Cyprus offers important tax advantages and interesting tax benefits for its residents who, however, need not necessarily be domiciled in Cyprus. That is why, Cyprus has already been for years, an attractive destination for retired investors, as foreigners who become residents are not allowed to carry on any local business on Cyprus unless granted special permission.
An individual is deemed to be a resident of Cyprus, if he or she resides on the island for a period which in aggregate exceeds 183 days. A company is resident in Cyprus, if its management and control are exercised in Cyprus.
Cyprus now enjoys a significantly advantageous tax regime. With the enactment of the New Tax Laws in 2003 and the abolition of the previous “offshore regime”, Cyprus has enforced a simple yet effective and transparent tax system, thus becoming one of the lowest-tax EU Jurisdiction that is not offshore.