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CYPRUS TAX RESIDENCY

CYPRUS TAX RESIDENCY

The case

Until now an individual was considered to be a tax resident of Cyprus if the individual was present in Cyprus for at least 183 days in a year i.e. for more days than in any other jurisdiction.

In an effort to provide incentives to foreigners to come to work in Cyprus, the Cyprus House of Representatives voted into law an amendment to the above.

The amendment

The law has been amended so that an individual, who does not remain in any other country for one or more periods which altogether exceed 183 days in the same tax year and who is not a tax resident in any other state for the same tax year, be considered as a tax resident of Cyprus.

According to the new conditions an individual is considered a Cyprus Tax Resident if the following three criteria specifications are met:

Note

Further amendments have been made to clarify that an individual that 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 the Republic and/or employment in the Republic and/or holding of an office with a tax resident person in the Republic is terminated.

Calculation of the days of presence in Cyprus

For calculating the days of presence in Cyprus:

The case

Until now an individual was considered to be a tax resident of Cyprus if the individual was present in Cyprus for at least 183 days in a year i.e. for more days than in any other jurisdiction.

In an effort to provide incentives to foreigners to come to work in Cyprus, the Cyprus House of Representatives voted into law an amendment to the above.

The amendment

The law has been amended so that an individual, who does not remain in any other country for one or more periods which altogether exceed 183 days in the same tax year and who is not a tax resident in any other state for the same tax year, be considered as a tax resident of Cyprus.

According to the new conditions an individual is considered a Cyprus Tax Resident if the following three criteria specifications are met:

Note

Further amendments have been made to clarify that an individual that 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 the Republic and/or employment in the Republic and/or holding of an office with a tax resident person in the Republic is terminated.

Calculation of the days of presence in Cyprus

For calculating the days of presence in Cyprus: