FAVORABLE ΙΜΜIGRATION REGIMES WITH TAX BENEFITS AND UNDER FACILITATED CONDITIONS
DIGITAL NOMADS | LONG TERM RESIDENCE | FOREIGN COMPANIES
DIGITAL NOMADS – temporary residence permit for remote place of work in Cyprus of an employee who can perform their work location-independently using telecommunications technology, for an employer registered abroad under the employment agreement or perform work as an individual entrepreneur through telecommunications technology for companies or clients located abroad under the service agreement. No requirement to have a bank account in Cyprus.
EXAMINATION TIME, DURATION AND FAMILY MEMBERS
The time of examination is between 5 – 7 weeks after legal arrival and submission of documents or after submission of documents of legally residing in Cyprus applicant. A first temporary residence permit is issued with a validity of one year and in case of renewal, the temporary residence permit is issued with a validity of maximum two years. Digital Nomad’s family members (spouse/ partner in a civil union and underaged children) will receive residence permit without the right to be employed of perform any economic activity in Cyprus. The relevant documents should be submitted within three months after arrival except the applicant will apply for another temporary permit.
SALARY
An applicant must prove that he has stable and sufficient monthly net income of at least €3500 (after the deduction of contributions and taxes). Monthly salary increases by 20% for a spouse, and by 15% for each child.
! TAX BENEFITS
After 60 days after arrival an applicant can apply for tax residency in Cyprus and take advantage of the tax exemption of 50% income tax on income in the form of wages, provided that the annual income is not less than 55,000 euros (the minimum monthly NET salary must be not less than 4583 euros), which should be increased by 20% for a spouse, and by 15% for each child.
Cyprus income tax is calculated on the scale below.
Taxable income band EUR National Income Tax rates %
€ 0 - 19.500 0
19.501 - 28.000 20
28.001 - 36.300 25
36.301 - 60.000 30
60.001 and over 35
After calculating the tax, the Digital Nomad will be entitled to a 50% deduction. If the annual income is from 55,000 to 100,000 EUR, the benefit can be extended for a period of 10 to 17 years.
LONG TERM RESIDENCE
LONG TERM RESIDENCE – permanent residence permit without the right to be employed of perform any economic activity in Cyprus provided that the applicant has fully and freely at his disposal a secured annual income, high enough to give them a decent living in Cyprus. The annual income required should be at least €9568,17 (CY£5,600) for a single applicant and moreover at least €4613,22 (CY£2,700) for every dependent person, but the Immigration Control Board may demand additional amounts as necessary. The amount shall be sent from the bank account of the applicant abroad to his bank account in Cyprus. Family members (spouse/ partner in a civil union and underaged children) will receive residence permit without the right to be employed of perform any economic activity in Cyprus.
LONG TERM RESIDENCE within 18 months
No requirement to acquire immovable property, enough to provide rental agreement.
! LONG TERM RESIDENCE within 2 months
1. Purchase of a house or apartment from a development company, which should concern a first sale of at least €300,000 (plus VAT) of which €200,000 (excluding VAT) shall be paid before filing of the application. The said purchase must relate to dwellings sold for the first time by a development company unless the purchase took place before 07/05/2013. Sale contracts related to resale of dwellings and have been submitted to the Department of Lands and Surveys before 07/05/2013 (the date of filing of the sale contract will be confirmed by the said Department), will be accepted for the purposes of this policy.
2. The applicant is required to make a total investment of a minimum value of €300,000, the physical presence of the company in the Republic and the employment of at least five (5) employees.
The Immigration Permit is issued to the applicant, and it covers as dependent persons his spouse and children under the age of 18. Unmarried children between the ages of 18 and 25, who proved that they are students of tertiary education abroad on the date of the submission of the application and who are financially dependent on the applicant, can submit their own, separate application for an Immigration Permit with the payment of the relevant fee. In such a case the father or mother and/or both parents together must present an additional annual income of €5,000 for each such dependent child. If the children wish to study in any Institution of Tertiary Education in the Republic, they have to submit through the Institution an application for acquisition of a temporary residence permit in the Republic as students, according to the provisions of the relevant legislation (EU Directive). After completing their studies in the Republic, they will be able to submit their own application for an Immigration Permit, as mentioned above with the payment of the relevant fee, regardless of their age and with the condition that the parents will present an additional annual income of €5,000 for every such child.The said Permit is still valid even if the holders have exceeded the age of 25 years old and even if they do not remain unmarried and/or students and/or financially dependent on their parents. It is noted that their future spouses or underage children cannot be included as dependent persons on this Permit. It is noted that, if for any reason the Immigration Permit granted to the investor/parent is cancelled, this will result to the cancellation of the child’s Permit based on the provisions of Regulation 6 of the Aliens and Immigration Regulations. It is noted that, if for any reason the Immigration Permit granted to the investor is cancelled, this will result to the cancellation of the spouse’s and children Permit based on the provisions of Regulation 6 of the Aliens and Immigration Regulations.
FOREIGN COMPANIES
! The requirement to contribute EUR 171,000 to the company's share capital has been cancelled.
The employment permit in Cyprus can be granted only to the citizens of Cyprus and EU citizens and their family members, and it is also possible to obtain a limited temporary employment permit for domestic workers and in-demand specialists. A foreign company is an opportunity for third-country nationals to obtain an employment permit in such a company and work in Cyprus, as well as for a Cyprus company with foreign participation to hire its employees from abroad to the staff of the company in Cyprus.
Basic requirements: (a) activity in Cyprus (main or partial), (b) sole shareholder foreign person or majority foreign ownership (50%+), or foreign participation in the share capital of 50%, but the actual value of participation shall be not less than 200,000 euros, (c) depositing into the company's account an amount to cover salaries (approximately EUR 41,000).