60-day rule vs 183-day rule in Cyprus

In Cyprus, there are two key residency rules that determine an individual’s tax residency status: the 183-day rule and the 60-day rule.

  1. **183-Day Rule**: According to the 183-day rule, an individual is considered a tax resident in Cyprus if they spend more than 183 days in total within a tax year (January 1st to December 31st) in Cyprus. This includes both days of arrival and departure.
  2. **60-Day Rule**: The 60-day rule is an additional provision introduced in Cyprus’s tax legislation to attract high-net-worth individuals to become tax residents in Cyprus. According to this rule, an individual who does not meet the 183-day rule can still be considered a tax resident if they satisfy the following conditions:

   – They are present in Cyprus for at least 60 days in a tax year.

   – They do not reside in any other single country for a period exceeding 183 days in that tax year.

   – They are not tax residents in any other country.

It’s important to note that individuals who are tax residents in Cyprus are subject to taxation on their worldwide income, while non-residents are taxed only on income derived from Cyprus sources.

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