Cyprus non dom tax residency

February 28, 2019 | Tax Law

Obtain Cyprus tax residency & non-domicile individual status by staying 60 days in Cyprus

The low tax jurisdiction of Cyprus is very popular with foreign individual entrepreneurs who wish to benefit from its advantageous business and tax environment.

With low tax rates on both income taxation for private individuals and corporate taxation of companies among other benefits, it is no surprise the Cyprus is one of the best places to relocate amongst EU Member States.

Individuals can be deemed as non-domiciled tax residents of Cyprus if they have not been born in Cyprus or have not lived in Cyprus for at least the last 17 years.

Under the status of non-dom tax residency in Cyprus, you can benefit from the attractive business environment and preferential tax treatment.

Become a Cyprus tax resident by staying in Cyprus 60 days!

Normally, to be considered as a Cyprus Tax Resident you would have to be present in Cyprus for more than 183 days in a calendar year. Under the “60-day rule”, you can be considered as a Cyprus tax resident provided that you satisfy either the “60-day rule” or the “183-day rule”.

The “60-day rule” intents to attract a significant number of individuals (investors, entrepreneurs, digital nomads, artists, sportsmen, crew members, foreign employees and other businessmen) who do not fulfill the tax residency requirements in any country.

How to become Cyprus Tax Resident under the 60-day rule?

In order to become a Cyprus tax resident on the basis of the “60-day rule” you must meet the following conditions:

  • remain in Cyprus for at least 60 days during a tax year, and
  • do not reside in any other single state for a period exceeding 183 days, and
  • is not tax resident in any other state; and
  • carry out business activities and/or work in Cyprus and/or be a director in a Cyprus tax resident company; and
  • maintain a permanent residence in Cyprus (either owned or rented)

Cyprus entity offers many tax and business possibilities.

Required documents for Cyprus Tax Residence

The required documents for obtaining Cyprus tax residence certificate with Non-Domicile Status:

  • passport copy
  • bank statement for the last 6 months to demonstrate enough funds to live on
  • source of income
  • health insurance
  • residence rental agreement
  • yellow slip from immigration (MEU1 application form required for EU Nationals)
  • tax registration forms