Cyprus Residency Programmes
Located at the crossroads between Europe, the Middle East and Africa, Cyprus offers an excellent strategic location. Together with its EU membership, culture and advanced infrastructure, Cyprus is a highly attractive destination for individuals and their families.
With the correct advanced planning, those who choose to become tax resident in Cyprus are able to minimise and even eliminate tax on certain sources of income. Being a non-domiciled tax resident in Cyprus also provides additional tax benefits.
Attracting foreign direct investment is at the heart of Cyprus’ development strategy. Accordingly, the Cyprus government introduced the Permanent Residence (PR) programme to provide non-EU citizens with the ability to obtain, through investment in Cyprus, permanent residence status that is valid for life and can be passed on to their dependents.
Cyprus has been a full member of the European Union since 2004. This small but dynamic country has a modern, free-market, service-based economy with an effective and transparent regulatory and legal framework, and a highly competitive tax system that is bolstered by an extensive network of over 60 double tax agreements in force worldwide.
Residence is probably the most widely used criterion for the taxation of individuals by governments around the world. In Cyprus, until 2017, an individual was considered a tax resident only if he/she was physically present in Cyprus for more than 183 days in a year of assessment. Consequently, if an individual was physically present in Cyprus for less than 183 days in a tax year, he/she was not considered to be tax resident. This is known as the ‘183-day rule’.
As of 1 January 2017, however, Cyprus amended its tax Income Tax Law (ITL) to provide that an individual who is physically present in Cyprus for more than 60 days in a year of assessment can elect to be tax resident in Cyprus in that tax year, if certain conditions are met.