Tax residency in Cyprus

It is possible to obtain tax residency in Cyprus on the following two bases.

"Ordinary" (a company in Cyprus is not required)

An individual is deemed to be tax resident in Cyprus on the basis of the number of days spent in Cyprus, i.e. if they are physically present in Cyprus for 184 days or more in a calendar year. However, it is desirable that the centre of vital interests should also remain in Cyprus.

"Expedited" (usually a company in Cyprus is required)

This tax residency status is an accelerated tax residency status.

In order to obtain it you must:

  • stay in Cyprus for at least 60 days and not stay in any other country for more than 183 days, nor be a tax resident in any other country,
  • have permanent residence (owned or leased) in Cyprus
  • do business (be a founder of a Cypriot company) or hold a position in a Cypriot company.
Cyprus Tax Residents Can Receive Preferential Non-Domicile Tax Status

Non-Domicile status provides an exemption from the defence contribution, which allows you to receive dividends, passive interest income, royalties, income from the rental of immovable property with minimum tax.