Why Cyprus?
Cyprus’ offers a wonderful living experience combining a stress-free and relaxed way of life in a safe environment with a contemporary character, ideal for people who seek balance between work and pleasure. Cypriot legislation includes several tax incentives for individuals who seek to relocate and become Cyprus tax residents.
Non-Tax Reasons
The safest country in the World for countries with less than 5 million population (ValuePenguin.com, 2015)
Multicultural environment, over 20% of the population in Cyprus are non-Cypriots
- Clean waters with the highest number of Blue Flag beaches per capita in the world (EU Blue Flag ranking, 2015)
- The 5th best relocation destination worldwide (Knight Frank Global Lifestyle Review, 2013)
Tax Reasons
0% tax on capital gains on the disposal of shares and other titles
0% tax on interest income for non-domiciles
0% tax on dividends for non-domiciles
Absence of wealth and inheritance tax
50% exemption from tax on salary exceeding EUR100,000
Procedures
The procedure of becoming a tax resident involves certain registrations and attendance to a number of authorities and organizations. We will guide you from the beginning until the successful completion of the whole procedure.
Physical Presence Tests
A physical person is considered tax resident in Cyprus for any calendar year if he/she fulfills any one of the following two tests:
Non Domiciled Provisions
In brief, an individual is considered as non-domiciled in Cyprus for tax purposes provided that:
- He/she does not have a Cypriot domicile of origin and
- has not been a Cyprus tax resident for 17 years in the previous 20 years
Thus, any individual who becomes Cyprus tax resident and does not have a Cypriot domicile of origin, shall be considered as non-domiciled for tax purposes until such person is tax resident in Cyprus for 17 years out of the previous 20 years. This test should be performed every year.
Note: There is scope for an individual with a Cypriot domicile of origin to be considered as non-domicile of Cyprus provided certain conditions are met.
FAQs
In general no. However, in case you receive the following incomes the below information shall be disclosed:
- Rents: Various details concerning the property must be disclosed on the individual’s annual tax return (e.g. title deed, construction cost, date completed, square meters, and others).
- Interest: Various details concerning the debtor or bank, but there is no disclosure on the debt amount or bank balance amount.
- Dividends: Various details concerning the company paying the dividend.
No, Cyprus does not have a wealth tax or inheritance tax.
At the moment no, there is no form of exit tax for individuals.
Capital gains from the disposal of Cyprus situated immovable property are subject to Cypriot Capital Gains Tax. Other types of capital gains are exempt from Cyprus tax.
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