Extension of the income tax exemption of 20% or €8,550 for employment in Cyprus

On 15 December 2020 the House Of Parliament voted for the extension of the specific law which aims to attract employees from abroad.

The basis of the law is that the lower of €8.550 and 20% of the remuneration from any employment exercised in Cyprus by an individual who was resident outside Cyprus the tax year before the year of commencement of employment in Cyprus is exempt from income tax.

The exemption applies for a five year period and is available to qualifying individuals commencing employment between 2012 and 2025. It is clarified that the exemption is provided in the five years that follow the year of commencing employment.