On Friday, October 15, the government unveiled its new strategy and plan of actions for recruiting businesses to Cyprus, emphasising high technology, shipping, innovation, and research and development, among other things, in order to transform the island into a regional and European economic and trade hub.

President Nicos Anastasiades, speaking at the event, said the strategy contains 12 specific initiatives organised into five pillars that take into consideration the best practices from other European countries.

“It aspires to turn Cyprus into a sustainable business and trade centre in the wider region, and Europe of course,” Anastasiades added

The president went on to say that the approach was entirely compliant with the European acquis, the Long-Term Growth Strategy 2035, the new creative model for the present, and the European Commission's and Recovery and Resilience Fund's recommendations.

The plan's benefits cover residence and employment, taxation, procedure simplification and digitisation, and showcasing Cyprus as a desirable investment location.

The plan will take effect in January 2022.

The plan calls for the establishment of a business facilitation unit that will offer services such as company formation, VAT and income tax registration, and social security registration. The unit will also provide assistance with obtaining the necessary permits to open a business in Cyprus, as well as expediting employment and housing licenses.

Foreign entities who operate or intend to engage in Cyprus and have workplaces that are separate from other enterprises and not in private houses are qualified for participation in the system.

Businesses in the maritime, high-tech, and pharmaceutical industries in Cyprus are also qualified.

Third-country nationals are allowed to work under the plan as long as they do not make up more than 30% of the total support workforce, and the parties have reached a deal that has been authorised by the officials.

The residency and employment licenses will be valid for three years, and third-country nationals will be able to bring their families with them.

Partners whose spouse has obtained a residency and work visa and earns at least €2,500 gross per month have immediate and unrestricted access to the employment market. This is not a problem for the support team.

Standardising and speeding up the application procedure for work permits, as well as guaranteeing the entitlement to a pension through the social insurance fund, by stepping up attempts to reach bilateral agreements with third nations.

The creation of a Digital Nomad Visa for up to 100 people who are employed, self-employed, or freelance third-country nationals who operate online.

These people can stay in the country for up to a year, with the option to extend their stay for another two years.

They may be joined by family members who are not permitted to work.

They will be regarded as tax residents of Cyprus if they reside in the Republic for more than 183 days in the same tax year, assuming they are not tax residents abroad.

Tax advantages for investment in creative firms would be expanded, and entrepreneurs will be able to seek citizenship after five years of living and earning in the Republic, rather than the present seven.

In four years, anyone with an acknowledged credential of very strong understanding of the Greek language will be permitted to apply.

For more information please contact us at info@savvacyprus.com. We would be happy to assist you.