Moving to Cyprus: A Practical Guide Including the 60-Day Residency Rule

Cyprus is one of the most strategically attractive destinations for internationally mobile UK expats and HNW individuals. An EU member state with a common law legal tradition, English widely spoken, a benign Mediterranean climate, and one of Europe's most competitive non-domicile tax regimes, Cyprus occupies a rare position: genuine tax planning substance with a high quality of life. As of 2026, the island is home to a significant and growing British expat population, both long-established retirees and newer arrivals attracted by the tax and lifestyle proposition.

The 60-Day Rule — Cyprus Non-Dom for Tax Planning

One of Cyprus's most compelling features for internationally mobile individuals is its ability to establish tax residency on the basis of just 60 days per year (rather than the standard 183 days), under specific conditions.

The 60-day rule applies where, in the tax year in question, you:

1. Spend at least 60 days in Cyprus,
2. Do not spend more than 183 days in any other single country,
3. Are not tax resident in any other country,
4. Carry on a business or are employed in Cyprus, or hold an office in a Cyprus-resident company.

This allows genuine nomadic individuals — those splitting their time across multiple countries — to establish Cyprus as their tax base without committing to 183+ days in-country. This is a significant planning tool, but it must be genuinely structured and not just a paper exercise.

Cyprus Non-Domicile (Non-Dom) Status. Cyprus tax residents who are not domiciled in Cyprus (broadly: those who have not been Cyprus tax residents for 17 of the past 20 years, or whose domicile of origin is outside Cyprus) benefit from complete exemption from Special Defence Contribution (SDC) on dividends and interest income. This effectively means no Cyprus tax on foreign dividend and interest income for non-Dom residents — a major advantage for those with investment portfolios.

Cyprus personal income tax rates start at 0% on the first €22,000 (the tax-free band was raised from €19,500 under the tax reform in force from 1 January 2026) and rise to 35% on income above €60,000. There is no inheritance tax in Cyprus, and capital gains tax is limited to gains on Cyprus real property.

Visa and Residency Options

Post-Brexit, UK nationals require a visa to live in Cyprus long-term.

Category F Visa (Permanent Residence — Financially Independent Persons). A residency permit for those with sufficient secured income from abroad (not from Cypriot employment). As of 2026, the income threshold is approximately €9,568 per year for the applicant (plus €4,614 per dependant). A lower threshold than many competing programmes — but it is income that must be verifiably from non-Cyprus sources (pension, investment income, dividends, rental income).

Cyprus Permanent Residence by Investment (Fast Track). For those purchasing property with a minimum value of €300,000 (new builds only). The application is processed within two months. Offers permanent residency status. Note: the old citizenship-by-investment programme was suspended in 2020; this is a residency programme only.

Employment Visa. For those employed by a Cyprus-registered company — including holding a directorship in a Cyprus holding company, which many internationally mobile individuals use as part of their structure.

Digital Nomad Visa. Introduced in 2022, for non-EU nationals working remotely for foreign employers. Requires a minimum monthly income of €3,500. Valid for one year, renewable once. No Cyprus income tax on foreign income under this category.

Banking

Cyprus has a relatively small banking sector that was severely disrupted by the 2012–2013 financial crisis and the associated bail-in of deposits above €100,000. The banking system has since been substantially reformed and is under ECB/SSM supervision.

Main banks for expats:

• Bank of Cyprus — the largest bank, well-capitalised as of 2026; good English-language service.
• Eurobank Limited / Hellenic Bank — following Eurobank's acquisition of Hellenic Bank and the 2025 merger of Hellenic Bank with Eurobank Cyprus, this is now one of the island's largest banking groups, with a strong private banking offering and good service in Limassol.
• RCB Bank (formerly known as Russian Commercial Bank; renamed following 2022 sanctions changes) — reduced operations as of 2026; not recommended without checking current status.

For those with significant assets, Cyprus also has several international private banks and wealth managers — Limassol in particular has a substantial financial services cluster.

Healthcare

Cyprus has a National Health System (GESY), introduced in 2019, which provides universal healthcare to all registered residents (including legal foreign residents) for a modest contribution. As of 2026, the contribution is 2.65% of income for employed persons and a fixed capped amount for retirees and others.

GESY provides access to a network of private and public GPs and specialists contracted to the system. Quality has improved markedly since introduction but waits for specialist appointments can still be lengthy.

Private hospitals (e.g., American Heart Institute, Aretaeio Hospital, Ygia Polyclinic) provide faster access and higher amenity levels. International private medical insurance is advisable for those wanting seamless private care and medical evacuation coverage.

Cost of Living

Cyprus is moderately priced by Western European standards — cheaper than Western Europe's most expensive cities but not as cheap as Thailand or Eastern Europe. As of 2026:

• A two-bedroom apartment in Limassol (the financial and HNW hub): €1,200–2,500 per month.
• A villa in Paphos or Limassol suburbs: €2,000–4,000 per month for a quality property.
• Nicosia (the capital): 20–30% cheaper than Limassol for comparable accommodation.
• Groceries: broadly comparable to mid-UK supermarket prices; local produce is excellent and inexpensive.
• Eating out: a good taverna dinner for two with wine: €40–80; restaurant dining in Limassol's more upmarket areas: €80–150 for two.

Education

Cyprus has a well-developed international school sector:

• Grammar School, Nicosia — long-established British curriculum school.
• The English School, Nicosia — one of the oldest and most prestigious; competitive entry.
• Pascal International School, Limassol — GCSE and A-Levels, growing reputation.
• American Academy, Limassol — IB and American curriculum.

Fees range from approximately €4,000–12,000 per year, making Cyprus one of the more affordable international schooling environments in Europe.

Property

Cyprus allows foreign nationals (including UK citizens post-Brexit) to purchase property, subject to Council of Ministers approval (a routine formality for one property). The property market has been strong — Limassol in particular has seen significant price appreciation.

The Fast Track Permanent Residence requires a €300,000 minimum purchase of a new build. The property market has a range of quality — use a reputable lawyer and ensure title deed due diligence is thorough (Cyprus has historically had issues with title deed delays).

Popular Expat Locations

• Limassol — the financial hub; most HNW expats and corporate relocations; vibrant social scene; higher costs.
• Paphos — a large established British community; more relaxed pace; good amenities; lower costs.
• Nicosia — the capital; more Cypriot than expat in character; lower housing costs.
• Larnaca — growing expat community; airport city; more affordable.

How Global Investments Can Help

Global Investments has operated in Cyprus for over 32 years — our team has direct knowledge of the Cypriot market, the 60-day residency rules, non-domicile planning, and the integration of Cyprus residency with UK departure planning. We work with qualified Cypriot lawyers, tax advisers, and banking contacts to ensure clients establish their Cyprus residency correctly and beneficially from day one. If you are considering Cyprus as your tax base, speak to us before you structure anything.

This guide is for general information only. Tax rules, visa requirements, and regulations change frequently. Always seek professional legal and financial advice tailored to your circumstances before making relocation or investment decisions. Investments can fall as well as rise in value.