On the 22nd of September 2017 the Cyprus Tax Commissioner issued an Interpretation Circular in relation to the issuance of tax residency certificate based on the recently announced 60 days tax residency status (see our related post).
The Cyprus Tax Commissioner clarified that as of 1st January 2017 an individual will be considered a Cyprus Tax Resident if he/ she:
does not spend more than a total of 183 days in any country within a tax year, and
is not a tax resident of another country within the same tax year
and the following three conditions are met:
remains in Cyprus for at least 60 days during the tax year, and
carries on a business in Cyprus or is employed in Cyprus or holds an office in a Cyprus tax resident company at any time during the tax year, and
maintains a permanent residence in Cyprus, which can be either owned or rented.
However, if the employment or business or holding of an office as per point 2 above is terminated, then the individual shall cease to be considered a Cyprus tax resident for that tax year under the special scheme of the 60 days tax residency.
The Cyprus Tax Commissioner also clarifies that, in order for an individual to obtain a tax residency certificate based on the 60 days rule, he/ she must submit the following: