Our aim at Vasiliou Law is to protect and advise all our clients on all current affairs regarding tax law updates in Cyprus. Through our network of associate tax specialists we focus on current matters such as :
Substance requirements may vary from country to country, but essentially, they are all about economic substance. Having sufficient substance is vital to support Cyprus Tax residency status.
New domicile requirements since 2015:
As of July 2015, the “Domicile” concept was introduced to the Cypriot tax legislation. The introduction of the non-domicile rules aims to enhance the competitiveness of the Cyprus Tax System and its attractiveness to foreign investors who want to relocate to Cyprus and use Cyprus as a business centre.
In order to benefit from the non-Domicile Concept, individuals must be Cyprus Tax Residents.
If an individual is deemed to be non-domiciled in Cyprus that individual will be exempt from the SDC legislation, that is will be exempt from paying tax on interest or dividend income irrespective of whether the income is derived in Cyprus and or if the income is remitted or used in Cyprus.
Cyprus Tax Residency
On 14th of July 2017, the House of Representatives voted into law a new definition of “Cyprus
tax resident individual” as per the Income Tax Law.