Comparing the 60-Day Rule and Non-Dom Status in Cyprus: Which One Is Right for You?

Comparing the 60-Day Rule and Non-Dom Status in Cyprus: Which One Is Right for You?

 

Cyprus offers two powerful tools for international individuals looking to reduce their tax burden and enjoy a flexible, business-friendly lifestyle in the EU:

  1. The 60-Day Tax Residency Rule
  2. The Non-Domiciled Tax Status (Non-Dom Regime)

Although they’re often mentioned together, these are two separate but complementary tax planning tools — and it’s important to understand what each one does, how they work together, and who can benefit most.

1. The 60-Day Tax Residency Rule – Become a Cyprus Tax Resident

Introduced in 2017, the 60-day rule allows individuals to become Cyprus tax residents by spending just 60 days in the country per year, as long as they meet certain criteria.

To qualify, you must:

  • Spend at least 60 days in Cyprus during the calendar year;
  • Have a permanent home in Cyprus (owned or rented);
  • Not be a tax resident of any other country;
  • Not spend more than 183 days in any other single country;
  • Carry out business, employment, or hold a directorship in a Cyprus company, which must remain active through year-end.

This rule is ideal for entrepreneurs, consultants, and digital nomads who want Cyprus tax residency without needing to relocate full-time.

2. The Non-Domiciled Tax Status – Enjoy Long-Term Tax Exemptions

The non-dom regime, introduced in 2015, exempts Cyprus tax residents from the Special Defence Contribution (SDC) — a tax on dividends, interest, and rental income.

To benefit, you must:

  • Become a Cyprus tax resident (under either the 60-day rule or the traditional 183-day rule); and
  • Not be considered “domiciled in Cyprus” under Cyprus succession law.

Key tax benefits include:

  • 0% tax on dividends
  • 0% tax on interest
  • 0% SDC on rental income
  • Tax exemptions valid for up to 17 years, unless you’ve been a Cyprus tax resident for 17 of the past 20 years

This regime is especially attractive for investors, high-net-worth individuals, and business owners who earn significant passive income.

So, Which One Is Right for You?

Category 60-Day Rule Non-Dom Status
Purpose Makes you a Cyprus tax resident with minimum time spent Exempts you from tax on passive income
Who qualifies? Professionals who travel or live abroad most of the year Cyprus tax residents who are not domiciled
Main benefit Quick, low-commitment tax residency Long-term tax exemptions on dividends, interest, and rent
Can they be combined? ✅ Yes ✅ Yes
Best for Entrepreneurs, digital nomads, consultants Investors, shareholders, high earners, retirees

Final Thoughts

The real advantage comes when you combine both strategies:

  • ✅ Use the 60-day rule to gain tax residency in Cyprus
  • ✅ Qualify as non-domiciled to enjoy generous tax exemptions

Together, they make Cyprus one of the most attractive destinations in Europe for strategic tax planning.

Want to find out which option is best for your personal or business needs?
Contact Christophi & Associates LLC for a tailored consultation and let us help you build your tax-efficient future in Cyprus.

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