Cyprus has developed a new strategy to attract business from abroad and its development in the republic: foreign and Cypriot companies engaged in shipping, technology and innovation, pharmaceuticals, genetics and biotechnology will be provided with a variety of benefits.
As the Minister of Finance Mr. Constantinos Petrides said at the presentation of the new strategy, the mechanism for the operational launch of a business, which has been operating in Cyprus from 2020, will be reformatted into the so-called Business Facilitation Unit.
In order to attract companies working in the field of high technologies, and to simplify the transfer of their head offices to Cyprus, a tax exemption of 50% will be approved for employees who receive an annual income from their employment in the amount of at least € 55 thousand (previously, such a benefit was applied only to employees with salaries from € 100 thousand).
Employees of such companies will also be eligible to apply for Cypriot citizenship by naturalization not after seven years of living and working in the country, but after five or even four years, if they can provide a diploma of sufficient knowledge of the Greek language. For them, the procedures for obtaining residence permits and family reunification will also be simplified with the granting of the spouse the right to work.
In addition, the government intends to grant workers the right to transfer their social security contributions made in Cyprus to the pension funds of their country of residence.
President Mr. Nicos Anastasiades, who attended the presentation of the strategy, noted in his opening remarks that the new measures are fully in line with European legislation and the recovery and resilience plan approved by the European Commission.
In turn, Mr. Constantinos Petrides stressed that the new strategy has nothing to do with the Cyprus Investment Programme, as it concerns only those who live and work in Cyprus. He assured that there are similar programs in other European countries.
The implementation of the new strategy will begin on January 1, 2022, and relevant legislation will be adopted specifically for this, especially with regard to tax incentives.
It should be noted that 20 companies from Lebanon, Israel, Luxembourg, Great Britain, the USA, Russia and Ukraine have used the mechanism for the prompt launch of a business in Cyprus, whose employees have been issued more than 500 permits for residence and work.
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