How the 60-day rule, non-dom status and company setup work together.
Cyprus offers a structured way to reduce taxes — with EU access, stability, and quality of life. Here’s how it works.
Most countries require 183 days to establish tax residency. Cyprus offers an alternative: the 60-day rule for qualifying residents.
This makes Cyprus one of the most flexible setups for founders and investors who split time across countries.
The 60-day rule is an alternative to the standard 183-day rule — not a loophole. It was designed specifically to attract internationally mobile professionals.
Renting is enough. You do not need to buy property to qualify. A rented apartment satisfies the permanent address requirement — most clients start by renting before deciding whether to purchase.
Non-dom is short for non-domiciled — meaning you can be tax resident in Cyprus without being treated as permanently domiciled there.
For qualifying non-doms, Cyprus removes the Special Defence Contribution on dividends, interest and foreign rental income. In practice, this creates a long-term structure for receiving investment income with minimal tax friction.
In short: you keep more of what you earn.
60+ Double Tax Treaties — when you establish Cyprus tax residency, you benefit from one of the most extensive treaty networks in the region. Your income from foreign sources is protected from double taxation under agreements with most major economies.
Under the 2026 Cyprus tax reform, cryptocurrency disposals are taxed at a flat 8% rate for individuals who are Cyprus tax residents.
The rate applies when you dispose of crypto — selling, swapping or converting to fiat. Simply holding crypto is not taxable. Staking rewards and DeFi income are treated separately under standard income tax rules.
Importantly, you do not need a Cyprus company to access the 8% rate. It applies at the personal level as long as you are a Cyprus tax resident, whether through the 60-day rule or the standard 183-day rule.
DAC8 note: From 1 January 2026, EU crypto exchanges are required to report transactions to tax authorities under DAC8. If you are still tax resident in a high-tax EU country, your crypto activity will be visible to that country’s tax authority. Establishing Cyprus tax residency before you dispose of significant holdings is increasingly important.
The Cyprus IP Box can reduce the effective tax rate on qualifying intellectual property income to around 3%.
For AI, SaaS and software businesses, this can make Cyprus a strong EU base for licensing revenue, API fees, subscriptions and other qualifying IP income.
To qualify, the IP must generally be developed or substantially improved through the Cyprus company. Bought-in IP with no further development does not qualify.
For AI, SaaS and software businesses, the IP Box can turn qualifying licensing, API and subscription revenue into one of the most efficient EU tax structures available.
A Cyprus private limited company gives the structure its foundation: 15% corporate tax, access to the IP Box, tax-free dividend extraction for qualifying non-doms, and eligibility for the 60-day rule.
You can still access the 8% crypto rate through personal tax residency, but the company is what brings the wider Cyprus framework together.
From first conversation to fully structured Cyprus residency — a realistic timeline.
Tax residency and permanent residency are separate. Tax residency determines how your income is taxed. Permanent residency is a separate programme based on a €300,000+ qualifying investment, giving you and your family a long-term EU base with a path to citizenship after 8 years.
Many clients pursue both: tax residency for income optimisation, and permanent residency as a long-term base. The two structures complement each other well.
Book a free consultation. We’ll walk through your situation and map out exactly how the Cyprus framework applies to your income and goals.