Search for an accountant
Become Tax Resident in Cyprus in just 60 days By Pelecanos & Pelecanou LLC
Changing the definition of Tax Resident in Cyprus
The classification of “Cyprus Tax Resident Individual”, as per the Income Tax Law, has been amended by a recent decision of the House of Representatives on the 14th of July 2017.
Specifically, from the 1st of January 2017, the long-prevailing 183-day rule is now replaced by the below cumulative criteria and conditions and therefore any individual is now considered as a Cyprus tax resident if:
and at the same time fulfils all the below:
Important Note: If the second condition above, namely the employment/business or holding of an office, at any point during that tax year, is terminated- then the individual ceases to be considered as a Cyprus tax resident.
Kindly be informed that an individual who is employed in Cyprus with earnings reaching and excessing the amount of €100,000 per annum, can enjoy a 50% tax exemption for the period of 10 years. Moreover, individuals who are Cyprus tax residents but are not domiciled in Cyprus will be exempt from special-defence contribution which is levied on dividends, interest, and rental income.
Find below the current income tax rates in Cyprus :
The above falls under the Government’s efforts of creating attractive tax incentives for foreign investors in order to transfer their tax residence to Cyprus and to be taxed only to income from the activities exercised in Cyprus. Along the same lines, lies another incentive (which however is temporary and expires in 2020) according to which when lower of €8.550 or 20% of the remuneration from any office or employments exercised in Cyprus, will be exempted for a period of 5 years.
By: Pelecanos & Pelecanou LLC