Private client—Cyprus—Q&A guide

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • Private client—Cyprus—Q&A guide
  • 1. How does an individual become taxable in your jurisdiction?
  • 2. What, if any, taxes apply to an individual’s income?
  • 3. What, if any, taxes apply to an individual’s capital gains?
  • 4. What, if any, taxes apply if an individual makes lifetime gifts?
  • 5. What, if any, taxes apply to an individual’s transfers on death and to his or her estate following death?
  • 6. What, if any, taxes apply to an individual’s real property?
  • 7. What, if any, taxes apply on the import or export, for personal use and enjoyment, of assets other than cash by an individual to your jurisdiction?
  • 8. What, if any, other taxes may be particularly relevant to an individual?
  • 9. What, if any, taxes apply to trusts or other asset-holding vehicles in your jurisdiction, and how are such taxes imposed?
  • More...

Private client—Cyprus—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to private client in Cyprus published as part of the Lexology Getting the Deal Through series by Law Business Research (published: September 2020).

Authors: Patrikios Pavlou & Associates LLC—Stella Strati; Nikoleta Christofidi

1. How does an individual become taxable in your jurisdiction?

An individual becomes a tax resident in the Republic of Cyprus pursuant to a numerical day test. A physical person residing in Cyprus for a period or periods exceeding in aggregate 183 days in the year of assessment is taxable in Cyprus. The 183 days do not need to be consecutive. The year of assessment means the period of 12 months commencing on the first day of January of each year (ie, the calendar year). The Cyprus Income Tax Law provides that (1) the day of departure is considered to be a day out of Cyprus; (2) the day of arrival is considered to be a day spent in Cyprus; (3) the arrival and departure from Cyprus on the same day is considered to be a day spent in Cyprus; and (4) the departure and return to Cyprus on the same day is considered to be a day spent out of Cyprus.

As from 1 January 2017 a new test was introduced to determine the tax residency of an individual. According to this newly introduced test

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