2022-2023 Cyprus Country Report

CYPRUSCOUNTRY REPORT 2022
NEW TAX INCENTIVES
The new Action Plan also includes the introduction of new tax benefits and tax
breaks which were submitted to the House of Representatives in 2021.
NEW INCENTIVES:
• a 50% tax exemption to be granted to new residents/employees who receive an
annual income from their employment of €55,000
• extension of the tax exemption applicable to eligible employees in Cyprus who
have an income below €100,000 from 10 years to 17 years provided they were not
domiciled in the Republic for a period of 17 years prior to the commencement of
their employment
• beneficiaries of this tax benefit with an income of €55,000-€100,000 should be
entitled to benefit from this exemption for the remaining period of the 17 years
• extension of the 50% tax exemption for investment in certified innovative
companies to corporate investors. The regime that was in force until the end of
June 2021 allowed the tax exemption only to natural persons
• a 120% capital allowance on expenses that relate to R&D
View from 360, Cyfield
NATURALISATION
The government has introduced the right to submit an application for naturalisation
after five years of residency and employment in Cyprus instead of the former
seven-year rule or a further reduction to four years if the potential applicants meet
the criteria of holding a recognised certificate of very good knowledge of the Greek
language. n
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