Set out below is a summary of the main requirements and conditions that must be met for an individual to obtain a Cyprus tax residence certiﬁcate from the Cyprus Tax Department. Such certiﬁcate is usually needed by foreign tax authorities in order to apply the provisions of a double tax treaty with Cyprus (e.g. apply lower or eliminated withholding taxes on payments to Cyprus residents) and/or conﬁrm that an individual is indeed tax resident in Cyprus. It is noted that the issuance of a tax residency certiﬁcate attracts a stamp duty of €80.
Cyprus Tax Residency
A physical person is considered tax resident in Cyprus for any calendar year if he/she fulﬁlls any one of the following two tests:
- Physical presence in Cyprus for more than 183 days in any calendar year, or
- Physical presence in Cyprus of at least 60 days in any calendar year (after 1 January 2017) and fulﬁllment of all the following conditions.
- Carries on a business in Cyprus as a self-employed person, or is employed in Cyprus or holds an oﬃce with a Cyprus tax resident person (e.g. be a director of a Cyprus company) at any time during the tax year;
- Does not spend more than 183 days in any other country;
- Maintains a permanent home in Cyprus that is either owned or rented;
- Is not a tax resident of any other country;
If the business, employment or holding of an oﬃce is terminated during the year, then the individual would cease to be considered a Cyprus tax resident for that tax year.
For the purpose of calculating the days of presence in Cyprus:
- The day of arrival into Cyprus is considered as a day in Cyprus
- The day of departure from Cyprus is considered as a day out of Cyprus
- The arrival and departure from Cyprus on the same day is considered as a day in Cyprus
- The departure and return to Cyprus on the same day is considered as a day out of Cyprus.
183 DAYS OR 60 DAYS
The conditions to be met vary depending as to whether the individual intents to become tax resident in Cyprus based on the 183 or 60 days test. It seems however, that the 60 days route has more stringent requirements compared to the 183 days route.