2023-Cyprus-Country-Report

CYPRUSCOUNTRY REPORT 2023
TAX INCENTIVES FOR EXPATRIATE EMPLOYEES TAKING UP EMPLOYMENT IN CYPRUS
The individuals who were non-Cypriot tax residents prior to the commencement of
their employment, but become Cypriot tax residents afterwards, are eligible for a 50%
exemption from income tax if all the following conditions are met:
• their remuneration from the employment exercised in Cyprus is over €55,000 per
annum; and
• they were not tax residents of Cyprus for 15 (or 10, subject to conditions)
consecutive years prior to the commencement of their employment; and
The exemption is available from 1 January 2022, it is granted from the first year of
employment and it can be enjoyed for a period of 17 years.
Individuals with annual remuneration below €55,000 who were non-Cypriot tax
residents in the 3 years preceding their employment, are eligible for a 20% exemption
from income tax (maximum exempt amount is €8,550 per year). The exemption
is available from the 1 st of January following the year of commencement of the
employment and can be enjoyed for a period of 7 years.
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