Cyprus Tax Residency Certificates before tax year's end without first residing in Cyprus for 183
The Cyprus Tax Authorities will now issue tax residency certificates for individuals before the relevant tax year's end and the completion of 183 days stay in Cyprus of the individual.
The Tax Authorities, through a Circular issued on the 10th of March 2017, announced that individuals may be granted a tax residency certificate at any time in a given tax year without first having to reside in Cyprus for an aggregated period of 183 days.
Example:
Mr. X relocated in Cyprus in February 2017.
Mr. X has been registered with Tax Authorities and obtained Tax Identification Code (TIC) in March 2017.
Mr. X can apply and obtain Tax Residence Certificate for the year 2017 in March 2017 even he did not reside in Cyprus for an aggregated period of 183 days.
This measure aims at allowing Cyprus Tax Residents to benefit of Cyprus' Double Tax Treaties when receiving income from sources outside Cyprus, which has not been taxed at the source.
To be eligible for a Cyprus Tax Residency certificate the interested individual need to obtain a Tax Identification Code (TIC) from Cyprus Tax Authorities and sign a declaration stating that he intends to stay in Cyprus for one or more periods exceeding 183 days in a given tax year in order to become Cyprus tax resident for the year in consideration.
If the individual fails to become tax resident in the said year, he has to inform the Tax Authorities in order to cancel the certificate.
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