New Tax Residency Rules Applicable

Cyprus has introduced new rules with respect to establishing the tax residency of individuals, by an amendment to the Cyprus Income Tax Law passed in July 2017. It is important to note that although the law was amended in July 2017, it shall have retrospective effect as of the 1st January 2017 and as such, it may already be applicable and beneficial for a number of individuals.
The new provisions of the Income Tax Law define that an individual will be considered as a Cyprus Tax Resident even if he/she spends less than 183 days in a tax year in Cyprus, subject to certain conditions. This is a clear differentiation from the long-standing principle that an individual would be considered as a Cyprus Tax Residence only if he/she had spent over 183 days in Cyprus.