Visa incentives & Digital Nomads in Cyprus

Visa incentives & Digital Nomads in Cyprus
 

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

Want to know more about relocating to Cyprus?