Immigration/Relocation Services

servicescyprus tax planningImmigration/Relocation Services

Immigration / Relocation services

We offer a range of services to help you meet your relocation and immigration needs, ranging from assistance in establishing new offices, relocation to Cyprus, assistance with immigration / Cyprus digital nomad visas etc.

A Cyprus Company that is controlled by non-EU (and non-EEA) nationals can apply for Cyprus work permits for non-EU Nationals permitting them and their families to work and live in Cyprus. In such cases, a temporary residence and employment permit is necessary.

The Council of Ministers approved on 15 October 2021, the “Strategy for Attracting Businesses for Activities or/and Expansion of their Activities in Cyprus” and the implementation of the strategy commenced in January 2022.

The new Strategy includes the following:

New Policy for the Employment of Third Country Nationals

Simplification and broadening of the existing policy for Highly Skilled Third Country National employees with a minimum gross monthly salary of €2.500. The permits will be issued within one month and the duration of the residence and employment permit is up to 3 years. The maximum number of third-country nationals eligible for employment is set at 70% of all employees in a period of 5 years, from the date of the approval. In case the Company did not employ the 30% Cypriot workers, the Cyprus Government will review each case independently at the end of the 5th year and decide accordingly.

Family members

Direct and free access to the Cyprus labour market with paid work, to spouses whose spouse has obtained a residence and work permit in Cyprus, and who receives a minimum gross monthly salary of €2.500.

‍

Digital Nomad Visa (new)

The "Cyprus Digital Nomad Visa" Scheme allows nationals from non-EU and non-EEA countries, who can perform their work location-independently using telecommunications technology, to reside temporarily in Cyprus and work for an employer registered abroad or perform work through telecommunications technology for companies or clients located abroad.

People who wish to live in Cyprus and who are freelancers, employed or self-employed and working remotely in companies registered/operating abroad, can obtain permits issued for one year with the option to renew for another two years. Holders of the Digital Nomad Visa must earn at least €3.500 per month (after the deduction of contributions and taxes), have medical insurance, and have a clean criminal record form the country of residence or origin. For any family dependents, the income amount is increased by 20% if there is a spouse/civil partner and by 15% for each child.

If they reside in the Republic for one of more periods that in total exceed 183 days within the same tax year, then they are considered tax residents of Cyprus, provided they are not tax residents in any other country.

‍

Tax Incentives for Investing in High-Tech, Innovative Companies

An enterprise qualifies as ‘High Technology Company’ if:

‍

  • it is already established and has a presence in the market, and
  • it has a high level or experimental R&D intensity, and
  • it developed product(s) that fall into one of the following categories: products related to aviation and space industry, computers, electronic and telecommunication products, pharmaceuticals, biomedical, research and development equipment, electrical machinery, chemicals, non-electrical machinery.

Tax

  • Tax exemption of 50% to new residents-employees with annual employment remuneration exceeding €55.000 for a period of 17 years.
  • Existing employees with annual employment remuneration of less than €100.000 have the possibility to extend the benefit from 10 to 17 years.
  • Extension of the tax exemption for investment in innovative companies, whereby the Ministry of Finance is considering the possibility of extending the 50% tax exemption for investment in certified innovative companies to corporate investors (currently, this is only applicable to natural persons).
  • Grant of a further deduction on research and development (R&D) costs (e.g. by 20%) so that eligible R&D costs may be deductible from taxable income in an amount equal to 12 per cent of the actual taxable income.
Table - 2 Column Wide
Annual wear and tear allowances on assets
Rate %
in Millions
Plant and machinery
10
Furniture and fittings
10
Industrial carpets
10
Machinery and tools used  in an agricultural business
15
Vehicles and Means of Transportation*
Commercial motor vehicles
20
Motor cycles
20
Excavators, tractors,  bulldozers, self-propelled loaders and drums for petrol companies
25
Armoured cars (e.g. used by Security Services)
20
Specialised machinery for the laying of railroads
20
New airplanes
8
New helicopters
8
Sailing vessels
4,5
Motor Yachts
6
Steamships, tug-boats and  fishing boats
6
Ship launching  machinery  
12,5
New cargo vessels
8
New passenger vessels
6
Used cargo/passenger  vessels
Over their UEL
* Plant and machinery,vehicles (excluding private motor vehicles) and other assets acquired duringthe tax years 2012 - 2018 (inclusive) are eligible to accelerated taxdepreciation at the rate of 20% (excluding such assets which are alreadyeligible for a higher annual tax rate of tax depreciation).
Other
Televisions and videos
10
Computer hardware and  operating systems
20
Application software
33 1/3
Application software for less than €1.709 is written off in the year of acquisition
Wind Power Generators
10
Photovoltaic Systems
10
Tools in general
33 1/3
Videotapes property of  video clubs
50
Buildings*
Commercial buildings
3
Industrial, agricultural  and hotel buildings
4
Flats
3
Metallic greenhouse  structures
10
Wooden greenhouse  structures
33 1/3
* In the case ofindustrial and hotel buildings that are acquired during the tax years 2012 -2018 (inclusive), accelerated tax depreciation at the rate of 7% per annumapplies.
Table -  4 Column
Source
in Millions
Cyprus tax resident
Companies
per Sq KM
Cyprus tax resident and
domiciled individuals
in Million of $
Cyprus tax resident but
non-domiciled individuals
in Million of $
Dividends from Cyprus tax resident companies
0% 

17% if received after the lapse of 4 years fromthe end of the year in which the profits were distributed
17%
0%
Dividends from non-Cyprus tax resident companies
0% 

However, 0% andnot 17% is applicable when:
a) more than 50% of the foreignpaying company’s activities result directly or indirectly in investment income,and
b) theforeign tax is significantly lower than the tax burden in Cyprus, i.e. lessthan 6,25%
17%
0%
Interest income arising from the ordinary activities or closely connected with theordinary activities of the business
0% but subject to corporation  tax
0% but subject to personal tax
0% but subject to personal tax
Other interest income
30%
30% (subject to conditions)
0%
Rental income less 25%
3%
3%
0%
Individuals can deductfrom the capital gain the following:
Annual wear and tear allowances on assets
Rate %
in Millions
Disposal of private residence (subject to certain  conditions)
€85.430
Disposal of agricultural land by a farmer
€25.629
Any other disposal of immovable property
€17.086
Table -  4 Column
Market value €
in Millions
Rate %
per Sq KM
Fees €
in Million of $
Accumulated fees €
in Million of $
Up to 85.000
3
2.550
2.550
85.000 – 170.000
5
4.250
6.800
Above 170.000
8
Individuals can deductfrom the capital gain the following:
Annual wear and tear allowances on assets
Rate %
in Millions
Transfer to children
0%
Transfer to spouse
0,1%
Transfer to a relative (up to 3rd degree)
0,1%
Penalties
Annual wear and tear allowances on assets
Rate %
in Millions
Late registration
€ 85 per month
Late deregistration
€85 one off
Late submission of VAT return
€100 per return
Late submission of VIES return
€50 per return
Late submission of Intrastat return
€15 per return
Late correction of mistake on VIES return
€15 per return
Failure to issue a lawful receipt
20% of the value of the supply
 Late payment of VAT
(i) 10% of the payable amount (one off)
(ii) and interestfor any complete month for which the amount remains due
Non-settlement of VAT amounts
Interest for every complete month for which the  amount remains due
Failure to apply the reverse charge  provisions
€200 per return which will not exceed the  penalty of €4.000
Table - 2 Column Wide
Period
Interest rate %
in Millions
Up to 31 December 2016
9
01/01/2007 – 31/12/2009
8
01/01/2010 – 31/12/2010
5,35
01/01/2011 – 31/12/2012
5
01/01/2013 – 31/12/2013
4,75
01/01/2014 – 31/12/2014
4,5
01/01/2015 – 31/12/2016
4
01/01/2017 – 31/12/2018
3,5
01/01/2019 – 31/12/2019
2
01/01/2020 – 31/12/2021
1,75
From 1 January 2022
1,75
servicescyprus tax planningImmigration/Relocation Services

Immigration / Relocation services

We offer a range of services to help you meet your relocation and immigration needs, ranging from assistance in establishing new offices, relocation to Cyprus, assistance with immigration / Cyprus digital nomad visas etc.

A Cyprus Company that is controlled by non-EU (and non-EEA) nationals can apply for Cyprus work permits for non-EU Nationals permitting them and their families to work and live in Cyprus. In such cases, a temporary residence and employment permit is necessary.

The Council of Ministers approved on 15 October 2021, the “Strategy for Attracting Businesses for Activities or/and Expansion of their Activities in Cyprus” and the implementation of the strategy commenced in January 2022.

The new Strategy includes the following:

New Policy for the Employment of Third Country Nationals

Simplification and broadening of the existing policy for Highly Skilled Third Country National employees with a minimum gross monthly salary of €2.500. The permits will be issued within one month and the duration of the residence and employment permit is up to 3 years. The maximum number of third-country nationals eligible for employment is set at 70% of all employees in a period of 5 years, from the date of the approval. In case the Company did not employ the 30% Cypriot workers, the Cyprus Government will review each case independently at the end of the 5th year and decide accordingly.

Family members

Direct and free access to the Cyprus labour market with paid work, to spouses whose spouse has obtained a residence and work permit in Cyprus, and who receives a minimum gross monthly salary of €2.500.

‍

Digital Nomad Visa (new)

The "Cyprus Digital Nomad Visa" Scheme allows nationals from non-EU and non-EEA countries, who can perform their work location-independently using telecommunications technology, to reside temporarily in Cyprus and work for an employer registered abroad or perform work through telecommunications technology for companies or clients located abroad.

People who wish to live in Cyprus and who are freelancers, employed or self-employed and working remotely in companies registered/operating abroad, can obtain permits issued for one year with the option to renew for another two years. Holders of the Digital Nomad Visa must earn at least €3.500 per month (after the deduction of contributions and taxes), have medical insurance, and have a clean criminal record form the country of residence or origin. For any family dependents, the income amount is increased by 20% if there is a spouse/civil partner and by 15% for each child.

If they reside in the Republic for one of more periods that in total exceed 183 days within the same tax year, then they are considered tax residents of Cyprus, provided they are not tax residents in any other country.

‍

Tax Incentives for Investing in High-Tech, Innovative Companies

An enterprise qualifies as ‘High Technology Company’ if:

‍

  • it is already established and has a presence in the market, and
  • it has a high level or experimental R&D intensity, and
  • it developed product(s) that fall into one of the following categories: products related to aviation and space industry, computers, electronic and telecommunication products, pharmaceuticals, biomedical, research and development equipment, electrical machinery, chemicals, non-electrical machinery.

Tax

  • Tax exemption of 50% to new residents-employees with annual employment remuneration exceeding €55.000 for a period of 17 years.
  • Existing employees with annual employment remuneration of less than €100.000 have the possibility to extend the benefit from 10 to 17 years.
  • Extension of the tax exemption for investment in innovative companies, whereby the Ministry of Finance is considering the possibility of extending the 50% tax exemption for investment in certified innovative companies to corporate investors (currently, this is only applicable to natural persons).
  • Grant of a further deduction on research and development (R&D) costs (e.g. by 20%) so that eligible R&D costs may be deductible from taxable income in an amount equal to 12 per cent of the actual taxable income.
Table - 2 Column Wide
Annual wear and tear allowances on assets
Rate %
in Millions
Plant and machinery
10
Furniture and fittings
10
Industrial carpets
10
Machinery and tools used  in an agricultural business
15
Vehicles and Means of Transportation*
Commercial motor vehicles
20
Motor cycles
20
Excavators, tractors,  bulldozers, self-propelled loaders and drums for petrol companies
25
Armoured cars (e.g. used by Security Services)
20
Specialised machinery for the laying of railroads
20
New airplanes
8
New helicopters
8
Sailing vessels
4,5
Motor Yachts
6
Steamships, tug-boats and  fishing boats
6
Ship launching  machinery  
12,5
New cargo vessels
8
New passenger vessels
6
Used cargo/passenger  vessels
Over their UEL
* Plant and machinery,vehicles (excluding private motor vehicles) and other assets acquired duringthe tax years 2012 - 2018 (inclusive) are eligible to accelerated taxdepreciation at the rate of 20% (excluding such assets which are alreadyeligible for a higher annual tax rate of tax depreciation).
Other
Televisions and videos
10
Computer hardware and  operating systems
20
Application software
33 1/3
Application software for less than €1.709 is written off in the year of acquisition
Wind Power Generators
10
Photovoltaic Systems
10
Tools in general
33 1/3
Videotapes property of  video clubs
50
Buildings*
Commercial buildings
3
Industrial, agricultural  and hotel buildings
4
Flats
3
Metallic greenhouse  structures
10
Wooden greenhouse  structures
33 1/3
* In the case ofindustrial and hotel buildings that are acquired during the tax years 2012 -2018 (inclusive), accelerated tax depreciation at the rate of 7% per annumapplies.
Table -  4 Column
Source
in Millions
Cyprus tax resident
Companies
per Sq KM
Cyprus tax resident and
domiciled individuals
in Million of $
Cyprus tax resident but
non-domiciled individuals
in Million of $
Dividends from Cyprus tax resident companies
0% 

17% if received after the lapse of 4 years fromthe end of the year in which the profits were distributed
17%
0%
Dividends from non-Cyprus tax resident companies
0% 

However, 0% andnot 17% is applicable when:
a) more than 50% of the foreignpaying company’s activities result directly or indirectly in investment income,and
b) theforeign tax is significantly lower than the tax burden in Cyprus, i.e. lessthan 6,25%
17%
0%
Interest income arising from the ordinary activities or closely connected with theordinary activities of the business
0% but subject to corporation  tax
0% but subject to personal tax
0% but subject to personal tax
Other interest income
30%
30% (subject to conditions)
0%
Rental income less 25%
3%
3%
0%
Individuals can deductfrom the capital gain the following:
Annual wear and tear allowances on assets
Rate %
in Millions
Disposal of private residence (subject to certain  conditions)
€85.430
Disposal of agricultural land by a farmer
€25.629
Any other disposal of immovable property
€17.086
Table -  4 Column
Market value €
in Millions
Rate %
per Sq KM
Fees €
in Million of $
Accumulated fees €
in Million of $
Up to 85.000
3
2.550
2.550
85.000 – 170.000
5
4.250
6.800
Above 170.000
8
servicescyprus tax planningImmigration/Relocation Services

Immigration / Relocation services

We offer a range of services to help you meet your relocation and immigration needs, ranging from assistance in establishing new offices, relocation to Cyprus, assistance with immigration / Cyprus digital nomad visas etc.

A Cyprus Company that is controlled by non-EU (and non-EEA) nationals can apply for Cyprus work permits for non-EU Nationals permitting them and their families to work and live in Cyprus. In such cases, a temporary residence and employment permit is necessary.

The Council of Ministers approved on 15 October 2021, the “Strategy for Attracting Businesses for Activities or/and Expansion of their Activities in Cyprus” and the implementation of the strategy commenced in January 2022.

The new Strategy includes the following:

New Policy for the Employment of Third Country Nationals

Simplification and broadening of the existing policy for Highly Skilled Third Country National employees with a minimum gross monthly salary of €2.500. The permits will be issued within one month and the duration of the residence and employment permit is up to 3 years. The maximum number of third-country nationals eligible for employment is set at 70% of all employees in a period of 5 years, from the date of the approval. In case the Company did not employ the 30% Cypriot workers, the Cyprus Government will review each case independently at the end of the 5th year and decide accordingly.

Family members

Direct and free access to the Cyprus labour market with paid work, to spouses whose spouse has obtained a residence and work permit in Cyprus, and who receives a minimum gross monthly salary of €2.500.

‍

Digital Nomad Visa (new)

The "Cyprus Digital Nomad Visa" Scheme allows nationals from non-EU and non-EEA countries, who can perform their work location-independently using telecommunications technology, to reside temporarily in Cyprus and work for an employer registered abroad or perform work through telecommunications technology for companies or clients located abroad.

People who wish to live in Cyprus and who are freelancers, employed or self-employed and working remotely in companies registered/operating abroad, can obtain permits issued for one year with the option to renew for another two years. Holders of the Digital Nomad Visa must earn at least €3.500 per month (after the deduction of contributions and taxes), have medical insurance, and have a clean criminal record form the country of residence or origin. For any family dependents, the income amount is increased by 20% if there is a spouse/civil partner and by 15% for each child.

If they reside in the Republic for one of more periods that in total exceed 183 days within the same tax year, then they are considered tax residents of Cyprus, provided they are not tax residents in any other country.

‍

Tax Incentives for Investing in High-Tech, Innovative Companies

An enterprise qualifies as ‘High Technology Company’ if:

‍

  • it is already established and has a presence in the market, and
  • it has a high level or experimental R&D intensity, and
  • it developed product(s) that fall into one of the following categories: products related to aviation and space industry, computers, electronic and telecommunication products, pharmaceuticals, biomedical, research and development equipment, electrical machinery, chemicals, non-electrical machinery.

Tax

  • Tax exemption of 50% to new residents-employees with annual employment remuneration exceeding €55.000 for a period of 17 years.
  • Existing employees with annual employment remuneration of less than €100.000 have the possibility to extend the benefit from 10 to 17 years.
  • Extension of the tax exemption for investment in innovative companies, whereby the Ministry of Finance is considering the possibility of extending the 50% tax exemption for investment in certified innovative companies to corporate investors (currently, this is only applicable to natural persons).
  • Grant of a further deduction on research and development (R&D) costs (e.g. by 20%) so that eligible R&D costs may be deductible from taxable income in an amount equal to 12 per cent of the actual taxable income.
Table - 2 Column Wide
Annual wear and tear allowances on assets
Rate %
in Millions
Plant and machinery
10
Furniture and fittings
10
Industrial carpets
10
Machinery and tools used  in an agricultural business
15
Vehicles and Means of Transportation*
Commercial motor vehicles
20
Motor cycles
20
Excavators, tractors,  bulldozers, self-propelled loaders and drums for petrol companies
25
Armoured cars (e.g. used by Security Services)
20
Specialised machinery for the laying of railroads
20
New airplanes
8
New helicopters
8
Sailing vessels
4,5
Motor Yachts
6
Steamships, tug-boats and  fishing boats
6
Ship launching  machinery  
12,5
New cargo vessels
8
New passenger vessels
6
Used cargo/passenger  vessels
Over their UEL
* Plant and machinery,vehicles (excluding private motor vehicles) and other assets acquired duringthe tax years 2012 - 2018 (inclusive) are eligible to accelerated taxdepreciation at the rate of 20% (excluding such assets which are alreadyeligible for a higher annual tax rate of tax depreciation).
Other
Televisions and videos
10
Computer hardware and  operating systems
20
Application software
33 1/3
Application software for less than €1.709 is written off in the year of acquisition
Wind Power Generators
10
Photovoltaic Systems
10
Tools in general
33 1/3
Videotapes property of  video clubs
50
Buildings*
Commercial buildings
3
Industrial, agricultural  and hotel buildings
4
Flats
3
Metallic greenhouse  structures
10
Wooden greenhouse  structures
33 1/3
* In the case ofindustrial and hotel buildings that are acquired during the tax years 2012 -2018 (inclusive), accelerated tax depreciation at the rate of 7% per annumapplies.
Personal Income Tax Rates
Taxable Income €
in Millions
Tax rate %
per Sq KM
Amount of tax €
in Million of $
Cumulative amount of tax €
in Million of $
0 – 19.500
0
0
0
19.501 – 28.000
20
1.700
1.700
28.001 – 36.300
25
2.075
3.775
36.301 – 60.000
30
7.110
10.885
60.001 and over
35
Individuals can deductfrom the capital gain the following:
Annual wear and tear allowances on assets
Rate %
in Millions
Disposal of private residence (subject to certain  conditions)
€85.430
Disposal of agricultural land by a farmer
€25.629
Any other disposal of immovable property
€17.086
Table -  4 Column
Market value €
in Millions
Rate %
per Sq KM
Fees €
in Million of $
Accumulated fees €
in Million of $
Up to 85.000
3
2.550
2.550
85.000 – 170.000
5
4.250
6.800
Above 170.000
8
servicescyprus tax planningImmigration/Relocation Services

Immigration / Relocation services

We offer a range of services to help you meet your relocation and immigration needs, ranging from assistance in establishing new offices, relocation to Cyprus, assistance with immigration / Cyprus digital nomad visas etc.

A Cyprus Company that is controlled by non-EU (and non-EEA) nationals can apply for Cyprus work permits for non-EU Nationals permitting them and their families to work and live in Cyprus. In such cases, a temporary residence and employment permit is necessary.

The Council of Ministers approved on 15 October 2021, the “Strategy for Attracting Businesses for Activities or/and Expansion of their Activities in Cyprus” and the implementation of the strategy commenced in January 2022.

The new Strategy includes the following:

New Policy for the Employment of Third Country Nationals

Simplification and broadening of the existing policy for Highly Skilled Third Country National employees with a minimum gross monthly salary of €2.500. The permits will be issued within one month and the duration of the residence and employment permit is up to 3 years. The maximum number of third-country nationals eligible for employment is set at 70% of all employees in a period of 5 years, from the date of the approval. In case the Company did not employ the 30% Cypriot workers, the Cyprus Government will review each case independently at the end of the 5th year and decide accordingly.

Family members

Direct and free access to the Cyprus labour market with paid work, to spouses whose spouse has obtained a residence and work permit in Cyprus, and who receives a minimum gross monthly salary of €2.500.

‍

Digital Nomad Visa (new)

The "Cyprus Digital Nomad Visa" Scheme allows nationals from non-EU and non-EEA countries, who can perform their work location-independently using telecommunications technology, to reside temporarily in Cyprus and work for an employer registered abroad or perform work through telecommunications technology for companies or clients located abroad.

People who wish to live in Cyprus and who are freelancers, employed or self-employed and working remotely in companies registered/operating abroad, can obtain permits issued for one year with the option to renew for another two years. Holders of the Digital Nomad Visa must earn at least €3.500 per month (after the deduction of contributions and taxes), have medical insurance, and have a clean criminal record form the country of residence or origin. For any family dependents, the income amount is increased by 20% if there is a spouse/civil partner and by 15% for each child.

If they reside in the Republic for one of more periods that in total exceed 183 days within the same tax year, then they are considered tax residents of Cyprus, provided they are not tax residents in any other country.

‍

Tax Incentives for Investing in High-Tech, Innovative Companies

An enterprise qualifies as ‘High Technology Company’ if:

‍

  • it is already established and has a presence in the market, and
  • it has a high level or experimental R&D intensity, and
  • it developed product(s) that fall into one of the following categories: products related to aviation and space industry, computers, electronic and telecommunication products, pharmaceuticals, biomedical, research and development equipment, electrical machinery, chemicals, non-electrical machinery.

Tax

  • Tax exemption of 50% to new residents-employees with annual employment remuneration exceeding €55.000 for a period of 17 years.
  • Existing employees with annual employment remuneration of less than €100.000 have the possibility to extend the benefit from 10 to 17 years.
  • Extension of the tax exemption for investment in innovative companies, whereby the Ministry of Finance is considering the possibility of extending the 50% tax exemption for investment in certified innovative companies to corporate investors (currently, this is only applicable to natural persons).
  • Grant of a further deduction on research and development (R&D) costs (e.g. by 20%) so that eligible R&D costs may be deductible from taxable income in an amount equal to 12 per cent of the actual taxable income.
Table - 3 Column Wide
Contributors
Contribution percentage
01/03/2019– 28/02/2020
in Millions
Contribution percentage
from 01/03/2020
per Sq KM
Employees
1,70%
2,65%
Employers*
1,85%
2,90%
State
1,65%
4,70%
Self-Employed
2,55%
4%
Pensioners
1,70%
2,65%
Income earners (interest, rent, dividends etc.)
1,70%
2,65%
Officials
1,70%
2,65%
*Including the State as Employer
Table - 2 Column Wide
Annual wear and tear allowances on assets
Rate %
in Millions
Plant and machinery
10
Furniture and fittings
10
Industrial carpets
10
Machinery and tools used  in an agricultural business
15
Vehicles and Means of Transportation*
Commercial motor vehicles
20
Motor cycles
20
Excavators, tractors,  bulldozers, self-propelled loaders and drums for petrol companies
25
Armoured cars (e.g. used by Security Services)
20
Specialised machinery for the laying of railroads
20
New airplanes
8
New helicopters
8
Sailing vessels
4,5
Motor Yachts
6
Steamships, tug-boats and  fishing boats
6
Ship launching  machinery  
12,5
New cargo vessels
8
New passenger vessels
6
Used cargo/passenger  vessels
Over their UEL
* Plant and machinery,vehicles (excluding private motor vehicles) and other assets acquired duringthe tax years 2012 - 2018 (inclusive) are eligible to accelerated taxdepreciation at the rate of 20% (excluding such assets which are alreadyeligible for a higher annual tax rate of tax depreciation).
Other
Televisions and videos
10
Computer hardware and  operating systems
20
Application software
33 1/3
Application software for less than €1.709 is written off in the year of acquisition
Wind Power Generators
10
Photovoltaic Systems
10
Tools in general
33 1/3
Videotapes property of  video clubs
50
Buildings*
Commercial buildings
3
Industrial, agricultural  and hotel buildings
4
Flats
3
Metallic greenhouse  structures
10
Wooden greenhouse  structures
33 1/3
* In the case ofindustrial and hotel buildings that are acquired during the tax years 2012 -2018 (inclusive), accelerated tax depreciation at the rate of 7% per annumapplies.
Personal Income Tax Rates
Taxable Income €
in Millions
Tax rate %
per Sq KM
Amount of tax €
in Million of $
Cumulative amount of tax €
in Million of $
0 – 19.500
0
0
0
19.501 – 28.000
20
1.700
1.700
28.001 – 36.300
25
2.075
3.775
36.301 – 60.000
30
7.110
10.885
60.001 and over
35
Individuals can deductfrom the capital gain the following:
Annual wear and tear allowances on assets
Rate %
in Millions
Disposal of private residence (subject to certain  conditions)
€85.430
Disposal of agricultural land by a farmer
€25.629
Any other disposal of immovable property
€17.086
Table -  4 Column
Market value €
in Millions
Rate %
per Sq KM
Fees €
in Million of $
Accumulated fees €
in Million of $
Up to 85.000
3
2.550
2.550
85.000 – 170.000
5
4.250
6.800
Above 170.000
8
servicescyprus tax planningImmigration/Relocation Services

Immigration / Relocation services

We offer a range of services to help you meet your relocation and immigration needs, ranging from assistance in establishing new offices, relocation to Cyprus, assistance with immigration / Cyprus digital nomad visas etc.

A Cyprus Company that is controlled by non-EU (and non-EEA) nationals can apply for Cyprus work permits for non-EU Nationals permitting them and their families to work and live in Cyprus. In such cases, a temporary residence and employment permit is necessary.

The Council of Ministers approved on 15 October 2021, the “Strategy for Attracting Businesses for Activities or/and Expansion of their Activities in Cyprus” and the implementation of the strategy commenced in January 2022.

The new Strategy includes the following:

New Policy for the Employment of Third Country Nationals

Simplification and broadening of the existing policy for Highly Skilled Third Country National employees with a minimum gross monthly salary of €2.500. The permits will be issued within one month and the duration of the residence and employment permit is up to 3 years. The maximum number of third-country nationals eligible for employment is set at 70% of all employees in a period of 5 years, from the date of the approval. In case the Company did not employ the 30% Cypriot workers, the Cyprus Government will review each case independently at the end of the 5th year and decide accordingly.

Family members

Direct and free access to the Cyprus labour market with paid work, to spouses whose spouse has obtained a residence and work permit in Cyprus, and who receives a minimum gross monthly salary of €2.500.

‍

Digital Nomad Visa (new)

The "Cyprus Digital Nomad Visa" Scheme allows nationals from non-EU and non-EEA countries, who can perform their work location-independently using telecommunications technology, to reside temporarily in Cyprus and work for an employer registered abroad or perform work through telecommunications technology for companies or clients located abroad.

People who wish to live in Cyprus and who are freelancers, employed or self-employed and working remotely in companies registered/operating abroad, can obtain permits issued for one year with the option to renew for another two years. Holders of the Digital Nomad Visa must earn at least €3.500 per month (after the deduction of contributions and taxes), have medical insurance, and have a clean criminal record form the country of residence or origin. For any family dependents, the income amount is increased by 20% if there is a spouse/civil partner and by 15% for each child.

If they reside in the Republic for one of more periods that in total exceed 183 days within the same tax year, then they are considered tax residents of Cyprus, provided they are not tax residents in any other country.

‍

Tax Incentives for Investing in High-Tech, Innovative Companies

An enterprise qualifies as ‘High Technology Company’ if:

‍

  • it is already established and has a presence in the market, and
  • it has a high level or experimental R&D intensity, and
  • it developed product(s) that fall into one of the following categories: products related to aviation and space industry, computers, electronic and telecommunication products, pharmaceuticals, biomedical, research and development equipment, electrical machinery, chemicals, non-electrical machinery.

Tax

  • Tax exemption of 50% to new residents-employees with annual employment remuneration exceeding €55.000 for a period of 17 years.
  • Existing employees with annual employment remuneration of less than €100.000 have the possibility to extend the benefit from 10 to 17 years.
  • Extension of the tax exemption for investment in innovative companies, whereby the Ministry of Finance is considering the possibility of extending the 50% tax exemption for investment in certified innovative companies to corporate investors (currently, this is only applicable to natural persons).
  • Grant of a further deduction on research and development (R&D) costs (e.g. by 20%) so that eligible R&D costs may be deductible from taxable income in an amount equal to 12 per cent of the actual taxable income.
Table - 3 Column Wide
Contributors
Contribution percentage
01/03/2019– 28/02/2020
in Millions
Contribution percentage
from 01/03/2020
per Sq KM
Employees
1,70%
2,65%
Employers*
1,85%
2,90%
State
1,65%
4,70%
Self-Employed
2,55%
4%
Pensioners
1,70%
2,65%
Income earners (interest, rent, dividends etc.)
1,70%
2,65%
Officials
1,70%
2,65%
*Including the State as Employer
Table - 2 Column Wide
Annual wear and tear allowances on assets
Rate %
in Millions
Plant and machinery
10
Furniture and fittings
10
Industrial carpets
10
Machinery and tools used  in an agricultural business
15
Vehicles and Means of Transportation*
Commercial motor vehicles
20
Motor cycles
20
Excavators, tractors,  bulldozers, self-propelled loaders and drums for petrol companies
25
Armoured cars (e.g. used by Security Services)
20
Specialised machinery for the laying of railroads
20
New airplanes
8
New helicopters
8
Sailing vessels
4,5
Motor Yachts
6
Steamships, tug-boats and  fishing boats
6
Ship launching  machinery  
12,5
New cargo vessels
8
New passenger vessels
6
Used cargo/passenger  vessels
Over their UEL
* Plant and machinery,vehicles (excluding private motor vehicles) and other assets acquired duringthe tax years 2012 - 2018 (inclusive) are eligible to accelerated taxdepreciation at the rate of 20% (excluding such assets which are alreadyeligible for a higher annual tax rate of tax depreciation).
Other
Televisions and videos
10
Computer hardware and  operating systems
20
Application software
33 1/3
Application software for less than €1.709 is written off in the year of acquisition
Wind Power Generators
10
Photovoltaic Systems
10
Tools in general
33 1/3
Videotapes property of  video clubs
50
Buildings*
Commercial buildings
3
Industrial, agricultural  and hotel buildings
4
Flats
3
Metallic greenhouse  structures
10
Wooden greenhouse  structures
33 1/3
* In the case ofindustrial and hotel buildings that are acquired during the tax years 2012 -2018 (inclusive), accelerated tax depreciation at the rate of 7% per annumapplies.
Personal Income Tax Rates
Fund
in Millions
Employer %
per Sq KM
Employee %
in Million of $
Self-employed %
in Million of $
Social Insurance
8,3
8,3
-
Social cohesion
2
-
-
Redundancy
1,2
-
-
Industrial Training
0,5
-
-
Holiday (exemptions apply)
8
-
-
Individuals can deductfrom the capital gain the following:
Annual wear and tear allowances on assets
Rate %
in Millions
Disposal of private residence (subject to certain  conditions)
€85.430
Disposal of agricultural land by a farmer
€25.629
Any other disposal of immovable property
€17.086
Table -  4 Column
Market value €
in Millions
Rate %
per Sq KM
Fees €
in Million of $
Accumulated fees €
in Million of $
Up to 85.000
3
2.550
2.550
85.000 – 170.000
5
4.250
6.800
Above 170.000
8
servicescyprus tax planningImmigration/Relocation Services

Immigration / Relocation services

We offer a range of services to help you meet your relocation and immigration needs, ranging from assistance in establishing new offices, relocation to Cyprus, assistance with immigration / Cyprus digital nomad visas etc.

A Cyprus Company that is controlled by non-EU (and non-EEA) nationals can apply for Cyprus work permits for non-EU Nationals permitting them and their families to work and live in Cyprus. In such cases, a temporary residence and employment permit is necessary.

The Council of Ministers approved on 15 October 2021, the “Strategy for Attracting Businesses for Activities or/and Expansion of their Activities in Cyprus” and the implementation of the strategy commenced in January 2022.

The new Strategy includes the following:

New Policy for the Employment of Third Country Nationals

Simplification and broadening of the existing policy for Highly Skilled Third Country National employees with a minimum gross monthly salary of €2.500. The permits will be issued within one month and the duration of the residence and employment permit is up to 3 years. The maximum number of third-country nationals eligible for employment is set at 70% of all employees in a period of 5 years, from the date of the approval. In case the Company did not employ the 30% Cypriot workers, the Cyprus Government will review each case independently at the end of the 5th year and decide accordingly.

Family members

Direct and free access to the Cyprus labour market with paid work, to spouses whose spouse has obtained a residence and work permit in Cyprus, and who receives a minimum gross monthly salary of €2.500.

‍

Digital Nomad Visa (new)

The "Cyprus Digital Nomad Visa" Scheme allows nationals from non-EU and non-EEA countries, who can perform their work location-independently using telecommunications technology, to reside temporarily in Cyprus and work for an employer registered abroad or perform work through telecommunications technology for companies or clients located abroad.

People who wish to live in Cyprus and who are freelancers, employed or self-employed and working remotely in companies registered/operating abroad, can obtain permits issued for one year with the option to renew for another two years. Holders of the Digital Nomad Visa must earn at least €3.500 per month (after the deduction of contributions and taxes), have medical insurance, and have a clean criminal record form the country of residence or origin. For any family dependents, the income amount is increased by 20% if there is a spouse/civil partner and by 15% for each child.

If they reside in the Republic for one of more periods that in total exceed 183 days within the same tax year, then they are considered tax residents of Cyprus, provided they are not tax residents in any other country.

‍

Tax Incentives for Investing in High-Tech, Innovative Companies

An enterprise qualifies as ‘High Technology Company’ if:

‍

  • it is already established and has a presence in the market, and
  • it has a high level or experimental R&D intensity, and
  • it developed product(s) that fall into one of the following categories: products related to aviation and space industry, computers, electronic and telecommunication products, pharmaceuticals, biomedical, research and development equipment, electrical machinery, chemicals, non-electrical machinery.

Tax

  • Tax exemption of 50% to new residents-employees with annual employment remuneration exceeding €55.000 for a period of 17 years.
  • Existing employees with annual employment remuneration of less than €100.000 have the possibility to extend the benefit from 10 to 17 years.
  • Extension of the tax exemption for investment in innovative companies, whereby the Ministry of Finance is considering the possibility of extending the 50% tax exemption for investment in certified innovative companies to corporate investors (currently, this is only applicable to natural persons).
  • Grant of a further deduction on research and development (R&D) costs (e.g. by 20%) so that eligible R&D costs may be deductible from taxable income in an amount equal to 12 per cent of the actual taxable income.
Table - 3 Column Wide
Contributors
Contribution percentage
01/03/2019– 28/02/2020
in Millions
Contribution percentage
from 01/03/2020
per Sq KM
Employees
1,70%
2,65%
Employers*
1,85%
2,90%
State
1,65%
4,70%
Self-Employed
2,55%
4%
Pensioners
1,70%
2,65%
Income earners (interest, rent, dividends etc.)
1,70%
2,65%
Officials
1,70%
2,65%
*Including the State as Employer
Table - 2 Column Wide
Annual wear and tear allowances on assets
Rate %
in Millions
Plant and machinery
10
Furniture and fittings
10
Industrial carpets
10
Machinery and tools used  in an agricultural business
15
Vehicles and Means of Transportation*
Commercial motor vehicles
20
Motor cycles
20
Excavators, tractors,  bulldozers, self-propelled loaders and drums for petrol companies
25
Armoured cars (e.g. used by Security Services)
20
Specialised machinery for the laying of railroads
20
New airplanes
8
New helicopters
8
Sailing vessels
4,5
Motor Yachts
6
Steamships, tug-boats and  fishing boats
6
Ship launching  machinery  
12,5
New cargo vessels
8
New passenger vessels
6
Used cargo/passenger  vessels
Over their UEL
* Plant and machinery,vehicles (excluding private motor vehicles) and other assets acquired duringthe tax years 2012 - 2018 (inclusive) are eligible to accelerated taxdepreciation at the rate of 20% (excluding such assets which are alreadyeligible for a higher annual tax rate of tax depreciation).
Other
Televisions and videos
10
Computer hardware and  operating systems
20
Application software
33 1/3
Application software for less than €1.709 is written off in the year of acquisition
Wind Power Generators
10
Photovoltaic Systems
10
Tools in general
33 1/3
Videotapes property of  video clubs
50
Buildings*
Commercial buildings
3
Industrial, agricultural  and hotel buildings
4
Flats
3
Metallic greenhouse  structures
10
Wooden greenhouse  structures
33 1/3
* In the case ofindustrial and hotel buildings that are acquired during the tax years 2012 -2018 (inclusive), accelerated tax depreciation at the rate of 7% per annumapplies.
Personal Income Tax Rates
Fund
in Millions
Employer %
per Sq KM
Employee %
in Million of $
Self-employed %
in Million of $
Social Insurance
8,3
8,3
-
Social cohesion
2
-
-
Redundancy
1,2
-
-
Industrial Training
0,5
-
-
Holiday (exemptions apply)
8
-
-
Individuals can deductfrom the capital gain the following:
Annual wear and tear allowances on assets
Rate %
in Millions
Disposal of private residence (subject to certain  conditions)
€85.430
Disposal of agricultural land by a farmer
€25.629
Any other disposal of immovable property
€17.086
Table -  4 Column
Market value €
in Millions
Rate %
per Sq KM
Fees €
in Million of $
Accumulated fees €
in Million of $
Up to 85.000
3
2.550
2.550
85.000 – 170.000
5
4.250
6.800
Above 170.000
8
Audit and assurance
Cyprus tax planning
Consulting
International tax planning
Explore Cyprus Tax Planning
Cyprus tax regimeCompany facts, info + requirementsPersonal income taxGeneral healthcare systemSocial insuranceImmigration/Relocation Services

Contact

info@kpsa.com.cy+357 22 445500

Office

15 Themistokli Dervi Street,
1st floor, 1066 Nicosia, CyprusPostal Address
P.O. Box 27040
1641 Nicosia, Cyprus

Menu

About usServicesMeet our peopleOur approachContact usPrivacy and Cookie Policy