The Parliament of Cyprus has recently issued a new bill amending the legislation on Income Tax, giving the opportunity to individuals who spend more than 60 days in a year in Cyprus, to acquire Cyprus tax residency.
To qualify for Cyprus Tax Residency, individuals need to meet the following conditions:
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Spend at least 60 days during the tax (calendar) year in Cyprus
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Maintain a permanent residence in Cyprus (owned or rented)
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Not be a tax resident of any other country or remain in any other country for more than 183 days during the tax year
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Exercise business in Cyprus or have employment in Cyprus or be a director in a company resident in Cyprus at any time during the tax year
What are the benefits?
Cyprus Tax Residents are taxed on their worldwide income based on the below rates:
|
Tax Base (EUR) |
Tax rate (%) |
|
Up to €19.500 |
0% |
|
€19.501 to €28.000 |
20% |
|
€28.001 to €36.300 |
25% |
|
€36.301 to €60.000 |
30% |
|
Over €60.000 |
35% |
Individuals who are tax residents of Cyprus but are not domiciled in Cyprus enjoy certain exemptions, such as exemption from Special Defense Contribution (SDC) which is imposed on dividends, interest and rental income. .
Tax exemption of 50% also applies for for income exceeding €100,000 per annum, and is applicable for 10 years.
To estimate the number of days spent in Cyprus, the below are calculated:
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the day of departure from Cyprus is considered as a day outside Cyprus.
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the day of arrival in Cyprus is considered as a day in Cyprus.
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arrival in Cyprus and departure from Cyprus within the same day is counted as one day in Cyprus.
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departure from Cyprus and return to Cyprus within the same day is counted as one day outside Cyprus.
If you are interested in becoming a Cyprus Tax Resident,
contact us for a free consultation at info@internetincorporate.com or call us at +357 22507760!