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Staff relocating to Cyprus earning more than €55,000 will benefit from a 50% tax exemption on their salary
As per section 8 (23) of the Income Tax law of 2002, an individual relocating to Cyprus and earning a salary of over €100,000 can enjoy a 50% tax exemption. With the new law that was approved by the Cyprus government on the 10th of May the €100,000 threshold has been reduced to €55,000.
The above along with the One Stop Shop and the granting of visas and work permits to the spouses of professionals that relocate to Cyprus was at the forefront of the government strategy to attract more foreign business to relocate to Cyprus.
More specifically the law, besides the reduction of the threshold salary from €100,000 to €55,000 per year, extents the benefit to existing employees that were already in Cyprus provided that prior to the commencement of his employment in Cyprus the individual was abroad for 12 consecutive years.
A six-month grace period is introduced for obtaining the benefit as well as a 17 year limit for enjoyment from the commencement of employment.
Similarly, new employees will benefit from the 50% tax exemption on remuneration exercised in Cyprus by an individual, provided he was abroad for 12 consecutive years. For new employers a two-year grace period is introduced for obtaining the benefit as well as a 17 year limit for enjoyment from the commencement of employment.
For more information please contact us at: info@americanoslaw.com
