According to Cyprus Tax Law, an individual who spends 183 or more days in Cyprus during any given tax year is considered to be a Cyprus Tax Resident. Personal Tax Residency may also be established under the 60-Day Rule.
Individuals who are Tax Residents of Cyprus may benefit of an exemption from Personal Income Tax in Cyprus for any income generated by employment or rendering of services to employers or clients abroad.
To qualify for this exemption, individuals need to:
- Be employed or provide services in a country other than Cyprus for more than 90 days in a single Tax Year or
- Be employed by, or render services to, non-Cyprus tax residents or an overseas, permanent establishment of a Cyprus tax resident.
Accordingly, any income generated from employment or the provision of services abroad as per the above, will not be subject to Personal Income Tax in Cyprus.
The Cyprus Tax Regime offers significant benefits to individuals who transfer their tax residency to Cyprus, including an exemption from paying Special Defence Contribution (withholding tax on dividends) for a period of 17 years under the Non-Dom status (usually levied at a rate of 17%) among other.
Should you wish to find out more, contact our team at info@paraschou.com.cy.