Cyprus Headquartering – Cyprus Tax incentives for entities looking to relocate to Cyprus
The Council of Ministers of Cyprus recently approved a bill with tax incentives for entities looking to relocate to Cyprus aiming to promote headquartering in Cyprus
A bill is also expected to extend the legislation for issuing visas and work permits to spouses of professionals who choose to relocate to Cyprus, as well as the One-Stop-Shop function to speed up all procedures.
Specifically, the bill aims to:
- Help the existing Cyprus companies, in general, to further develop their activities in Cyprus.
- Help the existing Cyprus high-tech companies that in recent years have chosen Cyprus as a place of relocation of their headquarters
- Attract foreign companies and especially high-tech companies to relocate to Cyprus and have their headquarters in Cyprus
- Attract professionals to relocate to Cyprus as a way to increase the number of international companies in Cyprus and therefore the relocation of their headquarters in Cyprus
The bill provides:
- Tax exemption of 50 percent for employees who receive annual salaries in Cyprus over 55,000 euros. (The plan currently provides for a tax exemption for employees receiving annual salaries in Cyprus over 100,000 euros).
- The period for which the tax exemption will be valid will be 17 years. (The plan now provides for 10 years).
- The time period for the tax exemption starts during the first year of employment in Cyprus.
- The above will apply retroactively to the existing eligible employees with annual salaries over 55,000 euros,
- New and existing employees will receive the tax exemption provided they have lived abroad for 12 consecutive years before starting work in Cyprus.
- A two-year grace period will be given to new employees, and a six-month grace period will be given to existing ones in order to obtain the necessary prerequisites for the tax exemption.
Employees and companies who choose to relocate to Cyprus and have their headquarters in Cyprus can now further strengthen the management and control of their companies in Cyprus and as a consequence enhance their tax base in Cyprus.
How can we help
Please contact us in case you are interested in operating in Cyprus as well as to share any questions you have regarding the above post.
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