How does one become a Cyprus tax resident?
An individual who spends 183 or more days in Cyprus during any given tax (i.e. calendar) year is considered a Cyprus Tax Resident. This is often referred to as the ‘183-day’ rule.
As an exception to this rule, the ‘60-day’ rule provides that an individual is considered to be a Cyprus Tax Resident, if s/he:
- does not reside in any other single country for a period exceeding 183 days in aggregate during that Tax Year,
- is not considered a tax resident in any other country,
- resides in Cyprus for at least 60 days during that Tax Year, and
- has other defined ties or links to Cyprus.
To satisfy the last criterion, an individual must carry out a business in Cyprus, be employed in Cyprus and/or hold an office in a Cyprus Tax Resident Company at any time in that Tax Year.
The individual must further maintain in the tax year a permanent residential property in Cyprus (either a rental property or a property owned by the individual).
Looking to find out more? Contact our team at info@paraschou.com.cy
