Become a Cyprus tax resident in 60 days!

The Cyprus House of Representatives has recently passed a new bill amending the legislation on Income Tax, giving the opportunity to individuals who spend more than 60 days in a year in Cyprus, to acquire Cyprus tax residency.

To qualify for Cyprus Tax Residency, individuals need to meet the following conditions: 

• Spend at least 60 days during a tax (calendar) year in Cyprus
• Maintain a permanent residence in Cyprus (owned or rented)
• Not be a tax resident of any other country or remain in any other country for more than 183 days during the tax year 
• Exercise business or have employment in Cyprus or be a director in a company resident in Cyprus at any time during the tax year

What are the benefits?

Cyprus Tax Residents are taxed on their worldwide income based on the below rates: 

Tax Base (EUR)	Tax rate (%)
Up to €19.500	0%
€19.501 to €28.000	20%
€28.001 to €36.300	25%
€36.301 to €60.000	30%
Over €60.000	35%

Individuals who are tax residents of Cyprus but are not domiciled in Cyprus enjoy certain exemptions, such as exemption from Special Defense Contribution (SDC) which is imposed on dividends, interest and rental income.
 
Tax exemption of 50% also applies for income exceeding €100,000 per annum, and is applicable for 10 years.

To estimate the number of days spent in Cyprus, the below are calculated: 

• the day of departure from Cyprus is considered as a day outside Cyprus.
• the day of arrival in Cyprus is considered as a day in Cyprus.
• arrival in Cyprus and departure from Cyprus within the same day is counted as one day in Cyprus.
• departure from Cyprus and return to Cyprus within the same day is counted as one day outside Cyprus.

If you wish to know more about the Cypriot Tax residency scheme and how it may benefit you, please contact our director, Savvas Shiatis at sshiatis@oneworldweb.net  for a complimentary consultation.