Check My Residency Eligibility
Considering Cyprus tax residency can offer significant financial advantages, but it’s not suitable for everyone. In this 2026 guide, we break down the pros and cons of Cyprus tax residency and help you identify when it might be a bad decision. Whether you are an EU, UK, or Non-EU citizen, understanding the rules, thresholds, and regulatory requirements is crucial before making the move. This guide covers key points such as the 60-day and 183-day rules, tax obligations, common pitfalls, and actionable insights to ensure you make an informed decision. By the end, you’ll have a clear understanding of whether Cyprus tax residency aligns with your personal or business situation and the steps needed to implement it effectively.
Cyprus tax residency determines your obligations and benefits under Cyprus law. Individuals are considered tax residents if they spend more than 183 days in Cyprus in a calendar year, or meet the 60-day rule with additional criteria: maintaining a permanent home, being employed or having business activity in Cyprus, and not being tax resident elsewhere.
Residency affects taxation of worldwide income and eligibility for Non-Dom status. Compliance with documentation is essential to avoid penalties or audits.
1. Low Corporate Tax: The corporate tax rate increased to 15% in 2026, still below many EU countries.
2. Non-Dom Advantages: Non-Doms enjoy 0% tax on foreign dividends and interest for 17 years.
3. EU & Double Tax Treaty Benefits: Avoid double taxation on foreign income.
4. Favorable Personal Income Tax: Progressive rates up to 35%, with multiple deductions and allowances.
5. Quality of Life: EU regulations, modern infrastructure, strategic location, and favorable banking system.
1. Compliance Complexity: Need to track days in Cyprus, maintain permanent home, and gather documentation.
2. 60-Day Rule Requirements: Must meet all criteria strictly; partial compliance invalidates residency claim.
3. Global Income Reporting: Worldwide income may need declaration even if exempt for Non-Doms.
4. Audit Risk: Authorities strictly enforce residency rules and tax filings.
5. Corporate Tax Update: Corporate tax increased to 15% in 2026, slightly reducing previous comparative advantage.
The Cyprus Tax Department (Τμήμα Φορολογίας Κύπρου) governs residency and taxation rules. Key regulations include:
- Forms TD2001 (personal tax return) and supporting residency documents (rental, utility, employment).
- Strict enforcement of 183-day and 60-day rules.
- Non-Dom status verification and reporting requirements.
Changes effective 2026: corporate tax at 15%, slight adjustment to personal deductions, and updated SDC rules (5% for domiciled, 0% for Non-Dom). EU/UK citizens maintain relatively simple compliance, Non-EU citizens require permits and visas.
1. Miscounting Days in Cyprus – leads to loss of Non-Dom benefits.
2. Not Maintaining Permanent Home – violates 60-day rule.
3. Incorrect Reporting of Worldwide Income – can trigger audits and fines.
4. Assuming Automatic Non-Dom Status – must be formally verified.
5. Ignoring 2026 Corporate Tax Update – planning based on old 12.5% rate can mislead projections.
1. Short-term residents unable to meet 60/183-day presence.
2. Non-EU citizens without proper visas or permits.
3. Individuals with complex foreign income without documentation.
4. Those expecting immediate tax-free dividends without Non-Dom verification.
5. People who prefer simpler jurisdictions or are not planning long-term residency.
| Parameter | Suitable | Not Suitable | Recommended Action |
|---|---|---|---|
| EU/UK Citizen | ✅ | — | Consider Non-Dom for dividends/interest |
| Non-EU Citizen | ✅ if criteria met | ❌ if cannot meet 60/183 days or lacks visa | Seek expert advice |
| High Foreign Income | ✅ with documentation | ❌ without clear reporting | Plan filings carefully |
| Corporate Ownership | ✅ | — | Account for new 15% corporate tax in projections |
Q: Has the Cyprus corporate tax rate changed in 2026?
A: Yes, starting 2026 the corporate tax rate increased from 12.5% to 15%, in line with international minimum tax rules (OECD Pillar 2).
Q: Are personal income taxes in Cyprus now 15%?
A: No. Personal income tax remains progressive up to 35%. The 15% rate applies only to corporate entities.
Q: Does Non-Dom status still apply?
A: Yes. Non-Doms remain exempt from Cyprus SDC on dividends and interest, with 0% for Non-Doms and 5% for domiciled residents. Eligibility requires residency and verification.
Q: Do EU/UK citizens have new restrictions post-Brexit?
A: No, EU/UK citizens can still obtain Cyprus tax residency and Non-Dom advantages, provided they meet 60/183-day rules.
Q: What are the most common mistakes in 2026?
A: Common mistakes include miscounting days, failing to maintain a permanent home, incorrect foreign income reporting, assuming automatic Non-Dom status, and ignoring the new 15% corporate tax in financial planning.
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Check My Residency Eligibility