11 May 22
Sunset in Cyprus Limassol. Panorama of Cyprus Limassol resort. Limassol promenade at sunset. Cyprus resort on sunset background. Tourist places on Mediterranean coast.

On Tuesday 10th of May 2022, the Council of Ministers has approved a Bill with tax advantages in line with the Strategy for Attracting Businesses as approved on October 15th 2021, to attract foreign companies and highly skilled #humancapital, as well as to incentivize the repatriation of Cypriot professionals who are currently living and working abroad.

The proposed legislation provides that employees who earn an annual salary exceeding €55,000 per annum, are eligible for a 50% tax exemption for 17 years from the commencement employment in Cyprus.

A period of two years will be granted to new employees to meet the minimum threshold of €55,000.

Additional measures are to be implemented to encourage foreign workers to acquire a residence permit and access the labour market.

The available tax advantages are amongst the most competitive in the EU and this is clearly exhibited by the increasing interest of high-tech companies to relocate to Cyprus. The benefits of this program are expected to be multiple for the local economy and the development of the island into a technology hub in line with its strategic objectives.