Residence And Domicile Tax Planning

If you are planning to relocate to Cyprus, are considering moving to another country from Cyprus, or receive income from Cyprus, ensuring your tax affairs are in order will require local experts from multiple countries.

Residency Rules

The first thing you will need to consider is your personal tax residency, in relation to the countries in which you may be considered as tax resident in accordance with local rules. As per the Cyprus personal tax system, if you are tax resident in Cyprus, you will be subject to tax on your worldwide income in Cyprus, though special rules will exist for any foreign sourced income on a case by case basis.

183 Days Rule for automatic tax residency
Cyprus tax residency rules give automatic tax residency if you spend 183 days of physical presence in Cyprus.

60 Days Rule for tax residency by election
You may be considered a Cyprus tax resident by election, provided the following conditions are met:

• You spend less than 183 days physically in any other country;
• You are not tax resident in any other country;
• You spend at least 60 days being physically present in Cyprus;
• You maintain a permanent home in Cyprus (through rental or ownership);
• You maintain an ‘office’ in Cyprus, such as employment status, director of Cyprus company etc.

In the instance where your tax residency is contended by any other country, we will explain to you what the ‘tie-breaker’ rules say in order to resolve the issue and avoid double taxation.

Non-Domicile Rules

If you are a non Cyprus domicile, once you become a Cyprus tax resident, you will retain your non-domicile status for at least 17 years. This means that you will be exempt from any taxation on dividend income and interest income received for sources from both within Cyprus and abroad.

Our team of highly experienced tax professionals offer on call tax support for all your personal tax affairs, as we have extensive experience dealing with residency and domicile issues. We will help you plan ahead and stay on top of your tax obligations, whilst optimising your arrangements to ensure optimal tax efficiency.

Early advice, ideally before you arrive in Cyprus, is crucial, so please get in touch with us right away.