The 60-day tax residency rule
Cyprus has two routes to tax residency. The better known needs 183 days. The other needs 60, and considerably more besides.
The standard rule
Spend more than 183 days in Cyprus in a calendar year and you are tax resident. Nothing else is required.
The 60-day alternative
The shorter route exists for people who are not tax resident anywhere else. It requires all of its conditions to be met, not just the day count — and the day count is the easiest of them.
The conditions
Broadly: at least 60 days in Cyprus; not tax resident in another state; not spending more than 183 days in any single other country; carrying on business, being employed, or holding a directorship in Cyprus; and maintaining a permanent home here, owned or rented.
Where people go wrong
Two mistakes recur. The first is treating it as a 60-day rule and ignoring the rest. The second is letting the Cyprus employment or directorship lapse during the year, which breaks the qualification retrospectively.
Why it matters
Tax residency determines which country taxes your worldwide income. Getting it wrong in the first year is expensive to correct, because both countries may claim you.
Written by Antonis Lappas, ACCA. This is general information, not advice on your circumstances. Rules change — check the date on this article.