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Cyprus Talent Repatriation Tax Incentives

Cyprus Talent Repatriation Action Plan

Cyprus Announces New Tax Incentives to Encourage Expats to Return Home

The President of the Republic of Cyprus, Mr Nikos Christodoulides, recently unveiled a number of new tax incentives designed to encourage skilled Cypriots who are living and working abroad to return to Cyprus. 

The goal is to reverse Cyprus’ “brain drain” and turn it into “brain gain” by attracting the repatriation of scientific and professional  Cypriots who are working abroad.

The new measures include:

• A 25% tax exemption on income from first employment;

• An increase in the maximum annual tax relief from €8,550, capped at €25,000 for Cypriots who have spent at least seven years working abroad after completing their studies.

The bill also introduces more flexible eligibility criteria to support the return of professionals who are capable of making immediate contributions to innovation, productivity and generally to the overall competitiveness of Cyprus’ economy.

Note: In order to benefit from these new incentives, there is a 7 year residency abroad requirement.

Talent Repatriation Action Plan – Meeting in London – 21/5/25

In May 2025, Mr Christodoulides met with Cypriot and foreign entrepreneurs who are living and working in the UK to officially announce the “Talent Repatriation Action Plan”.  He presented these attractive tax incentives to entice them to return home and boost Cyprus’ growing economy.

Apart from the “brain gain” incentive, other incentives, such as assistance with housing, free healthcare and education were also presented to further entice talented people with valuable experience, expertise and knowledge back to Cyprus.

The President also met Cypriots who had worked abroad and had decided to return to Cyprus and asked them to share their experiences of coming back.

A talent portal called “Minds in Cyprus – The Brain Gain Initiative” was officially launched during the London meeting.  It provides useful information on the new incentives and submission of applications, job postings, event information, plus repatriation facilitation information for individuals and families.

Visit:  https://www.mindsincyprus.com/#info

You can also watch and read testimonial videos with actual experiences of working and living in the beautiful island of Cyprus.  You can see how Cyprus offers a unique blend of business opportunities combined with quality lifestyle. You can read about Cyprus’ strategic benefits, such as its favorable regulatory environment and competitive tax system, which have positioned it as a leading hub for financial services and investment.

Housing and Medical

Housing remains a steady priority on the cabinet’s agenda, with seven housing schemes that have been introduced over the past two years, drawing significant interest, especially from young people.

ICT Sector

In addition to scientists and entrepreneurs, the government aims to attract technology specialists to support the rapid growth of Cyprus’ booming ICT sector, which now contributes more to the island’s GDP than its tourism.

Conclusion

Cyprus is enjoying stable economic conditions and positive macroeconomic indicators that reinforce confidence in the country’s development.  The Cyprus Government is establishing appealing and competitive opportunities to encourage the return and reintegration of skilled individuals who previously sought careers abroad.

President Nikos Christodoulides expressed confidence that strengthening tax incentives and the expatriate return initiative would yield positive results, based on the positive interest already shown.  He stressed that the measures carry no immediate fiscal burden, as they apply solely to new taxpayers, while contributing to a broader tax base over the medium term and promoting long-term fiscal sustainability.

The framework will be reviewed every five years to ensure it remains responsive to socioeconomic changes, thereby increasing its overall effectiveness.

Cyprus Tax Reform – Latest Proposals

Cyprus Tax Reform Introduction

The Cyprus Government has announced a series of comprehensive tax reform proposals to strengthen Cyprus’ tax base whilst retaining tax incentives in accordance with the global tax initiatives put forward by the OECD BEPS Actions and the UN International Tax Framework Convention.

The proposed tax reforms, presented by the Economic Research Center of the University of Cyprus (CypERC), include a series of significant proposals aimed at strengthening Cyprus’ tax policy.

The proposals will enter an additional three-week public consultation period. After this, the Ministry of Finance will prepare the legislative bills for submission to the House of Representatives for a vote.

Some of the measures could be implemented during 2025, while it is most likely that the measures could take effect in 2026.

It has been more than 20 years since Cyprus last undertook a major tax reform, reflecting the country’s ongoing commitment to maintaining its status as a leading international financial hub.

It is important to note that some of the topics outlined above may ultimately be excluded from the final tax reform package or they could be revised before being enacted into law.

What are the main Cyprus Tax Reform Proposals?

Cyprus Corporate Tax

Increase in Cyprus Corporate Tax

Increase of the corporate income tax rate from 12.5% to 15% for all companies.

Extending the Loss Carry-Forward Period

Tax losses could be carried forward for up to 10 years, compared to the current 5-year limit. However, losses carried forward beyond 5 years would be subject to a cap based on a percentage of the company’s taxable profit for the relevant year. The existing group loss-relief provisions would remain unchanged, meaning no fiscal unity is to be introduced.

Tax Depreciation on Used Buildings

Depreciation will be calculated based on the purchase cost incurred by the new owner. Additionally, buildings that undergo a green energy upgrade may be eligible for a renewal of their depreciation period.

Non-Domicile Status

The plans propose maintaining the current 17-year non-domicile status, with the possibility of extending it upon payment of an annual fee.

Taxation of Cryptocurrency Profits

Profits from cryptocurrency trading will be subject to taxation if classified as revenue in nature.

Special Defense Contribution (SDC)

• Reduction of the SDC rate on dividends to decrease from 17% to 5% for individuals who are tax residents and domiciled in Cyprus. 
• Abolition of 3% SDC on rental income for companies and individuals who are tax residents and domiciled in Cyprus.

Note: The above does not apply to individuals with non-domestic status, as SDC applies to individuals who are tax residents as well as domiciled in Cyprus.  

Green Transition and Digital Transformation

• Businesses undertaking investments in green transition and digital transformation will be eligible for super deductions on qualifying expenditures, along with accelerated depreciation benefits.
• Expenditures on staff retraining and upskilling will be tax-deductible, enabling businesses to adapt more effectively to evolving industry demands.

Deemed Dividend Distribution Rules

• Abolition of the deemed dividend distribution regime.
• Introduction of a 5% withholding tax on actual dividend payments for individuals who are both tax residents and domiciled in Cyprus.
• An anti-avoidance provision, applying a higher withholding tax rate to disguised dividend distributions, following the Estonian model.

Measures Against “Closely Held Companies”

• Empowerment to lift the corporate veil and tax shareholders as individuals engaged in business activities.
• Authority to align reported salaries with prevailing market rates.

Existing beneficial provisions will be retained for the following:

• Notional interest deduction (NID) for corporate equities;
• IP Box Regime;
• Tonnage tax regime for eligible shipping income;
• Exemption on the sale of shares / other securities;
• Current group relief rules;
• Dividend exemption rules;

Other

• Strengthening the tax residency criteria for companies (based on management and control).
• New anti-abuse provisions will apply to companies with five or fewer shareholders.
• Abolishing the 1.5% insurance premium tax
• Implementation of a framework for intangible assets (IP Box)
• Stamp duty – elimination of stamp duty’s horizontal imposition. Stamp duty will only be applied to agreements involving real estate, banking and insurance.

Cyprus Personal Income Tax

The key Cyprus personal tax reform proposals are outlined below.

• Increase in the tax-free personal income threshold by €1.000, increasing it from €19,500 to €20.500 per year.
• Amendments to intermediary bands with the shifting of the highest tax rate of 35% applicable to taxable income of over €80.000.
• Tax deductions for household income criteria, for households with two working partners / spouses where the combined gross annual income of both spouses is not over €80.000: 
  

  
  a.  €1.000 for each spouse / partner for every child under 19 (for females) and under 21 (for males).
  b.  €1.000 for each spouse / partner for every student under 23 (for females) and under 25 (for males).
  c.  Up to €1.500 per spouse / partner for mortgage installments or rent of the primary residence.
  d. Up to €1.000 per spouse / partner for green household upgrades (for example, photovoltaic systems, energy upgrades, electric cars etc) in the year the upgrade was completed for 5 years.
  e. Single-parent families will be classified under the most favourable scenario (ie as families with two working parents).

Cyprus Tax Brackets / Rates:

Retaining and Strengthening Tax Residency Criteria for Individuals:

• Retention of the 183-day in Cyprus rule.
• Strengthening of the 60-day rule – expansion of the definition to include individuals whose centre of business interests is in Cyprus, irrespective of their actual physical presence.
• An additional tax residency test based on the “centre of business interests,” that will not require physical presence in Cyprus.
• The Double Taxation Avoidance Agreement’s provisions for resolving dual tax residency difficulties.

Additional Personal Allowances

Additional personal allowances will be provided for families with children / students, individuals with housing loans or rental obligations, as well as families who executed “green” household upgrades.

Other

• Retention of worldwide income with exceptions / deductions.
• Retaining the deduction of expenses for generating taxable income.
• Retention of the 50% exemption on employment income for an individual’s first employment in Cyprus.
• Lowering the tax rate applied to employee stock options, subject to anti-abuse provisions.
• Ex gratia payments to employees will be taxed only if they exceed a certain threshold, but employers will be able to fully deduct the expense.
• “Handshake payments” (substantial sums offered by employers to attract key recruits) would be taxable to the employee and fully deductible by the employer.
• Deductible cultural donations.

Cyprus Digital Nomad Visa Scheme – Latest Update

Cyprus Digital Nomad Visa Scheme – Latest Update

Cyprus Re-Opens the Digital Nomad Visa Applications 

Further to our article on the Cyprus Digital Nomad Visa Scheme the Cyprus Migration Department has officially announced the re-opening of applications for individuals interested in the Cyprus Digital Nomad Visa Scheme.

The Cyprus Digital Nomad Visa Scheme permits individuals from outside the EU and EEA to reside temporarily in Cyprus while either working for a foreign employer or providing services to overseas clients.

The aim of the Cyprus Digital Nomad Visa is to enhance Cyprus as a centre for electronic services and reinforce its business ecosystem, thereby aiding the nation’s economic growth.

The maximum number of permits that can be granted is 500. 

Why Choose Cyprus?

Apart from the attractive tax advantages, Cyprus offers an idyllic environment with a strong business landscape, making it an excellent destination for digital nomads. The island has a high standard of living, superb weather and affordable living costs. Moreover, Cyprus is increasingly becoming a centre for business and technology, with flourishing sectors in tech, finance and services that boost professional prospects for digital nomads.

Click here to read about the exciting tax advantages that Cyprus Digital Nomads can enjoy

The Cyprus Digital Nomads Scheme and Tax Advantages

It is important to note here that Cyprus has one of the most attractive tax systems in Europe.

An individual can become a tax resident after spending 183 days in Cyprus and tax will therefore be imposed accordingly.  In Cyprus, personal income rates range from 0% to 35% depending on the level of income. 

The individual must register with the Cyprus Tax Department and filing an annual return is also a requirement. Getting advice from someone who knows their way around taxes here, such as an accountant, is necessary because they will help ensure that everything is done correctly while also pointing out any deductions or exemptions you could be granted.

Cyprus offers several tax breaks as well as exemptions for expats.  Furthermore Cyprus has many double-tax treaties to avoid being taxed twice on your income.

The Cyprus Digital Nomad Visa – Other Benefits

Digital Nomads working in Cyprus can enjoy the below additional benefits:

• Reasonable cost of living – compared with other countries;
• Idyllic Mediterranean location and weather – a sunny climate, rich history, beautiful beaches, wonderful cuisine, relaxed lifestyle and lively culture;
• Safety – Cyprus is one of the safest countries to live in in the EU, with a low crime rate if compared with other countries;
• The right to live in Cyprus for up to one year – with the possibility of renewal for another 2 years – ie a total of 3 years;
• The Cyprus Digital Nomad Visa Scheme is family friendly – family members can be granted resident permits for the same duration as the Digital Nomad but without the entitlement to work or engage in economic activities;
• Very cheap visa fees compared with other countries – the cost of the visa is only €70;
• High quality internet;

Who is Eligible for a Cyprus Digital Nomad Visa?

Nationals from non-EU and non-EEA countries can apply for the Cyprus Digital Nomad Visa.

The applicant must be:

• able to perform his/her work remotely via telecommunications technology;
• an employee of a company registered abroad or he/she must be self-employed, providing services to clients located abroad;
• able to provide proof of sufficient and stable income in order to support his/her living expenses in Cyprus (at least €3,500 monthly net income).

We would be delighted to assist you to make the most of this opportunity to become part of Cyprus’s dynamic business ecosystem!

Cyprus Ultimate Beneficial Owners Register

Cyprus Ultimate Beneficial Owners Register – Latest Update

The Cyprus Registrar of Companies has announced that all Cyprus registered entities are obligated to verify the particulars of their (UBOs) in the Beneficial Owners Register by 31^st December 2024, in order to comply with regulatory requirements.

This verification process is applicable to companies incorporated / registered under the Companies Law, Cap. 113 and European Public Limited Companies (SEs), and Cooperatives, and will be conducted from 1^st October to 31^st December 2024.

Any alterations or revisions to the details of the Beneficial Owners that have taken place from 1^st October 2024 to 31^st December 2024 must be finalized before verifying the Beneficial Owners’ details.

Failing to amend the Beneficial Owners’ details within this period will incur a €200 penalty initially and an extra €100 for each day of delay thereafter, up to a maximum penalty of €20,000. Both the company and its executives will be subject to these penalties, irrespective of any potential criminal responsibility or litigation.

Kindly note the importance of promptly informing us about any amendments to the UBOs’ particulars so that we can execute this necessary task within the specified timeframe for all companies under our management to prevent incurring penalties.

The Cyprus Digital Nomad Visa Scheme

What is the Cyprus Digital Nomad Visa Scheme?

The Cyprus Digital Nomad Visa Scheme is an appealing scheme for citizens from non-EU and non-EEA countries to conduct their work remotely while enjoying the many advantages of living in Cyprus.

A digital nomad is a person who works for companies registered abroad and performs his/her job remotely using digital technology. During the last few years both employers and employees have shown a marked increase in interest for this type of remote working.

By offering a temporary residence permit, this scheme lets nomads carry out their jobs remotely for companies that are based elsewhere than Cyprus.

The aim of the Cyprus Digital Nomad Visa Scheme is to attract digital nomads to Cyprus to boost the island’s technological sector with the ultimate aim of boosting Cyprus’s economy. This scheme, that attracts talented entrepreneurs and digital workers will help to establish the island as a leader in the provision of electronic services.

In the past, only 100 temporary residency permits were issued under this program, but now the limit for applications has increased to 500.

Who is eligible for a Cyprus Digital Nomad Visa?

Nationals from non-EU and non-EEA countries can apply for the Cyprus Digital Nomad Visa. The applicant must:

• be able to carry out his/her work remotely via telecommunications technology;
• be an employee of a company that is registered abroad or be self-employed, providing services to clients located abroad;
• be able to provide proof of sufficient and stable income to support his/her living expenses in Cyprus (at least €3,500 monthly net income);

Application process for the Cyprus Digital Nomad Visa

The application process is quite transparent, with step-by-step instructions that are easy to understand as well as transparent eligibility criteria. The applicant must submit his/her application to the Civil Registry and Migration Department in Nicosia, together with the necessary documents (see below the complete list of documents required).

The application process is set out below:

1. Travel to Cyprus with a tourist visa (where applicable);
2. Complete and submit the application forms;
3. Within 3 months from your arrival in Cyprus your application, together with the required documents, must be submitted to the Civil Registry and Migration Department in Nicosia;
4. If the applicant legally resides in the Republic of Cyprus under another status, he/she can also submit an application for a residence permit as a digital nomad;
5. Pay the visa fee of €70 and the fee for the registration to the Aliens’ Registry (for initial registration only ie not for renewals) – also €70;
6. Biometric data (photograph and fingerprints), plus the signature of the applicant are necessary during the submission process;
7. The application processing time is from five to seven weeks;
8. Once approved, the residence permit is granted to the applicant and is valid for 1 year with the possibility of renewal for another 2 years;

The renewal process:

1. Digital nomads must apply to the Civil Registry and Migration Department at least one month before the expiration date of the residence permit for renewal;
2. They must pay the fees for the renewal;
3. Biometric data (photograph and fingerprints), plus the signature of the applicant are necessary during the submission process;
4. Once approved, the renewed residence permit is granted to the applicant and is valid for a maximum of 2 years;

Documents required for the Cyprus Digital Nomad Visa

• Cyprus Digital Nomad Visa application form;
• Valid passport – the applicant’s passport must have a validity of at least 3 months;
• Copy of passport  – or other travel documents showing the applicant’s last entry in Cyprus; 
• 2 passport-sized coloured photos – the photos must have a white background;
• Original clean criminal record certificate;
• Proof of accommodation – for example, a rental contract (duly stamped for over €5000), a lease or a hotel booking;
• Evidence of monthly financial resources – at least €3500 – you can provide a six month bank statement. Monthly income requirements are higher if the applicant has family members living with him.  Note: you will not be able provide evidence on the basis of savings only;
• CV/resume – your latest one;
• Employment contract – for applicants that are already employed – stating clearly the applicant’s position within the company;
• Employer’s confirmation letter – stating that the applicant can perform his/her duties remotely in Cyprus;
• Company registration certificate – a copy is required showing that the company was registered abroad;
• Health insurance – a valid health insurance covering inpatient/outpatient health care plus repatriation expenses;
• Blood analysis – original results showing that the applicant does not have some specified diseases, duly certified by a doctor;
• Letter of intent – saying what activities will be performed in Cyprus and why you wish to work from Cyprus;
• A written confirmation – if the applicant has dependents, a letter stating that the dependents will not provide services to Cyprus based employers;

Self-employed applicants must provide:

• Relevant contracts for services/projects;
• Written confirmation from the applicant that he/she can perform duties remotely and that he/she will not provide services to Cyprus based employers;

Attractive Tax Incentives

• Digital nomads in Cyprus can enjoy tax free income until their 183^rd day of stay.  After 183 days working as a digital nomad in the same calendar year, the individual is considered to be a Cyprus tax resident provided that he/she is not a tax resident of another country;
• 50% of an individual’s remuneration, starting from 1^st January 2022, that exceeds €55,000, is exempt from tax for the individual’s first employment in Cyprus for individuals that were not Cyprus residents for a period of 15 continuous tax years prior to the beginning of their employment in Cyprus.  It should be noted here that “first employment” means that an individual did not receive salaries (including salaries for temporary employment) in Cyprus for a Cypriot or foreign employer for a period of 15 years prior to the individual’s employment in Cyprus. The exemption applies once in the individual’s lifetime and extends for a period of 17 years;
• Note: individuals whose employment started before 1^st January 2022, may be eligible to claim the exemption A or B, subject to some conditions;
• 20% of an individual’s remuneration (with the maximum amount of remuneration being €8550 per annum) for first employments in Cyprus starting after 26^th July 2022, is exempt from tax for individuals who, before the start of their employment in Cyprus, were not Cyprus residents for a period of 3 continuous tax years and were employed overseas by a non-resident employer.  The exemption applies for a period of 7 years, commencing from the tax year after the tax year of the start of the employment.  An individual who is granted the 50% exemption is not eligible for this tax exemption;
  • (A) For employment from 1^st January 2022 until 29^th June 2023, the individual may be eligible to claim 50% tax exemption, subject to similar conditions, if they were non-tax residents of Cyprus prior to the start of their first employment for a period of 10 years (instead of 15 years).  It is noted here that “first employment” means employment in Cyprus at any time, not 15 years prior to the start of employment. Some other differences also apply in this case;
  • (B) The exemptions are not applicable for employment starting after 26^th July 2022, although eligible persons may claim the exemption from this date onwards for the remaining period.  In the past a 20% and 50% tax exemption was available for 5 or 10 years respectively and were subject to different conditions;

Other advantages of working as a Digital Nomad in Cyprus

Digital Nomads working in Cyprus can enjoy the below additional benefits:

• Reasonable cost of living – if we compare the cost of living with other countries;
• Idyllic Mediterranean location and weather – you can enjoy the sunny climate, rich history, beautiful beaches, wonderful cuisine, relaxed lifestyle and lively culture that Cyprus has to offer;
• Safety – Cyprus is one of the safest countries to live in in the EU, with a low crime rate in comparison to other countries;
• The right to reside in Cyprus for up to one year – with the possibility of renewal for another 2 years – ie a total of 3 years;
• The Cyprus Digital Nomad Visa Scheme is family friendly – family members can be granted resident permits for the same duration as per the Digital Nomad;
• Very cheap visa fees compared with other countries – the cost of the visa is only €70;
• High quality internet; – CYTA was named the Fastest Mobile Network by the independent company Ookla®, a world leader in internet testing and analysis

The Cyprus Digital Nomads Scheme and tax advantages

It is important to note here that Cyprus has one of the most attractive tax systems in Europe.

As mentioned above, you become a tax resident after spending 183 days in Cyprus and tax will therefore be imposed accordingly. In Cyprus, personal income rates range from 0% to 35% depending on level of income.

Registering with the Cyprus Tax Department is necessary and filing an annual return is a requirement too. Getting advice from someone who knows their way around taxes here—like an accountant or a professional—is smart because they’ll help ensure that everything is done correctly while also pointing out any deductions or exemptions you could use.

Cyprus offers several tax breaks as well as exemptions for expats. Furthermore Cyprus has many double-tax treaties to avoid being taxed twice on your income.

Family members of Digital Nomads

• Digital Nomads’ family members (spouse, partner, under aged children) are permitted to live in Cyprus for the same period as the digital nomad;
• Family members are not, however permitted to work in Cyprus;
• The same application procedure is used (as described above for digital nomads) to obtain a temporary residence permit for family members;

Conclusion

To wrap things up, the Cyprus Digital Nomad Residence Visa provides a great way for individuals who work online to live and work in the beautiful Mediterranean island of Cyprus. 

Thanks to its special visa tailored for digital nomads and plenty of chances for engaging in economic activities, more and more remote workers are seeing Cyprus as their ideal spot.

Kick off your adventure combining work with fun against the stunning backdrop of Cyprus today!

Our Cyprus Operations

Our fully licensed network firm in Cyprus, AK Kotsomitis Accountancy and Tax Ltd is regulated by the Professional Regulatory Authorities (ICPAC) and is licensed to carry out accounting, audit and tax services.

Ilcom Ltd is a group subsidiary operating since 2003. It is licensed by CySEC (The Cyprus Securities and Exchange Commission). Ilcom Ltd is a leading Cyprus trust and corporate services provider offering a full scope of services including incorporation / registration of all legal entity types.

Please check out our Cyprus member firm website www.fbscyprus.com and contact us if this is of interest to you. 

You may also want to check out our UAE network firm website www.fbsemirates.com.

Or our Malta network firm website www.fbsmalta.com to see if their services are of interest to you.

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Abolition of the Annual Levy for Companies in Cyprus

Abolition of the Annual Levy for Companies in Cyprus

One of the targeted supportive measures recently announced by the Government of Cyprus is the abolition of the annual levy on companies.

The abolition of the mandatory annual levy of €350, that was payable by all companies registered at the Cyprus Registrar of Companies, is applicable from 2024 onwards.

The move is one of the measures aimed at facilitating economic expansion and attracting increased foreign investment, thus encouraging both local as well as international businesses to establish and operate their companies in Cyprus.  As well as reducing operating costs for enterprises, it supports the decision to streamline administrative processes.

This move is part of a broader package of economic measures aimed at boosting the attractiveness of Cyprus’ business environment and enhancing Cyprus’ global competitiveness.

It is worth noting that the annual levy, payable by all companies registered in Cyprus, was first introduced back in 2011 and was a mandatory measure intended for fiscal consolidation.

Companies incorporated during or prior to 2023 that have not yet paid the annual levy must execute this payment, plus applicable penalties. The companies that have already paid the annual levy for the year 2024 will receive a refund.

By implementing such measures and supporting the interests of enterprises, Cyprus maintains its position as a dynamic and modern business hub with favourable, attractive conditions for entrepreneurship and investment.

Our Cyprus Operations

Our fully licensed network firm in Cyprus, AK Kotsomitis Accountancy and Tax Ltd is regulated by the Professional Regulatory Authorities (ICPAC) and is licensed to carry out accounting, audit and tax services.

Ilcom Ltd is a group subsidiary operating since 2003. It is licensed by CySEC (The Cyprus Securities and Exchange Commission). Ilcom Ltd is a leading Cyprus trust and corporate services provider offering a full scope of services including incorporation / registration of all legal entity types.

Please check out our Cyprus member firm website www.fbscyprus.com and contact us if this is of interest to you. 

You may also want to check out our UAE network firm website www.fbsemirates.com.

Or our Malta network firm website www.fbsmalta.com to see if their services are of interest to you.

Cyprus has Issued New Tax Circular for Tax Residency in Cyprus

Cyprus has Issued New Tax Circular for Tax Residency in Cyprus

March 2017

The Cyprus Tax Authority’s new tax circular on the issuing of Tax Residency Certificates is expected to increase the demand and interest of investors and other parties for tax residency in Cyprus, Cyprus company formations and investments in Cyprus.

The circular, which was issued on the 10th of March 2017, states that a person wishing to become a tax resident of Cyprus can apply and get a Tax Residency Certificate at any time during a tax year even though he/she has not completed 183 days in the Republic of Cyprus within the current tax year.

The Tax Residency Certificate will be issued to a person as long as he/she registers with the Tax Department, obtains a Tax Identification number and submits a declaration signed by him/her stating that he/she intends to stay in Cyprus for one or more periods exceeding in aggregate 183 days in the tax year.

This is a very attractivetool for investors and other interested parties because they will be able to obtain Cyprus Tax Residency and immediately get a Tax Residency Certificate that will allow them to benefit from the tax treaties agreed by Cyprus at the time they receive income without being subject to any withholding of tax at source.  In addition they will enjoy all the other benefits that the Cyprus tax system has to offer.  With this procedure they will also have flexibility with how to plan their stay on the island so as to meet the 183 days requirement.

Becoming a tax resident of Cyprus has many benefits both for individual investors as well as for their companies if they choose to transfer them to Cyprus or proceed with the formation of a new company in Cyprus.

Contact Us NOW to Start the Process

Cyprus has an attractive and transparent tax regime, is fully compliant with EU, OECD and international laws and regulations. Cyprus provides access to an extensive network of more than 60 Double Tax Treaties while maintaining a corporate tax rate of 12.5%, which is one of the lowest in the EU.  Cyprus is an attractive place for international investors to invest, to set up their business or form a new company that will grow and prosper.

Some of the main features of the Cyprus tax system:

• Dividend participation exemption
• Profits from the trading and disposal of securities (e.g. shares, bonds, debentures) are tax exempt
• No succession taxes
• No withholding taxes
• Individuals who take up residence in Cyprus can apply for non-domicile status which offers significant tax advantages
• No tax on worldwide dividends and interest income for a period of 17 years for non-domiciled individuals
• 50% exemption on income from employment in Cyprus for a person who was not previously resident in Cyprus. The exemption applies for ten years, if the income from employment in Cyprus exceeds €100.000 per annum.
• 20% exemption with a maximum amount of €8.550 annually on income from employment in Cyprus of a person who was not previously resident in Cyprus. For employments commencing during or after 2012, the exemption applies for a period of 5 years starting from the tax year following the year of commencement of the employment with the last eligible tax year being 2020.
• Low social insurance contributions (7.8% of gross salary) – total employer contributions to various funds amount to 11.5% of gross salaries and total employee contributions to 7.8%.
• Tonnage Tax for shipping companies
• Attractive IP regime
• Notional interest deduction scheme

Contact one of our officers NOW to get more information about the procedure to obtain Cyprus Tax Residency and a Tax Residency Certificate, the benefits of the Cyprus Tax system or to initiate the incorporation of a Cyprus registered company and start reaping the full benefits of an onshore, low-tax, EU jurisdiction.

Simply fill in the contact box below or contact us by email on [email protected]

Piraeus Bank Cyprus Changed its Name and Brand to AstroBank

Piraeus Bank Cyprus Changed its Name and Brand to AstroBank

March 2017

Piraeus Bank Cyprus, at a special event held on 29 March 2017 and in the presence of Minister of Finance Harris Georgiades, unveiled its new name and brand ……AstroBank.

Piraeus Bank Cyprus was acquired last December by new international investors led by Mr. Maurice Sehnaoui, a Lebanese banker with strong international exposure. This move shows great confidence in the Bank itself but also in Cyprus, its economy and its friendly business environment. An environment that other international investors can also invest in, move their businesses to or form new companies to benefit from the tax and other significant advantages that Cyprus offers.

Contact Us NOW to start the Cyprus Company Set Up Process

Our Group has been doing business with Piraeus Bank Cyprus for many years for the opening of both personal and corporate bank accounts for our international clientele.  During these years, Piraeus Bank has proved to be one of Cyprus’ most stable and strongest banks, especially during the recent economic crisis. With this move the new investors and owners will transform the bank into Cyprus’ newest, most dynamic player in the local banking scene. The new team will bring to the bank more international experience to enhance the local knowhow and lead the bank forward with a more dynamic growth.

This move will benefit our existing clientele that already use the bank even more as the bank will be in a position to offer them more competitive products and services to meet their financial needs. Furthermore, this move is a sign for new investors and parties to trust Cyprus, its economy and its banking system and to move their businesses or set up new companies for their international operations and take advantage of the many tax and other benefits that Cyprus offers.

Contact one of our officers NOW to initiate the incorporation of a Cyprus registered company at the price of ONLY 950 EURO and start reaping the full benefits of an onshore, low-tax, EU jurisdiction. Simply fill in the contact box below or contact us by email on [email protected]

Cyprus “Non-Dom” Status Boosts Cyprus Company Formations

Cyprus “Non-Dom” Status Boosts Cyprus Company Formations

April 2017

The new status of a physical person, enacted in Cyprus by the Law 119(I)/2015, as “tax resident but non-domiciled” has already boosted the interest of foreign investors  to permanently reside in Cyprus, invest in Cyprus, incorporate a Cyprus Company and enjoy the benefits that the island of Cyprus has to offer.

The Law, which was enacted on 16/07/2015, gives significant advantages to foreign investors in contrast with what was in force before.

What was in force before the new legislation for individuals?

•  A non-tax resident physical person had no obligation to pay Special Defence Contribution (SDC is a tax imposed on income from dividends, interest and rentals earned from both Cyprus and worldwide sources)
• A tax resident physical person had the obligation to pay Special Defence Contribution on income from dividends, interest and rentals earned from both Cyprus and worldwide sources.

What is in force following the new legislation for individuals?

• A non-tax resident physical person still has no obligation to pay as before
• A tax resident physical person has the obligation to pay BUT ONLY if he/she has his/her domicile in Cyprus.

Most foreign investors who were born and live outside Cyprus can qualify for the Non-Dom status. Therefore, by becoming a tax resident of Cyprus, but non-domiciled, you can enjoy tax free dividends, interest and rental income on a personal basis for the next 17 years. If the above is combined with a Cyprus company formation and by doing business worldwide through this Cyprus Company, an investor can enjoy 12.5% total tax, both on a company and on a personal level.

Contact one of our officers NOW to get more information about the procedure to obtain the Non-Dom status, to initiate the incorporation of a Cyprus company and to enjoy the benefits of an EU company, residing in one of the safest destinations in Europe with zero personal tax.

Simply fill in the contact box below or contact us by email on [email protected]

Cyprus Company Formations to Rise with Latest Double Tax Treaty Network Update

Cyprus Company Formations to Rise with Latest Double Tax Treaty

July 2017

Cyprus has significantly expanded its double tax treaty network over the past 3 to 4 years and there are continuous efforts to increase it even more.

Its network now consists of 57 countries, a very significant amount for the island of Cyprus.

Cyprus’ Tax Treaty partners today are shown below:

In addition, on 8th May 2017, Cyprus and Luxembourg signed an income and capital tax treaty that is expected to come into force as from 1st January 2018 upon ratification by both parties. Cyprus has also negotiated and agreed double tax treaties with Monaco, Oman and Barbados (only the signing of these is pending).

Cyprus is currently negotiating the signing of double tax treaties with Netherlands, Sri Lanka, Israel, Jordan, Malaysia, Panama and Vietnam. In addition, it will soon start negotiations with Kazakhstan, Tajikistan, Nigeria and Pakistan.

Given the above, individuals and investors can choose Cyprus to set up their companies and take advantage of this extensive network of double tax treaties as well as the many other tax advantages that Cyprus offers.

Contact Us NOW to Start the Cyprus Company Set Up Process

Tax treaties in Cyprus and most countries legally supersede local tax legislation and, for this reason, they are a useful tax-planning tool to protect businesses and individuals against double taxation of income earned in other countries.

Many of the tax treaties that Cyprus has signed eliminate or significantly reduce the withholding tax on dividends, interest and royalties. In addition, some of them do not include the clause that gains from the alienation of shares in property-rich companies are taxed in the State where the property is situated. Therefore, any gains arising from the alienation of shares in such companies will be taxed only in the state where the alienator is situated. If the alienator is a Cyprus company, the gains from the sale of such shares are exempt from taxation in Cyprus.

Other features of the Cyprus tax system:

• 12.5% corporate tax rate
• Dividend participation exemption
• Profits from the trading and disposal of securities (e.g. shares, bonds, debentures) are tax exempt
• No succession taxes
• No withholding taxes
• Individuals who take up residence in Cyprus can apply for non-domicile status which offers significant tax advantages
• No tax on worldwide dividends and interest income for a period of 17 years for non-domiciled individuals
• 50% exemption on income from employment in Cyprus for a person who was not previously resident in Cyprus. The exemption applies for ten years, if the income from employment in Cyprus exceeds €100.000 per annum.
• 20% exemption with a maximum amount of €8.550 annually on income from employment in Cyprus of a person who was not previously resident in Cyprus. For employments commencing during or after 2012, the exemption applies for a period of 5 years starting from the tax year following the year of commencement of the employment with the last eligible tax year being 2020.
• Low social insurance contributions (7.8% of gross salary) – total employer contributions to various funds amount to 11.5% of gross salaries and total employee contributions to 7.8%.
• Tonnage Tax for shipping companies
• Attractive IP regime
• Notional interest deduction scheme

Contact one of our officers NOW to get more detailed information about the double tax treaties and their uses, the benefits of the Cyprus Tax system or to initiate the incorporation of a Cyprus registered company and start reaping the full benefits of an onshore, low-tax, EU jurisdiction.

Simply fill in the contact box below or contact us by email on [email protected]