A new bill was voted into Law last Friday 14th of July 2017 amending the Income Tax Law allowing an individual to acquire Cyprus tax residency by staying only 60 days in Cyprus.
All of the following criteria must be met by an applicant:
- stay in Cyprus for at least 60 days during the tax (calendar) year; and
- maintain a permanent residence in Cyprus, which can be either owned or rented by him;
- not be a tax resident of any other State or remain in any other State for a period or periods exceeding 183 days in respect of any year he claims Cyprus tax residency.
- exercise business in Cyprus or have employment in Cyprus or be a director in a company resident in Cyprus at any time during the tax year and such business, directorship or employment should continue to exist at the end of the year in which Cyprus residency is claimed
Effectively this provision allow an individual who does not stay – for one or more periods, which do not exceed 183 days in total – and who is not a tax resident in any other country to be considered as a resident of the Republic of Cyprus.
What are the benefits for an individual that chooses to become Cyprus tax resident?
Exemption from special defence contribution tax which is levied on dividends, interest, and rental income for all those individuals that tax resident in Cyprus but are not domiciled in Cyprus.
Tax exemption of 50% for those whose income exceeds €100.000 per annum. This is applicable for 10 years.
For more information on Cyprus tax resident non domiciled status see this article.