The 60 Day Rule Explained

Many of our readers are probably aware that Cypriot legislation states that individuals who spend more than 183 days during a tax year (the period from 1^stJanuary until 31^stDecember) in Cyprus are considered a Cyprus Tax Resident.

As of 1^stJanuary 2017, however, the new 60-day rule can also be applied, which offers individuals the option to become a Cyprus tax resident after spending only 60 days in the country. This rule comes as an amendment to the initial, 183-day rule and provides an incentive to individuals seeking to change their tax residency to Cyprus, but at the same time continue living in a different jurisdiction for the majority of the year.

We answer some of the major questions surrounding the 60-day rule.