How to Get a Tax Residence Certificate in Cyprus
For international professionals, investors, and digital nomads, obtaining a Tax Residence Certificate (TRC) in Cyprus is a crucial step for tax planning and leveraging the island's favorable tax system. A TRC is an official document issued by the Cyprus Tax Department that certifies you are a tax resident of the country, which is often required to benefit from double taxation treaties and other tax exemptions. This guide will provide a detailed, step-by-step look at the eligibility criteria, the required documents, and the process of applying for a TRC in 2025. For a broader overview of the local business environment, you can read our guide on The AI-Powered Marketer: Business Adviser. You can also explore our guide on Cyprus for Expats to get a good overview of the local life.
1. Eligibility Criteria: The 183-Day and 60-Day Rules
To obtain a Tax Residence Certificate, you must first be a tax resident of Cyprus. The eligibility is determined by one of two rules:
The "183-Day Rule"
The traditional rule for tax residency in Cyprus is the **183-day rule**. Under this rule, a person is considered a tax resident if they spend more than 183 days in the country in a single tax year. The tax year is the calendar year. This is the most straightforward way to establish tax residency and is a common practice in many countries. The days are counted based on your entry and exit stamps in your passport, so it is important to keep a record of your time in the country. You can find more information about this in our FAQ Guides section. You can also explore our guide on Cyprus Non-Dom Status.
The "60-Day Rule"
In addition to the 183-day rule, Cyprus also offers a "60-day rule" for tax residency, which is a great option for digital nomads and professionals who travel frequently. To qualify under this rule, a person must:
- Spend at least **60 days** in Cyprus in a tax year.
- Not spend more than 183 days in any other country in the same tax year.
- Not be a tax resident of any other country in the same tax year.
- Carry out a business in Cyprus, be employed in Cyprus, or hold a position in a company that is a tax resident of Cyprus.
This rule provides a great deal of flexibility and is a major draw for international professionals. It allows you to benefit from the tax system of Cyprus without being physically present for a full 183 days. For more on the local business environment, you can check out our guide on Cyprus Company Formation Requirements for Foreigners.
2. Required Documents for the Application
To apply for a Tax Residence Certificate, you will need to provide a number of documents to the Cyprus Tax Department. It is highly recommended to work with a professional corporate services provider or an accountant to ensure that all the documents are in order. You can find a professional to help with this in our directory of Professional Corporate Services.
Personal Documents
- Passport: A certified copy of your passport.
- Proof of Address: A certified copy of a utility bill or a rental agreement that shows your address in Cyprus.
- Income Statement: A statement that shows your income from all sources, both local and foreign.
- Tax Identification Number (TIN): Your TIN from the Cyprus Tax Department.
Supporting Documents for the "60-Day Rule"
If you are applying under the "60-day rule," you will need to provide additional documents to prove your business or employment in Cyprus. These may include:
- Employment Contract: A certified copy of your employment contract with a Cyprus-based company.
- Company Documents: A certified copy of your company's registration documents, if you are a business owner.
- Proof of Stay: A copy of your flight tickets and hotel bookings to prove your stay in Cyprus. You can also explore our directory of all finance, banking, and investment for more information.
3. The Application Process and Timeline
The process of applying for a Tax Residence Certificate is straightforward. The application is submitted to the Cyprus Tax Department, along with all the necessary documents. The process typically takes a few weeks, and upon successful approval, you will receive a TRC. The certificate is valid for one year and must be renewed annually. For more on the local business environment, you can check out our guide on Cyprus Company Registration: A Step-by-Step Guide 2025. You can also get more help and information on Costs to Set Up a Limited Company in Cyprus in our guide.
Frequently Asked Questions (FAQ)
1. What is a Tax Residence Certificate (TRC)?
A Tax Residence Certificate (TRC) is an official document issued by the Cyprus Tax Department that certifies you are a tax resident of the country. It is often required to benefit from double taxation treaties and other tax exemptions. The certificate is valid for one year and must be renewed annually. For more information, you can find a suitable accounting or auditing firm in our business directory.
2. What is the difference between the 183-day rule and the 60-day rule?
The 183-day rule is the traditional rule for tax residency in Cyprus. It requires you to spend more than 183 days in the country in a single tax year. The 60-day rule is an alternative rule for tax residency that allows you to become a tax resident if you spend at least 60 days in the country in a tax year, provided you meet a few other conditions. You can also explore our business directory of all businesses on the island to find a good partner.
3. What documents do I need to apply for a TRC?
To apply for a TRC, you will need a certified copy of your passport, proof of address, an income statement, and your Tax Identification Number (TIN). If you are applying under the "60-day rule," you will also need to provide a certified copy of your employment contract or company registration documents. You can find a professional to help with this in our directory of Professional Corporate Services.
4. How long does the application process take?
The application process for a TRC typically takes a few weeks, provided that all the necessary documents are in order. The process can be a bit longer during the busy tax season. It is always best to work with a professional to ensure a smooth and efficient process. Our guide on Cyprus Company Registration provides more detail.
5. Do I need to be a resident of Cyprus to apply for a TRC?
Yes, you must be a tax resident of Cyprus to apply for a TRC. You must meet either the "183-day rule" or the "60-day rule" to be considered a tax resident. The application is submitted to the Cyprus Tax Department after you have established your tax residency on the island. You can also explore our guide on Cyprus for Expats to get a good overview of the local life.
6. What is the benefit of a TRC?
A TRC is a very important document that is often required to benefit from double taxation treaties and other tax exemptions. It is a legal document that certifies your tax residency in Cyprus, which can help you reduce your tax burden on your foreign income. This is a crucial benefit for international professionals and investors. For more on the local business environment, you can check out our guide on Cyprus Company Formation Requirements for Foreigners.
7. Can I get a TRC if I am a non-domiciled tax resident?
Yes, you can get a TRC if you are a non-domiciled tax resident of Cyprus. The TRC is a certification of your tax residency, which is a prerequisite for the Non-Dom status. The two statuses are separate but are often applied for at the same time. You can read more about the Non-Dom status in our guide on Cyprus Non-Dom Status.
8. How long is a TRC valid?
A TRC is valid for one year and must be renewed annually. The renewal process is similar to the initial application and requires the same documents. It is always best to start the renewal process a few weeks before the expiration date to avoid any delays. For more on the local business environment, you can check out our guide on Cyprus Shelf Companies.
9. Can I apply for a TRC on my own?
Yes, you can apply for a TRC on your own, but it is highly recommended to work with a professional corporate services provider or an accountant. The process involves a number of legal and bureaucratic steps that can be complex for a non-Cypriot. A professional can ensure that all the documents are in order and that the process runs smoothly and efficiently. You can also get more help and information on our FAQ and Guides page.
10. What is the importance of a TRC for companies?
A TRC is a very important document for companies, particularly for those that operate internationally. It is often required to benefit from double taxation treaties and other tax exemptions. It is a legal document that certifies the company's tax residency in Cyprus, which can help you reduce your tax burden on your foreign income. You can also get more help on choosing a company name in our guide.
