Guide
Cyprus tax residency: the 183-day rule and the 60-day rule in 2026
Updated
Non-dom status is worthless without Cyprus tax residence, and residence is where the 2026 reform quietly moved the goalposts.
Talk to a specialist SDC saved today, and what it costs when the 17-year clock runs out.
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How this calculator works
- Domicile test. An individual is domiciled in Cyprus for Special Defence Contribution purposes in either of two cases. One is a domicile of origin in Cyprus under the Wills and Succession Law (with certain exceptions). The other is tax residence in Cyprus for at least 17 out of the 20 tax years immediately prior to the tax year of assessment.
- Source: Ministry of Finance, tax incentives, published 15 January 2026. This calculator models the 17-in-20 limb only. If your domicile of origin is Cypriot, non-dom status is not available to you and the calculator does not apply.
- Dividends. SDC is withheld on dividends received by individuals at 5% from profits earned after 1 January 2026, and at 17% on profits earned before that date (gov.cy).
- The Tax Department's own worked example pays 17% on a 2027 dividend out of 2025 profits, and 5% on one out of 2026 profits. Source: Tax Department reform presentation.
- Interest. Interest income received by individuals is subject to SDC at 17%. Certain savings certificates, government and listed corporate bonds carry 3% instead of 17% (gov.cy).
- A person with total annual income including interest up to €12,000 is entitled to a refund of SDC withheld on interest in excess of 3%. Neither the refund nor the 3% category is modelled: enter only ordinary interest.
- Rental income is deliberately absent. SDC on rental income was abolished from 1 January 2026. Rents are now taxed with income tax and a General Healthcare System contribution only. Source: Tax Department FAQs, 11 May 2026. Any calculator still charging SDC on Cyprus rent is out of date.
- General Healthcare System (GESY) contributions are not modelled, and they do not go away with non-dom status. The Tax Department confirms GESY still applies to rental income after SDC was removed, and that corporate tenants continue to withhold it.
- We could not read the Health Insurance Organisation's published contribution rates and annual income ceiling at source today, so we publish no rate. Get the current rate and cap from the Health Insurance Organisation before relying on a net figure.
- Income tax is separate and is not calculated here. Dividends and interest of Cyprus tax residents are exempt from income tax, but everything else is not.
- The personal scales changed for 2026. The tax-free band rose from €19,500 to €22,000, with 20% to €32,000, 25% to €42,000, 30% to €72,000 and 35% above that (businessincyprus.gov.cy).
- Anti-avoidance provisions apply to the domicile rules. Domicile status is retained until the completion of 20 tax years, not necessarily consecutive, in which the individual is not a Cyprus tax resident. Leaving for a few years does not reset the clock.
Two ways to become a Cyprus tax resident individual
An individual is a tax resident of Cyprus if they reside in Cyprus for more than 183 days in the tax year, or meet the 60-day residence rule. Source: businessincyprus.gov.cy, the government's business portal.
The Income Tax (Amending) Law N. 244(I)/2025, in force from 1 January 2026, amended the definition of resident of the Republic.
The Tax Department's presentation on the reform states that the 183-day rule was not amended. The 60-day rule now applies regardless of whether the individual is a tax resident of another state. The rule's remaining conditions continue to apply. Source: Tax Department, Tax Reform 2026: Income Tax.
Verify before relying on this. The Tax Department's presentation confirms which condition was removed but does not restate the 60-day rule's remaining conditions. Its residence page on mof.gov.cy was unreachable when we checked on 15 August 2026, so we do not list them. Get them from the Tax Department or your Cyprus adviser before planning a year around 60 days.
Companies: a new incorporation test
The same amendment changed corporate residence. A company is a resident of the Republic on the management and control test, which was not amended. It is resident additionally if it was incorporated in the Republic under the Companies Law, unless a double taxation treaty provides otherwise.
A company that transfers its registered office or seat to Cyprus is treated as incorporated in Cyprus. The previous condition that the company must not be resident in another state was deleted (Tax Department).
That matters to anyone who set up a Cyprus company and deliberately managed it from elsewhere. From 2026 incorporation alone can make it Cyprus tax resident, subject to treaty relief.
Who has to file
- For the 2025 tax year, an individual with gross income exceeding €19,500 had to register and file.
- From the 2026 tax year, you must register and file if you have gross income falling under article 5 of the Income Tax Law, or if you are a Cyprus tax resident who has reached 25 but not 71 by 31 December of the tax year, regardless of income.
- A legal entity registered in the Republic must register and file.
All three are stated on the government business portal (businessincyprus.gov.cy). The age-based filing obligation is new and catches residents with no income at all.