Half a Year of Tax Residency
183 days is the key to tax residency, because 183 days spent in a country in a tax year makes you a tax resident.
The 4th July represents the halfway point of the year, and means for many expats that they become tax resident in the country they are in.
For example, if you moved to Cyprus from the UK on 1st January 2022 and haven’t left Cyprus, by July 4 you will have been in the country more than 183 days and therefore you are obliged to register for tax and are open to possible tax filing obligations.
There are additional complications when moving from the UK because the UK operates an April-April tax year where as most countries, Cyprus included, operate a calendar tax year.
This is where split year treatment comes in, which can allow you to apportion your income between 2 countries depending on the date you moved giving you the advantage of 2 countries tax allowances.
Set a reminder for our future webinar on split year treatment.
But as the it is the 4th July weekend lets wish our American friends a happy Independence Day, while we take a mid year review of our tax status.
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