Cyprus Tax Residence Certificate

Individuals

ATCA Co. Ltd


IN BRIEF
DEVELOPMENT
The Cyprus tax authorities can
issue a certificate of tax residence
to an individual before the
lapse of the necessary days
needed for the individual to be
considered Cyprus Tax Resident.
This is possible on the basis
that certain conditions are met
and the individual presents
certain evidence of his intention
to remain in Cyprus.
183 DAYS OR 60 DAYS
The conditions to be met vary
depending as to whether the
individual intents to become
tax resident in Cyprus based on
the 183 or 60 days test. It seems
however, that the 60 days route
has more stringent requirements
compared to the 183 days
route.
CONTACT US
We can directly assist you and or
your clients with their Cyprus tax
compliance including registrations
to the Cyprus Tax Department and
obtaining Tax Residency Certificates.
Constantinos Markou
Director
Head of Tax Services
markou@atca.com.cy
+357 25661717
CYPRUS TAX RESIDENCY
PREFACE
Set out below is a summary of the main requirements and conditions
that must be met for an individual to obtain a tax residency certificate
from the Cyprus Tax Department. Such certificate is usually needed
by foreign tax authorities in order to apply the provisions of a double
tax treaty with Cyprus (e.g. apply lower or eliminated withholding
taxes on payments to Cyprus residents) and/or confirm that an
individual is indeed tax resident in Cyprus. It is noted that the
issuance of a tax residency certificate attracts a stamp duty of €80.
Cyprus Tax Residency
A physical person is considered tax resident in Cyprus for any
calendar year if he/she fulfills any one of the following two tests:
1. Physical presence in Cyprus for more than 183 days in any
calendar year, or
2. Physical presence in Cyprus of at least 60 days in any calendar
year (after 1 January 2017) and fulfillment of all the following
conditions.
▪ Carries on a business in Cyprus as a self-employed person, or is
employed in Cyprus or holds an office with a Cyprus tax resident person
(e.g. be a director of a Cyprus company) at any time during the tax year.
▪ Does not spend more than 183 days in any other country
▪ Maintains a permanent home in Cyprus that is either owned or
rented;
▪ Is not a tax resident of any other country;
If the business, employment or holding of an office is terminated
during the year, then the individual would cease to be considered a
Cyprus tax resident for that tax year.
For the purpose of calculating the days of presence in Cyprus:
▪ The day of arrival into Cyprus is considered as a day in Cyprus
▪ The day of departure from Cyprus is considered as a day out of Cyprus
▪ He arrival and departure from Cyprus on the same day is considered
as a day in Cyprus
▪ The departure and return to Cyprus on the same day is considered
as a day out of Cyprus
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 REQUEST OF CYPRUS TAX RESIDENCY CERTIFICATE

If the individual fulfils one of the two tests above, then the he/she is considered as a Cyprus
tax resident person. Provided certain conditions and documentation needs are met (specified
below) then the person can request a tax residency certificate from the Cyprus tax authorities.
The certificate can be requested either for the previous year or for the current year.

PREVIOUS YEAR
To request a certificate for the previous year, the following conditions must be met:

▪ The individual is registered with the Tax Department and has a Tax Identification Code
▪ All outstanding tax returns have been properly filed, and
▪ All relevant taxes have been fully paid
▪ The individual states the country for which the certificate is requested

Assuming the above are in place, the individual can request the certificate in writing.

CURRENT YEAR
Even though an individual has not remained in Cyprus for the required number of days (i.e.
183 days or 60 days), the Cyprus Tax Department is able to issue a certificate of tax residency
for the current year.

Depending on the tax residency status of the individual and specifically whether the individual
fulfills either the 183 days test or the 60 days test there are different conditions that must be
met.

The specific tax residency certificates (for the current year) are issued only in circumstances
where the individual is requesting the certificate for the purposes of a reduced or eliminated
foreign withholding tax from dividends or interest.

Photo via Visual hunt

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CONDITIONS

183 days test

To obtain a tax residency certificate under the 183 days test, the individual must fulfill the
following conditions:

▪ Be registered with the Tax Department and have a Tax Identification Code
▪ Sign a declaration (standardized document) affirming his intention to remain in Cyprus for
one or more periods exceeding in aggregate 183 days in the current tax year. If for any reasons
he/she does not fulfill the required number of days, the tax authorities must be informed to
revoke the tax residency certificate,
▪ Present evidence with respect to the foreign dividends and/or interest earned
▪ Present evidence showing his intention to remain more than 183 days in Cyprus (e.g. contract
of employment – if applicable and/or rental agreement)
▪ All outstanding tax returns have been properly filed,
▪ All relevant taxes have been fully paid (if any)
▪ State the country for which the certificate is requested

60 days test
To obtain a tax residency certificate under the 60 days test, the individual must fulfill the
following conditions:
▪ Be registered with the Tax Department and have a Tax Identification Code
▪ Sign a declaration (standardized document) affirming his intention to remain in Cyprus for
one or more periods exceeding in aggregate 60 days in the current tax year
▪ Sign a declaration (standardized document) stating that if for any reasons he/she does not
fulfill the required number of 60 days or is no longer employed or holds an office or exercises
a self-employed activity, then the tax authorities will be informed to revoke the tax residency
certificate,
▪ Present evidence with respect to the foreign dividends and/or interest
▪ Present a copy of his passport with entry/exist stamps, boarding passes, electronic tickets
and other relevant information.
▪ Present a copy of his/her employment contract (if applicable), title deed of owned property
or rental agreement.
▪ All outstanding tax returns have been properly filed,
▪ All relevant taxes have been fully paid (if any)
▪ State the country for which the certificate is requested

DISCLAIMER

This summary is by no means exhaustive and does not purport to contain all applicable provisions or to be a complete
review of such matters. The information contained in this guide is provided for the general interest of our readers,
but is not intended to constitute advice. Clients and the general public are encouraged to seek specific advice on
matters of concern. This guide can in no way serve as a substitute in such cases.

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ABOUT US

ATCA
Established in 1998 as practice, ATCA is an accountancy and audit firm in Limassol, Cyprus.
Our main services include accounting, audit, tax and business consulting. Over the years, the
firm has experienced substantial growth, achieved by providing practical and effective solutions
to our clients. The directors of the firm maintain a personal approach and direct communication
with clients resulting in meaningful and mutually beneficial relationships. Our clientele
includes individuals and small and medium businesses in Cyprus and aboard

Contacts

Andreas Theodorou
Director, Head of Accounting and VAT Services
a.theodorou@atca.com.cy
+357 25661717

Antonis Theodorou
Director, Head of Assurance & Advisory
antonis@atca.com.cy
+357 25819021

Constantinos Markou
Director, Head of Tax
markou@atca.com.cy
+357 25661717

Address

108 Franklin Rousvelt Avenue, 2nd Floor, Office 201, 3315 Limassol, Cyprus
+357 256 61717
info@atca.com.cy
www.atca.com.cy

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© 2017 ATCA Co. Ltd