28.04.2022
A bill providing favorable tax conditions to attract to Cyprus foreign and Cypriot professionals with a high standard of living and experience abroad, as well as to facilitate the establishment of the headquarters of foreign companies in Cyprus (headquarters), was approved by the Council of Ministers, thus, implementation of the Strategy for attracting businesses to work or expand their activities in Cyprus, which was approved in October last year.
At the same time, in statements after the meeting of the Council of Ministers, Minister of Finance Konstantinos Petridis said that, within the framework of the Strategy, the promotion of the bill of the Ministry of Internal Affairs on facilitating residence in Cyprus is also expected, and this also applies to the right to settle in Cyprus for the spouses of professionals who decide to settle on our island , as well as access to the labor market, as well as a one-stop-shop function. This bill is under consideration by the Legal Service.
“We are convinced that this program is one of the most competitive programs in the EU, interest in it is already huge, especially for high-tech companies, which in recent years seem to be choosing the island for installation, as well as for their headquarters. “, he said. In his statement, Mr. Petridis added that “we are confident that this bill will contribute to the further development of this sector, which also belongs to the strategic goal of the government.”As he mentioned, the bill that is being submitted to the House of Representatives for enactment into law concerns a 50 percent tax deduction for employees with annual earnings of more than 55,000 euros, as well as an extension of the framework from ten years, which is currently under development.
At the same time, for the purposes of equal treatment, an appropriate exemption is granted to existing beneficiaries with a remuneration in excess of 55,000 euros, provided that they have resided outside the Republic for twelve consecutive years before starting their work in the Republic.
According to the Ministry of Finance, there is also a grace period of two years for new employees and six months for existing employees to join the preferential tax regime in cases where the hired remuneration started at a lower amount of 55,000 euros.
As mentioned by Mr. Petridis, the workers who settle in Cyprus and the enterprises, through this project, will bring direct and indirect benefits to the economy of the country, while the heads of enterprises are encouraged to transfer their headquarters to Democracy, thus creating a real infrastructure in island.
“Thanks to this relocation, the tax base and, consequently, tax revenues are expanding,” he added.
