On May 10, the Cabinet of Ministers of Cyprus approved a new tax incentive scheme aimed at attracting foreign companies and highly skilled labor to the country.
Under the new scheme, those highly qualified professionals who earn at least €55,000 per year will be eligible for a 50% tax rebate. The tax credit will be valid for 17 years from the date of issuance of the work visa.
As for third-country nationals who are already working in Cyprus and whose salary is between 55 and 100 thousand euros per year, they will be able to take advantage of the tax reduction for 17 years (until now there was a limitation – the first 10 years after the conclusion of the employment contract) only if they have worked in the EU for the last 12 consecutive years.
The head of the Ministry of Finance, Konstantinos Petridis, noted that the new preferential taxation scheme has nothing to do with the Cyprus investment program, as it does not concern companies, but employees conducting economic activities in Cyprus and choosing the island as a place of permanent residence. In addition, the tax credits under this strategy will apply to income tax rather than corporate tax.
It is worth noting that the Cypriot government sees the attraction of foreign specialists as a key way to increase the number of international companies moving their headquarters to the island.
Petridis also mentioned that the Ministry of the Interior is expected to introduce another bill to issue visas and work permits to the spouses of highly qualified foreign professionals who decide to move to Cyprus. Currently, this scheme is in the state legal service, which must finally approve all the points of the new program.
The new program to attract foreign specialists is one of the most competitive in the EU. Already now there is a huge interest in it, especially from high-tech companies that have chosen Cyprus as a place for their headquarters, Petridis emphasized.
The head of the Ministry of Finance said that employees and companies that decide to move to Cyprus in connection with the approved scheme will bring direct and indirect benefits to the Cypriot economy and help create “real infrastructure” on the island. The new program will also expand the tax base and, accordingly, tax revenues to the state treasury.
It is worth noting that the Cypriot government sees the attraction of foreign specialists as a key way to increase the number of international companies moving their headquarters to the island.
Petridis also mentioned that the Ministry of the Interior is expected to introduce another bill to issue visas and work permits to the spouses of highly qualified foreign professionals who decide to move to Cyprus. Currently, this scheme is in the state legal service, which must finally approve all the points of the new program.
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