07 Aug, 2017

Cyprus Tax Residency for Individuals Amendment

Categories: Uncategorized

New 60-Day Rule for a Cyprus Tax Resident

An amendment to the definition of the Cyprus Tax Residency for Individuals under the Cyprus Income Tax Law has been officially voted into law by the House of Representatives on 14th July 2017.

In effect from 1st January 2017, the amendment states that, in addition to the current 183-days rule1, an individual will be considered a Cyprus Tax Resident in case where:

An individual that is not a resident in any other single state (for one or more periods that in total exceed 183 days within a same tax year), nor a tax resident in any other state for the same tax year, will be considered a Cyprus Tax Resident if all of the below conditions are met:

(i)                  Resides in the Republic of Cyprus for not less than 60 days during a tax year;

(ii)                Conducts a business activity in the Republic and/or is employed in the Republic and/or maintains an office for a company tax resident in Cyprus at any time during the tax year;

(iii)               Maintains a permanent residential property in the Republic (either purchase or rent) during the tax year.

In case where any and all of the above conditions have been disrupted (e.g. termination of employment, termination of rental of the property, etc) during the tax year, an individual will not be considered a tax resident of the Republic of Cyprus.


1The current 183-Day Rule (implemented in cases where an individual resides in Cyprus for not less than 183 days during the tax year without any further requirements), remains in force for the tax year 2017. Either 60-Day Rule or 183-Day Rule can be called upon during a tax year in consideration of Cyprus Tax Residency for Individuals.