Cyprus, Your Safe Port in the Mediterranean - November 2022
Cyprus’s warm climate, high quality of life, good schools and housing stock, entrepreneurial environment and range of tax incentives have long made it a popular destination for business executives, entrepreneurs, remote workers, investors and retirees looking to relocate.
While every relocation has its complexities, people moving to Cyprus are pleasantly surprised by the ease of the process.
The advantages of living in Cyprus
The feedback we receive from the clients we have helped relocate to Cyprus is that they really enjoy living there.
As one of the world’s safest countries with a very low crime rate, it is an ideal place for families with young children. And since English is widely spoken on the island and used in every aspect of society, they do not have to break the language barrier.
The quality of education in Cyprus is high too. There are international and private schools which offer excellent education programmes, and the island has more than 10 universities, most of which have English-taught courses. As part of our relocation concierge service, we have helped our clients arrange meetings with local schools to find the best solution for each client’s children.
In addition to that, our clients enjoy the many opportunities for an active outdoor lifestyle: stunning mountain hikes all year long, skiing in winter months in the Troodos Mountains, water sports and plenty of beautiful beaches to choose from for a lazy day out by the sea.
They also appreciate the high standards of the well-equipped public and private healthcare services in Cyprus.
Working in Cyprus
The country boasts a low cost of living, an attractive and transparent tax regime, a wide network of business support services, easy access to EU markets, great incentives for foreign investors and beneficial regimes for high-tech companies.
The quality of the local workforce is high. Many locals have studied abroad at top level universities and worked in leading international companies, while talented expats relocate to the island due to the attractive incentives offered to them and their families.
Moreover, Cyprus offers several personal tax incentives that aim to attract multinational companies to relocate key personnel to perform their duties from Cyprus. The tax incentives also appeal to high-net-worth individuals who are willing to relocate to Cyprus. For example, expats relocating to Cyprus (irrespective of their tax residency or domicile status) are eligible for one of the following income tax exemptions on employment income:
- 50% of the remuneration from any employment exercised in Cyprus by an individual who was resident outside Cyprus before the commencement of their employment in Cyprus (the exemption applies for a period of ten years starting from the first year of employment in Cyprus, provided that the income from such employment exceeds €55,000 per annum) or,
- 20% of the remuneration or €8,550 (whichever is the lower) from any employment exercised in Cyprus by an individual who was resident outside Cyprus before the commencement of their employment in Cyprus (the exemption is available to qualifying individuals commencing employment in Cyprus between 2012 and 2025 and is provided for seven years, starting from the tax year following the year of employment).
Additionally, Permanent Residence in Cyprus can be obtained by investment in real estate or securities worth at least €300,000. Permanent Residence holders do not pay taxes on their global income, including dividends and capital gains. Cyprus also has no inheritance tax, and low income and property tax rates.
Lastly, and as part of the Cyprus Council of Ministers' new strategy for attracting businesses and talent from abroad, a “Digital Nomad Visa Scheme” has been recently introduced, with a ceiling of 500 residence permits. The Scheme allows nationals from non-EU and non-EEA countries, who can perform their work location-independently using telecommunications technology, to reside temporarily in Cyprus and work for an employer registered abroad or perform work through telecommunications technology for companies or clients located abroad.
The Scheme’s goal is to strengthen Cyprus’ position as a centre for the provision of technology services, by attracting digital nomads who will contribute to the development of the local business ecosystem and consequently to the economic development of the country.
The new incentives for investors being implemented by the Cyprus Government, the Cyprus IP Box regime, the recent upgrading of the island’s marinas and the focus on making Cyprus a leading tech hub are just a few of the many projects underway that increase the attractiveness of Cyprus as a base for internationally mobile citizens.
If you are considering relocating to Cyprus, our specialist team can provide support throughout the entire process, including concierge and immigration services, providing housing and office options through associates, helping you establish any required asset holding structures, and giving you the support you may need through our teams of accountants, marine experts, administrators and more.
If you are relocating or planning to establish a company, trust or fund in Cyprus and want to learn more about the jurisdiction or discuss how we can assist you, please contact Marina Patroklou in our Cyprus team at email@example.com