In its efforts of 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 to assist with great expertise and in 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 employments permits.
WORK PERMITS FOR THIRD-COUNTRY NATIONALS WORKING IN FOREIGN COMPANIES
Assistance and guidance as to the obtainment of the necessary work permits so that foreign employees start working in Cyprus.
DIGIDAL 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 naturalisation of highly skilled third-country employees, provided that they reside in Cyprus and are integrated into the Cypriot society.
BUSINESS TAX INCENTIVES
- Extension and expansion of tax incentive 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 updated on the New Strategy can be found here.