Starting from March 2017, the Tax Department of Cyprus will issue a Tax Residency Certificate to individuals until the end of the relevant tax year.
According to the circular issued by the Tax Department on March 10, 2017, individuals can be granted a Tax Residency Certificate at any time throughout this tax year without prior residence in Cyprus for 183 days in total.
The Tax Department declared that the new policy is aimed to allow tax residents in Cyprus to avoid double taxation when they receive income from sources outside of Cyprus that are not taxed in the country where they got the income.
The policy that the Tax Department followed prior to the circular was that an individual would be considered a resident of Cyprus only after he or she resided in Cyprus for a period or periods that collectively exceeded 183 days a year.
Individuals interested in taking advantage of the new policy, will need to sign a declaration that they intend to stay in Cyprus for one or more periods exceeding in total 183 days during this tax year in order to become a resident of Cyprus.
If for any reason they cannot become tax residents in the specified year, they have to notify the Tax Department of their cancellation of the Certificate.
Please, contact VIZUS CONSULTING GROUP for any further assistance.