For an individual to be considered a Cyprus Tax Resident they need to spend more than 183 days during a tax year (the period from 1st January until 31st December) in Cyprus.
As of 1st January 2017 the new 60-day rule can also be applied, which offers individuals the option to become Cyprus tax residents atier spending only 60 days in the country cumulatively.
This rule applies to individuals who, in the relevant tax year:
- Do not reside in any other country for a time period of more than 183 (collective) days
- Are not a tax resident in any other country
- Reside in Cyprus for at least 60 days
- Have additional Cyprus ties, including:
- Being an employee of a Cyprus Company
- Business ownership
- Being a director of a Cyprus Tax Resident company
All of the above must take place within a single tax year, and will not be considered valid in the case of termination of employment during the said tax year.
A permanent residential property that is either owned or rented should also be maintained within the tax year.
THE NON-DOMICILE CERTIFICATES ARE OBTAINED WITHIN 1 MONTH FROM SUBMISSION!
Steps:
- The individual moves to Cyprus at his permanent residence – rented or purchased
- The individual registers as a tax resident of Cyprus
- Depending on the 60 or 183 days rule the individual has to spend the required amount of time in Cyprus
- Just atier, Personal Tax Return of the individual is submited to the Tax Office
- The Non-Domicile Registration Certificate is issued within 1 month of submission.
*The Tax Department may request additional supporting evidence as follows:
- • Title Deed or Rent Agreement for the permanent residence in Cyprus
• VISA card statements showing expenses paid in Cyprus (supermarkets/restaurants etc)
• Utility bill in Cyprus (electricity/water/phone)
• Any other evidence showing the tax resident’s “substance” in Cyprus
The information provided by CRS is for general informational purposes only and should not be construed as professional or formal legal advice. You should not act or refrain from acting based on any information provided above without obtaining legal or other professional advice.