Cyprus introduces new attractive tax residence criteria for individuals  
The Cyprus Parliament has approved in July 2017 an amendment to the Cyprus Income Tax Law, Law 119(I)/2017 (the “Law”) pursuant to which the definition of an individual considered as a Cyprus tax resident has been extended. The amendment is effective as from 1 January 2017.

Before the amendment to the Law, an individual is considered as a Cyprus tax resident if he/she stays in Cyprus for one or more periods exceeding in aggregate 183 days in a tax year.

The definition of a Cyprus tax resident has now been extended such that, with effect from 1 January 2017, an individual is also considered a Cyprus tax resident for the relevant tax year if he/she does not stay in any other country for one or more periods exceeding in aggregate 183 days in the same tax year and is not a tax resident of another country for the same tax year, and provided all of the following conditions are satisfied:

1. the individual stays in Cyprus at least 60 days during the tax year;

2. the individual exercises any business in Cyprus and/or is employed in Cyprus and/or holds an office with a Cyprus tax resident person at any time during the relevant tax year; and

3. the individual maintains a permanent residence in Cyprus (by owning or leasing).

The amendment clarifies that if the exercise of any business in Cyprus and/or the employment in Cyprus and/or the holding of an office with a tax resident person in Cyprus as per the above-mentioned condition is terminated during a tax year, the individual will cease to be considered as Cyprus tax resident for that tax year.
 

 
 
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