A circular has been issued by the Cyprus Tax Department that outlines the tax residence provisions for individuals introduced by Law 119(I)/2017.

Circular EE 33 – dated January 29, 2019 – outlines the provisions, which are with effect from January 01, 2017.

The circular defines a Tax Resident in Cyprus as those who:

  • Are physically present in Cyprus for one or more periods of at least 60 days in total.
  • Are not tax resident in another country.
  • Do not remain in another country for one or more periods exceeding a total of 183 days.
  • Undertake business in Cyprus that continues to the end of the tax year.
  • Are employed in Cyprus or hold a post in a Cyprus-resident company that continues to the end of the tax year.
  • Maintain a permanent residence at their disposal for their use on the island.

Not qualifying for Cyprus tax residence under the 60-day rule are those who hold office as a director of a Cyprus tax-resident company, who then delegate it to an alternate or nominee director at any time during the tax year.

The full circular – which is in Greek – can be viewed here.

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