Tax benefits for foreigners in Cyprus extended until 2025
On 15 December 2020, the Cyprus Income Tax Law (“the Law”) has been amended to provide for an extension of the 20% exemption of salaried income for individuals relocating to Cyprus.
Specifically, prior to the amendment, the Law provided for a 20% exemption of the remuneration from any office or employment exercised in Cyprus by a person who was resident outside Cyprus prior to the commencement of his employment, or an exemption of €8.550 (whichever was the lower). The exemption could be claimed for a maximum of five years commencing from 1 January of the year following the year of commencement of employment, and it applied up to year 2020.
Notwithstanding the above, the Law was amended to provide for an extension of the exemption up to year 2025. Therefore, persons who are considering relocation (or have already relocated) to Cyprus and taking up employment in Cyprus may continue to benefit from the exemption, up to and including year 2025 (subject to the five-year limit).
