On Friday 14 July the Parliament of Cyprus unanimously approved a bill that gives the right to an individual who spends more than 60 days in Cyprus to be considered as tax resident in Cyprus, provided that he meets cumulatively certain conditions.
The Income Tax Law has been amended so that an individual meeting the following criteria is considered to be a tax resident of Cyprus:
he should remain in Cyprus for at least 60 days during the tax (calendar) year; and
he should maintain a permanent residence in Cyprus, which can be either owned or rented by him; and
he should not be a tax resident of any other State or remain in any other State for a period or periods exceeding 183 days in respect of any year he claims Cyprus tax residency.
he should exercise business in Cyprus or have employment in Cyprus or be a director in a company resident in Cyprus at any time during the tax year and such business, directorship or employment should continue to exist at the end of the year in which Cyprus residency is claimed.
For the purposes of calculating the days of stay in Cyprus:
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.
Contact us for free consultation and to assist you for the new scheme on Cyprus Tax Residency.