New definition to Cyprus Tax Resident Individual

Introduction:Cyprus Income Tax Law amended: There has been a new amendment to the Income Tax Law, voted recently by the House of Representatives of the Republic of Cyprus.The amendment concerns the definition of Cyprus Tax Resident Individual which has now been changed.

New Provisions

Cyprus Income Tax Law amended: The new amendment provides that a Cyprus Tax resident individual is one who:

  • Does not spend more than a total number of 183 days in any State within a tax year and
  • is not a tax resident of another State within the same tax year and satisfies three conditions:

Cyprus Tax Resident Conditions

Cyprus Income Tax Law amended:  In continuance to the above the following conditions must be satisfied:

  • Must remain in Cyprus for at least a total number of 60 days in the tax year;
  • He/she carries on a business in Cyprus or is employed in the Republic of Cyprus Cyprus or holds an office in a Cyprus tax resident person at any time during the tax year and
  • maintains a permanent home in Cyprus that is either owned or rented

Under the aforementioned conditions such person shall be considered as a Cyprus tax resident.

It is worth noting with respect to the second condition that if the employment/business or holding of an office, then the individual is no longer considered to be a Cyprus tax resident for that tax year under the aforementioned rules pursuant to the Cyprus income tax law.


The new amendment is effective as of 1st January 2017.






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