Tax Residency for Individuals
Cyprus offers significant tax exemptions and other benefits for individuals relocating under the 60-day or 183-day rule. Tax residency in Cyprus can be obtained through the following procedures:
The 183-Day Tax Residency Rule
An individual who spends more than 183 days in Cyprus within a calendar year is considered a Cyprus tax resident and is subject to taxation under Cyprus tax laws. A tax resident in Cyprus is taxed on both local and international income.
The 60-Day Tax Residency Rule
Introduced in 2017 as an amendment to the 183-day rule, the 60-day rule provides incentives for high-profile individuals, professionals, and executives to establish tax residency in Cyprus. This rule has been in effect since the 2017 tax year.
How Does the Rule Apply?
To qualify for tax residency under the 60-day rule, an individual must meet all the following criteria within a tax year:
- Stay in Cyprus for at least 60 days;
- Do not stay in another State for over 183 days;
- Are not tax residents in another State;
- Exercise any activity in Cyprus and/or are employed in Cyprus and/or hold office in a company established in Cyprus;
- Have a permanent residence in Cyprus which they own or rent.
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.
