Becoming a tax resident in Cyprus under 60-day rule

PUBLICATIONS / Articles / 2017 / Becoming a tax resident in Cyprus under 60-day rule

Under the new amendment, tax residency can be obtained by staying in Cyprus for 60 days a year.

On 14th July 2017 Parliament approved a bill giving tax resident status to individuals who spend at least 60 days a year in Cyprus, under specific conditions. Under the new rule, which will be in force on 1st January 2018, an individual will be considered a Cyprus tax resident provided that a person has satisfied either the 60-day or the 183-day rule. The new rule of 60-day stay aims to attract new business individuals who do not fulfil the tax residency requirements in any country. Not having an established tax residency status may expose such individuals to tax authorities in other jurisdictions.

To become a Cyprus tax resident under the 60-day rule, the person needs to meet the following criteria:

    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

    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

    not having a status of tax resident in any other country

    maintain a permanent residence in Cyprus

What should you consider when calculating the days to become a tax resident in Cyprus?

    The day of departure from Cyprus is considered one day outside Cyprus

    the day of arrival in Cyprus is considered one day in Cyprus

    arrival in Cyprus and departure from Cyprus within the same day is considered one day in Cyprus

    departure from Cyprus and return to Cyprus within the same day is considered one day outside Cyprus

With the new rule, any individuals who can meet the criteria can now consider registering as Cyprus tax residents and rent or buy residential property in Cyprus. However, individuals who do not satisfy the above criteria and are at the same time not subject to tax in any state should consider the possibilities of registering in Cyprus as tax residents under the 60-day rule.

 

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