Normally, any person interested in becoming a Cyprus Tax resident, he should stay in the country for at least 183 days in one year. Since 2018 the new rule of 60 days allows anyone who meets the criteria to become tax resident. The 60 days rule is very convenient and attractive for professionals from various fields such as investors, CEOs, managers, entrepreneurs, artists or even professional athletes such as tennis players.

The main incentives for individuals moving their tax residence in Cyprus.

• No tax on income arising from the disposal of investments such as shares, bonds, etc.
• No withholding tax on the repatriation of income as dividends, interest and royalties.
• Income tax exemptions when employed in Cyprus, up to 50% of the remuneration for 10 years in the case employment income is more than €100.000 per year.
• No tax on worldwide dividend and interest income for non-domiciled persons for 17 years.
• Non taxable retirement gratuity and special tax regime on foreign pension income.
• Low social insurance contributions.
• There are no estate duties, wealth tax, gift tax or inheritance tax.
• Cyprus has a large worldwide network of double tax treaties.

Visit our Library  to download the Cyprus Tax Resident guide.

The Rule and the procedure.

To acquire the Cyprus Tax residency and individual has to:

Stay in the country for at least 60 days in a tax year, and

at the same time do not reside in another country for a period more than 183 days, and

is not considered tax resident in another state, and

has business activities or works in Cyprus or is a director of a Cyprus tax resident company, and finally has a permanent residence in Cyprus (renting or owning)

The documentation needed.

• Passport copy
• Bank statement of the last 6 months to prove sufficient funds to live on
• Proof of source of income
• Health insurance
• Residence rental agreement
• Yellow Slip (residency permit issued for EU nationals)
• Tax department registration forms

Why Cyprus?

Cyprus is a great location for any entrepreneur, investor or family to relocate. Cyprus is a EU state member with a good geographical location allowing easy transportation as a crossroad of Europe, Asia and Africa. English language is widely spoken all over the island since some of the main economy pillars are the tourism and the business services sectors. The legal system is based on the English common law. Cyprus offers high quality business services in addition with many advantages for registered corporations such as the low corporate tax, many tax exemptions and deductions. The cost of living is relatively low and families choose to relocate not only because of this but also because of the relaxed pace and the low criminal rates. Last but not least we have to mention the almost all year sunshine, one of the best climates and cleanest beaches in the world.

Visit our Library  to download the Cyprus Tax Resident guide.