Cyprus Tax Residency

You can become a Cyprus Tax Resident under one of the following conditions:

• If you have spent more than 183 days within the Cyprus region in a calendar year you can become a Cyprus Tax Resident.
• The current 60 days rule is presented as an amendment to the previously-introduced 183 days rule. Therefore, an individual who has lived inside the territory of Cyprus for 60 days is now eligible for Cyprus Tax Residency.

To elaborate further, those individuals can have Tax Residency in Cyprus:

• Who have not resided outside Cyprus for more than 183 days within a year
• Or have ownership of a Cyprus-based company having tax residency
• Or are employees under Cyprus-based employment contracts and don’t have tax residency outside Cyprus in any other country

The following documents are required for tax residency application in Cyprus:

• A Copy of an Individual’s Passport
• Properly Aligned Bank Statement – (At least six months statement to prove sufficient balance)
• Source of Income Evidence
• Completely Filled Tax Registration Form
• Health Insurance Document
• Proof of Rental or Ownership of Property
• Yellow Slip as a Residency Permit for European Union Nationals
• Pink Slip as Residency Permit for Non-EU Natives

Whether it is a 60 days amended rule or standard 183 days rule, the days spent out of the Cyprus region will be counted as:

• The departure day from Cyprus is also counted as the day resided abroad.
• The arrival day in Cyprus will also be counted and added to the total days of residence in Cyprus.
• If the arrival and departure occurred on the same day it will be counted as residence day in Cyprus.

The duration of the tax residency application process spans 10-15 days mostly.

Yes, each tax resident acquires a Cyprus-based identification number once the tax residency application is approved.

As an individual in Cyprus having approved tax residency you will be charged according to your income sources inside and abroad. If you are a non-resident of Cyrus you will be charged for certain income sources generated in Cyprus.

• Tax Exemption for Employment Income: This entails 50% of the income tax deduction from any type of employment within Cyprus by a non-resident with over €55.000 income annually before the job has commenced.
• Following the year 2022, 17 years exception rule has been provided from the year of commencement of employment.
• As an alternative exemption 20% rule can also be availed for 3 years duration by individuals having remuneration below €100.000 annually.

No, as long as you have understood the basic process requirements, we have you all sorted.

If you have income sources outside Cyprus and you are generating revenue from them, you will get a double tax allowance for tax payments made overseas.

Yes, the global income will also incur taxes along with Cyprus-based remuneration. However, double taxation relief is available for people working overseas.

No, both are different concepts. Tax Residency involves minimum tax exposure and limits tax payments to one region based on residence status. While doing so, you may spend time in other countries as well. E-Residency is mostly about getting tax incentives remotely by setting up a location-independent company.

A non-domicile status or Non-Dom is a type of tax residency that allows individuals living abroad to pay taxes following the Cyprus taxation regime. Based on the Cyprus Tax Residency framework, an individual can enjoy tax benefits while generating income worldwide.

By following the 183 or 60 days rule of residing in Cyprus according to the standard conditions, you can apply for a Non-Dom tax residency status.

Any individual whether he is an EU national or not, who chooses to move his tax residency to another country is eligible for Non-Domicile status in Cyprus.

Due to the fast application process in Cyprus and the tax residency approval under the EU legislative system, you can lower your tax exposure globally. Efstathios C. Efstathious LLC has the best tax consultants to manage your tax processing and documentation.

The reasonable tax regulations minimize tax avoidance risk and help avoid withholding income and dividend taxation along with multiple other tax incentives. Cyprus being the business hub for both Europe and Asia attracts companies from all over the world to come and invest here allowing them to enjoy these incentives conveniently.

As a center for trade and entrepreneurial ventures, Cyprus offers great opportunities, growth potential, and quality of life and leisure.