Paphos Life

Apparently, a proposed law has been presented which will be amending the rules for determining tax residency of individuals in Cyprus. Specifically, the 183 day rule is expected to be replaced with following 3 criteria which must be met cumulatively for an individual to be considered a tax resident of Cyprus:

- Remains in Cyprus for at least 60 days in the year of assessment;
- Carries out any business in Cyprus and/or is employed in Cyprus and/or holds an office to a person resident in Cyprus at any time during the year of assessment;
- Maintains a permanent residence in Cyprus owned or rented by such individual.

The proposed law has not yet been published in the official gazette of the RoC but it is expected that it will be deemed to enter into force on 1st January 2017.

An individual who will be considered a Cyprus tax resident will be taxed on their worldwide income under Cyprus tax.


Shane

It's not surprising that the government offices are not up to date with their back log of work when the idiots in parliament keep changing the rules every 5 minutes. Seems they don't know their ar**s from their elbows.

I don't think this is true Shane. Given the UK rules for tax residency, and your suggestion that it would be only 60 days for Cyprus liability, this would mean having tax liabilities in both countries. However, the double tax agreement with the UK prevents this, so it is unworkable. Additionally, there is no mention of pension (i.e. unearned) income, so the criteria seems incomplete.

Worldwide income is included in the present system.

josef k wrote: ↑Sat Jun 24, 2017 6:04 pm I don't think this is true Shane. Given the UK rules for tax residency, and your suggestion that it would be only 60 days for Cyprus liability, this would mean having tax liabilities in both countries. However, the double tax agreement with the UK prevents this, so it is unworkable. Additionally, there is no mention of pension (i.e. unearned) income, so the criteria seems incomplete.

Worldwide income is included in the present system.

I have not verified the source which is why I said "apparently" but here is the link http://www.lexology.com/library/detail. ... 9b813220ec


Shane