The exemption aims to maintain the appeal of Cyprus as a country and to attract employees by creating real infrastructure for businesses and help to establish new investments.
The Income Tax Law has been amended in December 2020, applicable from January 1st, 2020, to extend the application of the 20% tax exemption for remuneration from employment for employees who were not Cyprus tax residents in the year before the start of their employment; either at a rate of 20% of his salary or in the amount of 8.550 euros (the lower of the two).
The extension is now granted for employment which commences up to the tax year 2025 and is for a period of 5 years, beginning the year following the year of employment. Previously the extension was up to the tax year 2020. For further details, please visit https://ciba-cy.org/ann..
Tax exemption for first time employees in Cyprus extended to 2025