Special considerations for short-term assignments | KPMG | GLOBAL

Cyprus - Special considerations for short-term assignments

Special considerations for short-term assignments

Taxation of international executives


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For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than one year.

Residency rules

Are there special residency considerations for short-term assignments?

Individuals who remain in Cyprus less than 183 days in a calendar year are considered non-Cyprus tax residents.

Payroll considerations

Are there special payroll considerations for short-term assignments?


Taxable income

What income will be taxed during short-term assignments? 

During assignments that last 183 days or less (i.e. do not result in Cyprus tax residency) only profits or other benefits from any office or employment exercised in Cyprus and other income arising from sources in Cyprus is subject to Cyprus taxation.

Additional considerations

Are there any additional considerations that should be considered before initiating a short-term assignment in Cyprus?

Exemption from Cyprus tax may be available under the relevant article from a Double tax treaty.

A foreign employer of a person liable to Cyprus personal income tax on their salary is required to register with the Cyprus tax authorities and operate the PAYE system. 

© 2018 KPMG Limited, a Cyprus limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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