Cyprus tax residency certificate - experiences and procedure

[bigbite100]

Hello,

since Dubai makes it easy to recieve a tax residency certificate after 90 days, how does it work for Cyprus Non Dom residents? You are a tax resident after 60 days of staying there, but you dont automatically recieve a tax residency certificate. How does the procedure for applying for a tax residency certificate work (in practice, not in theory) and is it really necessary to stay 183 days?

 

[CyprusBusiness]

Hello

In order to apply for the Certificate from the Cyprus Tax Department, the below documents are required:

• Tax returns for the year applying for a TRC
• Rental Agreement or a tittle deed of property (stamped by the Tax Department)
• Utility bill, EAC bill or Water Supply bill for the whole year;
• Residency visa n or Yellow Slip;
• Valid Passport;
• Bank Statement for the year preceding the application's year;
• If you hold the position of a director or a shareholder of a company in Cyprus, Directors & Secretary certificate, Shareholder's Certificate and Incorporation Certificate are also required;
• Statement regarding the country which could request the TRC ;
• In certain cases, the Tax Office may also request boarding flight documents to prove that an individual has spent more than 60 days within a year in Cyprus.

 

[luap]

As @CyprusBusiness mentioned, you'll need all of those documents. In my case, they also asked for a scanned copy of every passport page (even empty ones).

 

[Gediminas]

bigbite100 said:
Hello,

since Dubai makes it easy to recieve a tax residency certificate after 90 days, how does it work for Cyprus Non Dom residents? You are a tax resident after 60 days of staying there, but you dont automatically recieve a tax residency certificate. How does the procedure for applying for a tax residency certificate work (in practice, not in theory) and is it really necessary to stay 183 days?
Click to expand...

Hey,

Dubai 90 days certificates and Cypriot 60 days certificates are basically not valid internationally.

In other words, they are not addressed to a specific country (under tax treaty provisions) but are just general statements that according to some local rules person is a tax resident.

Eventually, it depends on who is asking and who will challenge the certificate. Tax authorities in high-tax countries might ask for TRC issued under standard procedure, which usually requires staying for more than 183 days (in Cyprus not so strictly as in UAE).

Cypriot authorities determine dates based on plane tickets and other supportive information, therefore sometimes in practice, it is possible to obtain it without spending half of the year.

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[ElBotellon]

Gediminas said:
Hey,

Dubai 90 days certificates and Cypriot 60 days certificates are basically not valid internationally.

In other words, they are not addressed to a specific country (under tax treaty provisions) but are just general statements that according to some local rules person is a tax resident.

Eventually, it depends on who is asking and who will challenge the certificate. Tax authorities in high-tax countries might ask for TRC issued under standard procedure, which usually requires staying for more than 183 days (in Cyprus not so strictly as in UAE).

Cypriot authorities determine dates based on plane tickets and other supportive information, therefore sometimes in practice, it is possible to obtain it without spending half of the year.
Click to expand...

Online I did not find any example of individual certificate. How a DTA-compliant certificate looks like? which wording they use? on the contrary, how a non-DTA compliant certificate would look like?

i have found only examples of companies.

 

[CyprusBusiness]

Just to clarify there are no 90 days and 60 days certificates in Cyprus. The available certifocates are tax resident certificate, non-domiciliation certificate, and tax registration certificate. All those certificates do not mention whether the 60 days or 183days elections

 

[RAZ]

@CyprusBusiness is it possible to chat as i cannot pm? Intrested in discussing your services

 

[ElBotellon]

CyprusBusiness said:
Just to clarify there are no 90 days and 60 days certificates in Cyprus. The available certifocates are tax resident certificate, non-domiciliation certificate, and tax registration certificate. All those certificates do not mention whether the 60 days or 183days elections
Click to expand...

the main topic is how to ensure that the tax resident certificate is issued under the specific DTA available and explicitly mention the DTA in the certificate. The point of Gediminas I believe is the possibility to have tax treaty protection (many countries have two versions of certificates, under domestic law and under international treaty).

 

[Gediminas]

ElBotellon said:
Online I did not find any example of individual certificate. How a DTA-compliant certificate looks like? which wording they use? on the contrary, how a non-DTA compliant certificate would look like?

i have found only examples of companies.
Click to expand...

Yes, indeed.

For example, a tax inspector in Germany does not care what kind of certificates can be obtained in Cyprus (or any other country). Cyprus can issue 10 different types of certificates and call them as they wish.

Only the certificate confirming that the individual is a tax resident under the treaty between Cyprus and Germany makes sense.

If you are a resident of Cyprus or another low-tax country, the problem is not in that low-tax country. The potential problem is back in your home country which might ask to prove this residency. A tax residency certificate (valid under DTT) is one of these proofs.

I have seen many cases where you can give them any kind of certificate and they accept it as “real tax residency certificate” because the tax inspector is incompetent and does not understand. But in case of a more serious investigation, you should be prepared that it will not work.

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[bountymounty]

Always be prepared for the worst but try to setup things legally, at the end it can be the difference between you loosing or be winner.

 

[Tepesch]

CyprusBusiness said:
Hello

In order to apply for the Certificate from the Cyprus Tax Department, the below documents are required:

• Tax returns for the year applying for a TRC
• Rental Agreement or a tittle deed of property (stamped by the Tax Department)
• Utility bill, EAC bill or Water Supply bill for the whole year;
• Residency visa n or Yellow Slip;
• Valid Passport;
• Bank Statement for the year preceding the application's year;
• If you hold the position of a director or a shareholder of a company in Cyprus, Directors & Secretary certificate, Shareholder's Certificate and Incorporation Certificate are also required;
• Statement regarding the country which could request the TRC ;
• In certain cases, the Tax Office may also request boarding flight documents to prove that an individual has spent more than 60 days within a year in Cyprus.

Click to expand...

Hi
In other countries you get a tax bill, like an official document from the government that assesses the amount of tax you have to pay for a certain year. Do you get something like this in Cyprus? Like an official tax bill / confirmation of a tax declaration from the gov showing the details and tax for a certain year?

 

[CyprusBusiness]

Tepesch said:
Hi
In other countries you get a tax bill, like an official document from the government that assesses the amount of tax you have to pay for a certain year. Do you get something like this in Cyprus? Like an official tax bill / confirmation of a tax declaration from the gov showing the details and tax for a certain year?
Click to expand...

In Cyprus you pay tax on what you declare on your personal tax form. A tax assessment letter usually is delivered by the lapse of 6 years time. That is, for 2023 a tax assessment letter for 2017 will be sent and if any balance exists will be paid./refunded with interest and penalties. The only time the Tax office will deliver a tax assessment letter is upon an investigation.