An individual who is tax resident in the Republic of Cyprus (the Republic), is taxed on income accruing or arising from sources both within and outside the Republic.
An individual, who is not tax resident in the Republic, is taxed on income accruing or arising only from sources within the Republic.
An individual who spends more than 183 days in the Republic is a tax resident of the Republic. An individual can be a tax resident of the Republic even if he/she spends less than or equal to 183 days in the Republic provided that he/she satisfies all of the following conditions within the same tax year (1st January – 31st December):
Does not spend more than 183 days in any other country
Is not a tax resident of any other country
Spends at least 60 days in the Republic
Maintains a permanent home in the Republic that is either owned or rented
Carries on a business in the Republic, is employed in the Republic or holds an office in a person who is a tax resident of the Republic at any time during the tax year
If the employment/business or holding of an office is terminated during the year, then the individual would cease to be considered a tax resident of the Republic for that tax year
The below points are for the purpose of calculating the days of presence in the Republic:
the day of arrival is considered as a day in the Republic
the day of departure is considered as a day out of the Republic
the arrival into the Republic and departure from the Republic on the same day is considered as a day in the Republic and Individuals Income Tax
the departure from the Republic and return to the Republic on the same day is considered as a day out of the Republic.