All Cyprus tax resident individuals are taxed on all chargeable income accrued or derived from all sources in Cyprus and abroad. Individuals who are not tax residents of Cyprus are taxed on certain income accrued or derived from sources in Cyprus only.
An individual is a tax resident in Cyprus if (s)he spends more than 183 days in any calendar year in Cyprus. With effect as of 1 January 2017, an individual may also be considered a tax resident in Cyprus if (s)he satisfies the “60-day rule”.
The “60-day rule” applies to individuals who are in the relevant tax year:
- Do not reside in any other single state for a period exceeding 183 days in aggregate, and
- are not considered tax residents by any other state, and
- reside in Cyprus for at least 60 days, and
- have other defined Cyprus ties. To satisfy this condition the individual must carry out any business in Cyprus and/or be employed in Cyprus and/or hold an office (director) of a Cyprus tax resident company at any time in the tax year if such is not terminated during the tax year. Furthermore, the individual must maintain a permanent residential property in Cyprus that is owned or rented by them during the tax year.