Cyprus Non-Dom Status and the 60-Day Rule: A strategic tax residency option

Cyprus continues to position itself as one of Europe’s most tax-attractive jurisdictions, offering significant advantages for individuals looking to legally reduce their tax exposure. Among the most beneficial regimes available is the Non-Domiciled Tax Resident Scheme, often referred to as Non-Dom status — particularly when combined with the 60-Day Tax Residency Rule.

German nationals can read our complete guide to relocating to Cyprus from Germany, which covers how the non-dom 60-day rule fits the wider move.

At KoufettasLaw, we advise high-net-worth individuals, entrepreneurs, and remote professionals on how to structure their tax residence in Cyprus in full compliance with local laws while maximising tax efficiency. Below is a complete guide to how the Non-Dom regime and the 60-day rule work, who qualifies, and how to benefit from them.

What Is the Non-Dom Regime in Cyprus?

The Non-Domiciled Tax Residency regime, introduced in 2015, exempts eligible individuals from paying Cyprus Special Defence Contribution (SDC) on certain categories of income, including:

• Dividends
• Interest income
• Rental income

This applies regardless of where the income is generated — in Cyprus or abroad  provided the individual qualifies as Cyprus tax resident but is not domiciled in Cyprus.

Key Tax Benefits for Non-Doms

Non-Domiciled tax residents of Cyprus benefit from the following exemptions:

• Zero tax on dividends (normally taxed at 17%)
• Zero tax on passive interest income (normally taxed at 30%)
• Zero SDC on rental income (normally taxed at 3% on 75% of the gross rent)
• No wealth tax, gift tax, or inheritance tax
• Corporate income tax of 15% for Cyprus-based companies (raised from 12.5% on 1 January 2026)
• Access to double tax treaties with more than 65 countries

Who Is Considered Non-Domiciled?

A person is considered non-domiciled in Cyprus if they were not born in Cyprus and have not been a Cyprus tax resident for at least 17 of the last 20 years.

If you were born outside of Cyprus and have not resided there long term, you are highly likely to qualify for Non-Dom status even if you become tax resident through the 60-day or 183-day rule.

How to Become a Cyprus Tax Resident: 60-Day vs. 183-Day Rule

There are two legal paths to become a tax resident of Cyprus.

1. The 183-Day Rule

You become tax resident by physically residing in Cyprus for more than 183 days during a calendar year, without any other conditions.

2. The 60-Day Rule

You can still qualify for tax residency even if you stay only 60 days per calendar year, provided all the following conditions are met:

• You do not reside in any other single country for more than 183 days in that year
• You do not need to prove you are not tax resident elsewhere — this condition was abolished on 1 January 2026
• You carry out business activities, are employed, or hold a directorship in a Cyprus tax resident company
• You maintain a permanent residential address in Cyprus, either owned or rented

Combining the 60-Day Rule with Non-Dom Status

Combining the 60-day tax residency rule with Non-Dom status creates one of the most tax-efficient personal structures available within the EU. If you are forming a company in Cyprus, our guide to company formation and annual maintenance costs breaks down the full 5-year budget.

Example Scenario:

• A UK national becomes a tax resident in Cyprus under the 60-day rule
• They establish a Cyprus company or take a directorship role
• They rent an apartment in Paphos
• Their income is derived from dividends and investments held abroad

In this case, the individual would:

• Be fully compliant under Cyprus tax law
• Pay zero tax on dividends and interest
• Avoid double taxation due to treaty access
• Be eligible for Cyprus tax residency certificate

Required Steps to Establish Non-Dom Status

To establish yourself as a Non-Dom tax resident in Cyprus, you must:

1. Meet the 60-day or 183-day physical presence rule
2. Register with the Cyprus Tax Department and obtain a Tax Identification Number (TIN)
3. File the relevant declaration for Non-Domicile status
4. Maintain documentation supporting your business or employment activity
5. Open a local bank account and register for social insurance (if applicable)

At KoufettasLaw can assist you with all stages of the process, including company setup, residence registration, tax filings, and liaising with the Cyprus Tax Department.

Why Choose KoufettasLaw for Tax Residency Structuring

Whether you are planning to relocate your business or restructure your personal tax residency, Cyprus offers a powerful legal framework. However, compliance, planning, and documentation must be handled with care.

At KoufettasLaw, we offer:

• Strategic tax residency planning for individuals and families
• Assistance with residence registration and tax number issuance
• Support in applying for Non-Dom declaration
• Company formation and directorship services
• Liaison with tax authorities and accountants
• Ongoing legal support to maintain your residency status

Frequently Asked Questions

Contact KoufettasLaw Today

The Cyprus Non-Dom regime and 60-day rule present a rare opportunity to reside in the EU with minimal tax exposure, provided the structure is properly implemented and maintained.

If you are exploring your options for tax residency in Cyprus, let KoufettasLaw help you benefit fully from this modern tax and immigration framework.

Related: see our full how Cyprus compares to Malta, Portugal and Greece in 2026 with worked examples for five income profiles.

Related reading: our full Cyprus 2026 tax reform guide (non-dom still 0% SDC) walks through every change enacted 1 January 2026 with dated primary sources.

Estate-planning note: your domicile also shapes what happens to your assets on death. Our guide to Cyprus inheritance tax and forced heirship explains the rules and how foreign nationals can elect their home-country law.