Are you exploring ways to leverage favorable tax benefits by becoming a Cyprus tax resident? Cyprus offers an enticing proposition for individuals seeking to transfer their tax residency, providing advantageous tax schemes for those meeting specific criteria. Embracing the status of a Cyprus tax resident offers two primary avenues:

  1. Residency by spending over 183 days in Cyprus within a tax year.
  2. Qualification as a “60-day” tax resident under specific conditions, allowing residency benefits without meeting the conventional 183-day requirement.

To be acknowledged as a tax resident under the 60 days rule, several criteria must be met.

  1. An individual must not hold tax residency in any other country, not have spent more than 183 days in any other nation and,
  2. fulfill specific presence and activity requirements within Cyprus. This involves staying in Cyprus for at least 60 days during the relevant tax year, engaging in any business/activity in Cyprus, and/or being employed in Cyprus and/or holding a position (e.g. director) with a person who has his tax residence in Cyprus at any time during the relevant tax year,
  3. maintain during the tax year a permanent residence in Cyprus, which is either owned or rented. Maintaining a permanent residence in Cyprus, whether owned or rented, throughout the tax year is essential to solidify Cyprus tax residency.

Certain scenarios, such as the termination of any business activities or holding office, impact an individual’s status as a resident for tax purposes.

In conclusion, establishing Cyprus tax residency provides an avenue for individuals to capitalize on the country’s advantageous tax framework. Whether by fulfilling the standard 183-day requirement or meeting the criteria as a “60-day” tax resident, individuals can navigate and potentially benefit from Cyprus’s tax advantages.

How can we help

Our team at Rightax is equipped to guide individuals through the complexities of achieving Cyprus tax residency. Let us help you understand the nuances and ensure adherence to the regulations, optimizing the benefits accessible to Cyprus tax residents.

Contact details

Tel. +357 22 340000

Email: [email protected]

The authors expressly disclaim all and any liability and responsibility to any person, entity, or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of the contents of this publication.

Accordingly, no person, entity, or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances.