CYPRUS TAX RESIDENCY FOR INDIVIDUALS
Individuals who are Cyprus tax residents they are taxed in Cyprus on their worldwide income subject to certain exceptions.
Who can be a tax resident in Cyprus?
‘183 day’ rule
With reference to the Income Tax Law of 2002 (118(I)/2002), an individual who stays more than 183 days in the Republic within a tax year (1 January to 31 December) is a tax resident of the Republic.
‘60 day’ rule
Alternatively, an individual can be a tax resident of the Republic even though he spends less than or equal to 183 days in the Republic if he/she satisfies the following conditions:
- does not spend more than 183 any other country;
- is not a tax resident in any other country;
- spends at least 60 days in the Republic
- retains a permanent home either by renting or by ownership in the Republic
- carries on a business in the Republic, employed in the Republic or maintain an office in the Republic at any time within the tax year
It is further provided, that although an individual meets the aforementioned conditions but in the year of assessment his/her business and/or maintenance of an office in the Republic and/or his/her employment is terminated during that year, the individual would cease to be considered a tax resident of the Republic for that year.
For the purposes of calculating the days in the Republic:
- The day of departure from the Republic is considered to be a day out of the Republic
- The day of arrival into the Republic is considered to be a day in the Republic
- The arrival into the Republic and departure from the Republic on the same day is considered to be a day in the Republic
- The departure from the Republic and return to the Republic on the same day is considered to be a day out of the Republic
The registration certificate commonly known as the “Cyprus Yellow Slip” is available to European citizens and their families who wish to stay and work in the Republic of Cyprus. The application for the issue of the certificate is submitted within four months from the date of entry into the Republic.
The application for non- European citizens is different.
Certificates are issued by Ministry of Interior.
Our Law Firm will undertake the entire procedure of your application efficiently by preparing the application forms, giving advice on required documents and following the application process until completion.
For any further information and/or clarifications please contact us at email@example.com or contact number +35722817711.
Please note that this newsletter is produced for clearly informative purposes and under no circumstance shall be construed as professional advice.
by Amaryllis A. Papantoniou, PAPANTONIOU & PAPANTONIOU L.L.C.