Cyprus is ranked second among Mediterranean countries for improving its quality of life according to the latest HSBC Expat Explorer survey. In the logic of attracting more and more qualified expatriates, the Cypriot government has announced new measures among which the issuance of a Digital Nomad Visa. We explain you everything!
Cyprus government introduced Friday October 15th its new strategy to draw in organizations in the nation, prioritising high-tech, research and innovation companies. This strategy is expected to be implemented from January 2022.
“The accentuation is on spaces identified with High Technology, Shipping, Innovation, Research and Development, Biogenetics and Biotechnology, without barring whatever other organizations that pick Cyprus as their business environment,” Cypriot President Nicos Anastasiades explained.
This action plan concerns several points such as :
- Transformation of the fast-track Business Activation Mechanism (BUSINESS FACILITATION UNIT)
- New policy for employing third-country nationals in companies/businesses of foreign interests operating in the Republic of Cyprus or companies/businesses of foreign interests that intend to operate in Cyprus
- Family reunification right of third-country nationals who applied with the Business Facilitation Unit
- Simplification and acceleration of the process of granting work permits (Category E – Long-term resident status)
- Insurance of Digital Nomad Visa
- Expansion of the tax exemption applicable to employees in the Republic (assuming that they were non-residents in the Republic before starting their employment for a period of 17 years)
- Extension of tax exemption for investment in innovative companies
- Increased (compared to the actual) tax deduction for research and development costs
Introduction the new Digital Nomad Visa for Cyprus Expats
The health crisis has transformed the way we work by encouraging the explosion of teleworking. The government is proposing a solution to attract foreign workers who would continue to work for their company but wish to settle in Cyprus. The beneficiaries of this program, which will come into effect in 2022, will be third-country nationals, who work remotely using information and communication technologies for employers and clients outside Cyprus. This visa will be granted for a period of twelve months with the possibility of renewal for two additional years. To qualify for this exceptional visa, employees must have a minimum income of 3500 euros per month, health coverage in Cyprus and a clean criminal record from their country of residence.
Future visa holders may be accompanied by their families. Their visa will expire on the same date as the dependent’s visa. However, family members are not allowed to provide dependent work or to engage in any kind of economic activity in the country. Regarding the tax aspect, if the family lives in Cyprus for one or more periods that exceed a total of 133 days in the same tax year, they will be considered as Cyprus tax residents
For its launch, the quota the Digital Nomad Visa is limited to 100 applications.
Regarding the health situation, as we described in a previous article on the cost of PCR tests in Europe, they are among the lowest in Europe. Prices start at 7 euros for an antigenic test in a Nipdlab laboratory, around 25 euros for a PCR test and between 15 and 20 euros at one of the two airports of Larnaka or Pafos.
There are three categories of countries: red, orange and green for which the conditions of entry in the country depend. We advise you to consult the Cypriot government website dedicated to this information before leaving.
Planning to move to Cyprus ? Learn more about our international health coverage plans and services: