Cyprus Digital Nomad Visa

The launch of the Digital Nomad Visa Scheme in Cyprus, with an initial cap on the number of residence permits to be awarded at 100, was approved by the Council of Ministers with its Decision of October 15, 2021. The Council of Ministers raised the cap to 500 resident permits on March 3 of 2022.

The Cyprus Digital Nomad Visa Scheme enables nationals of non-EU and non-EEA nations who are able to operate remotely using telecommunications technology to temporarily reside in Cyprus, work for a foreign employer who is registered overseas, or work remotely for foreign businesses or clients.

The Cyprus Digital Nomad Visa Scheme offers a residency permit and seeks to entice creative people and businesspeople who can work remotely and boost economic growth with their technology expertise. Such people’s skill and effort contribute to the growth of the country’s economic “business ecosystem,” as described by the Ministry of the Interior.

Requirements for a Cyprus Digital Nomad Visa

To qualify for a Cyprus digital nomad visa, the applicant must fulfil the following requirements:

They are a non-EU/EEA citizen.
They work for an employer registered outside Cyprus.
They will work via telecommunications technology.
They have a monthly income of at least €3,500 (after the deduction of contributions and taxes).

Benefits of a Cyprus Digital Nomad Visa

The residency permit for Digital Nomads is good for one year with the option of a two-year extension. The digital nomad will reside in Cyprus, work remotely and be location independent.
For the same period of time as the digital nomad, his or her family members may reside in Cyprus. Underage children and a spouse or civil union partner are considered family members. However, while they are in Cyprus, they cannot carry out any business.
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. Use of the “60-day rule” can also be made.

Cyprus is a hub for technology, secure to live in, and has an appealing tax regime that enables digital nomads to convert to tax residents in less than 60 days.

The ’60-day rule’ for Cyprus tax residency is satisfied for individuals who, cumulatively, in the relevant tax year:

do not reside in any other single state for a period exceeding 183 days in aggregate
are not considered tax resident by any other state
reside in Cyprus for at least 60 days, and
have other defined Cyprus ties.

To satisfy the fourth criteria, the individual must carry out any business in Cyprus and/or be employed in Cyprus and/or hold an office (director) of a company tax resident in Cyprus at any time in the tax year, provided that such is not terminated during the tax year. Further, the individual must maintain in the tax year a permanent residential property in Cyprus that is either owned or rented by the individual.

The digital nomad in Cyprus will be regarded as a High Net Worth Individual and be eligible for certain tax incentives as a tax resident. For instance, capital gains from the sale or transfer of shares, bonds, or other financial instruments are not subject to tax.

Individual Tax Rates in Cyprus

The individual tax rates in Cyprus are:

0 to 19,500 – 0%
19,501 to 28,000 – 20%
28,001 to 36,300 – 25%
36,301 to 60,000 – 30%
60,000+ – 35%

Required documents for a Cyprus Digital Nomad Visa

Copy of valid passport with at least 3 months validity remaining from the date of the application submission.
Evidence of stable income of at least €3,500.
Original blood analysis showing that the applicant is free from certain conditions.
Certificate of health insurance.
A clean criminal record.
Additional documents that will be conveyed prior to application.

Costs for a Cyprus Digital Nomad Visa

Issuance or renewal of a temporary residence permit: €70
Registration to the Aliens’ Registry (only in cases of initial registration): €70

Timeframe

The time required for the examination of the application for a Cyprus Digital Nomad Visa is between 5 – 7 weeks.

UPDATE 2024: The cap of 500 Digital Nomad Visas has been fully met.

As a result, the opportunity to obtain new digital nomad visas is temporarily on hold, pending the potential elevation of this cap or the availability of additional permits. This development is particularly relevant for those aspiring to embrace the digital nomad lifestyle within the picturesque and culturally rich environment of Cyprus.

We understand the significance of this update for our global clientele and encourage those affected to consider alternative pathways or stay attuned for any policy revisions. Our commitment at Chambers & Co. remains steadfast in providing up-to-date, comprehensive legal guidance, particularly in the dynamic field of immigration law. We are here to assist with any queries or to explore other viable options in your journey to Cyprus.

For the latest updates and detailed legal support, please feel free to contact us.