Cyprus – New incentives for relocation & work permits
The Cyprus government has announced new incentives to attract companies in the country, placing an emphasis on high-tech, research and innovation companies. The implementation of the strategy is expected to start from January 2022.
In summary, the new measures include the following:
- Establishment of a Business Facilitation Unit that will function as the focal point of contact for all companies of international interest, either operating in Cyprus or wishing to operate in the country, as well as for Cyprus business in specific areas of economic activity, including Cypriot shipping companies, Cypriot high-tech or innovation companies, Cypriot pharmaceutical companies or Cypriot companies active in the fields of biogenetics and biotechnology.
- Easy facilitation of working permits for high skilled employees from third (non-EU) countries, with a minimum gross monthly salary of €2,500. The maximum work permits for third-country nationals per company is set at 70% of all employees over a period of five years. The permits will be issued within one month and will last up to three years.
- Allowance of relocation for family members of employees that would qualify under the above, while employee’s spouses will also have access to the country’s labour market.
- Introduction of the so-called Digital Nomad Visa for people who wish to live in Cyprus but work in companies operating abroad. Beneficiaries will be individuals who work remotely using information and communication technologies for employers and clients outside Cyprus. The visa will be granted for a period of twelve months, with the right to renew it for another two years. The beneficiaries should have salaries of at least €3,500 euros per month, medical coverage and a clear criminal record from the country of residence/origin.
- Provision of tax exemptions to foreign high skilled employees in the Republic for an extended period of 17 years. The existing tax exemption is also being extended to cover new residents-employees with a yearly salary from employment of €55,000 or more with a tax exemption of 50%.
- Employees of companies that would be eligible in these incentives will have the right to submit an application for naturalisation after five years of residence and work in the Republic or after four years if they have a recognised certificate of very good knowledge of the Greek language.
- The transfer of social security contributions will also be ensured, through intensified efforts to conclude bilateral agreements with third countries.
These incentives will definitely give a boost to the country’s economy and finetune the existing incentives granted to employees of international companies.
Please contact a member of our team for more details.