The Cyprus Migration Department has officially reopened the application process for the Cyprus Digital Nomad Visa Scheme, offering new opportunities for remote professionals.
This scheme is designed to attract nationals from countries outside the European Union (EU) and the European Economic Area (EEA). It allows them to reside in Cyprus while providing remote services to companies or clients located abroad through telecommunication technologies. The initiative specifically targets third-country nationals who wish to live in Cyprus while continuing their remote professional engagements.
Enhancing the Business Ecosystem
The project seeks to establish Cyprus as a leading destination for digital nomads by promoting a robust e-services sector. By attracting skilled professionals from across the globe, the scheme is expected to make a significant contribution to the local business ecosystem and economy.
The Cypriot government is highlighting the country’s advantages, such as its favorable climate, infrastructure, fiscal stability, and strategic location, in its bid to become a competitive hub for remote professionals worldwide.
Eligibility Criteria for Digital Nomads
To qualify for the Cyprus Digital Nomad Visa Scheme, applicants must meet several requirements, including but not limited to:
- Using telecommunications technology to perform remote work while residing in Cyprus.
- Working for an employer or clients located outside of Cyprus. Applicants must provide proof of employment with a company registered abroad that allows location-independent work, or be self-employed, offering remote services to clients based abroad.
- Holding an employment contract of indefinite duration or one that is at least as long as the requested residence permit.
- Demonstrating a stable and sufficient net income of at least €3,500 per month after deductions for contributions and taxes. This amount increases by 20% for a spouse or partner and 15% for each child.
- Providing a title deed or rental agreement for a residence (house or apartment).
Applicants must submit the relevant application and necessary documents to the Cyprus Migration Department within three months of their arrival to obtain a temporary residence permit. The processing time is typically between 5 to 7 weeks.
Advantages
- The Digital Nomad residence permit is valid for one year, with the possibility of renewal for an additional two years.
- Family members of the Digital Nomad can reside in Cyprus for the same period, without the right to work or engage in any economic activity in the country. Family members include spouses or partners in a civil union, as well as minor children. Note that irrespective of the family reunification right, they must also obtain a temporary residence permit.
- If the Digital Nomad and their family members reside in Cyprus for 183 days or more during the same tax year, they are considered tax residents of Cyprus, provided they are not tax residents in any other country.
- Tax Benefits for Digital Nomads:
Digital Nomads who are considered tax residents in Cyprus are eligible for several tax advantages:
- No taxation on dividend income or capital gains from the sale or transfer of shares, bonds, and other financial instruments.
- A 50% tax exemption on foreign-earned income above €55,000 per year, applicable for a period of 17 years. It is important to verify whether digital nomads are liable for taxes in their home countries and check for any double taxation agreements between Cyprus and their country of origin.
Cyprus stands out as an ideal destination for digital nomads, offering a diverse range of opportunities. Its strategic location and modern infrastructure ensure seamless work operations for digital professionals. Furthermore, the island presents an appealing environment for entrepreneurship, with its favorable tax regime and comprehensive corporate legislation offering attractive opportunities for business establishment and growth.
