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Cyause Audit: In its effort to increase the number of high-tech and innovative headquartering, the Cyprus government has announced new visa and tax incentives to attract digital nomads, which are expected to be voted in January 2022.
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In summary, the new measures include the following:
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Digital Nomad Visa
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Period : 12 months, with the right to renew it for another two years; i.e 3 years
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Conditions:
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- Employers and clients are located outside Cyprus
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- Salaries at least €3,500 euros per month
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- Medical coverage, and
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- Clear criminal record from the country of residence/origin
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Establishment of a Business Facilitation Unit
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- Act as the focal point of contact for existing companies relocated to Cyprus or new ones wishing to operate from Cyprus
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- Some of the specific areas of economic activity:
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- shipping companies,
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- high-tech or innovation companies,
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- pharmaceutical companies, or
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- plus, cypriot companies active in the fields of biogenetics and biotechnology
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Working Permits
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- Easy facilitation of working permits for highly skilled employees from third (non-EU) countries
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Conditions:
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- Salaries at least €2,500
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- Maximum number of work permits per company is 70% of all employees over a period of five years
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- The permits issue within one month
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- Last up to three years
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- Family Members
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- Can relocate together
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- Employees' spouses/husbands will also have access to the country’s labor market
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Tax Exemptions
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- Apply only to foreign high skilled employees
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- extends for a period of 17 years (from 10 years)
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- 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 the employment of €55,000 or more with a tax exemption of 50%.
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- Naturalisation / Passporting
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- Eligible employees from 3rd countries will have the right to apply for naturalization after 5 years of residence in Cyprus, or
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- After 4 if they have a recognized certificate of very good knowledge in the Greek language
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- Pension Security / Transfer
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Moreover, retired employees will be able to enjoy pension from their country of origin and Cyprus; an employee will not "lose" social securities paid in Cyprus or in their home country. They will transfer to the country of their retirement.
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Lastly, Cyprus is currently in the process to conclude bilateral agreements with third countries.
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For more information about relocating to Cyprus, please get in touch with our partners at Cyause Audit Services at +357 99 428 543.
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