For an individual to be considered a Cyprus Tax Resident they need to spend more than 183 days during a tax year (the period from 1stJanuary until 31stDecember) in Cyprus.
As of 1stJanuary 2017 the new 60-day rule can also be applied, which offers individuals the option to become Cyprus tax residents after spending only 60 days in the country cumulatively.
This rule applies to individuals who, in the relevant tax year:
- Do not reside in any other country for a time period of more than 183 (collective) days
- Are not a tax resident in any other country
- Reside in Cyprus for at least 60 days
- Have additional Cyprus ties, including:
- Being an employee of a Cyprus Company
- Business ownership
- Being a director of a Cyprus Tax Resident company
All of the above must take place within a single tax year, and will not be considered valid in the case of termination of employment during the said tax year.
A permanent residential property that is either owned or rented should also be maintained within the tax year.
Is foreign dividend income also exempted by the non-domicile status?
The answer is Yes, both local and foreign dividend income is exempted in Cyprus when holding the non-domicile status. Withholding taxes overseas apply subject to double tax agreements of Cyprus.
Do I get a certificate of tax residency and non-domicile status?
Yes the tax office issues both tax residency certificates and non-domicile status certificates.
Is General Healthcare Tax (GHS) applied to all dividend income?
The answer is Yes, capped at EUR 180.000.
How fast can I obtain the non-domicile status?
Depending on which tax residency status is followed 1 month after completion of the requirements.