What has changed for digital nomads and international businessmen and women?
In its effort to increase the number of high-tech and innovation headquartered, the Cyprus government has announced new visa and tax incentives to attract them, which are officially voted in January 2022.
Below you will find the measures simplified:
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 of at least €3,500 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
- 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 biogenetic and biotechnology
Working Permits
- Easy facilitation of working permits for highly skilled employees from third (non-EU) countries
Conditions:
- Salaries of at least €2,500
- Maximum number of work permits per company is 70% of all employees over 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 foreign high skilled employees
- Will be extended for 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 / Pass-porting
- 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
Retired employees will be able to enjoy pensions from their country of origin and Cyprus; an employee will not "lose" social securities paid in Cyprus or their home country as they will be transferred to the country of their retirement
Cyprus is currently in the process to conclude bilateral agreements with third countries
Originally Published 07 April 2022
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CYAUSE Audit Services has extensive experience in the insurance industry has helped tens of insurance brokers and agents register and get licensed by the local Cyprus regulator granting them passporting access to the rest of the European Union.
CYAUSE Audit Services is an Audit & Assurance firm with offices in Cyprus and the UAE. During 2015 we have been awarded by I.C.P.A.C and the A.C.C.A (local and international association of Chartered Certified Accountants) for the Quality of our Audit Services and our Office's Procedures.
Being a Truly International Audit & Assurance firm, we have associates from all over the world and we are constantly looking for new associates to expand our network further. At present, CYAUSE Audit Services operates internationally through its membership with BKR International amongst the largest American associations in the world, Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience. Our network covers almost 40 jurisdictions with over 2,000 professionals, it supports more than 10,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and processes at least 170,000 payslips globally.
CYAUSE Audit Services Ltd is also a member of BKR International one of the biggest US Accounting Associations of the word and the 3E Accounting Network, an international accounting network which originates from Hong Kong and has more than 80 members from all over the world.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
