Deloitte's annual Cyprus Tax Facts, is part of our firm's continuous endeavour to provide complete, valid and updated information to taxpayers.
INCOME TAX
INDIVIDUALS
Imposition of tax
An individual who is tax resident in the Republic of Cyprus (the Republic), is taxed on income accruing or arising from sources both within and outside the Republic.
An individual who is not tax resident in the Republic, is taxed on income accruing or arising only from sources within the Republic.
Tax residency
An individual who spends more than 183 days in the Republic is a tax resident of the Republic.
As from 1 January 2017 an individual can be a tax resident of the Republic even if he/she spends less than or equal to 183 days in the Republic provided that he/she satisfies all of the following conditions within the same tax year (1 January – 31 December):
- does not spend more than 183 days in any other country;
- is not a tax resident of any other country;
- spends at least 60 days in the Republic;
- maintains a permanent home in the Republic that is either owned or rented;
- carries on a business in the Republic, is employed in the Republic or holds an office in a person who is a tax resident of the Republic at any time during the tax year.
If the employment/business or holding of an office is terminated during the year, then the individual would cease to be considered a Cyprus tax resident of the Republic for that tax year.
For the purpose of calculating the days of presence in the Republic:
- the day of arrival into the Republic is considered as a day in the Republic
- the day of departure from the Republic is considered as a day out of the Republic
- the arrival into the Republic and departure from the Republic on the same day is considered as a day in the Republic and
- the departure from the Republic and return to the Republic on the same day is considered as a day out of the Republic.
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