Highly promising government plan for attracting high-tech companies to Cyprus on the horizon
Cyprus government has strategically decided to attract foreign high-tech companies by offering a wide range of incentives.
One of the main objectives of the specific plan is to enable such companies to transfer their activities to Cyprus with ease, without having to go through long-winded procedures to get the necessary license.
To provide significant incentives for companies to redomicile their activities to Cyprus, the government will allow for tax benefits for high-tech companies, as well as simplified procedures that will permit the domiciliation and hiring of third-country nationals that will have a professional background in IT and telecommunications.
Benefits for third country nationals
One of the aforementioned incentives that will be provided by this plan, is going to be the easier re-domiciliation procedures that third-country nationals will have. Specifically, individuals wishing to work in Cyprus as free lancers in the tech field, will be able to enter the job market by obtaining a Digital Nomad Visa. Employment opportunities will also be available for the spouses of third-country professionals with the aid of Start-up Visa.
This government initiative will likely cause a re-structuring of the migration system as it will allow for third-country nationals to obtain a citizenship permit. This will apply to professionals employed in specific areas of the high-tech industry and who have lived and worked in Cyprus for 5 years.
The Ministry of Energy, Commerce and Industry has put in place a system called ‘Fast Track’ which, among other things, will work as a one-stop shop which will group various procedures that a foreign high-tech company will be able to utilize. Examples include the issuance of residence permits or work permits for its employees.
This promising new plan is expected to offer significant tax benefits, i.e a decrease in the salary tax exemption threshold as well as discounts on companies’ tax calculations – on a per employee basis.
Our firm is keeping abreast of all the updates on this plan and is available to provide advice on its implementation.