The Cyprus Tax Department issued a circular (EE 33 dated January 29, 2019) providing guidance on the tax residency provisions for individuals introduced by Law No. 119 (I) / 2017.

As from 2017, individuals who are physically present in Cyprus for one or more periods of at least 60 days during a tax year may be considered tax residents of Cyprus, subject to all the following conditions in relation to the tax year in question:

• They do not remain in any another country for one or more periods exceeding 183 days in total (beneficial for those who live in three countries).
• They are not tax residents in any another country (when becoming a Cyprus tax resident, one must de-register for tax registration at the place of previous residence).
• They carry out business in Cyprus, or are employed in Cyprus, or hold a position in a company registered in Cyprus and retain a seat until the end of the tax year.
• They maintain a permanent residence at their disposal for their use in Cyprus.

The circular clearly states that an individual who holds the position of director in a Cyprus tax-resident company and delegates this position to an alternate or nominee director at any time during the tax year does not satisfy the third condition and does not qualify for Cyprus tax residency under the 60-day rule.