The Parliament of Cyprus has recently approved a bill that makes it considerably easier to acquire tax resident status in Cyprus. That is, it is not necessary to stay in Cyprus for longer than 60 days, which means that we can offer a fast-track program for acquiring tax residence including all the tax benefits that come with it.
There are a number of incentives that significantly reduce income tax liability when acquiring tax residency in Cyprus. For example, if an individual’s earnings exceed €100,000, they are exempted from tax on 50% of the salary for a period of 10 years.
Furthermore, under non-domicile tax status an individual is also exempted from income tax and defense tax on dividends, interest and rent received either in Cyprus or abroad.
The conditions to be met under the newly amended Income Tax Law include the following:
- He/she should remain in Cyprus for at least 60 days during the tax year;
- He/she should pursue any business in Cyprus and/or to work in Cyprus and/or to be a director in a company tax resident in Cyprus at any time during the tax year;
- He/she should maintain a permanent residence in Cyprus, which can be either owned or rented by him.
- He/she does not remain in another state in excess of a 183-day period, within the same year of assessment and does not fulfill any other criteria of tax residence in that or any other state.
It should be noted that an individual who fulfills the above conditions will not be considered as a tax resident of Cyprus if in that tax year the exercise of any business and/or employment in Cyprus and/ or the holding of a post to a taxable person of Cyprus have ceased.
At Fine Life Limassol, we apply on behalf of the client to the Inland Revenue for registration as a tax resident in Cyprus (Tax Identification Code (TIC) number registration). It takes approximately 1 week for the submission of forms, and the fee for the aforementioned service is €250 plus VAT. For applications for non-dom status, our services cost €950 plus VAT.