As per section 8 (23) of the Income Tax law of 2002, an individualrelocating to Cyprus and earning a salary of over €100,000 can enjoy a 50% taxexemption. With the new law that was approved by the Cyprus government on the10th of May the €100,000 threshold has been reduced to €55,000.
The above along with the One Stop Shop andthe granting of visas and work permits to the spouses of professionals thatrelocate to Cyprus was at the forefront of the government strategy to attractmore foreign business to relocate to Cyprus.
More specifically the law, besides thereduction of the threshold salary from €100,000 to €55,000 per year, extentsthe benefit to existing employees that were already in Cyprus provided thatprior to the commencement of his employment in Cyprus the individual was abroadfor 12 consecutive years.
A six-month grace period is introduced forobtaining the benefit as well as a 17 year limit for enjoyment from thecommencement of employment.
Similarly, new employees will benefit from the 50% tax exemptionon remuneration exercised in Cyprus by an individual, provided he was abroadfor 12 consecutive years. For new employers a two-year grace period isintroduced for obtaining the benefit as well as a 17 year limit for enjoymentfrom the commencement of employment.