Tax Residency in Cyprus: When Are Cypriots Living in the U.S. Considered Cyprus Tax Residents?
Introduction
Many Cypriot citizens living in the United States maintain income, real estate, or family ties in Cyprus. Some earn rental income, hold shares in Cypriot companies, or own bank accounts.
But a key legal question arises:
Are you still considered a tax resident of Cyprus if you live abroad — and specifically in the U.S.?
The answer depends on:
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Cyprus domestic tax law
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The Cyprus–U.S. Double Taxation Treaty
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The facts of your presence and activity in Cyprus
⚖️ Legal Framework
Tax residency in Cyprus is defined by:
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Income Tax Law of 2002 (Law 118(I)/2002)
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The “60-day rule” introduced by Law 119(I)/2017
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The Cyprus–United States Double Taxation Agreement (1985)
Key Criteria: 183-Day Rule and 60-Day Rule
✅ Traditional 183-Day Rule
You are considered a Cyprus tax resident if:
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You physically reside in Cyprus for at least 183 days within a tax year (January–December).
This rule applies mostly to retirees, long-stay property owners, or business operators.
✅ Alternative 60-Day Rule
You may qualify as a Cyprus tax resident even with just 60 days of presence, if all the following apply:
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You are not a tax resident in any other country
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You spend at least 60 days in Cyprus during the tax year
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You maintain a business, employment, or directorship in a Cyprus company
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You have a permanent residence in Cyprus (owned or rented)
What Happens If You Live in the United States?
If you live permanently in the U.S., declare your income there, and are registered with a U.S. SSN or ITIN, you are generally not a Cyprus tax resident.
However, you may still create a tax presence in Cyprus if:
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You spend significant time in Cyprus during the year
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You have economic activity (business, property rental, employment)
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You fail to declare yourself as a U.S. tax resident with Cypriot authorities
This may expose you to unintended tax obligations.
The Cyprus–U.S. Double Taxation Treaty
The treaty allows:
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Tax credits for taxes paid in one country against the other
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Relief or exemption for specific income (e.g., interest, royalties, dividends)
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Coordination between Cyprus and U.S. tax authorities
So while you may be required to declare income in both countries, you won’t be taxed twice — if you apply the treaty correctly.
❗ Common Risks & Consequences
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Late tax filings or penalties in Cyprus
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Notices or audits from the Cyprus Tax Department
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Delays in transferring property, receiving inheritances, or selling assets
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Banking restrictions due to tax status uncertainty
How E. CHATZIDIMITRIOU LLC Can Help
Our law firm:
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Assesses your tax residency status under both Cyprus and U.S. law
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Advises if you need to declare income or register in Cyprus
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Prepares and submits tax filings, exemptions, or appeal letters
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Communicates with the Cyprus Tax Department on your behalf
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Issues tax residency certificates or helps you invoke the double taxation treaty
All services are offered remotely, with legal representation via Power of Attorney.
Contact Us
Website: www.hatzidimitriouvirtuallaw.com
Email: info@hatzidimitriouvirtuallaw.com
U.S. Phone: +13474034789
Not sure if you’re a Cyprus tax resident? Let’s find out before the Tax Office does.