The Two Tax Residency Rules

One of the key advantages of the Cyprus’ tax residency system is its simplicity. There are only two rules with no grey areas. These two rules are the 183-day rule and the 60-day rule. Please follow the below links for more information on each of the regimes and the specific criteria for each.

Benefits of Cyprus Tax Residency

Personal Income Tax Advantages under the Non-Domicile Regime

Employees and executives relocating to Cyprus can benefit from Cyprus’ attractive Non-Domicile (Non-Dom) regime. We have written a on this regime but the key incentives include:

• Exemption from taxation on dividends and interest for Non-Dom individuals
• No tax on capital gains, except on Cyprus immovable property

These benefits can significantly reduce personal tax exposure for internationally mobile professionals.

Very interesting standard PIT rates

New Incentives for first time employment in Cyprus

• The 50% exemption:

50% of the remuneration of employees whose first employment in Cyprus began on, or after, 1 January 2022, has been exempt from income tax for a period of 17 years, provided that their annual remuneration exceeds €55,000 (subject to conditions).

• The 20% exemption:

Individuals whose first employment in Cyprus began after 26 July 2022 and earn less than €55,000 are eligible for a 20% or €8,550 exemption (whichever is lower), from their employment income, for a maximum period of 7 years (subject to conditions).

How Can We Help?

Our expert team can support you through every step, from immigration matters to tax residency applications and compiling your supporting documentation. We will even handle your annual tax return.

If you are planning to take advantage of the 60-day rule, we also offer a full range of corporate services including, but not limited to, company formation, secretarial support, and accounting services.

We provide end-to-end support at every stage, helping you successfully navigate Cyprus’ tax residency and compliance requirements, so you can make the most of Cyprus’ excellent tax benefits.

If you would like to know more about Cyprus tax residency or if you have any questions about how we can help you, please contact us at the Dixcart office in Cyprus for further information: advice.cyprus@dixcart.com.