Cyprus - Residency Programs

There are several residency programs available in Cyprus, including:
As for taxation, Cyprus has a favorable tax system for individuals and businesses. The tax rates for individuals are relatively low, and there are various incentives and exemptions available. For example, non-domiciled individuals who become tax residents of Cyprus can benefit from a special tax regime that exempts them from taxation on foreign income and dividends.
The Taxation System

Here are some key points about the taxation system in Cyprus:

Tax Residency
Cyprus taxation scheme is based on the principle of residence and there are two main rules someone can choose to become a Cyprus Tax resident. An individual is considered a tax resident of Cyprus if he spends more than 183 days in the Republic in a tax year (1st of January to 31st of December). Consequently, if the individual is physically present in Cyprus for less than 183 days in a tax year, he will be considered to be a non-Cyprus tax resident in that tax year.
The 60 days rule

As of 1st January 2017, an individual can be considered as a tax resident of the Republic even if he spends less than 183 days provide, he meets all of the following conditions within the same tax year (1st of January to 31st of December):

If during the year the business, employment or holding of an office is terminated, then the individual shall not be treated as a Cyprus tax resident for that tax year.

Cyprus offers an attractive tax regime for non-domiciled individuals who become tax residents of the country. Non-domiciled individuals are those who do not consider Cyprus to be their permanent home or their domicile, and they are subject to special tax rules.

Under the non-domiciled tax regime in Cyprus, individuals can benefit from the following tax advantages:

It is important to note that non-domiciled individuals who become tax residents of Cyprus are still subject to taxation on their income and capital gains generated in Cyprus. Additionally, they are required to comply with the country’s tax laws and regulations.

Further tax advantages for individuals
Irrespective of domicile, foreigners who become Cypriot tax residents enjoy a range of other significant income tax advantages with the main ones being the following:

It is highly recommended to seek the advice of a professional tax advisor who can provide detailed information and guidance on the tax implications of becoming a non-domiciled tax resident of Cyprus.

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