Domicile Under Cypriot Tax Law

Surprising as it may seem, most of the advantages of the Cypriot Tax Regime were, up until recently, mostly directed to non- Cypriot Tax residents. This effectively meant that in order to enjoy the full benefits of the Regime one had to be a non-resident. The idea behind this was to have a twofold regime, one for the Cypriot Tax Residents and one for the investors wishing to use Cyprus as part of their tax planning operations. This distinction at first seems logical and is actually a method applied in many jurisdictions with attractive tax regimes. The locals pay their taxes to the Government whilst international investors are encouraged to bring new investments by specific tax incentives.