Cyprus tax residency

Cyprus tax residency

 Cyprus Tax Residency Rules and Benefits Cyprus offers two criteria for tax residency determination: the "183-day rule" and the "60-day rule," introduced in 2017. These rules establish tax residency for individuals in Cyprus based on the days spent in the country and other conditions. 183-day Rule:
  • An individual spending at least 183 days in Cyprus is considered a tax resident.
  • Worldwide income is subject to taxation in Cyprus.

60-day Rule:
  • For individuals not meeting tax residency criteria in any country.
  • Conditions for becoming a tax resident:

  • Spend at least 60 days in Cyprus during the tax year.
  • Not reside over 183 days elsewhere.
  • Not tax resident elsewhere.
  • Engage in business activities, work, or directorship in Cyprus.
  • Maintain a permanent residence in Cyprus.

Tax Benefits:
  • Cyprus tax residents, under both rules, are taxed on worldwide income.
  • Certain exceptions apply:

  • Non-domiciled residents exempt from taxation on worldwide dividends and passive interest income.
  • Profit from securities' sale is tax-exempt.
  • New residents with income over €100,000 enjoy a 50% income tax discount for 10 years.
  • Income earned from employment outside Cyprus exceeding 90 days is exempt from Cyprus income tax.

Seeking expert advice is crucial to navigate Cyprus' tax regulations effectively and optimize benefits. Contact us for personalized consultations and competitive fee services.