Cyprus Tax Residence For Physical Persons

Cyprus tax system is one of the most favorable in Europe, offering a variety of tax benefits to physical persons who have tax residence in Cyprus.

A physical person is considered to be a tax resident in Cyprus for a calendar year, if the criteria of the 183- or 60-day rule are met.

The 183-day rule: Where the person resides in Cyprus for more than 183 days (in one calendar year).

The 60-day rule: Where the person resides in Cyprus for at least 60 days (in one calendar year – after the 1^st January 2017). The following conditions need to be fulfilled. The person must:

• carry on a business in Cyprus (i.e. as a self-employed, or be employed, or hold an office with a Cyprus tax resident person – for example, a Director of a Cyprus company). If the business (or employment or self-employment) stops during the year, then the person is not considered a Cyprus tax resident for the specific year;