Issue of Cyprus tax residency certificate during the tax year


The Cyprus Tax Department (CTD) has issued a Circular in mid-March 2017 regarding the issuing of tax residency certificates for individuals. According to the Circular, it is now possible for Cyprus tax resident individuals to request and obtain a tax residency certificate at any time during the tax year for which the certificate is requested.

The purpose in mind is to facilitate Cypriot tax residents who wish to benefit from the provisions of Double Tax Treaties between Cyprus and third countries, so as not to suffer withholding tax at source upon receipt of income from sources outside Cyprus.

As per the Circular, Cyprus tax resident individuals may now request and obtain a tax residency certificate, even if they have not resided in Cyprus for at least 183 days during the tax year, as at the date of request of the certificate. Towards this end, a declaration will need to be completed and submitted with the CTD that the individual intends to reside in Cyprus for at least 183 days during the tax year, thus becoming a Cyprus tax resident.

The Circular goes further to clarify that if, for any reason, the applicants fail to become Cyprus tax residents during the tax year, they are obliged to inform the CTD accordingly, so that the certificate will be revoked.



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