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New Tax Benefits For Expatriates And High Net Worth Individuals Relocating To Cyprus – Tax Authorities



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On 15 July 2022, the Cyprus House of Representatives voted in
favour of a bill which replaces two of the existing income tax
exemptions for employment income with new versions.

We outline below the new income tax exemptions, which are
subject to conditions:

  • New 50% exemption on remuneration will apply as from 1 January
    2022, for first employments commencing as from 1 January 2022
    exercised in Cyprus with remuneration exceeding EUR55.000 per year,
    by individuals who were not a resident of Cyprus for a period of at
    least 10 consecutive tax years immediately prior to the
    commencement of their employment in Cyprus.

  • New 20% exemption on remuneration (up to a maximum amount of
    exemption of EUR8.550 per annum will apply for first employments
    commencing after the by individuals who immediately prior to the
    commencement of their employment in Cyprus were not a resident of
    Cyprus for a period of at least 3 consecutive tax years and were
    employed outside of Cyprus by a non-resident employer. For each
    individual the exemption will apply for a period of 7 years,
    starting from the tax year following the tax year of commencement
    of employment.

Conditions and period of the new 50% exemption across all the
above categories of employment commencement date:

  • The individual’s remuneration from employment in Cyprus
    must exceed EUR55.000 per year.

  • The individual must be a non-resident of Cyprus for at least 10
    consecutive tax years immediately prior to commencing
    employment.

  • For each individual the period of the exemption is for 17 tax
    years from the tax year of commencement of first employment in
    Cyprus.

Conditions and period of the new 20% exemption across the above
category of employment commencement date:

  • Immediately prior to the commencement of their first employment
    in Cyprus, the individual must be a non-resident of Cyprus for at
    least 3 consecutive tax years and must be employed outside of
    Cyprus by a non-resident employer.

  • For each individual the exemption will apply for a period of 7
    tax years/calendar years, starting from the year following the year
    of commencement of employment.

The above amendments need to be published by the Office of the
President of the Republic in the Cyprus Government Gazette in order
to enter into force.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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