How many days do I need in Cyprus to be tax resident?

More than 183 days under the standard rule, or at least 60 days under the 60-day rule. The 60-day route also needs a Cyprus business, job or directorship, a home here, and no more than 183 days in any other single country.

Do UK citizens pay tax in Cyprus?

Yes, if they are Cyprus tax resident. Cyprus then taxes worldwide income, with credit for UK tax under the double tax treaty. Non-residents only pay Cyprus tax on Cyprus-source income.

Is there a 90-day rule in Cyprus?

Not for tax residency. UK visitors can stay 90 days in any 180 without a visa, and there's a salary exemption for more than 90 days' work abroad for a foreign employer. Neither makes you tax resident.

Is Cyprus a tax haven?

No. Cyprus is an EU member with a 15% corporation tax and income tax up to 35%. It is low-tax for specific income, mainly dividends and interest for non-doms and foreign pensions at 5%.

Is Cyprus tax residency the same as permanent residency?

No. Tax residency is a yearly day count under the Income Tax Law. Permanent residency is an immigration status from the Migration Department. You can hold one without the other.

How do I get a Cyprus tax residency certificate?

Apply to the Tax Department once you meet a residency test. Under the 60-day rule you file declaration TD126 with evidence of your days, home and Cyprus business or job.

What are the new tax rules for Cyprus in 2026?

The tax-free band rose to €22,000, SDC on new dividends fell to 5% for domiciled residents, deemed dividend distribution and most stamp duty were abolished, and corporation tax rose to 15%. The 60-day rule lost its "not tax resident elsewhere" condition.

Can UK citizens get residency in Cyprus?

Yes, but not through the yellow slip unless they also hold an EU passport. UK-only passport holders use a visitor (temporary residence) permit, Category F, the digital nomad visa, permanent residency by investment or an employment permit. Tax residency is separate and depends on your days here.

How much money do I need to get residency in Cyprus?

It depends on the permit. The visitor permit asks for €24,000 a year (+20% for a spouse, +15% per child), the digital nomad visa €3,500 a month net, Category F a minimum of €9,568 a year plus €4,613 per dependant, and PR by investment a €300,000 investment plus €50,000 a year of income from abroad.

Is Cyprus 0% income tax?

Only on the first €22,000 of income a year from 2026. Above that you pay 20% to 35%. Dividends and interest sit outside income tax, and non-doms pay no SDC on them, only 2.65% GESY.

Are there tax breaks for people who move to Cyprus to work?

Yes. A new Cyprus job paying at least €55,000 can be 50% exempt for 17 years, and smaller 20% and 25% exemptions cover other new arrivals for 7 years. Salary for more than 90 days' work abroad for a foreign employer is fully exempt.

Paphos harbour and fort in warm afternoon light with people walking along the promenade

Tax & residency

Cyprus Tax Residency: The 2026 Guide for People Moving from the UK

You become Cyprus tax resident by spending more than 183 days here in a calendar year, or at least 60 days if you meet the 60-day rule's extra conditions. From 2026 the first €22,000 of income is tax-free, and non-doms pay no Special Defence Contribution on dividends or interest.

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The short version

Two ways in: more than 183 days in Cyprus in a calendar year, or the 60-day rule (60 days here, no more than 183 days in any other single country, a Cyprus business, job or directorship, and a Cyprus home).

2026 reform: the tax-free band rose from €19,500 to €22,000, the 60-day rule lost its "not tax resident elsewhere" condition, and SDC on dividends fell to 5% for domiciled residents.

Non-dom: if Cyprus is not your domicile of origin you pay 0% SDC on dividends and interest for 17 of the last 20 years. You still pay 2.65% GESY on that income.

UK side: Cyprus residency does not end UK residency. HMRC decides that with the Statutory Residence Test.

Immigration is separate: tax residency is a day count. Your right to live here comes from a residence permit, and UK-only passport holders can't use the yellow slip.

Cyprus tax and residency guides

Start with the rule that fits how you'll live, then work through the rest.

Suitcase by the balcony door of a sunny Paphos apartment overlooking the sea

Residency rule

The 60-day rule

Tax residency with only 60 days a year in Cyprus, if you meet all four conditions.

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Couple walking along the Paphos coastal path at sunset

Residency rule

The 183-day rule

The simple route for people living here full-time. How days are counted and where it goes wrong.

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Laptop and coffee on a shaded terrace overlooking the Paphos coast

Tax status

Non-dom status

0% SDC on dividends and interest, the 17-year limit and the new €250,000 extension.

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Aircraft window view of the Paphos coastline on approach

Leaving the UK

UK to Cyprus tax

The Statutory Residence Test, split-year treatment and the UK–Cyprus tax treaty.

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Clinic entrance in Paphos with palm trees in morning light

Health levy

GESY contributions

Who pays 2.65%, 2.90% or 4.00%, on which income, and the €180,000 cap.

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Paphos old town street with limestone buildings and bougainvillea in morning light

Immigration

Yellow slip (MEU1)

The EU citizen registration certificate, who can get it after Brexit and who can't.

Explore

How Cyprus tax residency works

Cyprus tax residency depends on the days you spend here in a tax year, which runs from 1 January to 31 December. The Cyprus Tax Department recognises two tests. Meet either one and you are tax resident for that year, and Cyprus taxes your worldwide income.

Test	What you must do	Who it suits
183-day rule	Spend more than 183 days in Cyprus in the calendar year. No other conditions.	Retirees and families living here full-time
60-day rule	Spend at least 60 days in Cyprus, no more than 183 days in any other single country, run a business, work or hold a directorship with a Cyprus tax resident company, and own or rent a permanent home here	Business owners, remote workers and anyone who travels a lot

Older couple walking along the Kato Paphos promenade at sunrise, with palm trees and a calm sea — Early risers have the Kato Paphos promenade almost to themselves

The day count has fixed rules. The day you arrive counts as a day in Cyprus. The day you leave counts as a day outside Cyprus. If you fly in and out on the same day, that counts as a day in Cyprus. If you leave and come back on the same day, that counts as a day outside Cyprus.

There is no 90-day rule for residency. The only 90-day figure in Cyprus income tax is an exemption for salary earned abroad for a foreign employer.

You don't "apply" for tax residency. You meet a test, register with the Tax Department for a Tax Identification Code (TIC), and declare your income on the TD1 return, due by 31 July of the following year. KPMG's April 2026 guide says residents aged 25 to 70 must now file a return even if they have no income.

Cyprus tax in five numbers

€22,000

Tax-free income band from 2026

Up from €19,500

60 days

Minimum stay under the 60-day rule

Plus three more conditions

SDC on dividends and interest for non-doms

For 17 of the last 20 years

2.65%

GESY on pensions, dividends, rent and interest

Capped at €180,000 of income

Optional flat rate on foreign pensions

On the amount above €5,000

Cyprus income tax rates for 2026

Cyprus taxes employment income, business profits, pensions and rent on a progressive scale, and the 2026 reform widened every band. You pay nothing on the first €22,000.

Income tax bands: 2026 vs 2025

Rate	2026 bands (from 1 Jan 2026)	2025 bands
0%	€0 – €22,000	€0 – €19,500
20%	€22,001 – €32,000	€19,501 – €28,000
25%	€32,001 – €42,000	€28,001 – €36,300
30%	€42,001 – €72,000	€36,301 – €60,000
35%	Over €72,000	Over €60,000

Source: PwC Worldwide Tax Summaries, reviewed 4 August 2026. Dividends and interest are not taxed under these bands. They fall under SDC (see below).

Meze dishes and a carafe of red wine on a vine-shaded taverna table in Kathikas — Sunday meze in Kathikas, one of the Akamas wine villages

Some income sits outside the main bands:

Foreign pensions: you can choose a flat 5% on the amount above €5,000 a year instead of the normal bands, and switch each year. The threshold was €3,420 up to 31 December 2025.
Crypto-asset gains: a flat 8% from 2026.
Dividends and interest: exempt from income tax, but subject to Special Defence Contribution (SDC) unless you are non-dom.
Company profits: corporation tax is 15% from 2026, up from 12.5%.

Cyprus has no inheritance tax, no gift tax, no wealth tax and no annual property tax. Capital gains tax only applies to Cyprus property and shares in companies that own it. For the UK pension detail, see our guide to UK pensions in Cyprus.

Tax breaks if you move here to work

Cyprus gives new arrivals four employment reliefs on top of the €22,000 tax-free band. Each has its own start date and residence history test, so check which one fits before you sign a contract.

Relief	Who qualifies	What you get
50% exemption	A Cyprus job paying at least €55,000 a year, if you weren't Cyprus resident for the 15 consecutive years before it started	Half your salary exempt for 17 years
20% exemption	Your first Cyprus job, started after 26 July 2022, after at least 3 consecutive years living and working abroad	20% of salary exempt, capped at €8,550 a year, for 7 years
25% "Minds in Cyprus"	Graduates who worked abroad for at least 36 months and start a Cyprus job paying €30,000+ between 2025 and 2030	25% exempt, capped at €25,000 a year, for 7 years
Work abroad	Salary for more than 90 days' work outside Cyprus in the year for a non-Cyprus employer	That salary is fully exempt

For a UK professional taking a €90,000 Cyprus job, the 50% exemption means income tax is worked out on €45,000: €5,400 instead of €19,800 on the full salary (before social insurance deductions). Remote workers on the digital nomad visa should check the remote workers hub first, because the visa and the exemptions have separate rules.

Retired couple on an apartment balcony in Chloraka watching the sunset over the sea — Evenings on a Chloraka balcony, looking west over the sea

Worked example: a retired couple in Paphos

A British couple retire to Paphos and are Cyprus tax resident and non-dom. He has a €24,000 UK workplace pension, she has a €12,000 UK State Pension, and they earn €3,000 interest on savings. Under the treaty both pensions are taxed only in Cyprus once they've claimed relief.

Income	Amount	Cyprus income tax	GESY at 2.65%
His workplace pension (normal bands)	€24,000	€400	€636
Her State Pension (normal bands)	€12,000	€0	€318
Savings interest (non-dom, no SDC)	€3,000	€0	€80
Total	€39,000	€400	€1,034

That's €1,434 in total, about 3.7% of their income. He'd pay €950 under the flat 5% option ((€24,000 − €5,000) × 5%), so the normal bands win for him.

When the 5% option wins: with a €22,000 tax-free band, the flat 5% only beats the normal bands once a foreign pension passes about €27,700 (if it's your only income). On a €40,000 pension the bands cost €4,000 and the 5% option €1,750. You choose each year on your TD1 return. Sources disagree on whether GESY is due on a pension covered by an S1, so check that point with an advisor.

What the 2026 tax reform changed

Parliament passed the reform on 22 December 2025 and it took effect on 1 January 2026. These are the changes that matter to someone moving from the UK.

Area	Before 2026	From 1 January 2026
Tax-free band	€19,500	€22,000
60-day rule	5 conditions, including "not tax resident in any other country"	That condition removed
SDC on dividends (domiciled residents)	17%	5% on profits from 2026 (17% still applies to older profits)
SDC on rental income	2.25% effective	Abolished
Deemed dividend distribution	70% of company profits deemed paid out after two years	Abolished for profits from 2026
Stamp duty	On most contracts	Abolished for most documents dated from 2026
Non-dom after 17 years	Status ended	Optional €250,000 lump sum per 5-year extension, up to two
Corporation tax	12.5%	15%
Foreign pension exemption	€3,420	€5,000

The reform also added family allowances (€1,000 for a first child, €1,250 for a second, €1,500 for each further child, subject to household income limits) and a deduction of up to €2,000 for rent or mortgage interest on your main home. Our 2026 Cyprus tax updates for expats explain each change in full.

Golden-hour view over Coral Bay beach with swimmers in turquoise water and villas on the hillside

Non-dom status: 0% SDC on dividends and interest

Special Defence Contribution (SDC) is a separate tax on dividends and interest. It only applies to people who are both tax resident and domiciled in Cyprus. If your domicile of origin (broadly, where your father was domiciled when you were born) is not Cyprus, you are non-dom and pay no SDC.

For most British movers that means dividends from their own company and savings interest are free of Cyprus tax. The only charge is the 2.65% GESY health contribution, capped at €180,000 of income a year.

Non-dom status ends once you have been Cyprus tax resident for 17 of the last 20 years. Since 2026 you can extend it for up to two further five-year periods by paying €250,000 per period. You claim non-dom on form TD38. Read the full Cyprus non-dom guide or see what the term means in our non-dom glossary entry.

Dividends, pensions or both?

Get your Cyprus tax set-up checked before you move

A free introduction to a vetted Cyprus tax advisor who works with UK movers: residency rule, non-dom claim and pension election in one conversation.

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Watch out

Cyprus residency does not end UK residency

Becoming Cyprus tax resident does nothing to your UK status. HMRC applies the Statutory Residence Test (SRT) to each UK tax year (6 April to 5 April). If you spend 183 days or more in the UK you are UK resident, whatever Cyprus says.

If both countries treat you as resident, the UK–Cyprus double tax treaty tie-breaker decides which one gets primary taxing rights. Plan your leaving date and UK ties before you go.

Leaving the UK tax system

HMRC's Statutory Residence Test has three layers, checked in order:

Automatic overseas tests. You are non-resident if you were UK resident in any of the previous three tax years and spend fewer than 16 days in the UK, or you work full-time abroad and spend fewer than 91 days in the UK.
Automatic UK tests. You are UK resident if you spend 183 days or more in the UK, or your only home is in the UK.
Sufficient ties test. If neither applies, your UK days are weighed against your UK ties (family, accommodation, work, 90-day and country ties). A leaver spending 91–120 days in the UK only needs 2 ties to stay UK resident.

Spring wildflowers on the hillside above Tala with olive trees and the coast in the distance — Wildflowers on the hills above Tala in spring

Split-year treatment can divide the year you leave into a UK part and an overseas part, but only if you fit one of the HMRC cases. UK government service pensions stay taxable in the UK under the treaty. Our UK to Cyprus tax guide walks through each test with examples.

Which Cyprus tax route fits you?

Answer a few questions about your income, travel and business, and we'll show which residency rule and tax status to look at first.

Free toolCyprus tax route finder

1 / 10

How many days will you spend in Cyprus this calendar year?

Arrival day counts as a day in Cyprus; departure day counts as a day outside.

Sources: Cyprus Tax Department: Tax residency · Cyprus Tax Department: Form TD126 (60-day rule declaration) · Cyprus Tax Department: Form TD38 (non-dom declaration) · PwC Worldwide Tax Summaries: Cyprus individual residence (reviewed 4 Aug 2026) · PwC Worldwide Tax Summaries: Cyprus individual income determination · KPMG Cyprus: Tax residency and non-dom rules (April 2026) · Health Insurance Organisation: GHS financing and contributions · HMRC: RDR3 Statutory Residence Test guidance · GOV.UK: Tax if you leave the UK to live abroad (P85) · GOV.UK: Cyprus tax treaties (2018 convention and 2019 protocol)

Tax residency vs immigration residency

Tax residency and the right to live in Cyprus are two separate systems. The Tax Department counts your days. The Civil Registry and Migration Department decides whether you may stay beyond 90 days.

The yellow slip (MEU1) is the registration certificate for EU citizens. A UK citizen can only get one with a second EU passport, such as Irish. UK nationals who lived here before 31 December 2020 are covered by the Withdrawal Agreement instead. If you hold only a UK passport, your options are:

a temporary residence permit, often called the "pink slip" (visitor permit, €70 plus €70 registration, no work allowed)
Category F residency for people with a secure income from abroad
the digital nomad visa for remote workers earning at least €3,500 a month net
permanent residency by investment
an employment permit through a Cyprus employer or your own Cyprus company

Read the yellow slip guide for the full Brexit position.

GESY: the health contribution everyone forgets

GESY (the General Healthcare System, also written GHS) is funded by a percentage of income. As a Cyprus tax resident you pay 2.65% on salary, pensions, rent, dividends and interest, or 4.00% if you are self-employed. Employers add 2.90% on salaries. Contributions stop once your total liable income reaches €180,000 in a year.

Non-dom status does not remove GESY. A non-dom taking €100,000 in dividends pays €2,650 in GESY and no SDC. See the GESY contributions guide for the calculator and worked examples.

Children running into the waves at Lighthouse Beach in Kato Paphos in late-afternoon sun — Lighthouse Beach in Kato Paphos, a short walk from the harbour

Your Cyprus tax residency roadmap

The usual order for a UK household moving to Paphos.

1
Sort your immigration route
3–6 months before
Pick the permit that fits your passport and income. UK-only passport holders need a residence permit, not a yellow slip. Use our relocation route finder if you're unsure.
2
Plan your UK exit date
2–3 months before
Check which Statutory Residence Test case fits you and cut UK ties you don't need. Tell HMRC with form P85 if you're leaving employment.
3
Choose your Cyprus tax test
Before year one
Full-time here: the 183-day rule. Travelling a lot with a Cyprus company or job: the 60-day rule.
4
Rent or buy a home and register
Month 1
Get your residence permit and Alien Registration Certificate, then register with the Tax Department for a TIC.
5
Claim non-dom and set up GESY
Year one
File form TD38 in the first year you receive dividends or interest, and give banks form TD624/NP so they don't deduct SDC.
6
File your first TD1 return
By 31 July the following year
Declare worldwide income, elect the 5% pension rate if it helps, and keep your day-count evidence.

Free introduction

Get your UK-to-Cyprus tax setup checked

Tell us your income mix and moving date. We'll introduce you to a vetted Cyprus tax advisor who works with UK movers. The introduction is free; the advisor quotes their own fee.

60-day or 183-day rule: which one fits your year
Non-dom claim and GESY on dividends
UK Statutory Residence Test and split-year planning

Founder-led. Replies within one working day.

Cyprus tax residency FAQs

Spend more than 183 days in Cyprus in a calendar year, or meet all the 60-day rule conditions. Then register with the Tax Department for a TIC and file a TD1 return each year.

Next step

Find your Cyprus tax route in two minutes

Answer six questions and get the residency rule, tax status and next steps that fit your move.

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Sources checked for this page

1.Cyprus Tax Department — Individuals (tax residency)Government
2.PwC Worldwide Tax Summaries — Cyprus individual residence (reviewed 4 Aug 2026)Professional
3.PwC Worldwide Tax Summaries — Cyprus taxes on personal income, 2026 and 2025 bandsProfessional
4.PwC Worldwide Tax Summaries — Cyprus income determination (pensions, SDC, exemptions)Professional
5.PwC Worldwide Tax Summaries — Cyprus other taxes (social insurance, GHS, CGT)Professional
6.KPMG Cyprus — Tax Residency and Non-Dom Rules (April 2026)Professional
7.Andersen Cyprus via International Tax Review — Cyprus tax reform effective 1 January 2026Professional
8.Cyprus Tax Department — Form TD038 (non-dom declaration)Government
9.GESY (Health Insurance Organisation) — Financing: contribution rates and co-paymentsGovernment
10.HMRC — RDR3 Statutory Residence Test guidance (updated June 2026)Government
11.gov.uk — Cyprus: tax treatiesGovernment
12.Migration Department — Registration of EU citizens (MEU1)Government
13.Migration Department — UK nationals and family members with free movement (Withdrawal Agreement)Government
14.Migration Department — Visitors and family members (temporary residence permit)Government
15.Migration Department — Digital nomads and family membersGovernment
16.Migration Department — Supporting documents: visitor temporary residence permit (Dec 2025)Government
17.Migration Department — Immigration permits (Category F)Government
18.Migration Department — Immigration permits for investors (Regulation 6(2))Government

Written by

Jason

Founder, Paphos Advisor

British founder who moved his family from the UK to Paphos in 2025. I write down what I learned doing it properly — the tax, the residency and the living-here detail — and introduce people to the specialists I’d use myself.

How I research and fact-check

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