Foreigners moving to work in Cyprus will receive a 50% tax discount for 17 years
On July 14, the Parliament of the Republic of Cyprus approved an amendment to the law on tax incentives for employees of foreign companies who have moved to the island or are already working here. The new law introduces a 50% discount for 17 years from the start of employment (before that it was 10 years) for those who earn more than 55,000 euros a year (previously it was 100,000 euros).
So far, Cyprus has had a law providing for a 50% tax reduction for 10 years for executives and employees of foreign companies whose salaries were more than 100,000 euros per year.
From the moment the amendment is passed by Parliament and it comes into force, the tax relief will apply to those who earn 55,000 euros per year or more. The duration of the tax benefit has been increased from 10 to 17 years from the start of work in Cyprus.
For employees of international business companies in Cyprus who receive less than 55,000 euros, a transitional period has been introduced in order to bring the level of income to the minimum salary level established by the authorities of the Republic of Cyprus.
Those who already work in Cyprus can negotiate with management for a salary increase of up to 55,000 euros per year within six months. Those who come to Cyprus to work and were offered less than 55,000 euros have two years to bring their salary to the required minimum.
According to the Ministry of Finance of the Republic of Cyprus, the new law will help attract and retain highly qualified specialists with high salaries in Cyprus. As a result, tax incentives will contribute to the development of relatively new business areas for Cyprus, such as high technology, pharmaceuticals, biogenetics and biotechnology.