PROPOSED AMENDMENT TO TAX LAW
A bill amending the tax legislation in force regarding the tax residency of individuals, as a further incentive for entrepreneurs to attain Cyprus tax residency status has been published in the Official Gazette of the Republic of Cyprus and is considered to be in force as from 1st January 2017.
As per the amendment, individuals who spend more than 60 days in Cyprus and are not tax resident in any other jurisdiction and/or spend more than 183 days on aggregate in another jurisdiction, shall be considered to be Cyprus tax residents provided that the below criteria are fulfilled cumulatively:
a) the individual conducts any business in Cyprus and/or is employed in Cyprus and/or holds an office to a person resident in Cyprus at any time during the year of assessment, and
b) the individual maintains a permanent residence in Cyprus through ownership or rental.
This provides individuals who split their time between various jurisdictions to establish their tax residency in Cyprus and enjoy the numerous advantages of the tax framework.
Our firm will be pleased to assist you at all stages with tailor-made, specialised advice suited to your business activities and planning.