In 2017 the Cyprus Government passed a new law amending the “183 day rule” to attract high profile individuals and professions to become tax residents of Cyprus.
Becoming a tax resident under amended 60-day rule
In order to become a Cyprus tax resident under the 60-day rule you must:
1. remain in Cyprus for at least 60 days during the tax year;
- not reside in any other single state for a period exceeding 183 days;
- not be tax resident in any other state;
- carry out business activities or work in Cyprus or be a director of a company that is tax resident in Cyprus at any time during the tax year; and
- maintain a permanent residence in Cyprus (either owned or rented).
Individuals who are Cyprus tax residents, are taxed in Cyprus on their worldwide income. However, the following exceptions apply:
- A Cyprus tax resident who is an individual non-domiciled in Cyprus is exempt in Cyprus from taxation on his or her worldwide dividend and ‘passive’ interest income.
- Profit from the sale of securities (shares in local or foreign companies, bonds, debentures and options,) is exempt from tax except in cases where the value of the shares derives from the value of immovable property in Cyprus. ‘Securities’ include
- Individuals employed in Cyprus with an income exceeding €100,000 benefits from a 50% discount on their income tax in Cyprus for 10 years provided that they have not been a tax resident of Cyprus before the commencement the employment.