Cyprus Tax Residency in 60 days

17 July 2017

Amendments on the definition of the “Tax Resident” as per the Income Tax Law – July 2017:


An individual who:

(a)   does not spend a total of 183 days in another State in the duration of a tax year (< 183 days) and

(b)   is not a tax resident in another State


would be considered a Cyprus tax resident if:

_   the individual stays in Cyprus for at least 60 days in a tax year

_   is employed or self-employed in Cyprus

_   holds an office in Cyprus at any time during the tax year

_   maintains a permanent resident in the Republic, that is owned or rented


Important Note:

In the year the person becomes non-resident and in accordance with the normal rule, these provisions would not apply if the individual terminates any employment, office or business carried-on in Cyprus, in the year of Departure.


Income tax rates for Cyprus tax residents


Taxable income – € Tax rate – % Accumulated tax – €
First 19.500 Nil
19.501 – 28.000 20 1.700
28.001 – 36.300 25 3.775
36.301 – 60.000 30 10.885
Over 60.000 35



Income tax exemptions


Available for individuals who were NOT Cyprus tax residents in the year before the year they commence employment in Cyprus.


A.     Lowest of:          (i)    20% * annual emoluments or

                                   (ii)    €8.550

 _   Available from 1st of January following the year that employment starts

_   Granted for 5 Years

_   Exemption is applicable up to 2020, and from there on it will be abolished


B.     50% deduction of the annual emoluments:

_   For annual emoluments above €100.000

_   Exemption is available immediately

_   Granted for 10 Years



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