New Strategy for Attracting Business in Cyprus

19/10/2021

The Cyprus government announced on Friday, 15 October 2021, its new strategy for attracting investors to Cyprus, giving emphasis on high-tech, research and development, shipping, pharmaceuticals and biogenetics/ biotechnology .

A dedicated unit in the government, the Business Facilitation Unit (‘Unit’) has been established , in order to function as the single point of contact for all companies of international interest, either operating in Cyprus or wishing to operate in the country. The Unit will facilitate working permits for high skilled third countries( outside EU) employees. 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, while employee’s spouses will also have access to the country’s labour market. In addition the Unit will be responsible for the establishment of corporate entities ,that is:
1. Company registration and name approval
2. Registration with the Social Insurance Registry and the Employers’ Registry
3. Registration with the VAT and Income Tax

Cyprus will also grand the so-called Digital Nomad Visa for people who wish to live in Cyprus but work in companies operating abroad. Beneficiaries will be third-country nationals(non-EU) 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.

Based on the new strategy , tax exemptions that apply to foreign high skilled employees in Cyprus is extended for a period of 17 years. The existing tax exemption is also being extended to cover new residents- employees with yearly salary from employment of €55.000 or more with tax exemption of 50%.

At the same time , the employees of the companies will have the right to submit an application to obtain the Cypriot citizenship after five years of residence and work in the Cyprus or after four years if they have a recognised certificate of very good knowledge of the Greek Language