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.
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 outside 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 the focal point of contact for existing companies relocated to Cyprus or new ones wishing to operate from Cyprus
– Some of the specific areas of economic activity:
- shipping companies,
- high-tech or innovation companies,
- pharmaceutical companies, or
- plus, cypriot companies active in the fields of biogenetics and biotechnology
Working Permits
– Easy facilitation of working permits for highly 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 issue within one month
– Last up to three years
- Family Members
– Can relocate together
– Employees’ spouses/husbands will also have access to the country’s labor market
Tax Exemptions
– Apply only to foreign high skilled employees
– extends 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 the 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 naturalization after 5 years of residence in Cyprus, or
– After 4 if they have a recognized certificate of very good knowledge in the Greek language
- Pension Security / Transfer
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.
Lastly, Cyprus is currently in the process to conclude bilateral agreements with third countries.
For more information about relocating to Cyprus, please get in touch with our partners at Cyause Audit Services at +357 99 428 543.
