Digital nomadism has become one of the key trends in recent years, offering people the opportunity to work remotely from anywhere in the world. Countries have begun actively competing to attract these professionals by offering various visa programs that allow digital nomads to legally live and work within their jurisdictions. One such program is the Digital Nomad Visa in Cyprus.
This program was launched with the aim of making Cyprus attractive to remote workers and entrepreneurs working with clients abroad. Initially, the visa is granted for one year, with the possibility of extending it for another two years. It is important to note that this visa is only available to citizens who are not residents of the European Union or the European Economic Area. The main requirements include a stable income of at least €3,500 per month and proof of remote work or business conducted outside of Cyprus.
The Digital Nomad Visa program also allows visa holders to bring their family members, including spouses and minor children, although they are not permitted to work in Cyprus. The visa provides the opportunity to live on the island while continuing remote work without the need to sign an employment contract with Cypriot companies.
Contents
Why Cyprus is Attractive to Remote Workers
Cyprus offers digital nomads numerous advantages, from its favorable climate to its advantageous tax system. Located in the Mediterranean, Cyprus enjoys mild winters and hot summers, making it attractive to those seeking a balance between work and leisure.
One of the key advantages is the country’s tax system. During the first 183 days of residence in Cyprus, digital nomads are exempt from paying income taxes, allowing them to optimize their financial expenditures. If they spend more time on the island, they become tax residents and are required to pay taxes on a progressive scale.
Cyprus is also known for its safety, making it one of the safest places to live in Europe. Developed infrastructure, stable internet, and affordable housing prices make life on the island comfortable and appealing to remote workers.
Thus, Cyprus combines economic, climatic, and infrastructural advantages, making it one of the best destinations for digital nomads seeking to combine work with a high quality of life.
The Process of Obtaining a Digital Nomad Visa in Cyprus
As of August 2024, the quota for issuing visas has been exhausted. New visas are not being issued, but previously issued visas are being renewed. Therefore, we will describe the issuance process in the past tense.
Main Requirements for Applying
During the period when the Digital Nomad Visa program in Cyprus was active, applicants had to meet several key criteria. The visa was available only to citizens of countries outside the European Union (EU) and the European Economic Area (EEA). Candidates needed to work remotely for companies registered outside of Cyprus or run a business with clients abroad. The minimum monthly income required for applying was €3,500 after tax deductions. Additionally, applicants needed to have valid health insurance, a clean criminal record, and proof of accommodation in Cyprus.
Current Situation and Alternatives
Currently, the Digital Nomad Visa program is suspended, as all 500 visas provided by the quota have been issued, and new applications are temporarily not being accepted. However, for freelancers and remote workers who still wish to work from Cyprus, there is an alternative—the Visitor Visa.
The Visitor Visa allows you to stay in Cyprus for one year, with the possibility of annual renewals. This visa is suitable for those who have a stable source of income outside the country and wish to work remotely while living on the island. The Visitor Visa provides the opportunity to legally reside in Cyprus and enjoy all the benefits of island life, such as a favorable climate, low crime rates, and an affordable cost of living.
Therefore, despite the suspension of new Digital Nomad Visa issuances, freelancers can continue to use Cyprus as their base by taking advantage of the Visitor Visa, which keeps the island an attractive destination for remote workers.
Conditions and Features of Living in Cyprus for Expats
Tax Benefits and Obligations for Residents
Cyprus attracts foreign nationals with its favorable tax system. If you reside on the island for less than 183 days in a year, you do not become a tax resident and are exempt from paying taxes on income earned abroad. This is advantageous for those planning to spend only part of the year on the island.
For those who decide to stay in Cyprus for more than 183 days a year, they become tax residents and must pay income taxes. Cyprus has a progressive tax system, with tax rates ranging from 0% for incomes up to €19,500 and up to 35% for incomes over €60,000 per year. Cyprus also offers various tax benefits, including exemptions from capital gains tax and relatively low social contributions, making taxation more comfortable.
Cost of Living on the Island: Housing, Food, and Transport
The cost of living in Cyprus varies depending on the region. In popular cities like Limassol and Nicosia, renting a one-bedroom apartment in the city center can cost between €800 and €1,500 per month, while a two-bedroom apartment can range from €1,200 to €2,500. In more remote areas and smaller towns, rental prices may be lower, but they are still relatively high.
Food in Cyprus can be affordable, especially if you shop at local markets and cook at home. The average restaurant bill ranges from €15 to €30, and monthly grocery expenses range from €300 to €600 per person, depending on lifestyle.
Transport in Cyprus is also reasonably priced. Although the island lacks a railway network, it has a good bus route network, as well as taxi services and car rentals. A bus ride costs between €1.5 and €4, while renting a car costs between €30 and €60 per day.
Popular Cities and Areas for Living
Cyprus offers several popular places to live:
Nicosia
The capital of Cyprus combines historical heritage with modern amenities. Here, you can find offices of international companies, modern residential complexes, and developed infrastructure for comfortable living and working.
Limassol
This city on the southern coast is known for its beaches, vibrant business life, and international community. Limassol is also a cultural hub, offering a wide range of events and entertainment.
Paphos
A city on the western coast offers a more relaxed lifestyle, combined with historical landmarks and natural beauty. Paphos is ideal for those who prefer to live surrounded by nature and history.
These cities offer a high quality of life, making Cyprus an attractive place for people from different countries to live and work.
Visa Renewal and Long-Term Stay Opportunities
Digital Nomad Visa Renewal Process
To renew the Digital Nomad Visa in Cyprus, you need to follow several steps:
Scheduling an Appointment
First, you need to schedule an appointment with the Civil Registry and Migration Department. This is done by sending an email request for an appointment.
Visiting the Department
On the scheduled day, you must visit the department with all the necessary documents, including proof of income and a recent health insurance policy. Documents are submitted in person.
Receiving the Renewal Receipt
After submitting all the necessary documents, you will be issued a receipt confirming that your renewal application has been accepted.
Waiting for Resident Card Issuance
Once your application is submitted, you will receive a new resident card within a few months. Until the card is ready, you can use the receipt as temporary proof of your extended stay in Cyprus.
Alternative Options if Renewal is Not Possible
If it is not possible to renew the Digital Nomad Visa, there are alternative options for continuing your stay in Cyprus:
Visitor Visa
The Visitor Visa is issued for one year and can be renewed annually. It is suitable for freelancers and remote workers with a stable source of income outside of Cyprus. It is also possible to establish a company in Cyprus, receive dividends, and use them as your primary source of income when applying for a Visitor Visa.
Work Visa
If you have a job offer from a Cypriot company, you may consider applying for a Work Visa, which will allow you to legally work and reside on the island.
These options provide flexibility for continuing your stay in Cyprus if renewing the Digital Nomad Visa is not possible.
Current Situation with Visa Quota and Future Program Prospects
Although new applications for the Digital Nomad Visa are temporarily suspended, there is a possibility that the quota may be revised and increased in the future, depending on the success of the program and its impact on the country’s economy. The Cypriot authorities are closely monitoring the program’s effect on the local labor market and economy overall, and if the results are positive, the acceptance of applications may resume, or the quota may be expanded.
Additionally, the Cypriot government might consider introducing additional visa programs to attract remote workers and freelancers, given the growing interest in the country as a place for long-term living and working. It is important to keep an eye on official updates to stay informed about any changes in visa policy and potential future visa opportunities.
Thus, although the Digital Nomad program has currently exhausted its quota, Cyprus remains an attractive destination for remote workers due to its favorable tax conditions and quality of life. Expats and freelancers wishing to work in Cyprus can consider alternative visa options, such as the Visitor Visa or Work Visa, depending on their long-term plans.
