Effective as of 1st of January 2017, the so-called "60 day rule" for the purposes of establishing Cyprus tax residency for individuals is of importance to those seeking Cypriot residency.
Under the rule, individuals are considered tax residents of Cyprus and benefit from the island's tax regime if they:
- reside in Cyprus for a period of 60 days;
- do not reside in any other single country for a period exceeding 183 days in total;
- are not tax resident in any other country,
- have ties with Cyprus (i.e. are business owners, employees or directors) during the year in question;
- are owners or tenants of a residential property in Cyprus.
The tax department issued an additional circular on 29th of
January 2019 to clarify a specific case. In the event of a nominee
directorship, the tax department will deem that the fourth
condition has not been met; therefore the residency status will not
be obtained.
It is worth noting that the 183 day rule remains unchanged. This
means that individuals can fufill either the "183 day
rule" criteria or the "60 day rule" criteria in the
tax year and if necessary they can obtain the relevant certificate
from the tax authorities.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.