Cyprus: Tax residency amendment
The Parliament of Cyprus has approved on the 14th of July 2017 a bill which grants tax residence status to persons who have spent at least 60 days in Cyprus per year (effective as from the 1st of January 2017) provided that the following conditions are met:
Conditions to be fulfilled
(i) Remains in the Republic of Cyprus for at least 60 days during the tax year in question and
(ii) Is not a tax resident in another state and
(iii) Does not reside in any other single state for a period which exceeds 183 days and
(iv)Carries out business activities in Cyprus and/or works in Cyprus and/or is a director in a Company that is tax resident in Cyprus at any time of the tax year in question and
(v) Maintains a permanent residence in Cyprus which is either owned or rented.
Therefore the above conditions have to be met cumulatively.
The tax benefits
The individuals who are tax residents in Cyprus as per the above are taxed in Cyprus on their worldwide income with certain exceptions which include amongst others the following:
(i) Profit from the sale of securities (for example bonds, debentures, options) is exempt from taxation in Cyprus.
(ii) A Cyprus tax resident individual but one who is a non-domicile in the Republic of Cyprus is exempt from taxation in Cyprus on his worldwide dividend and his passive interest income.
(iii)Any income which arises from employment which is outside of Cyprus is exempted from Cyprus income taxation provided that the duration of such an employment exceeds 90 days per tax year and
(iii)An individual shall enjoy 50% discount on his income tax in Cyprus for the duration of 10 years provided that:
(a) He is going to be employed in Cyprus and his/her income will exceed €100.000 and
(b) He has not been a tax resident of Cyprus prior to the commencement of his employment in Cyprus.
For further information on this topic please contact
Ms. Nada Starovlah (email@example.com) at SOTERIS PITTAS & CO LLC,
by telephone (+357 25 028460) or by fax (+357 25 028461)
The content of this article is intended to provide a general guide to the subject matter. Specialist advise should be sought about your specific circumstances.