Do UK citizens pay tax in Cyprus?

Yes, once they're Cyprus tax resident under the 183-day or 60-day rule. Residents are taxed on worldwide income, at 0% on the first €22,000 and up to 35% above €72,000, with the reliefs above. Non-residents pay Cyprus tax only on Cyprus-source income.

How do I prove I'm Cyprus tax resident?

Register with the Tax Department for a Tax Identification Code, file your TD1 return, and ask for a tax residence certificate. For the 60-day rule you also file form TD126. HMRC and UK pension providers may ask for Cyprus-certified form DT-Individual before they stop taking UK tax. The Cyprus move timeline planner shows where these steps fall in your first year.

Can I be tax resident in Cyprus and the UK at the same time?

Yes. Each country applies its own test. Since 2026 the 60-day rule no longer requires you to be non-resident elsewhere, so dual residence is more common. The UK-Cyprus double tax treaty then decides which country has first right to tax each type of income.

Do I pay UK tax if I live in Cyprus?

On UK-source income such as UK rent, yes. Your UK State and private pensions are taxed in Cyprus under the treaty, while UK government service pensions stay taxable in the UK. If the SRT still makes you UK resident, the UK can tax your worldwide income.

Does the 60-day rule need a Cyprus company?

You need a business, employment or office with a Cyprus tax-resident company at some point in the year, and it must not end before 31 December. Many movers become a director of their own Cyprus company. It needs real substance to stand up to scrutiny.

How long does non-dom status last?

Until you have been Cyprus tax resident for 17 of the last 20 years. After that, the 2026 reform lets you extend the exemption with a lump sum of €250,000 for each 5-year period, up to two periods.

Is the digital nomad visa the same as tax residency?

No. A residence permit doesn't make you tax resident. Digital nomads become Cyprus tax resident only if they spend more than 183 days here in the year, or meet the 60-day rule. To find the right permit, try the Cyprus relocation route finder.

Free tool · 3 minutes

Cyprus Tax Route Finder: Which Tax Residency Rules Fit Your Plans?

Cyprus has two tax residency tests: more than 183 days, or the 60-day rule with a home and a business tie here. The UK decides separately under its Statutory Residence Test. This tool checks both sides and flags where you need advice.

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Check your Cyprus and UK tax residency

Ten questions. Your answers stay in your browser.

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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)

The short version

183-day rule: more than 183 days in Cyprus in a calendar year makes you tax resident. Nothing else is needed.

60-day rule: at least 60 days here, no more than 183 days in any other single country, a Cyprus business, job or directorship kept until 31 December, and a Cyprus home you own or rent.

From 1 January 2026 the 60-day rule no longer requires you to be non-resident everywhere else (PwC, KPMG). Treaty tie-breakers settle dual residence instead.

Non-dom status removes Special Defence Contribution on dividends and interest for 17 years. You still pay 2.65% GeSY.

The UK side is decided by the Statutory Residence Test, not by a 183-day count. Some people who spend fewer than 90 days in the UK are still UK resident.

The Cyprus tax residency rules the tool checks

Cyprus counts days in a calendar year. Your arrival day counts as a day in Cyprus and your departure day counts as a day outside. If you fly in and out on the same day, that's a day in Cyprus. If you fly out and back on the same day, it's a day outside. This checker is one of our free Cyprus relocation tools.

The 183-day rule

Spend more than 183 days in Cyprus in the year and you're tax resident. There are no other conditions. It suits people who live here full-time. See the 183-day rule guide.

The 60-day rule (2026 version)

Since 1 January 2026 you need all four of these in the same tax year:

At least 60 days in Cyprus.
No more than 183 days in any other single country.
A business, job or directorship with a Cyprus tax-resident company, still going on 31 December.
A permanent home in Cyprus that you own or rent.

The old fifth condition, "not tax resident in any other state", was removed by the 2026 reform. The Tax Department's own web page and form TD126 still show it, so ask your adviser how they want TD126 completed. Our 60-day rule guide covers the evidence you need.

Non-dom status

Non-dom isn't a residency rule. It's an extra status for Cyprus tax residents whose domicile of origin is outside Cyprus. It exempts you from Special Defence Contribution on dividends and interest for up to 17 of 20 years. You claim it on form TD38. See the non-dom guide.

Watch out

The UK side: 183 days is not the test

HMRC uses the Statutory Residence Test (SRT). If you were UK resident in any of the last 3 tax years, you're automatically non-resident only if you spend fewer than 16 days in the UK, or you work full-time abroad and spend fewer than 91 days here. Between those limits, your UK ties decide it. With 1 tie, a leaver becomes UK resident at 121 days. With 4 ties, just 16 days is enough.

Tell HMRC you've left on form P85, or on your Self Assessment return. If you come back within 5 years, some gains made while you were away can still be taxed. Read UK to Cyprus tax planning before you book flights.

Worked examples: three movers, both sides of the tax line

Illustrations of how the Cyprus tests and the UK Statutory Residence Test interact. Each person was UK resident in the 3 tax years before leaving.

Mover	Days in Cyprus / UK	Cyprus result	UK result
Retired couple living in Paphos full-time, flying home for Christmas	320 / 12	Resident under the 183-day rule	Automatically non-resident: under 16 UK days
Remote worker, family moved with them, keeps a UK flat let out on a long lease	250 / 40	Resident under the 183-day rule	Non-resident unless they have 4 UK ties at 40 days
Consultant with a Cyprus directorship and rented flat, family still in the UK, 120 days elsewhere	90 / 120	Resident under the 60-day rule	Likely UK resident: 2 ties (family, 90-day) is enough at 91–120 days

SRT day bands for leavers from HMRC RDR3: 16–45 days needs 4 ties, 46–90 days 3 ties, 91–120 days 2 ties, 121–182 days 1 tie. The consultant in row 3 is resident in both countries, so the UK–Cyprus treaty tie-breaker decides treaty residence. Illustrations only; get advice on your own facts.

What the 2026 reform changed for movers

These changes affect which route pays best.

Item	Before 2026	From 1 January 2026
60-day rule: not tax resident elsewhere	Required	Removed
Tax-free income band	€19,500	€22,000
Foreign pension: amount exempt before 5% rate	€3,420	€5,000
SDC on dividends (domiciled residents)	17%	5% on profits from 2026
SDC on rental income	3% on 75% of rent	Abolished
Deemed dividend distribution	Applied	Abolished for 2026 profits onwards
Non-dom after 17 years	Status ends	Optional €250,000 lump sum per 5 years (max 2 periods)

Sources: PwC Worldwide Tax Summaries (reviewed 4 August 2026) and KPMG Cyprus (April 2026). Tier 2: check with a licensed adviser before you act.

Cyprus personal income tax bands 2026

Taxable income	Rate
€0 – €22,000	0%
€22,001 – €32,000	20%
€32,001 – €42,000	25%
€42,001 – €72,000	30%
Over €72,000	35%

KPMG Cyprus, April 2026. GeSY contributions are charged on top: 2.65% for employees, pensioners and passive income, 4% for the self-employed, capped at €180,000 of income.

Cyprus tax breaks for people who move here

Once you're Cyprus tax resident, these reliefs can cut the bill further. Most apply for a fixed number of years from your first year of employment or residence.

Relief	Who gets it	What it's worth
50% employment income exemption	New Cyprus employment from 2022, pay above €55,000 a year, not resident in Cyprus for the previous 15 tax years	Half your salary exempt, for 17 years
20% employment income exemption	Previously employed abroad by a non-resident employer, not Cyprus resident for the previous 3 tax years	Up to €8,550 a year exempt, for 7 years
Non-dom status	Cyprus tax residents with a domicile of origin outside Cyprus (claim on TD38)	No SDC on dividends and interest for 17 of 20 years; 2.65% GeSY still due
Foreign pension option	Residents receiving pensions for work done abroad	Flat 5% above €5,000 a year, chosen each year
Child deduction (from 2026)	Parents under the household income limits (€100,000 with up to 2 children)	€1,000 first child, €1,250 second, €1,500 each further child
Rent or mortgage interest deduction (from 2026)	Primary residence, same income limits (€40,000 for a single person)	Up to €2,000 each

Source: PwC Worldwide Tax Summaries, Cyprus (income determination and deductions pages, 2026). Tier 2: confirm with a licensed adviser. Some professional sources describe a new 25% incentive under the 2026 'Minds in Cyprus' measures; PwC still shows the 20% exemption, so check which applies to you.

How to use your result

Green on both sides (Cyprus resident, UK non-resident): register with the Tax Department for a TIC, claim non-dom on TD38 if it applies, and file a TD1 return by 31 July each year. Residents aged 25 to 70 must file even with no income.
Resident in both countries: the UK-Cyprus treaty tie-breaker decides where you're resident for treaty purposes. This is adviser territory. Book a UK to Cyprus tax adviser introduction.
Resident nowhere: you probably still count as UK resident. Fix the Cyprus side first, usually with a company directorship and a lease. Our 60-day rule advice introduction can help.

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Tell us your result and we'll introduce you to a Cyprus tax adviser who works with UK movers. The introduction is free. The adviser quotes their fee up front.

60-day rule set-up and TD126
Non-dom (TD38) and pension elections
UK exit: SRT, split year, P85

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Cyprus tax residency rules: frequently asked questions

No. Cyprus has only the 183-day rule and the 60-day rule for individuals. The "90 days" people mention is usually the UK Statutory Residence Test's 90-day tie, or the 90-day visa-free limit for UK visitors.

Next step

Get your tax route checked before you commit

A result that works on paper can fail on the evidence. Get a free introduction to a Cyprus tax adviser who handles the UK side too, or start with a free relocation plan.

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Sources checked for this page

1.Cyprus Tax Department: Tax residencyGovernment
2.Cyprus Tax Department: Form TD126 (60-day rule declaration)Government
3.Cyprus Tax Department: Form TD38 (non-dom declaration)Government
4.PwC Worldwide Tax Summaries: Cyprus individual residence (reviewed 4 Aug 2026)Professional
5.PwC Worldwide Tax Summaries: Cyprus individual income determinationProfessional
6.KPMG Cyprus: Tax residency and non-dom rules (April 2026)Professional
7.Health Insurance Organisation: GHS financing and contributionsGovernment
8.HMRC: RDR3 Statutory Residence Test guidanceGovernment
9.GOV.UK: Tax if you leave the UK to live abroad (P85)Government
10.GOV.UK: Cyprus tax treaties (2018 convention and 2019 protocol)Government
11.PwC Worldwide Tax Summaries: Cyprus individual deductions (2026)Professional

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