Cyprus prepared a comprehensive Strategy with targeted actions which will be implemented from 1 January 2022. These Actions were designed in a very good way taking into account best practices from other European countries. In this way, Cyprus aspires to remain a Sustainable Business and Trade Center of the wider region and Europe. Some of the actions that will take effect from 1 January 2021 are the following:
Digital Nomad Visa
This action concerns a residence permit in Cyprus and not a work permit. Globally there is a shift to distance work. The project aims to attract people who will live in Cyprus but will work in companies operating abroad. The program concerns third-country nationals, self-employed, or employees who work remotely using information and communication technologies with employers/clients outside Cyprus for a period of 12 months with the right to renew for another two years accompanied by their family members. If they reside in Cyprus for one or more periods that in total exceed 183 days within the same tax year then they are considered tax residents of Cyprus meaning they are not tax residents in any other State. The minimum amount of sufficient resources from work is set at three and a half thousand (3,500) euros per month.
Naturalization and issuance of a Cypriot passport
Right to submit an application 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.
Extending the tax exemption that applies to employees in Cyprus
Extension of the tax exemption applicable to employees in Cyprus who were non-residents of Cyprus before starting employment for a period of 17 years.
Extension of the existing tax exemption to cover new residents – employees with a salary of € 55,000 or more with a tax exemption of 50%. Existing employees have the opportunity to extend the benefit from 10 to 17 years.
Extension of tax exemption for investment in innovative companies
Extension of the 50% tax exemption for investment in certified innovative companies and by corporate investors. The regime that was in force until the end of June 2021 allowed tax exemption only to natural persons. Approval is awaited for this action
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