Cyprus Digital Nomad Visa: Tax Implications

Cyprus has a genuinely favorable tax regime for new residents, but it's worth separating immigration status from tax residency — holding the visa doesn't automatically make you a Cyprus tax resident. That's determined separately, either by the standard 183-day rule or a distinctive 60-day rule (spend at least 60 days in Cyprus, don't spend 183+ days in any single other country, and maintain a permanent home and business ties in Cyprus) — genuinely useful if you split time across multiple countries rather than basing primarily in one. Qualifying tax residents can access Non-Domiciled status, exempting dividend, interest, and rental income from the Special Defence Contribution for up to 17 years, plus a 50% income tax exemption on foreign employment income above roughly €55,000/year.