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Commentary

1.1.1 Tax residency rules for individuals

Cyprus

1.1ÌýÌýÌýÌý Introduction: overview of the domestic payroll system

Cyprus, officially 'The Republic of Cyprus', is an island country situated in the eastern Mediterranean Sea and is a member state of the European Union. The northern part of the island is de facto occupied and administered by the self-declared Turkish Republic of Northern Cyprus. This is not recognised by the international community, which considers it to be part of the Republic of Cyprus.

Cyprus is a presidential republic, with the president being elected for five-year terms. The president is the head of government, which exercises executive power. Legislative power is vested to the parliament, members of which are elected every five years. Judiciary power is exercised by the 'Judicial Service of the Republic', which is independent from both executive and legislative powers.

The country is divided into six districts: Nicosia, Limassol, Larnaca, Paphos, Kyrenia and Famagusta. The district of Kyrenia, as well as parts of the districts of Nicosia and Famagusta, are under occupation. In the occupied territories, the Republic of Cyprus (hereon referred to as Cyprus)

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