➡ WHAT ARE THE FINANCIAL REQUIREMENTS?
Monthly net income of at least €3,500 EUR, calculated after the deduction of taxes and contributions.
➡ HOW LONG CAN YOU STAY?
The right to reside for a year in Cyprus, with the possibility to renew for further two years.
➡ WHO IS ELIGIBLE?
Individuals working remotely who spend at least 60 days in Cyprus without being taxed in other countries.
➡ HOW MUCH WILL YOU PAY IN TAXES?
The optimal arrangement might be to establish a local company subject to a 12.5% corporate tax rate, followed by distributing dividends that are not subjected to any withholding tax.
Nomad Visa Cyprus 2024
Cyprus is emerging as an ideal hub for digital nomads, offering a comprehensive suite of amenities that cater to the needs of remote workers. Boasting a warm climate and a high quality of life, Cyprus also benefits from widespread English proficiency, making it highly accessible for international residents.
In October 2021, the Cypriot government launched the Digital Nomad Visa Scheme. This initiative is designed to bolster Cyprus’s reputation as a hub for digital and electronic services by attracting a global community of digital nomads. The primary aim of the scheme is to enrich the local business ecosystem and stimulate economic growth within the country.
The allure of working remotely from exciting, new destinations continues to grow among international workers. In response, Cyprus has positioned itself as a compelling choice for digital nomads and other remote professionals, offering a rich array of benefits.
Even prior to the global pandemic, Cyprus was a favorable destination for nomads. The island is known for its excellent quality of life, a thriving start-up scene, and favorable tax conditions, further enhancing its appeal as a place to live and work remotely.
To qualify for the non-dom taxation policy in Cyprus, you must meet the following criteria:
- Reside in Cyprus for at least 60 days during the year without being subject to taxation in any other country.
- Spend over 183 days per year in Cyprus.
- Maintain a permanent residence in Cyprus.
- Own a business or be employed as an employer within Cyprus.
The Digital Nomad Visa Scheme in Cyprus is specifically designed for nationals from non-EU and non-EEA countries, allowing them to live temporarily on the island. Launched with the intent to enhance Cyprus’s status as a hub for digital and electronic services, the scheme aims to attract digital nomads and thereby bolster the country’s economic growth.
First introduced in October 2021, the visa initially had a cap of 100 residence permits. Recognizing the growing interest and potential benefits brought by digital nomads, the Council of Ministers decided to expand this cap to 500 residence permits in March 2022.
The Digital Nomad Visa offers several attractive benefits for remote workers looking to relocate to Cyprus:
- It grants the holder the right to reside in Cyprus for one year, with the opportunity to renew this residency for an additional two years.
- Family members of the digital nomad are also eligible to live in Cyprus for the same duration.
- Digital nomads may qualify as tax residents of Cyprus, provided they spend more than 183 days in the country within a single tax year, potentially offering significant fiscal advantages.
This visa scheme represents a strategic effort by Cyprus to attract a skilled, international workforce that can contribute to the island’s dynamic economy while enjoying its appealing lifestyle and business-friendly environment.
Who Can Apply for the Digital Nomad Visa for Cyprus
The Digital Nomad Visa Scheme in Cyprus is specifically tailored for individuals from non-EU and non-EEA countries who wish to live temporarily in Cyprus while continuing to work for an employer registered abroad. Applicants must demonstrate the ability to perform their job duties remotely using telecommunication technology.
In addition to proving remote work capability, applicants must show that they have a stable and sufficient monthly net income of at least €3,500 (approximately $3,900 USD), which must be after deductions for contributions and taxes. This financial requirement ensures that digital nomads can support themselves during their stay in Cyprus.
How to Apply for the Digital Nomad Visa for Cyprus
Applying for the Cyprus Digital Nomad Visa involves several steps:
- Document Preparation: Collect all necessary documentation required for the application. This includes personal and professional documents that verify your eligibility and readiness to live and work in Cyprus.
- Application Submission: Visit the local Cypriot consulate or embassy to submit your application. The application form is available on the consulate’s official website. Once filled out, an issuance fee is required at the time of submission.
- Waiting Period: After submitting your application and paying the fee, there will be a waiting period during which your application is reviewed. The duration of this waiting period can vary depending on the volume of applications received by the consulate.
Required Documents for the Cyprus Digital Nomad Visa
- Valid Passport
- Two Notarized Passport-Sized Photos
- Proof of Remote Work: Documentation from your employer or your business that confirms your employment and the nature of your remote work.
- Proof of Income: Evidence of your financial stability with a net income exceeding €3,500 per month after taxes.
- Criminal Background Check: A clear criminal record from your country of residence.
- Proof of Health Insurance: Comprehensive health insurance coverage for your stay in Cyprus.
- Address of Accommodations: Confirmation of where you will reside in Cyprus.
- CV and/or Resume: To outline your professional background.
- Letter of Intent for Living in Cyprus: A personal statement explaining your reasons for choosing Cyprus as your destination.
Visa Costs
The cost for issuing the Digital Nomad Visa is €70 (about $78 USD). This fee also applies to visa renewals. This straightforward fee structure makes financial planning for potential applicants more predictable.
Tax Resident Status in Cyprus
Navigating tax obligations is a crucial aspect of living abroad, and Cyprus offers a unique framework for digital nomads under its Digital Nomad Visa Scheme. If you plan to stay in Cyprus for more than 183 days within a calendar year, you will be considered a tax resident of Cyprus. This status brings with it certain tax responsibilities but also potential advantages due to Cyprus’s favorable tax regime:
- Low Tax Rates: Cyprus offers relatively low personal income tax rates compared to many other European countries, which can be advantageous for high-earning digital nomads.
- Double Taxation Agreements: Cyprus has agreements with many countries that prevent double taxation, ensuring that you don’t pay taxes on the same income in two different jurisdictions.
- Favorable Tax Regime for New Residents: Cyprus offers several tax exemptions and benefits for new tax residents, which might include exemptions on foreign source income, depending on your circumstances.
Potential Tax Residency with Minimal Physical Presence
Interestingly, Cyprus also provides a provision where you could qualify as a tax resident even if you only spend 60 days in the country, provided that you meet certain conditions:
- You do not reside in any other single country for a period exceeding 183 days in aggregate.
- You are not a tax resident in another country.
- You carry out business activities in Cyprus or are employed in Cyprus, and such activities or employment do not cease during the relevant tax year.
- You maintain a permanent residence in Cyprus, either owned or rented.