A new law voted on 14th of July 2017 concerning the definition of ‘’Cyprus tax resident individual’’. Specifically, as of 1 January 2017, an individual who:
- does not spend more than 183 days in any other state within a tax year and
- is not a tax resident of another state within the same year
and satisfies the 3 following criteria:
- remains in Cyprus for at least 60 days in the tax year,
- carries on business in Cyprus or is employed in Cyprus or holds an office in a Cyprus tax resident person at any time during the tax year and
- maintains a permanent house in Cyprus that is either rented or owned
will be assumed eligible Cyprus tax resident individual.
It is important to note that in case the employment/business or holding of an office as per the condition (ii) is terminated during the year, then the individual shall cease to be considered a Cyprus tax resident for that tax year.