A Bright Future for Cyprus High-Tech.
After years of lobbying by Cyprus tech companies, and relentless efforts made by by co-founders of TechIsland: Stylianos Lambrou, Dusan Duffek, Alexey Gubarev and Peter Valov, and team of Executive Directors, supported by 137 tech companies employing over 7,000 people in Cyprus who joined the association, Cypriot officials formally introduce a new system, reshaping the future of business in Cyprus.
The government of the republic of Cyprus has laid out a new plan for naturalization of foreign skilled workers and investors in the fields of High Technology, Shipping, Innovation, Research and Development, Biogenetics and Biotechnology.
This strategy, unveiled by Cypriot President Nikos Anastasiadis is predicted to be implemented by January 2022, targeting highly paid (in excess of €30,000 per year) employees, holding a university degree, title or equivalent qualification as potential holders of these new work permits.
These permits will be granted within 1 month, and have a maximum duration of 3 years.
Spouses of employees living in Cyprus under the new program will also be eligible for work in Cyprus, eliminating one of the largest hurdles preventing mass migration of foreign workers to the country.
After five years of work in Cyprus, employees meeting the above conditions will be able to submit an application for naturalization in the Republic of Cyprus, and may be granted a passport within 6 months of their application. The minimum required time of residency in Cyprus will be reduced to 4 years if a certificate of ‘very high’ proficiency in Greek is produced by the applicant.
The President further announced that a prevailing goal of the Cypriot government in the coming years will be the connection of education, training and labor market. This program is predicted to entail a minor restructuring of Cypriot tertiary education system, and provide a clearer path for Cypriot graduates onto the labor market.
In addition to the naturalization program presented by President Anastasiadis, Financial Minister Constantinos Petrides disclosed that the set of programs laid out to facilitate development of Technology companies in Cyprus will include further tax incentives, and amendments that aim to correct distortions in labor law and the immigration regime.
Existing tax exemptions will be extended to cover new employees in Cyprus with a salary of €55,000 or higher, with an exemption of 50%. Extensions to tax exemptions will also be available for existing employees, who can apply to prolong their personal income tax exemptions from 10 to 17 years.
Many of the above operations will be carried out by a newly formed Business Facilitation Unit, which will function as a point of contact between companies operating, or intending to open divisions in Cyprus.
An additional program introduced at the presentation was the ‘Digital Nomad Visa’ for workers who wish to work remotely from Cyprus, for companies operating abroad. Beneficiaries, eligible for the Visa, will be third-country citizens, earning in excess of €42,000 a year, who work remotely for employers and clients outside Cyprus. The visa will be granted for a period of twelve months, with the right to renew it for another two years.
The program, was previously hinted at by Interior Minister Nikos Nouris and Financial Minister Constantinos Petrides during a land development conference in Nicosia on the 21st of September, 2021. IM Nouris has made it clear, that any new naturalization programs introduced in Cyprus will be in full compliance with the EU’s firmer stance on immigration, respecting the EU’s laws to the fullest degree. The minister further clarified that the eligibility of an individual to acquire an EU Passport should depend on their tangible ties to an EU member state rather than solely based on investments.
Emerald Group is a proud supporter of entrepreneurs and companies looking to relocate or set up businesses and residence in Cyprus. Our team of highly experienced professional are ready to meet with you in person or arrange an online conference to discuss your requirements and assist you with establishing a presence in Cyprus.
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