{{vm.title}}
25{{vm.includesText}}
{{item}}
{{vm.selectText}}
{{ vm.welcomeLabel.trim() }},
{{ vm.userName }}
{{ vm.text }}
{{vm.newUser1}} {{vm.newUser2}} {{vm.newUser3}} {{vm.newUser4}}
{{ vm.unknownUser }}
{{ vm.title }}
{{ vm.title }}
{{ vm.title }}
- {{ vm.siteSelectorList.flyout.cell1.heading }} {{ site.countryLocale }} {{ vm.siteSelectorList.flyout.cell1.global.countryLocale }}
{{ vm.closeTabLabel }}
- {{ vm.flyout.cell2.title }} {{ vm.flyout.cell2.newTabAllow }} {{ vm.flyout.cell2.title }}
- {{ vm.flyout.cell3.title }} {{ vm.flyout.cell3.newTabAllow }} {{ vm.flyout.cell3.title }}
- {{ vm.flyout.cell1.viewAll.label }} {{ vm.flyout.cell1.viewAll.newTabAllow }} {{ vm.flyout.cell1.viewAll.label }}
Cyprus - Special considerations for short-term assignments
Special considerations for short-term assignments
Taxation of international executives
For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than 1 year.
Residency rules
Are there special residency considerations for short-term assignments?
Individuals who remain in Cyprus less than 183 days in a calendar year are considered non-Cyprus tax residents.
However, the definition has been amended to also provide that, an individual who does not stay in any other country/territory, for one or more periods exceeding in aggregate 183 days in the same tax year and is not tax resident in any other country/territory for the same year, is deemed as a resident in the Republic in that tax year, if all of the following conditions are met:
- the individual stays in the Republic for at least 60 days in the tax year
- exercises any business in the Republic and/or is employed in the Republic
and/or holds an office with a Cyprus tax resident person at any time during the tax year - maintains (by owning or leasing) a permanent home in the Republic.
The law is further amended to clarify that an individual that cumulatively meets all the above conditions shall not be treated as a Cyprus tax resident in the tax year if, during that year the exercise of any kind of business in the Republic and/or employment in the Republic and/or holding of an office with a tax resident person in the Republic is terminated.
Payroll considerations
Are there special payroll considerations for short-term assignments?
No.
Taxable income
What income will be taxed during short-term assignments?
During short assignments that do not result in Cyprus tax residency, only profits or other benefits from any office or employment exercised in Cyprus and other income arising from sources in Cyprus is subject to Cyprus taxation.
Additional considerations
Are there any additional considerations that should be considered before initiating a short-term assignment in Cyprus?
Exemption from Cyprus tax may be available under the relevant article from a Double tax treaty.
A foreign employer of a person liable to Cyprus personal income tax on their salary is required to register with the Cyprus tax authorities and operate the PAYE system.
© 2019 KPMG Limited, a Cyprus limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
