What is the tax benefit for expats in Cyprus?
Expats are entitled to certain tax benefits for working in Cyprus. Article 8 (21) provides that the tax exemption of €8.550 and 20% (whichever is the lower) of the remuneration from any employment exercised in Cyprus by an individual who was resident outside Cyprus the tax year before the year of commencement of employment in Cyprus is exempt from income tax.
On 15th December 2020, an amendment of the article was put in force.
What is the purpose of the amendment?
The purpose of the amendment is to extend the application of the 20% tax exemption for expats working in Cyprus. The amendment of the article applies until the tax year 2025.
Prior to this extension, only those commencing employment in Cyprus from 2012 and onwards were qualified for this exemption. Individuals were able to claim the exemption for a period of 5 years up to tax year 2020.
The extension of the tax benefit now allows individuals to apply for a 5-year period given that the commencement of their employment is between 2012 and 2025.
I want to know more about the tax benefit for expats in Cyprus
For more information on the extension of the 20% tax benefit for expats contact Fairfax Yeaman, a GRS Group Company.