Introduction of “60- Day Rule” for determining Cyprus Tax Residency

Up to 2016 tax year, an individual is considered to be tax resident in Cyprus if he was in Cyprus for more than 183 days in any calendar year.

Effective from 2017, an individual can be considered as tax resident in Cyprus if he spends at least 60 days in Cyprus provided that the individual:

a) do not reside on any other country for more than 183 days, and
b) are not tax resident in any other country, and
c) have other defined Cyprus ties. To satisfy this condition the individual must
i. carry business in Cyprus and/or
ii. be employed in Cyprus and/or
iii. hold an office of a Cyprus tax resident company (i.e. director), provided that is not terminated during the tax year
iv. Further the individual must maintain permanent residence in Cyprus, either owned or rented

The previous “183 day rule” is also maintained so that an individual staying in Cyprus for more than 183 days in a year is automatically tax resident in Cyprus.

Cyprus tax resident individuals either under the “60 day rule” or “183 day rule” are subject to taxation in Cyprus on their worldwide income.
In addition, Cyprus tax resident individuals who are Non‐ Domiciled in Cyprus are exempt from taxation on dividend income earned worldwide and on passive interest income.

Amendment applicable from 1.1.2017