Following the issuance of circular no. 8 from the Cyprus tax authorities, it is noted that a person can also qualify as a Cyprus tax resident if all the below conditions are met for each tax year:
- Such person stays in Cyprus for one or more periods of at least 60 days;
- He or she does not stay in another state for one or more periods exceeding a total of 183 days;
- He or she is not a tax resident in another state;
- He or she carries on a business in Cyprus or is employed in Cyprus or holds an office in a Cypriot tax resident company on 31 December of each tax year, that is, the business or employment or the holding of an office does not end before the end of the tax year;
- He or she maintains permanent residence in Cyprus owned or rented.
It should be noted that a person who is a tax resident of Cyprus according to the 60 days residence rule, is obliged to pay a special defense contribution under the Special Contribution for the Defense of the Republic Law, if such person is also domiciled in Cyprus at the same time.
For the purposes of issuing a tax residency certificate for a person who meets the 60 days residence rule in Cyprus, the declaration Τ.D. 126 (2017) must be submitted with the Tax Department.
It is noted that the certificate may be issued before the 60 days of stay in Cyprus, provided that:
- all the other conditions (as listed above) of the 60 days residence rule in Cyprus are met;
- the application for the issue of the certificate concerns the receipt of dividends or interest from sources abroad and the relevant proof for the imminent receipt of income is submitted; and
- is shown on the certificate to be produced (to which tax authority or to which organization).
Together with the declaration T.D. 126 (2017), the following documents must be submitted:
- Passport copy with arrival and depart stamps from Cyprus, boarding passes, e-tickets etc.;
- Title deed of the permanent residence, or rental agreement;
- Employment contract (if applicable) valid as of 31st December of the relevant tax year.
Our team of highly experienced professionals can assist you with obtaining Cyprus tax residency and non-domicile individual status, and offer you guidance and support with the whole process.