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Thinking about moving to Cyprus? This sun-drenched Mediterranean island is quickly becoming a favorite among expats looking for a relaxed lifestyle, favorable tax benefits, and a safe, welcoming environment.
In this guide, we’ll walk you through everything you need to know about relocating to Cyprus from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
GTC recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
if you spend more than 183 days in Cyprus during the tax year.
if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.
if you are a Spain national who relocated to a tax haven less than five years ago.
if your ties are located in Mexico and 50% of your income arising in Mexico during the tax year.
if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.
if you spend at least 60 days in Cyprus, work in Cyprus and spend no more than 183 days in any other country during the tax year.
if you spend more than 183 days in Cyprus during the tax year.
if you are registered with the Italian resident population.
if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.
if you are a Spain national who relocated to a tax haven less than five years ago.
if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.
if you spend at least 60 days in Cyprus, work in Cyprus and spend no more than 183 days in any other country during the tax year.
Providing that you have been non-resident for 15 consecutive years prior to relocating to Cyprus and your annual remuneration is more than 55,000 EUR, you will be eligible to exempt 50% of your employment income from taxation for a period of 17 years.
* Cyprus can be a very tax efficient place to live in and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
If you receive incomes overseas while you are living in Cyprus, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Cyprus has 68 double taxation agreements signed.
