The beneficiaries for the digital nomad visa are non-EU or non-EEA nationals who:

• work remotely using information and communications technology
• are employed and work remotely by their own company or another company, located outside of the Republic of Cyprus or are self-employed and their customers are located outside of the Republic of Cyprus
• can prove that they have sufficient and adequate monthly income to support their living in Cyprus, of at least €3,500, after the deduction of contributions and taxes

Digital Nomads will be granted a residence permit and will benefit from:

• the right to stay in Cyprus for up to one year, with the possibility to renew for two more years.
• the beneficiaries  family members can also stay in Cyprus for the same period and be granted with a residence permit that expires at the same time as the permit of the individual. The family members, however, are not allowed to provide dependent work or to engage in any kind of economic activity in Cyprus
• In case the Digital Nomads will spend more than 183 days in Cyprus during the same calendar year, then they will be considered Cyprus tax residents. Those that spend less than 6 months but more than 60 days, may also be considered as Cyprus tax residents subject to specific criteria.

Interested parties can enter Cyprus with the use of a tourist visa and submit an application to the Civil Registry and Migration Department within three months from their arrival to Cyprus.

In case the applicant is already residing in Cyprus under a different status, and fulfills the prerequisites then, can can apply to the Civil Registry and Migration Department, to obtain the digital nomad visa.

It should be noted that the initial limit for the Digital Nomad visas are 500 applications.

The main points of the plan are:

• Application for Cypriot Citizenship

The period of eligibility for applying for citizenship will be reduced from seven years of residence and work in the Republic, to five years and to four years for holders of certification for very good knowledge of the Greek language

• Simplification of the process for granting work permits

 The Ministry of Interior will amend the relevant Regulations of the Aliens and Migration Law, to simplify the process and determine the criteria based on which work permits will be granted

• Right to employment for family members of third country nationals

Spouses of third country nationals who have obtained a residence and work permit in Cyprus with a minimum gross monthly salary of €2,500 will have immediate and free access to employment. The scheme is not available for support staff.

• Revised policy for the issuance of temporary residence and work permits to third country nationals
  • Eligible Companies:
    • Foreign companies operating in Cyprus or wishing to have physical presence in Cyprus
    • Cyprus shipping companies
    • Cyprus high-tech/innovation companies (subject to conditions)
    • Cyprus pharmaceutical companies or companies operating in the fields of biogenetics and biotechnology.

• • Main provisions:
    •  A minimum gross monthly salary of €2,500 is introduced for employees who have the required academic skills or at least two years of relevant experience
    • Companies will be able to employ third country nationals as support staff (with gross monthly salary below €2,500) provided that the employment of third-country nationals does not exceed 30% of all support staff
    • The duration of the residence and work permit can be up to three years and will be issued within one month from the application date
    • The maximum number of third country nationals is 70% of the total number of employees in a 5-year period from the date of the inclusion of the company in the scheme
• Tax incentives
  • Expansion of the existing income tax exemption of 50% for taking up employment in Cyprus:
    • The personal income tax exemption of 50% will be expanded to cover new Cyprus tax residents-employees with salaried income of €55,000.
    • Existing beneficiaries of the scheme (income between €55,000 – €100,000) should be able to extend the exemption from 10 to 17 years.
  • Extension of the tax exemption for investment in innovative companies
    • Consideration of the possibility to grant the tax exemption of 50% for investment in certified innovative companies to corporate investors in addition to individuals
  • Increased tax deductions for Research & Development (R&D) expenses
    • Granting an increased tax deduction on R&D expenses (e.g. by 20%). Eligible R&D expenses will be deducted from taxable income equal to 120% of the actual.
• Digital nomad visa

A new type of residence permit will be introduced, for people who wish to live in Cyprus but work in companies operating abroad referred to as digital nomad visa.

Persons eligible for the “visa” are third country nationals who are self-employed or employees who work remotely using information and communication technologies, with employers/clients outside Cyprus.

Digital nomads will have the right to stay in Cyprus for up to one year, with the right to renew for another two years. They can be accompanied by their family members, to whom, upon request, a residence permit that expires at the same time as their dependent’s is granted. During their stay in Cyprus, the spouse or partner and the minor members of the dependent’s family are not allowed to provide dependent work or to engage in any kind of economic activity in the country. In case they reside in Cyprus for a total period exceeding 183 days within the same tax year, then they are considered Cyprus tax residents.

• • Prerequisites (among others):
    •  There is a minimum threshold of funds coming from abroad (supported by salary, bank statements, etc.) set to €3,500 per month, increased by 20% for the spouse and by 15% for any minor dependent
    • Medical insurance
    • Clean criminal record certificate from the country of residence

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.

1) Tax exemption

A company involved in film production can enjoy a tax exemption of up to 50% of its taxable income.

The exemption is restricted to 35% of the “eligible expenditure” incurred by the company.

Any amount not claimed as tax deductible in the year the expenditure is incurred due to the restriction, can be carried forward and claimed in the following five years.

2) Tax deduction

Individuals, small as well as medium sized enterprises investing in film infrastructure and equipment are entitled to deduct the amount of the investment from their taxable income in the year of the investment.

The tax deduction cannot exceed 20% of the “eligible expenditure” for individuals and small enterprises and 10% for medium sized enterprises.

The tax deduction is given provided that the investment in equipment would need to remain in Cyprus for at least 5 years.

Any amount not claimed as tax deductible in the year the expenditure is incurred due to the restriction, can be carried forward and claimed in the following five years.

Alternative to tax exemption. 

Cash rebate instead of tax exemption

As an alternative to the tax exemption, companies can claim a cash rebate of up to 35% of “eligible expenditure” incurred in Cyprus.

The maximum annual cash rebate cannot exceed €650.000 per production and €1.500.000 for all productions.

The final percentage of the rebate will be determined based on a “cultural test” that takes into account certain criteria like the participation of local actors, the use of the Greek language and highlighting Cypriot culture in the production.

VAT refund on eligible production expenditure
Companies and individuals from third countries incurring “eligible expenditure” on film productions, are entitled to a VAT refund in the same way as those from EU Member States in accordance with the EU Directive 9/2008.

The refund shall arise within 6 months from the end of the last deadline for submitting the VAT declaration for the period during which the expense occurred, or from the date on which the application for the VAT refund is filed.