On 3 December 2020 the Cyprus Parliament approved the extension of the two incentives already in place for attracting people to relocate (or return in case of Cypriots studying/living abroad) to Cyprus and obtain employment in the country.
In summary the incentives provide for the following:
a) 50% exception on employment income provided that this exceeds €100.000 per annum – applicable for 10 years; OR
b) Lower of 20% of employment income or €8.550 – applicable for 5 years.
For the first incentive the extension concerns the application of the minimum remuneration threshold of €100.000 per annum. The exemption will be granted even if in the first year of employment the salary does not exceed the threshold, as long as it does so in any of the following two years.
With regards to the second incentive the extension concerns the application period, as it was supposed to be terminated at the end of 2020. With the amendment voted the validity of the incentive is extended until the end of 2025.
For more information on the two incentives you can refer to our Publications on Incentives to Invest, Set-up a business and Relocate to Cyprus, which can be accessed by clicking here, as well as to a dedicated page on our website, which also features a related video.