News
Cyprus Tax Resident by Staying in Cyprus 60 Days a Year
Thus, the Income Tax Law has been amended so that an individual, who does not remain in any of their state for one or more periods which altogether exceed 183 days in the same tax year and who is not tax resident in any other state for the same tax year, be considered to be a tax resident of Cyprus, provided that the following conditions are cumulatively met:
a. He/she should remain in Cyprus for at least 60 days during the tax year
b. He/she should pursue any business in Cyprus and/or to work in Cyprus and/or to be a director in a company tax resident in Cyprus at any time during the tax year
c. He/she should maintain a permanent residence in Cyprus, which can be either owned or rented by him
It is clarified that
an individual who cumulatively fulfills the above conditions is not considered
as tax resident of Cyprus in the tax year, if in that year the exercise of any
business and/or employment in Cyprus and/ or the holding of a post to a taxable
person of Cyprus have ceased
For the purposes of calculating the days of stay in Cyprus:
a. the day of departure from Cyprus is considered as a day outside Cyprus
b. the day of arrival in Cyprus is considered as a day in Cyprus
c. arrival in Cyprus and departure from Cyprus within the same day is counted as one day in Cyprus
d. departure from Cyprus and return to Cyprus within the same day is counted as one day outside Cyprus
Thus, under the new
provisions, an incentive is given to an individual who is not a tax resident in
any other state for the same tax year to transfer his tax residence to Cyprus
and to be taxed only on income from the activities the individual exercises in
Cyprus
It is noted that for employment purposes in Cyprus with earnings in excess of
Euro 100,000, an individual is allowed for an exemption from tax of 50% of the
salary for a period of 10 years, which significantly reduces his income tax
liability. At the same time, an individual is granted exemption from income tax
or defense tax on dividends and interest received either in Cyprus or abroad,
provided that such individual is considered as non - dom in Cyprus.
Source: www.goldnews.com.cy
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