New Government Strategy for Attracting New Investors in Cyprus
New Government Strategy for Attracting New Investors in Cyprus
The Cyprus Government and specifically the Ministry of Finance in Cyprus has presented on 15th of October 2021 its new strategy to attract new investors and companies under Cyprus Jurisdiction. As per the Cyprus Government announcement, emphasis will be given on high-tech, research, shipping, biotechnology and innovation companies.
The above strategy will be implemented from January 2022.
One of the strategy’s main aims is to promote Cyprus as a Sustainable Business and Trade Centre of the broader region and Europe, to offer further tax incentives to potential investors and to correct some distortions in labour issues and in the immigration regime.
Below the main pillars of the new strategy are provided
A Business Facilitation Unit is established and it will operate 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.
Also, a minimum salary of €2.500 is introduced for all highly skilled employees provided that they have the required academic skills or at least 2 years’ experience. The validity of the residence and work permit can be up to 3 years.
Furthermore, it will be promoted the so-called Digital Nomad Visa for people who wish to live in Cyprus but work in companies operating abroad. In other words, Beneficiaries will be third-country nationals, 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.
According to the strategy, tax exemptions that apply to foreign high skilled employees in the Republic is extended for a 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%.
Existing employees have the opportunity to extend the benefit from 10 to 17 years. Potential beneficiaries are persons with income between €55,000- €100,000. These tax incentives also apply to Cypriots who have lived abroad for at least ten years and wish to repatriate to the Republic.
At the same time, the employees of these companies will have the right to submit an application for naturalization after five years of residence and work in the Republic or after four years if they have a recognized certificate of very good knowledge of the Greek language.
For further information about the new strategy for attracting businesses to Cyprus, please do not hesitate to contact our team:
Francesca Iosif
Associate | Corporate Services
Phone:22653333
e-mail: francesca.i@yiangou.com.cy
Efthymia Lazaridou
Corporate Manager | Corporate Services
Phone: 22653333
e-mail: efthymia.l@yiangou.com.cy