Cyprus has developed a comprehensive strategy to enhance its role as a sustainable business and trade hub. These targeted actions, implemented from 1 January 2022, incorporate best practices from other European countries to attract global talent and investment. Key initiatives include:
Digital Nomad Visa
The visa provides a residence permit in Cyprus (not a work permit) for third-country nationals (non-EU/EEA/Swiss citizens) who wish to live in Cyprus while working remotely for companies or clients abroad. This reflects the global shift toward remote work and aims to position Cyprus as a preferred destination for digital nomads.
Key Provisions:
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Eligibility:
- Applicants must be self-employed or employed by companies located outside Cyprus.
- Family members (spouses and dependent children) can join but cannot work in Cyprus.
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Duration: The visa is valid for 12 months and renewable for an additional 2 years.
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Income Requirement: Applicants must demonstrate a minimum monthly income of €3,500 (net of taxes) increased by 20% for the spouse or partner and 15% for each child.
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Tax Residency: If a digital nomad resides in Cyprus for over 183 days in a tax year, they become a Cyprus tax resident, unless they establish tax residency in another country.
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Cyprus Stay: The applicant must demonstrate a suitable place to stay.
Naturalization and issuance of a Cypriot passport
Right to apply for naturalization after 5 years of residence and work in Cyprus or after 4 years if they meet the criteria of holding a recognized certificate of very good knowledge of the Greek language. The possibility of introducing arrangements is being considered so that when someone is absent for a reason outside of Cyprus for work purposes, it will be taken into account in the calculation of the time spent in Cyprus.
Tax Incentives for Employees
Cyprus has enhanced its tax regime to attract high-earning employees and support long-term talent retention.
Key Provisions:
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High-Income Tax Exemption: Employees earning €55,000 or more annually are eligible for a 50% tax exemption on their income for up to 17 years.
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Existing Employees: Individuals already benefiting from the previous 50% tax exemption can now extend their benefit period from 10 years to 17 years.
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Non-Residents Starting Employment in Cyprus: Special tax benefits apply to those who relocate to Cyprus specifically for employment.
Tax Incentives for Investment in Innovative Companies
To promote innovation, Cyprus has extended its tax exemptions for investments in certified innovative companies.
Key Provisions:
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Expanded Scope: The 50% tax exemption, previously limited to individuals, now includes corporate investors.
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Support for Startups: Encourages growth in the innovation ecosystem by incentivizing funding for startups and research-based businesses.
Move to Cyprus today!
Enjoy tax benefits, the Digital Nomad Visa, and great business opportunities. Contact us now!
Contact details
Tel. +357 22 340000
Email: [email protected]
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Accordingly, no person, entity, or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances.