Cyprus Tax Residency and Non-Dom Rules

Relocation Highlights

Geostrategic location with market access to 500M EU consumers with close proximity to MENA region

Access to tech-savvy EU and international talent pool

Well-educated, highly skilled, multilingual workforce

Revised Immigration policy for non-EU tech professionals

Attractive corporate & income tax regime

Favorable IP regime as low as 2.5%

Regulatory framework aligned with the EU

Reduced Naturalization for non-EU nationals

Legal system aligned to UK Common Law

Enviable lifestyle in a safe clean and healthy environment

Tax Residency via staying >183 days route

Cyprus has adopted a residency-based system of taxation, whereby physical presence in Cyprus exceeding 183 days in a tax year (1st January to 31st December) will constitute tax residency for individuals.

Tax Residency via 60 days rule

(i) the individual stays in Cyprus for at least 60 days in the tax year,

(ii) exercises a business and/or is employed in Cyprus and/or holds an office with a Cyprus tax resident company at any time during the tax year,

(iii) maintains (by owning or leasing) a permanent home in Cyprus.

The law is further amended to clarify that an individual that cumulatively meets all the above conditions shall not be treated as a Cyprus tax resident in the tax year, if during that year the exercise of any kind of business in Cyprus and/or employment in Cyprus and/or holding of an office with a tax resident person in Cyprus, is terminated.

We are delighted to share our Tax Residency Guide 2022/2023 which covers the current tax incentives available for foreign investors wishing to obtain tax residency in Cyprus.

TAX RESIDENCY GUIDANCE.pdf

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