Cyprus Tax Resident & Non-Dom Status
Cyprus Tax Residency gives the opportunity to any individual to benefit from Cyprus Income tax on his/her worldwide income, with no obligation to live in the country.
Low personal tax
Zero tax on dividents
Tax exemptions & deductions
Losses carried forward
Become a Cyprus Tax Resident with Non-Dom status
Cyprus tax residency is widely used from professionals, entrepreneurs, CEO’s, aviation professionals, athletes and artists that are constantly on the move. Cyprus tax residency gives the opportunity to any individual to benefit from Cyprus Income tax on his worldwide income. Ask our tax advisors anything you need to know and how you can benefit.
- Fast process
- No documentation fuss
- Work from anywhere in the world
- Reduce your worldwide tax
The main benefits on your income tax
Tax exemption when receiving profits from the sale of shares
No capital gains tax applies for the sale of immovable property located outside of Cyprus
Dividends and interest are exempt from income tax
No inheritance tax or wealth tax is applied
How to become Cyprus Tax Resident?
How you can become a Cyprus Tax Resident?
An individual can become a Cyprus Tax resident under the 183 days or 60 days rule.
A. Cyprus Tax Resident with the 183 days rule.
An individual who spends in the territory of Cyprus for more than 183 days in a calendar year is eligible to become a tax resident.
B. Cyprus Tax Resident with the 60 days rule.
According to the more recent “60 days rule” an individual is eligible for tax residency if
- does not reside in any other country of the world for more than 183 days a year
- Is not a tax resident in any other country
- Has additional Cyprus ties such as contract of employment or is a business owner or he is a director of a Cyprus Tax resident company.
Documentation needed
What is the documentation needed to apply for the Tax residency in Cyprus?
- Passport copy
- A bank statement – A six months old statement as a proof of sufficient funds
- Proof of source of income
- Tax department registration forms completed
- Health Insurance
- Residence rental agreement or proof of property ownership
- Residency permit for EU nationals (Yellow slip) or the equivalent for non-EU nationals (Pink slip)
Process of application
How do the days count for the 183 or 60 days rule?
For both 60 or 183 days rule, the days count in and out of Cyprus territory are below.
- The day of departure from Cyprus counts as a day of residence outside Cyprus.
- The day of arrival in Cyprus counts as a day of residence.
- Same day arrival and departure from Cyprus counts as a day of residence in Cyprus.
How long does the process last?
The process duration usually takes 10-15 days to be completed.
Taxation & Benefits
Cyprus Tax Residency offers a variety of Tax incentives to applicants.
The personal tax regime features some of the best advantages in the European Union.
Will I have a Cyprus Tax Identification Number?
Yes, a Cyprus tax resident has a Tax ID issued.
What is the Tax rate applied for individuals?
A Cyprus tax resident is taxed on all the income from sources within or out of Cyprus. A non-Cyprus resident is taxed on certain income collected from sources in Cyprus.
What are the main Tax Exemptions?
Employment Income exemption
50% Tax Deduction Is Provided On Remuneration From Any Employment Exercised In Cyprus By An Individual Who Was Not A Resident Of Cyprus Before The Commencement Of The Employment And With Annual Income Of Over €55.000
From 2022 Onwards. The Exception Is Provided For 17 Years From The Year Of Employment.
An alternative of 20% exemption is also valid for 3 years if employee annual remuneration is less than €100.000
Do I have to pay taxes in other countries?
Yes, if you have revenue arising from other countries. A double taxation allowance is given on taxes paid abroad.
Is tax residency the same as the e-residency?
No, Tax Residency is something totally different from the e-residency.
Tax residency is about minimizing your taxes and reduce your obligations to only one country.
You may still operate from any place you would like.
Feeling confuse? You can book a free meeting with us. Book here.
The Non-Domicile status for tax purposes.
Foreigners who decide to move their personal tax residency in Cyprus, will automatically be considered as non-domiciled in Cyprus for a maximum of 17 years. Non-domicile persons who become Cyprus tax residents will be completely exempt from Special Defense Contribution tax (“SDC”).
Special Defense Contribution tax. (SDC)
SDC applies on dividends , rental income and interest. As SDC tax does not apply in the case of Cyprus tax resident individuals who are non-domiciled in Cyprus, dividend and interest earned by such persons will only be taxed in Cyprus with the General Health System Tax at 2.65%.
Who can apply for the Non-Domicile status?
Any foreign Cyprus resident can benefit from the Non-Dom system since the law doesn’t impose any financial threshold or distinctions for EU and third-country nationals.
Contact Form
We’ll be happy to help you with obtaining the Cyprus Tax Residency.
