Tax Residency In Cyprus

On 1 February 2022, the Tax Department of Cyprus issued a circular¹ to clarify the tax treatment of physical persons in Cyprus, based on the 60-day rule. This article explores the issue of tax residency in Cyprus.

What counts as tax residency in Cyprus?

According to the Income Tax Law, the term "resident of the Republic" includes – in addition to persons who reside for 183 days in Cyprus – persons who:

• remain in Cyprus for one or more periods of a minimum of 60 days;
• do not remain in another state for one or more periods exceeding a total of 183 days;
• are not a tax resident in any other state for the same tax year;
• operate a business in Cyprus, are employed in Cyprus or hold a position in a company that is tax resident in Cyprus, and maintain such position until 31 December of each tax year (ie, the business, employment or holding of office does not end before the end of the fiscal year); and