Expatriate Relief For Employment In Cyprus

A bill was submitted to the Cyprus Parliament amending the law on income tax, in order to expand the framework for attracting workers from abroad to Cyprus, in order to maintain its attractiveness.

Under the bill, workers from abroad will be exempt from 20% of income tax until 2025.

If an employer-employee relationship exists, there are two key forms of expatriate relief that can be used as a deduction for income tax purposes.

20% Relief

Under the current framework, a 20% deduction from income tax is granted from employment exercised in the Republic by a person who was a resident outside of the Republic before the start of employment. The 20% deduction does not commence immediately but from the 1st of January following the year employment has commenced.