Cyprus offers a 50% tax deduction scheme designed to attract foreign workers and expatriates to the country. Here’s what you need to know about this incentive:
1. Eligibility Criteria
To qualify for the 50% tax deduction:.
- Annual gross salary: Must exceed €55,000 (as per recent updates).
- Tax residency: The individual must not have been a Cyprus tax resident for at least 10 years prior to taking up employment in Cyprus.
- The scheme is aimed at individuals relocating to Cyprus for employment purposes
2. Key Benefits
- 50% of the employee’s annual salary is exempt from income tax.
- This reduces the overall tax burden significantly for high-earning individuals.
3. Duration
- The tax benefit is valid for up to 17 years.
Purpose of the Incentive
This initiative is part of Cyprus’s broader strategy to:
- Attract highly skilled professionals.
- Encourage multinational companies to establish operations in Cyprus.
- Boost the local economy by making Cyprus an attractive destination for expatriates.
Complementary Incentives
In addition to the 50% tax deduction, Cyprus offers the Non-Domicile Tax Regime, which exempts individuals from tax on:
- Worldwide dividend income.
- Worldwide interest income.
📩 Contact us to learn how you can benefit from
info@ymcconsultings.com
these incentives and optimize your tax strategy!
