Cyprus Tax Residency
Cyprus tax residency gives the opportunity to businessmen, professionals and high-net-worth individuals to benefit from Cyprus Income tax advantages on worldwide personal income.
183 days rule
According to the Cyprus tax system, physical presence in Cyprus exceeding 183 days in a tax year (1st January to 31st December) will constitute tax residency for individuals. Therefore, if an individual is physically present in Cyprus for more than 183 days in a tax year, s/he will be considered a tax resident of Cyprus in that tax year.
60 days rule
As of 1st January 2017, the above tax residency rules have been amended to provide that an individual who does not stay in any other country for more than 183 days in the same tax year and is not tax resident in any other country for the same year, is deemed as a resident in Cyprus in that tax year, if all of the following conditions are met:
(i) the individual stays in Cyprus for at least 60 days in the tax year,
(ii) exercises a business and/or is employed in Cyprus and/or holds an office with a Cyprus tax resident company at any time during the tax year,
(iii) maintains (by owning or leasing) a permanent home in Cyprus.
The law is further amended to clarify that an individual that cumulatively meets all the above conditions shall not be treated as a Cyprus tax resident in the tax year, if during that year the
exercise of any kind of business in Cyprus and/or employment in Cyprus and/or holding of an office with a tax resident person in Cyprus, is terminated.
Days spent in Cyprus
Days spent in Cyprus should be calculated as follows:
- The day of departure from Cyprus counts as a day of residence outside Cyprus
- The day of arrival in Cyprus counts as a day of residence
- Same day arrival and departure from Cyprus counts as a day of residence in Cyprus
- Same day departure and arrival in Cyprus counts as a day of residence outside in Cyprus