Tax Residency
Tax Residency
Tax Residency in Cyprus
Understanding Tax Residency in Cyprus is crucial for anyone planning to live or do business on the island. Cyprus offers attractive tax benefits, making it a popular choice for expatriates and businesses.
What is Tax Residency?
Tax Residency determines where you are liable to pay taxes. In Cyprus, you are considered a tax resident if you spend more than 183 days in the country within a calendar year.
183-Day Rule
The 183-day rule is straightforward. If you live in Cyprus for more than half the year, you become a tax resident. This means you will be taxed on your worldwide income in Cyprus.
Benefits of Cyprus Tax Residency
Becoming a Tax Resident in Cyprus comes with several benefits. The country has a low corporate tax rate of 12.5%, and there are no taxes on dividends, interest, or capital gains.
Non-Domicile Status
Cyprus offers a non-domicile status for expatriates. This status exempts you from paying taxes on dividends and interest for 17 years. It's a significant advantage for those planning to move to Cyprus.
How to Apply for Tax Residency
To apply for Tax Residency in Cyprus, you need to submit a form to the tax authorities. You will also need to provide proof of your stay, such as rental agreements or utility bills.
Conclusion
Understanding Tax Residency in Cyprus can help you make informed decisions about living or doing business on the island. With its attractive tax benefits, Cyprus is an excellent choice for many.
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