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Foreign employment income for Cyprus non-doms (90 days rule)

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atd

New member
Hello everyone,

I'm reading that In Cyprus foreign employment income is not taxed in the hands of non-dom resident due to “90-Day” rule:

"Remuneration from rendering services outside Cyprus to a non-resident employer or to an overseas permanent establishment of a resident employer for more than 90 days in a tax year is exempt from income tax.

The 90-Days are not require to be consecutive, provided that:

  • The 90-Days fall within the same tax year;
  • the individual maintains the Cypriot tax residency (ex. spends no more than 183 days abroad); and
  • Employer-Employee relationship must be in place."

Can anyone explain how does this work?
I have employment contracts with 2 countries, both have DTT with Cyprus.
I travel often to those countries to conduct my duties.

Does it mean that my salary from foreign employers will be tax exempt in Cyprus if I spend 90+ days abroad, can provide proof that work was actually done there (meetings protocols, signed contracts, etc), and then work the remaining days out of Cyprus?

Thanks!
 

CyprusLaw

Mentor Group Gold
There also needs to be an employer-employee relationship, so working as a contractor and just invoicing the foreign company will not suffice. You will not to evidence that there is an employment in place, for example by being on the payrol and by the employment agreement being clear that it is an employment agreement and not a service agreement
 
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