As a tax resident of Cyprus you are eligible to annually file and pay personal income tax on income arising from both within and outside of the Republic. As an individual who is not tax resident in the Republic, you are only taxed on income arising from sources within the Republic.

To be considered a tax resident of Cyprus you have to spend more than 183 days in the Republic a single tax year. However, you may also be considered a tax resident if you spend less than 183 days in the Republic and satisfy all of the following criteria

• You spend less than 183 in any other country,
• You are not a tax resident of another country
• You spend at least 60 days in the Republic
• You carry on a business, are employed hold an office in the Republic at any time during the tax year

Capital Gains Tax is imposed on gains from the disposal of immovable property situated in Cyprus including gains from the disposal of shares in companies which directly own such immovable property.  Specifically, Capital Gains tax is imposed on profits from the disposal of:

• Immovable property situated in Cyprus
• Shares of private companies whose property consists of immovable property situated in Cyprus.
• Disposal of shares of listed companies in a recognized stock exchange are not subject to the Capital Gain Tax Law
• Shares of companies which either directly or indirectly participate in a company or companies which own immovable property situated in Cyprus and at least 50% of the market value of such shares is derived from the relevant property.
• A sale agreement of immovable property situated in Cyprus