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Amendments to the Definition of “resident of the Republic” for Individuals – the 60 days rule

With effect from 1st January 2017 the Cyprus Income Tax Law was amended with regard to the definition of “resident of the Republic” for individuals.

Under the provisions of the Cyprus Income Tax Law, the term “resident of the Republic”, when applied to an individual, means an individual who stays in the Republic for a period, or periods, exceeding in aggregate 183 days in the tax year.

The definition has been amended to also provide that an individual who does not stay in any other country for one or more periods exceeding in aggregate 183 days in the same tax year, and is not tax resident in any other country for the same year, is deemed as a resident in the Republic in that tax year, if all of the following conditions are met:

  • the individual stays in the Republic for at least 60 days in the tax year,
  • exercises any business in the Republic and/or is employed in the Republic and/or holds an office with a Cyprus tax resident person at any time during the tax year, and
  • maintains (by owning or leasing) a permanent home in the Republic.

The law is further amended to clarify that an individual that cumulatively meets all the above conditions shall not be treated as a Cyprus tax resident in the tax year if, during that year, the exercise of any kind of business in the Republic and/or employment in the Republic and/or the holding of an office with a tax resident person in the Republic is terminated.

This is provided for informative purposes only. If you wish further information and/or clarification you may contact us at Ldemetriou@totalpro.eu.