An individual can apply to obtain Tax Residency in Cyprus in case they meet the following criteria:

1.Spending more than 183 days in Cyprus in any one calendar year in which case the individual is taxed in Cyprus on their worldwide income.

2.As from 1 January 2017, an individual may also be considered as Tax Resident in Cyprus if they satisfy the ‘’60’’days rule. The ‘’60’’ days rule applies to individuals who in the relevant tax year:

    • Do not reside in any other state for a period exceeding 183 days in aggregate;
    • Are not tax residents in any other country;
    • Reside in Cyprus for at least 60 days/tax year
    • Maintain permanent residence property in Cyprus, which either is owned or rented.
    • To satisfy this condition the individuals must carry out business in Cyprus and/or hold the position of a director of a company which is a Tax Resident in Cyprus at any time during the tax year.

3. An individual who applies for tax residency in Cyprus, at any time, may be asked from the Cyprus Tax Authorities to prove their residency in Cyprus in which case they should submit copies of a property title deed or rental agreement, electricity and water bills, all of which should be in the name of the individuals.

4.The ‘60’ days rule applies only if ALL of the above criteria are met by an individual in a calendar year.

5.The following income tax rates apply for individuals for the year 2020:

Taxable Income

Tax Rates

First 19.500€ 0%
19.501€ – 28.000€ 20%
28.001€ – 36.300€ 25%
36.301€ – 60.000€ 30%
60.000€ and Above 35%