Tax Residency Certificates
by Andrea Christoudia
What is a tax residency certificate?
A tax residency certificate is a certificate issued by the Cyprus Tax Department, which confirms that an individual is a Cyprus tax resident (for the relevant tax year).
Why do I need a tax residency certificate?
A Cyprus tax residency certificate is usually requested from foreign tax authorities, as evidence / to confirm that an individual is a Cyprus tax resident (i.e., he / she spends more than 183 days in Cyprus per year, is paying taxes in Cyprus, etc.). Tax residency certificates are mainly used to avoid double taxation.
Who is considered a Cyprus tax resident?
An individual who is physically present for more than 183 days in a calendar year, is considered to be a Cyprus Tax resident and is taxed on his / her worldwide income, in accordance with the provisions of the Cyprus tax Laws. As from 1 January 2017, individuals who are physically present in Cyprus for more than 60 days in Cyprus may also be eligible for a Cyprus tax residency (subject to other rules – see below).
What are the conditions to apply for Cyprus tax residency under the '60–days' rule?
- Physical presence in Cyprus for at least 60 days during the calendar/ tax year in question;
- Not to reside in another country for more than 183 days in that year;
- Not be a tax resident in any other country;
- To maintain permanent residency in Cyprus (either owned or rented property);
- Conduct business in Cyprus and/or be employed in Cyprus and/or be a director in a Cyprus tax resident company;
How are the days counted?
For both the ’60-days’ and the ‘183-days’ rules, the days in and out of Cyprus are calculated as follows:
- The day of departure from Cyprus counts as a day outside Cyprus;
- The day of arrival in Cyprus counts as a day of residence;
- Arrival and departure from Cyprus in the same day counts as a day in Cyprus;
- Departure and arrival in Cyprus in the same day counts as a day outside Cyprus;
How can I obtain a Cyprus tax residency certificate?
We would be happy to help you obtain a tax residency certificate. All you have to do is get in touch!