Cyprus Headquartering – Government Action Plan
The Ministry of Finance has announced the following measures as part of the action plan to enhance Head Quartering in Cyprus, attract foreign investment and or enhance business activity in Cyprus.
- Extension of the tax deduction period benefit for those employees that were not Cypriot residents in a prior period of 17 years before their commencement of their employment to Cyprus
- 50% tax deduction for those new residents/employees with a minimum annual salary of €55,000
- The current beneficiaries with Salaries over €100Κ can extend their right from 10 to 17 years
- The employees that have a Salary from €55Κ-€100Κ can benefit for a period of 17 years.
- New policy for employment from 3rd countries
The companies that are:
- operating in Cyprus and are of foreign interest/shareholding and maintain fully fledged offices
- Cyprus Shipping companies
- Cyprus Companies involved in innovation and technology
- Cyprus pharmaceutical Companies or Companies that operate in the fields of biogenetics or biotechnology
Can recruit from 3rd countries if the following criteria are met:
- Minimum monthly gross Salary €2500
- The candidate must hold a university degree or equivalent, or has a minimum 2 years’ experience
- Minimum 2 years contract
- The Company can employee up to a max of 70% from 3rd countries (the limitation applies for a period of 5 years)
- The work permits will be issued within one month period and will be valid for 3 years.
- A work permit can also be granted to the spouse/husband of the eligible individual that obtains visa with this scheme.
Can recruit support staff from 3rd countries with a gross salary lower than €2500 as long as the following criteria are met:
- The Company can employee up to a max of 70% from 3rd countries (the limitation applies for a period of 5 years)
- The work permits will be issued within one month period and will be valid for 3 years.
- DIGITAL NOMAD VISA (with a max number of 100)
- Who can benefit?
Citizens of 3rd countries self-employed/freelancers or employees that are working remotely for employers/customers that are located outside Cyprus, for a 12-month period.
- Residency status
- Have the right to stay in the country for a year with option to renew for another 2 more years.
- Their family has the right to stay in Cyprus but not the permit to work.
- If they stay in Cyprus for more than 183 days and are not tax residents of any other country will be considered as tax residents of Cyprus.
- Prerequisites:
The visa is provided if the following requirements are met:
- A written declaration is filed that confirms that their services/work is not provided to a local Cyprus Company
- There is a signed contract of employment and or engagement letter with an overseas Company or physical person or any other proof of work for the duration of the period that the visa is granted
- The applicant can prove that he or she will have a minimum monthly income of EUR3.500. The amount is increased by 20% in case they have a wife/husband/partner and another 10% per child
- They have a medical insurance and a clean criminal record
- A 50% tax deduction on investments to innovative Companies both by a Cypriot Tax resident physical person or Company
- A 120% capital allowance on expenses that relate to R&D
- Citizenships
An employee that completes 5 years of residency and employment in Cyprus or 4 years and carry a certification of Greek language, can apply for a citizenship.