applies to individuals who have physically resided in Cyprus for more than 183 days during one calendar year.
In addition to this, a second test was implemented whereby an individual can become Cyprus tax resident in 60 days. This rule is applicable to individuals who do not spend more than 183 days in Cyprus or in any other jurisdiction.
Since the implementation of the 60 day tax rule, a number of individuals have relocated to jordan mobile database Cyprus to take advantage of the various tax benefits that are available.
Criteria to be Met for an Individual to Meet the “60 Day” Residency Rule
The “60 day rule” applies to individuals who in the relevant tax year:
reside in Cyprus for at least 60 days;
operate/run a business in Cyprus and/or are employed in Cyprus and/or are a director of a company which is tax resident in Cyprus. Individuals must also have a residential property in Cyprus which they own or rent;
are not tax resident in any other country;
do not reside in any other single country for a period exceeding 183 days in aggregate.
The “183 day rule” applies to individuals who have physically resided in Cyprus for more than 183 days during one calendar year.
In addition to this, a second test was implemented whereby an individual can become Cyprus tax resident in 60 days. This rule is applicable to individuals who do not spend more than 183 days in Cyprus or in any other jurisdiction.
Since the implementation of the 60 day tax rule, a number of individuals have relocated to jordan mobile database Cyprus to take advantage of the various tax benefits that are available.
Criteria to be Met for an Individual to Meet the “60 Day” Residency Rule
The “60 day rule” applies to individuals who in the relevant tax year:
reside in Cyprus for at least 60 days;
operate/run a business in Cyprus and/or are employed in Cyprus and/or are a director of a company which is tax resident in Cyprus. Individuals must also have a residential property in Cyprus which they own or rent;
are not tax resident in any other country;
do not reside in any other single country for a period exceeding 183 days in aggregate.