New strategy for investors
The Cyprus Government in October 2021 presented a new strategy for attracting business with emphasis among others on innovation, shipping, high technology pharmaceutical, research and development, in an attempt to turn Cyprus into sustainable business and trade centre in the middle East and also Europe. The strategy includes 12 targeted actions in five pillars. The strategy is fully in line with the E.U legislation, the Long-Term Growth Strategy 2035 and the guidelines of the European commission, the Recovery and Resilience Fund. Eligible for inclusion in the scheme are foreign entities operating in Cyprus or those planning to operate, that have offices housed independently of other business and not provide homes.
- Simplification of procedures
Simplification of procedures:
The scheme includes acceleration procedures and facilitation unit that will provide services to set up a company, VAT and income tax registration, and social insurance registration and also to set up substance in Cyprus and expedite employment, residence permits and related applications.
The scheme allows employment of third-country nationals as long as they do not exceed 30 per cent of the total support staff and the parties have made an agreement that is approved by the authorities.
Residence permit maybe allow either by purchasing a house or apartment for €250.000 without the right of working or due to employment. The duration of residence for either category will be three years renewable.
The third country nationals will have the right to have their family. Also,
An immitted and free access to the job market, to spouses whose partner make at least €2.500 cross per month.
All above in acceleration process to secure employment permits, and social security.
Tax breaks will be extended for investment in innovative businesses. Law taxation will continue apply while, individuals staying in the Republic for a period that exist 183 days during the same tax year they will be considered tax residence of Cyprus, enjoying all the tax benefits, provided there are not tax residence elsewhere. Investors will gain the right to apply for citizenship after leaving and working in the Republic for five years instead of the current seven.
The Government of Cyprus abolished the existing investment program for naturalization by exemption and formulated a citizenship scheme which is in complete harmonization with E.U Legislation aimed at a high net worth individuals and investors. In view of this the right to apply for citizenship after living and working in Cyprus is reduced to five years instead of the seven and for those holding a recognised certificate of the Greek language will be able to apply within 4 years.