Identification and Taxation in Cyprus
For foreign nationals establishing residency in Cyprus, navigating the administrative landscape requires obtaining two primary identifiers: the Alien Registration Certificate (ARC) and the Tax Identification Code (TIC). These numbers serve as the foundation for legal employment, healthcare access, and financial transactions within the Republic of Cyprus.
The administrative systems for EU/EEA nationals and third-country nationals (non-EU) differ in procedure but lead to the same functional outcomes. As of 2025 and moving into 2026, the Cypriot government has shifted most tax-related processes to digital platforms to streamline registration for the increasing expatriate population.
The Alien Registration Certificate (ARC)
The ARC is a unique 7-digit identification number assigned to non-Cypriot citizens by the Civil Registry and Migration Department (CRMD). It is not a physical card itself, but rather a number printed on residency permits (such as the MEU1 for EU citizens or the Pink Slip for non-EU residents).
Who must apply?
- EU/EEA Nationals: Individuals staying longer than 90 days must apply for a Registration Certificate (Yellow Slip). The ARC is assigned during this process.
- Third-Country Nationals: Individuals entering for work, study, or permanent residency are assigned an ARC upon their first successful residency application.
Costs and Timeline
The application for a Registration Certificate (MEU1) for EU citizens typically costs €20 ($21 USD, Jan 2026). For non-EU nationals, residency permit fees vary significantly depending on the visa category, generally ranging from €70 ($73.50 USD, Jan 2026) to €150 ($157.50 USD, Jan 2026) for initial issuance. Processing times can vary between 1 and 5 months depending on the district office.
Note: It is a legal requirement to register with the Migration Department within four months of arrival for EU citizens, or within the timeframe specified by the entry visa for third-country nationals.
The Tax Identification Code (TIC)
The Tax Identification Code (TIC) is mandatory for any individual who has a tax liability in Cyprus. This includes employees, self-employed individuals, and those receiving rental income or dividends within the Republic. Since the transition to the "Tax For All" (TFA) portal in 2023, the TIC is also the primary key for navigating the national social insurance and healthcare (GESY) systems.
Registration Requirements
Registration with the Tax Department is required if an individual's annual gross income exceeds the tax-free threshold, which is currently €19,500 ($20,475 USD, Jan 2026). However, an individual may need a TIC regardless of income level to complete certain legal contracts or to register for the General Healthcare System (GESY).
Application Process
To obtain a TIC, foreign nationals must typically provide:
- A valid passport or national ID.
- Proof of residency (ARC or residency permit).
- Completed Form T.D. 2001 (available on the Tax Department website).
- Proof of address (e.g., utility bill or rental agreement).
The registration is free of charge, but failure to register within 60 days of becoming liable for tax may result in an administrative fine of approximately €100 ($105 USD, Jan 2026).
Exceptions and Special Considerations
The interplay between ID and Tax numbers can vary based on specific circumstances:
Digital Nomads and Remote Workers
Foreigners residing in Cyprus under the Digital Nomad Visa scheme are required to obtain an ARC. Their tax residency status depends on whether they spend more than 183 days in the Republic or satisfy the "60-day rule" (subject to specific conditions regarding business ties in Cyprus).
The Non-Domicle Status
Foreigners who move their tax residency to Cyprus may qualify for the "Non-Domicile" status. While they still require a TIC, this status provides significant exemptions on Special Defence Contribution (SDC) taxes on dividends and interest for a period of 17 years. Applications for this status are handled through the Tax Department after the TIC is issued.
Social Insurance Number
The Social Insurance Number is distinct from the TIC and ARC. It is required for anyone engaged in gainful employment in Cyprus. Employers are usually responsible for registering their employees with the Social Insurance Services once the employee has obtained their ARC.