In its efforts to further improve the position of Cyprus as a major Global Financial and Business Hub, the government of Cyprus has recently decided to take certain actions and implement several initiatives towards attracting international businesses to start their business in Cyprus and bring their employees to work in the island either through the Formation of a Cyprus Company or the establishment of a Branch in Cyprus.
These actions and initiatives are summarized in the following five categories below:
Business Facilitation Unit (BFU)
The BFU is organized and staffed in such a way as to assist with great expertise and in a timely manner all foreign enterprises that wish to establish a business unit in Cyprus.
In particular, the BFU can help businesses in the following areas:
- Provision of services for the business establishment (Cyprus company incorporation, tax registration, etc)
- Licencing facilitation.
- Issuance of residence and employment permits.
Work permits for third-country nationals working in foreign companies
Assistance and guidance as to the obtainment of the necessary work permit so that foreign employees start working in Cyprus.
Digital Nomad Visa
The government has decided to grant up to 500 visas to individuals that are third-country nationals that are self-employed or salaried employees, working remotely with employers/clients outside Cyprus.
Certain provisions have been introduced to improve the process of naturalization of highly skilled third-country employees, provided that they reside in Cyprus and are integrated into Cypriot society.
Tax Incentives for Businesses
- Extension and expansion of tax incentives for investment in Cyprus Companies that are considered innovative businesses/startups.
- Expansion of the existing benefits to non-domicile employees.
- Incremental (compare to the actual) tax deduction for research and development expenditure.
A more detailed update on the New Strategy can be found here.