On 14th July 2017, the Parliament of Cyprus unanimously approved the bill that gives the right to an individual to be considered as tax resident in Cyprus, if he meets cumulatively certain conditions.

Specifically, the 183 day rule is being replaced with the below mentioned three criteria which must be met cumulatively for an individual to be considered a tax resident of Cyprus and those are (1) Remains in Cyprus for at least sixty (60) days in the year of assessment (2) Carries out any business in Cyprus and/or is employed in Cyprus and/or holds an office to a person resident in Cyprus at any time during the year of assessment (3) Maintains a permanent residence in Cyprus owned or rented by such individual.

The above would mean that any individual who is not a tax resident in any other state within the year of assessment and who does not remain in any other state for one or more periods, which do not exceed 183 days in total, within the same year of assessment, to be considered as a resident of the Republic of Cyprus.

The law is expected to come into force on 1st January 2018.

In the light of the above the following incentives become more valuable and those are individuals who are Cyprus tax resident but are not domiciled in Cyprus will be exempt from special defense contribution (SDT) which is levied on dividends, interest, and rental income.


For further information on this topic please contact

Mrs. Liza Bokova ( at SOTERIS PITTAS & CO LLC,

by telephone (+357 25 028460) or by fax (+357 25 028461)



The content of this article is intended to provide a general guide to the subject matter. Specialist advise should be sought about your specific circumstances.