In its effort to increase the number of high-tech and innovation headquartering, the Cyprus government has announced new visa and tax incentives to attract them, which are voted in January 2022.

In summary, the new measures include the following:

 

• Digital Nomad Visa

Period: 12 months, with the right to renew it for another two years; i.e 3 years

Conditions:

- Employers and clients are located ourside Cyprus

- Salaries at least €3,500 euros per month

- Medical coverage, and

- Clear criminal record from the country of residence/origin

 

• Establishment of a Business Facilitation Unit

- Act as focal point of contact for existing companies relocated to Cyprus or new ones wishing to operate from Cyprus

- Specific areas of economic activity: 

   Cypriot shipping companies,

   Cypriot high-tech or innovation companies,

   Cypriot pharmaceutical companies, or

   Cypriot companies active in the fields of biogenetics and biotechnology

 

• Wokring Permits

- Easy facilitation of working permits for high skilled employees from third (non-EU) countries

Conditions:

- Salaries at least €2,500

- Maximum number of work permits per company is 70% of all employees over a period of five years

- The permits will be issued within one month

- Last up to three years

 

• Family Members

- Will be allowed to relocate together

- Employees spouses / husbands will also have access to the country’s labour market

 

• Tax Exemptions

- Apply only to to foreign high skilled employees

- Will be extendent for a period of 17 years (from 10 years)

- Existing 50% tax exemption on annual salary tax for new employees in the republic earning more than Euro 100,000 is also extended to cover new residents-employees with a yearly salary from employment of €55,000 or more with a tax exemption of 50%.

 

• Naturalisation / Passporting

- Eligible employees from 3rd countries will have the right to apply for a naturalisation after 5 years of residence in Cyprus, or

- After 4 if they have a recognised certificate of very good knowledge in Greek language

 

• Pension Security / Transfer

Retired employees will be able to enjoy pension from their country of origin and Cyprus; an employee will not "loose" social securities paid in Cyprus or in their homw country as they will be transferred to the country of its retirement

Cyprus is currently in the process to conclude bilateral agreements with third countries

Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as legal or tax advice. Please consult with a professional tax advisor for advice on your specific situation.

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Call me directly on +357 22 336 309 to walk you through the requirements.

Thank you,

Kyriakos