Regarding when you’re liable to pay tax under Cyprus programs: If your taxable income exceeds the limit of 19,500 euros. Some types of income are not taxable in Cyprus, such as dividends and profit on sale of shares or bonds. For tax liabilities of Cyprus, even if the income comes from Cypriot sources, no. Cyprus tax is normally levied on Cyprus source income. There are some exceptions. Regarding if this only applies to permanent residents or also to citizens: Citizenship does not make you a Cyprus tax resident. Anyone spending greater than 183 days in a fiscal year in Cyprus is considered a Cyprus tax resident and is taxable in Cyprus on his worldwide income. Cyprus tax residency can also come about by spending 60 days in Cyprus if you also own or rent a home here and have a job here, you are not tax resident anywhere else in the world and do not spend more than 183 days in another country in any fiscal year.
When am I liable to pay tax under Cyprus programs?
After some research I understand that if I don't reside in Cyprus, I will not be subject to tax liabilities of Cyprus, even if the income comes from Cypriot sources. Does this only apply to permanent residents or also to citizens? If I decide to not spend the whole year but several weeks in Cyprus, will my tax residency status change? Under what circumstances would a Cypriot CBI or RBI applicant become tax liable?
Cyprus taxation applies only to Cyprus tax resident individuals. A Cyprus tax resident individual is defined as a person who spends at least 183 days in Cyprus or a person who spends at least 60 days in Cyprus, does not spend 183 days in any other country, has a residence (owned or rented) in Cyprus and has Cyprus income. Non-Cyprus tax residents are liable for tax only for Cyprus-sourced income.
In order for an individual to become Cyprus tax resident he or she has to live in Cyprus for at least 183 days within a year. Additionally to the above, there is also the 60-day rule, which applies to individuals who, in the relevant tax year: first, do not reside in any other single state for a period exceeding 183 days in aggregate; second, are not a tax resident in any other state; and third, reside in Cyprus for at least 60 days; an fourth, have other defined Cyprus ties. The rules on taxation in Cyprus for tax resident, non-domiciled individuals also apply to non-domiciled individuals who are tax residents under the 60-day rule.