Advantages of Cyprus tax residency:
Who has the status of “non-domiciled tax resident” (for persons not born in Cyprus)?
A person is a “non-domiciled tax resident” if, after moving to Cyprus, they were a tax resident in Cyprus for less than 17 years (out of 20 consecutive years).
How to become a tax resident:
Physical persons who live in Cyprus for more than 183 days a year become tax residents.
Since 2017, Cyprus has a “60-day rule” according to which a person can be recognized as a tax resident of Cyprus if the person:
- is not a resident of another country, and
- is not located in the territory of any other country for more than 183 days in total during the year, and
- stayed in Cyprus for at least 60 days, and
- has other links with Cyprus: doing business, finding employment and/or holding management positions in a company that is a tax resident in Cyprus during the current tax period. In addition, availability of residential property in Cyprus in the relevant tax period is mandatory.
Number of days spent in the territory of Cyprus is calculated as follows:
- the day of arrival in Cyprus is considered a day spent in the country;
- the day of departure from Cyprus is considered a day spent outside the territory of Cyprus;
- arrival to Cyprus and departure from Cyprus on the same day is considered a day spent in the territory of Cyprus;
- departure and arrival in Cyprus on the same day is considered a day spent outside the territory of Cyprus.
Tax rates on personal income in Cyprus:
The following tax rates are applied to the income of individuals in Cyprus:
- with a tax base for the year up to 19,500 euros – 0%;
- from 19 501 to 28 000 euros – 20%;
- from 28,001 to 36,000 euros – 25%;
- from 36,301 to 60,000 euros – 30%;
- more than 60 000 euros – 35%.
- With a salary over 100 thousand euros a year, foreign citizens are exempt from 50% salary taxation in Cyprus.
Some tax rates for non-domiciled residents in Cyprus:
|Income from purchase and sale of securities
|Loans/credits benefits (at a rate less than 9% per year)
Corporate tax in Cyprus:
12.5% corporate tax rate