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Cyprus Tax Residency & Non-Dom Benefits Explained

At Square One, we work closely with foreign investors looking to maximise returns through Cyprus’s thriving real estate market. One of the biggest advantages?

Cyprus’s exceptionally favourable tax system—especially for those who gain Cyprus tax residency or qualify for the non-domicile (non-dom) regime.

This guide will explain the 60-day rule vs 183-day rule, non-dom Cyprus benefits, and how investors can legally reduce their global tax liabilities while owning high-performing properties.

Cyprus Tax Residency: Understanding the 60-Day vs 183-Day Rule

Cyprus offers two ways to become a tax resident, depending on your lifestyle and business commitments.

The 183-Day Rule

You're considered a Cyprus tax resident if you spend more than 183 days in Cyprus in a calendar year (Jan–Dec).

The 60-Day Rule Cyprus

Ideal for digital nomads and international investors. To qualify under the 60-day rule, you must:

  • Spend at least 60 days in Cyprus per year
  • Not be tax resident elsewhere
  • Not spend more than 183 days in any other single country
  • Carry out business or employment in Cyprus (or be a director of a Cyprus tax-resident company)
  • Maintain a residential property in Cyprus (owned or rented)

This rule offers incredible flexibility and full access to Cyprus’s tax benefits.

The Power of Non-Dom Cyprus Status

Cyprus’s non-domicile regime makes it one of Europe’s most tax-friendly countries for passive income.

Who Qualifies?

You are non-domiciled in Cyprus if:

  • You were not born in Cyprus to Cypriot parents, and
  • You have not been a Cyprus tax resident for at least 17 of the past 20 years

Key Non-Dom Cyprus Benefits

Income Type – Tax Treatment for Non-Doms:

  • Dividends: 0% SDC (17% exemption)
  • Interest Income: 0% SDC (30% exemption)
  • Rental Income: 0% SDC on 75% of income

Note: You may still pay income tax and GeSY (2.65%) where applicable.
This makes Cyprus a highly strategic base for wealthy individuals, company shareholders, and international landlords.

What Income Is Taxed vs Exempt in Cyprus?

Cyprus tax residents are taxed on worldwide income, but with major reliefs and exemptions.

Income Tax Rates (2024)

  • Up to €19,500 – 0%
  • €19,501–28,000 – 20%
  • €28,001–36,300 – 25%
  • €36,301–60,000 – 30%
  • €60,000+ – 35%

What’s Tax-Exempt?

  • Dividends & Interest: Non-doms pay 0% tax
  • Foreign pensions: Option to pay a flat 5% on income above €3,420
  • Capital gains (non-Cyprus real estate): Exempt
  • Rental income: 80% is taxable, with deductions; SDC exempt for non-doms