2023-Cyprus-Country-Report
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CYPRUSCOUNTRY REPORT <strong>2023</strong><br />
TAX INCENTIVES<br />
The incentives also include the introduction of new tax benefits and tax breaks.<br />
BROADENING TAX INCENTIVES:<br />
• a 50% tax exemption to be granted to new and existing employees relocating/<br />
relocated to <strong>Cyprus</strong> with employment remuneration of €55,000 and above (with<br />
the requirement that they were not <strong>Cyprus</strong> residents during the previous 10 years)<br />
• beneficiaries of this tax benefit should be entitled to this benefit for a period of 17<br />
years from the year of employment<br />
TAX EXEMPTION EXTENSION FOR INVESTMENTS IN INNOVATIVE COMPANIES:<br />
• extension of the 50% tax exemption for equity investment in certified innovative<br />
companies to corporate investors<br />
INCREASED (COMPARED TO THE REAL) TAX DEDUCTION FOR<br />
RESEARCH AND DEVELOPMENT EXPENDITURE:<br />
• granting an increased discount on research and development expenditure (e.g., by<br />
20%). Eligible research and development expenses will be deducted from taxable<br />
income at 120% of actual expenses<br />
NATURALISATION<br />
law proposal to change the naturalisation criteria is currently being discussed in<br />
A Parliament. n<br />
View from 360, Cyfield<br />
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