The 60-day tax resident rule was recently revised in a new circular released by the Ministry of Finance of Cyprus on the 1^st of February 2022. The issuance of the circular was decided as the authorities want to make the plan more attractive and also easier in establishing the residence under the 60-day rule.

Criteria:

The following requirements must be completed in order for a person to be declared a Cyprus tax resident for the purposes of the 60-day tax rule:

1. Spending more than 183 days in a calendar tax year in the same country is prohibited.
2. During such a year, the person is not a tax resident in another nation.
3. It is required that a person spends at least 60 days in Cyprus throughout the year.
4. During the year, the individual is either running a business in Cyprus or employed by a Cyprus-based company.
5. Applicants must own or rent a home in Cyprus where they want to stay for the foreseeable future.

Exemptions:

A few exceptions and explanations were included in the circular. The 60-day rule does not apply if the applicant is a citizen of the United Kingdom. This requirement (B) only applies to individuals who claim tax residency using a 60-day rule for a certain tax year, and who were also UK residents at the same time as claiming tax residency.

Tax residents of countries with a different calendar tax year than Cyprus are likewise eligible for the above-mentioned exemption. One state’s tax year can begin in April 2022 and end in April 2023 for example. Individuals who apply for a 60-day tax residence in Cyprus may be allowed to oversee criterion (B) specified above if the Registrar approves them as well.

Fast track 60-day rule certificate

In order to get a Cyprus tax resident certificate for persons who match the criteria above, a special statement form as issued by the authorities must be completed and submitted to the Cyprus tax department. The Cyprus stamp duty legislation requires that all supporting papers be supplied in either English or Greek and properly stamped. It is necessary to have any supporting papers that are not in English or Greek translated into one of those two languages.

Now that the 60-day tax resident certificate is easier to get, it may be granted in advance rather than waiting until the end of the 60-day period. The following proof must be presented in order for the certificate to be issued under the fast-track process:

• Evidence of a job or office position held;
• reasons why a fast-track procedure is required;
• Cyprus tax resident certificate must be presented to foreign tax authorities as soon as possible if an anticipated income is received from a source outside of the Republic of Cyprus.