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Legal Updates

Developments in law or practice in our jurisdictions

Cyprus tax residency requirements: 60 days of stay in Cyprus

26 October 2017

On 14th July 2017, the Cyprus parliament voted the amendment of Article 2 of the Income Tax Law N118 (I)/02 adding a second test on determining the rights of an individual to be considered as a Cyprus tax resident.

Prior to the amendment, a Cyprus tax resident was an individual who had remained in Cyprus for at least 183 days in one calendar year. Pursuant to the amendments of the law, an individual will be considered as a tax resident of Cyprus if the individual satisfies either the current “183 day rule” or the new “60 day rule”.

The “60 day rule” will apply to individuals who satisfy the below 3 criteria: 

If an individual who fulfils all the criteria, but ceases to fulfill the second criterion in the specific tax year, then that individual will not be considered a Cyprus tax resident in that specific tax year.

The total number of days of stay in Cyprus are calculated as follows:
The amendment was published on the 28th of July 2017 and will be effective retroactively as from 1st of January 2017, i.e. as from tax year 2017 – the tax year in Cyprus being the calendar year. 

Please contact Emily Yiolitis, Marisa Efstathiou, Marina Ioannidou or your usual Harneys contact, for more information on this topic.