Origins – Where you are From
The key driver to the change was the introduction into Cyprus law of a statutory definition of where you are from – domicile. If you are born in a country with parents from that country then your origin is that country – your domicile. You may be born in Ireland you’re your parents come to UK to bring you up but your origin is the home country Ireland.
If you live in Cyprus for 20 years (and a tax resident for at least 17 of those years) then your Domicile becomes your country of residence – Cyprus ?
And so it will remain, unless you return to your home country, which would immediately become your country of domicile again. An Expat returning to the UK after 30 years in Dubai and Cyprus would immediately fall under UK domicile again.
If an expat left Cyprus after 25 years, as Cyprus domicile and lived in Spain, his domicile would remain Cyprus, unless he remained in Spain for 20 years plus or returned to his home country.
The UK, Ireland has not introduced such a definition of domicile. But the guidance for assessment of domicile for inheritance tax is the same rules.
A final footnote, there are ways to choose and force domicile issues. But that’s not for this article. Contact Us for a Free Review of Inheritance Tax