CYPRUS TAX RESIDENCY
Two Pathways to Cyprus Tax Residency
Cyprus follows a residency-based tax system, in which an individual's tax residence is determined by their physical presence in the country. Specifically, tax residency may be granted under two alternative schemes: the 183-day rule or the 60-day rule.
THE 60-DAY RULE
Cyprus Tax Residency Under the 60-Day Rule
If an individual does not reside in any other country for more than 183 days in the same tax year, they are considered to be a tax resident of Cyprus for that year once all the following requirements are met:
- In the tax year the individual spends at least 60 days in Cyprus.
- Throughout the tax year, engages in a Cyprus-based business or is employed by a Cyprus-based firm.
- The individual maintains a permanent residence in Cyprus, either owned or leased.
If an individual qualifies under the 60-Day Rule but later ceases employment, business activity, or holding an office in Cyprus, they will no longer be considered a tax resident for that year, in accordance with the revised legislation.
Days spent in Cyprus are calculated as follows:
- Day of departure is considered a day outside of the Republic.
- The day of arrival is considered to be a day in the Republic; thus, it is counted as such.
- A day in the Republic is defined as a person's entrance and departure from the Republic on the same day.
- If an individual leaves and returns to Cyprus on the same day, it is counted as a day outside the Republic.
THE 183-DAY RULE
Cyprus Tax Residency Under the 183-Day Rule
Under the 183-day rule, an individual must be physically present in Cyprus for more than 183 days in a given tax year to qualify as a tax resident.
On the other hand, an individual will be regarded as a non-tax resident of Cyprus if they are not physically present in the country for more than 183 days during the tax year.
FIND OUT MORE ABOUT OUR SERVICES TODAY
Contact our experts
Building trust with our clients by working closely with them in anticipating and defining future needs and opportunities is our number one priority.
