The Cyprus Digital Nomad Visa Scheme

What is the Cyprus Digital Nomad Visa Scheme?

The Cyprus Digital Nomad Visa Scheme is an appealing scheme for citizens from non-EU and non-EEA countries to conduct their work remotely while enjoying the many advantages of living in Cyprus.

A digital nomad is a person who works for companies registered abroad and performs his/her job remotely using digital technology. During the last few years both employers and employees have shown a marked increase in interest for this type of remote working.

By offering a temporary residence permit, this scheme lets nomads carry out their jobs remotely for companies that are based elsewhere than Cyprus.

The aim of the Cyprus Digital Nomad Visa Scheme is to attract digital nomads to Cyprus to boost the island’s technological sector with the ultimate aim of boosting Cyprus’s economy. This scheme, that attracts talented entrepreneurs and digital workers will help to establish the island as a leader in the provision of electronic services.

In the past, only 100 temporary residency permits were issued under this program, but now the limit for applications has increased to 500.

Who is eligible for a Cyprus Digital Nomad Visa?

Nationals from non-EU and non-EEA countries can apply for the Cyprus Digital Nomad Visa. The applicant must:

be able to carry out his/her work remotely via telecommunications technology;
be an employee of a company that is registered abroad or be self-employed, providing services to clients located abroad;
be able to provide proof of sufficient and stable income to support his/her living expenses in Cyprus (at least €3,500 monthly net income);

Application process for the Cyprus Digital Nomad Visa

The application process is quite transparent, with step-by-step instructions that are easy to understand as well as transparent eligibility criteria. The applicant must submit his/her application to the Civil Registry and Migration Department in Nicosia, together with the necessary documents (see below the complete list of documents required).

The application process is set out below:

Travel to Cyprus with a tourist visa (where applicable);
Complete and submit the application forms;
Within 3 months from your arrival in Cyprus your application, together with the required documents, must be submitted to the Civil Registry and Migration Department in Nicosia;
If the applicant legally resides in the Republic of Cyprus under another status, he/she can also submit an application for a residence permit as a digital nomad;
Pay the visa fee of €70 and the fee for the registration to the Aliens’ Registry (for initial registration only ie not for renewals) – also €70;
Biometric data (photograph and fingerprints), plus the signature of the applicant are necessary during the submission process;
The application processing time is from five to seven weeks;
Once approved, the residence permit is granted to the applicant and is valid for 1 year with the possibility of renewal for another 2 years;

Contact us to proceed with your Nomad Visa application

The renewal process:

Digital nomads must apply to the Civil Registry and Migration Department at least one month before the expiration date of the residence permit for renewal;
They must pay the fees for the renewal;
Biometric data (photograph and fingerprints), plus the signature of the applicant are necessary during the submission process;
Once approved, the renewed residence permit is granted to the applicant and is valid for a maximum of 2 years;

Documents required for the Cyprus Digital Nomad Visa

Cyprus Digital Nomad Visa application form;
Valid passport – the applicant’s passport must have a validity of at least 3 months;
Copy of passport – or other travel documents showing the applicant’s last entry in Cyprus;
2 passport-sized coloured photos – the photos must have a white background;
Original clean criminal record certificate;
Proof of accommodation – for example, a rental contract (duly stamped for over €5000), a lease or a hotel booking;
Evidence of monthly financial resources – at least €3500 – you can provide a six month bank statement. Monthly income requirements are higher if the applicant has family members living with him. Note: you will not be able provide evidence on the basis of savings only;
CV/resume – your latest one;
Employment contract – for applicants that are already employed – stating clearly the applicant’s position within the company;
Employer’s confirmation letter – stating that the applicant can perform his/her duties remotely in Cyprus;
Company registration certificate – a copy is required showing that the company was registered abroad;
Health insurance – a valid health insurance covering inpatient/outpatient health care plus repatriation expenses;
Blood analysis – original results showing that the applicant does not have some specified diseases, duly certified by a doctor;
Letter of intent – saying what activities will be performed in Cyprus and why you wish to work from Cyprus;
A written confirmation – if the applicant has dependents, a letter stating that the dependents will not provide services to Cyprus based employers;

Self-employed applicants must provide:

Relevant contracts for services/projects;
Written confirmation from the applicant that he/she can perform duties remotely and that he/she will not provide services to Cyprus based employers;

For any clarifications or additional information, do not hesitate to contact us

Attractive Tax Incentives

Digital nomads in Cyprus can enjoy tax free income until their 183^rd day of stay. After 183 days working as a digital nomad in the same calendar year, the individual is considered to be a Cyprus tax resident provided that he/she is not a tax resident of another country;
50% of an individual’s remuneration, starting from 1^st January 2022, that exceeds €55,000, is exempt from tax for the individual’s first employment in Cyprus for individuals that were not Cyprus residents for a period of 15 continuous tax years prior to the beginning of their employment in Cyprus. It should be noted here that “first employment” means that an individual did not receive salaries (including salaries for temporary employment) in Cyprus for a Cypriot or foreign employer for a period of 15 years prior to the individual’s employment in Cyprus. The exemption applies once in the individual’s lifetime and extends for a period of 17 years;
Note: individuals whose employment started before 1^st January 2022, may be eligible to claim the exemption A or B, subject to some conditions;
20% of an individual’s remuneration (with the maximum amount of remuneration being €8550 per annum) for first employments in Cyprus starting after 26^th July 2022, is exempt from tax for individuals who, before the start of their employment in Cyprus, were not Cyprus residents for a period of 3 continuous tax years and were employed overseas by a non-resident employer. The exemption applies for a period of 7 years, commencing from the tax year after the tax year of the start of the employment. An individual who is granted the 50% exemption is not eligible for this tax exemption;
- (A) For employment from 1^st January 2022 until 29^th June 2023, the individual may be eligible to claim 50% tax exemption, subject to similar conditions, if they were non-tax residents of Cyprus prior to the start of their first employment for a period of 10 years (instead of 15 years). It is noted here that “first employment” means employment in Cyprus at any time, not 15 years prior to the start of employment. Some other differences also apply in this case;
- (B) The exemptions are not applicable for employment starting after 26^th July 2022, although eligible persons may claim the exemption from this date onwards for the remaining period. In the past a 20% and 50% tax exemption was available for 5 or 10 years respectively and were subject to different conditions;

Other advantages of working as a Digital Nomad in Cyprus

Digital Nomads working in Cyprus can enjoy the below additional benefits:

Reasonable cost of living – if we compare the cost of living with other countries;
Idyllic Mediterranean location and weather – you can enjoy the sunny climate, rich history, beautiful beaches, wonderful cuisine, relaxed lifestyle and lively culture that Cyprus has to offer;
Safety – Cyprus is one of the safest countries to live in in the EU, with a low crime rate in comparison to other countries;
The right to reside in Cyprus for up to one year – with the possibility of renewal for another 2 years – ie a total of 3 years;
The Cyprus Digital Nomad Visa Scheme is family friendly – family members can be granted resident permits for the same duration as per the Digital Nomad;
Very cheap visa fees compared with other countries – the cost of the visa is only €70;
High quality internet; – CYTA was named the Fastest Mobile Network by the independent company Ookla®, a world leader in internet testing and analysis

The Cyprus Digital Nomads Scheme and tax advantages

It is important to note here that Cyprus has one of the most attractive tax systems in Europe.

As mentioned above, you become a tax resident after spending 183 days in Cyprus and tax will therefore be imposed accordingly. In Cyprus, personal income rates range from 0% to 35% depending on level of income.

Registering with the Cyprus Tax Department is necessary and filing an annual return is a requirement too. Getting advice from someone who knows their way around taxes here—like an accountant or a professional—is smart because they’ll help ensure that everything is done correctly while also pointing out any deductions or exemptions you could use.

Cyprus offers several tax breaks as well as exemptions for expats. Furthermore Cyprus has many double-tax treaties to avoid being taxed twice on your income.

Family members of Digital Nomads

Digital Nomads’ family members (spouse, partner, under aged children) are permitted to live in Cyprus for the same period as the digital nomad;
Family members are not, however permitted to work in Cyprus;
The same application procedure is used (as described above for digital nomads) to obtain a temporary residence permit for family members;

Conclusion

To wrap things up, the Cyprus Digital Nomad Residence Visa provides a great way for individuals who work online to live and work in the beautiful Mediterranean island of Cyprus.

Thanks to its special visa tailored for digital nomads and plenty of chances for engaging in economic activities, more and more remote workers are seeing Cyprus as their ideal spot.

Kick off your adventure combining work with fun against the stunning backdrop of Cyprus today!

Contact us to proceed with your Nomad Visa application

Our Cyprus Operations

Our fully licensed network firm in Cyprus, AK Kotsomitis Accountancy and Tax Ltd is regulated by the Professional Regulatory Authorities (ICPAC) and is licensed to carry out accounting, audit and tax services.

Ilcom Ltd is a group subsidiary operating since 2003. It is licensed by CySEC (The Cyprus Securities and Exchange Commission). Ilcom Ltd is a leading Cyprus trust and corporate services provider offering a full scope of services including incorporation / registration of all legal entity types.

Please check out our Cyprus member firm website www.fbscyprus.com and contact us if this is of interest to you.

You may also want to check out our UAE network firm website www.fbsemirates.com.

Or our Malta network firm website www.fbsmalta.com to see if their services are of interest to you.

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