Cyprus Tax residency for Individuals – Period of stay reduced to 60 days

On the 14^th of July the Cyprus Parliament passed a law amending the Income tax law of 2002 as to the requirements of tax residency of individuals in Cyprus.

Cyprus Tax residency for Individuals – Period of stay reduced to 60 days.

On the 14^th of July the Cyprus Parliament passed a law amending the   Income tax law of 2002 as to the requirements of tax residency of individuals in Cyprus.

More specifically:

If an individual (i) is not residing in another state for one or more periods that exceed 183 days  of the same tax year and (ii) is not  a tax resident of another state is considered as resident of the Republic in the given tax year  if ALL of the following parameters are adhered to:

1. Resides in Cyprus for at least 60 days in the tax year.
2. Exercises business in the Republic, and/or is employed in the Republic and/or is an officer in a company that is tax resident in Cyprus at any time in a given tax year.
3. Has a permanent resident in the Republic that is owned or rented by the individual.

If at any given time during the tax year, even though  all of the above parameters  are adhered to,  the individual terminates his business activities  or  employment or  office he will not be considered as a resident of the Republic for that year.

The law is considered to take effect from the 1^st of January 2017.

Please contact a member of our staff for further information and/or clarifications. 

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