tax resident in Cyprus
An individual’s liability to Cyprus tax is primarily determined by their tax residence status. An individual who spends more than 183 days in Cyprus is considered a Cyprus tax resident. However, an individual can also become Cyprus tax resident by spending just 60 days in Cyprusprovided they comply with other criteria, including maintaining a permanent home in Cyprus and carrying on a business or being employed in Cyprus.
A Cyprus tax resident individual is subject to income tax on his/her worldwide income, whereas a non-Cyprus tax resident individual is subject to income tax only on Cyprus sourced income.
The “60 day rule” applies to individuals who, in the relevant tax year:
- do not reside in any other single state for a period exceeding 183 days in aggregate, and
- are not considered tax residents in any other state and
- reside in Cyprus for at least 60 days and
- have other defined Cyprus ties.
To satisfy this condition, the individual must carry out business in Cyprus and/or are employed in Cyprus and/or hold an office (director) of a company tax resident in Cyprus at any time in the tax year, provided that such is not terminated during the year. The individual must also maintain a permanent residential property in Cyprus in the tax year either owned or rented by him/her.
For the purposes of both the “183 days rule” and the “60 days rule” days in and out of Cyprus are calculated as follows:
- the day of departure from Cyprus counts as a day of residence outside Cyprus
- the day of arrival in Cyprus counts as a day of residence in Cyprus
- arrival and departure from Cyprus in the same day counts as one day of residence in Cyprus
- departure and arrival in Cyprus
How to get your TIC number:
- Fill out the application for obtaining a tax number - form TD2001
- Prepare the following copies of documents:
- For Non–EU citizens – resident in Cyprus: Copy of your ‘Permanent Residence Certificate’ from the Civil Registry and Migration Department (CRMD).
- For Non-Cyprus residents: Copy of any other official certificate from your residence country, which clearly states your Tax Code / Identification Card (ID) / Social Insurance number, along with a letter that explaining your request for registration to the Cyprus tax authorities.
Send the documents to the tax department in your city:
After submitting the documents, a representative of the Cyprus tax office should contact you via telephone or e-mail to provide your TIC and ‘Unique Registration Number’.