As of the 15th of July 2022, the Cyprus House of Representatives, approved an amendment to the Income Tax Law, regarding the exemptions of employment income.

According to Article 8, sections (21A) and (23A) of the Income Tax Law, for individuals who were not residents of Cyprus, a 20% or a 50% exemption will apply on their remuneration, immediately prior to the commencement of their employment in Cyprus, if the following conditions apply:

Exception of 20% or up to a maximum amount of €8.550.- on their remuneration

• Non-residence in Cyprus for at least 3 consecutive tax years
• Prior employment outside of Cyprus by a non-resident employer.
• Employment from 1st of January 2022 and/or afterwards
• Valid until 2027
• The period of exemption will be 7 tax years, from the tax year of commencement of first employment to Cyprus.

Exemption of 50% on their remuneration

• Non-residence in Cyprus for at least 10 consecutive tax years
• Employment from 1st of January 2022 and/or afterwards
• Remuneration exceeding €55.000.- per Annum, for any tax year
• NOTE: regardless if in any tax year the remuneration was reduced below €55.000.-, provided that on the 1st or 2nd year the remuneration exceeded €55.000.- and if the Commence Registrar is satisfied that the fluctuation in the remuneration is not done for the purpose of granting an exemption.
• The period of exemption will be 17 tax years, from the tax year of commencement of first employment to Cyprus.

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