Cypriot Tax Resident Individual
An individual is a tax resident in Cyprus for income tax purposes if he/she stays physically in Cyprus for a period or periods exceeding 183 days in aggregate during a tax year.
As from 1.1.2017 an individual may also be considered as tax resident of Cyprus for income tax purposes, provided that the following conditions are cumulatively met:
- he/she remains in Cyprus for at least 60 days during the tax year
- he/she does not remain in any other state for one or more periods which altogether exceed 183 days in the same tax year
- he/she is not tax resident in any other state for the same tax year
- he/she pursues any business in Cyprus and/or he/she works in Cyprus and/or he/she is a director in a company tax resident in Cyprus at any time during the tax year
- he/she maintains a permanent residence in Cyprus, which can be either owned or rented by him
Cyprus Domicile
An individual is considered as domiciled in Cyprus if he/she has a domicile of origin in Cyprus as this is defined in the Wills and Succession Law (WSL) (i.e. domicile of the father at the time of birth), except in specified cases.
The following individuals are NOT considered to be domiciled in Cyprus :
- An individual who has obtained and maintained a domicile of choice outside Cyprus in accordance with the Wills and Succession Law, provided that such an individual has not been a tax resident of Cyprus for a period of 20 consecutive years preceding the tax year in which he becomes tax resident of Cyprus; or
- An individual who has not been a tax resident of Cyprus for a period of 20 consecutive years prior to July 2015 (when the relevant changes in the law were introduced)
Notwithstanding the above, an individual, who has been a tax resident of Cyprus for at least 17 years out of the 20 years prior to the tax year, will be considered to be "domiciled" in Cyprus.
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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.