It’s safe to say that the digital nomad way of living is one of the fastest-growing lifestyles we have today. There are estimations, which assume that by 2035 there will be 1 billion digital nomads on this planet. But lets see below what makes working as a digital nomad in Cyprus enticing:
Digital nomads, as the term implies, are people who work remotely from anywhere in the world, using digital technology to perform their job.
Being a digital nomad entails significant benefits some of which are as follows:
- Be free to work where you want, when you want;
- Design your lifestyle on your terms;
- Get inspired by new environments;
- Meet people from all over the world;
- Say goodbye to freezing winters;
- Save money while leaving comfortably;
- Enjoy significant Tax Benefits.
Cyprus can offer all of the above , and many more as can be seen from our Why Cyprus page, making Cyprus an ideal destination for Digital Nomads.
In this article we will analyze the Cyprus Digital Nomad Scheme and the significant Tax Benefits of being a Tax Resident in Cyprus.
Cyprus Digital Nomad Scheme:
With its Decision of October 15, 2021, the Council of Ministers approved the introduction of the Digital Nomad Visa Scheme in Cyprus, with a ceiling of 100 residence permits to be issued. On March 3 2022, the Council of Ministers increased the ceiling to 500 residence permits.
What is the “Cyprus digital nomad visa”
The “Cyprus Digital Nomad Visa” Scheme allows nationals from non-EU and non-EEA countries, who can perform their work location-independently using telecommunications technology, to reside temporarily in Cyprus and work for an employer registered abroad or perform work through telecommunications technology for companies or clients located abroad.
The Scheme’s goal is to strengthen Cyprus as a center for the provision of electronic services, where in combination with the other advantages offered by Cyprus, the attraction of digital nomads will contribute to the development of the business ecosystem and consequently to the economic development of the country. The introduction of the “Cyprus Digital Nomad Visa Scheme” is included in the Strategy for Attracting Businesses for Activities or/and Expansion of their Activities in Cyprus.
Who can benefit
Non-EU or non-EEA nationals who:
- Can perform work remotely through telecommunications technology;
- Are employed in a company registered abroad, for which they can work location-independently, or are self-employed offering services remotely for clients located abroad;
- Can prove that they have stable and sufficient monthly net income of at least €3.500 (after the deduction of contributions and taxes).
What are the benefits
Individuals who are granted with a Digital Nomad residence permit will benefit from the following:
- Right of residence for a year in Cyprus, with a possibility of renewal for further two years.
- Right of residence for family members, for the same period as the Digital Nomad, without the right to be employed of perform economic activity in Cyprus.
- If they reside in the Republic for one of more periods that in total exceed 183 days within the same tax year, then they are considered tax residents of Cyprus, provided they are not tax residents in any other country.
Family members
- Digital Nomad’s family members can reside in Cyprus for the same period as the Digital Nomad, without the right to be employed of perform any economic activity in Cyprus.
- Family members include the spouse/ partner in a civil union and underaged children.
- Family members also need to obtain a temporary residence permit following the procedure below.
How to obtain the Digital Nomad visa
Within three months from his/her arrival to Cyprus, the applicant must submit an application to the Civil Registry and Migration Department (CRMD), along with the required documents. Initially the applicant can enter Cyprus with the use of a tourist visa (depending on the country of issuance of their passport).
If the applicant is residing in Cyprus under a different status, he/she can submit an application to the Civil Registry and Migration Department, to obtain the digital nomad visa, provided that the relevant prerequisites are met.
Requirements (amongst others)
- There is a minimum threshold for funds coming from abroad of (supported by salary, bank statements etc) of €3,500 per month increased by 20% for the spouse and 15% for each child;
- Medical insurance which also covers treatment and transortation of mortal remains;
- Must have place of residence in Cyprus;
- Clean criminal record from the country of residence.
Time of examination
The time of examination of the application is approximately 5-7 weeks from the date of its submission to the CRMD.
Tax Benefits
Cyprus offers some major benefits for individuals who are tax resident on the island, varying from a 50% tax exemption when your income is above €55,000 in accordance with the amendments in the income tax law during 2022 , to tax-free dividends and interest income when you are designated as a non-dom.
You can visit our Cyprus Tax Residency & Non-Dom for Individuals page for more information.
Conclusion
The Cyprus Digital Nomad Scheme can give the opportunity to an individual and their family to enjoy the Cyprus Weather, Food, Hospitality while working and at the same time save money by taking ‘advantage’ of the significant tax benefits.
For more information contact us anytime you prefer.
Written by : Asterisk Corporate Services Team
