On Tuesday, 11 May 2022, the Cabinet of Ministers in Cyprus has proceeded in approving a new tax incentive policy hooping to further attract talented people and foreign companies to the country.
The main goal of the new tax policy is to attract the interest of technology companies by promoting Cyprus’s technology sector. Along with attracting foreign talent, the government hopes to provide additional motives to Cypriots who are currently employed abroad to return to the country.
The new policy provides a 50% tax break for employees that earn above €55,000 annually. This tax break will be extended from a 10-year period to a 17-year period, beginning after 1 year of employment in Cyprus.
The policy extends a 6-month grace period to meet the salary threshold for current employees, and two years for new employees.