“Cyprus tax resident individual” – amendment of the definition in the Income Tax Law in Cyprus

On 14 July 2017, an amendment to the definition of “Cyprus tax resident individual” was implemented by the House of Representatives. The new rules were voted into the law as per the Cypriot Income Tax Law legislation.

From 01 January 2017, a Cyprus tax resident individual is a physical person who:

  • does not spend more than a sum of 183 days in any jurisdiction within a tax year, and
  • is not a resident for tax purposes of another jurisdiction within the same tax year.

The above-mentioned person shall also satisfy all of the following conditions:

  1. remaining in the territory of Cyprus for at least 60 days in the tax year;
  2. carrying on a business in Cyprus or being employed in Cyprus or holding an office in Cyprus at any time during the tax year and;
  3. maintaining a permanent home in Cyprus (can be owned or rented).

Only satisfying the above conditions will result in Cypriot tax residency by an individual that claims to be a Cypriot tax resident.

It shall be noted that, if the employment/carrying on business or holding of an office as per the condition (ii) is terminated, then the individual shall cease to be considered a Cyprus tax resident for that tax year under these extended rules.