Cyprus affords individuals who do not reside in another country for over 183 days in total annually, the opportunity to become non-domiciled tax residents in Cyprus.
Becoming a tax resident in Cyprus can be triggered through either:
- spending a total of 183 days of the year concerned in Cyprus; or
- spending a total of 60 days of the year in Cyprus, provided that the individual has ties with Cyprus and maintains a permanent residence in Cyprus (owned or leased).
Ties with Cyprus
Ties with Cyprus require that the individual satisfies one or more of the following:
- carries out business in Cyprus
- is employed in Cyprus
- holds an office in a tax resident company at any time during the year of assessment.
Non-domiciled tax residents in Cyprus should not be tax residents in any other jurisdiction.
Tax rates and benefits
Cyprus is a member of the European Union and the Eurozone. Widely used as a transactional and asset holding hub, Cyprus affords citizenship and tax residence schemes to individual investors.
The income tax rates for natural persons in Cyprus are the following (on worldwide income):
| Income | Tax rate (%) |
| Up to €19.500 | 0 |
| €19.501 to €28.000 | 20 |
| €28.001 to €36.300 | 25 |
| €36.301 to €60.000 | 30 |
| Over €60.000 | 35 |
Employment income exceeding €100.000, achieved by an individual who has not been a tax resident in Cyprus prior to his employment and derived from employment exercised in Cyprus, may qualify for a 10-year tax exemption of 50% over such remuneration.
Cyprus tax residents who are non-domiciled can be exempt from special defence contribution on dividends received.
Contact us to discuss your precise requirements.