Relocate Your Business
Headquartering and Corporate Relocation to Cyprus: Strategic Advantages and Practical Support
Cyprus is an attractive base for companies seeking an EU foothold. It combines favorable tax mechanics, EU market access, Englishfriendly legal practice and a strategic location bridging Europe, the Middle East and North Africa. For firms evaluating relocation, these jurisdictional strengths lower barriers to crossborder trade while enhancing contractual and regulatory predictability for European counterparties.
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Tax efficiency and treaty benefits
Cyprus’s corporate tax framework supports holding companies, regional headquarters and finance centres by enabling efficient retention of profits and flexible repatriation options. An extensive double tax treaty network reduces withholding tax on many crossborder payments. When structures are designed to reflect real economic activity, companies can improve aftertax cashflows while remaining aligned with international standards.
Substance and governance requirements
Relocation requires more than incorporation. To secure tax and treaty benefits and to satisfy banks and regulators, companies must evidence genuine management and control in Cyprus. Practical measures include appointing resident directors, holding regular local board meetings, operating local finance functions, running payroll and maintaining office premises. Clear minute books, contemporaneous board packs and documented decision making are essential.
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Eligible Companies
Eligible businesses must meet the following criteria:
− The majority of the company’s shares are owned by third-country nationals. It is noted that in the event that the percentage of the foreign participation in the share capital of the Company is equal to or below 50% of the total share capital, the Company is eligible if the foreign participation represents an amount of at least €200.000. In both cases above the ultimate beneficial owner (UBO) must deposit or invest an amount of at least €200,000, for the purposes of his/her business activity in Cyprus. If more UBOs exist, then this can be deposited or invested by a single UBO or collectively.
− Public companies registered on any recognised stock exchange.
− Companies of international activities (formerly off-shore), which operated before the change of regime, whose data are held by the Central Bank.
− Cypriot shipping companies
− Businesses/Companies of foreign Interests operating in the Republic of Cyprus with independent offices in Cyprus in suitable premises, separate from any private residence or other office
− Cypriot high-tech/innovation companies*
− Cypriot pharmaceutical companies or Cypriot companies active in the fields of biogenetics and biotechnology
− Companies that are already registered in the Register of Foreign Companies of the Civil Registry and Migration Department
− Companies of which the majority of the total share capital is owned by persons who have acquired Cypriot citizenship by naturalization based on economic criteria, provided that they prove that the conditions under which they were naturalized continue to be met.
− Cypriot Private Institutes of Tertiary (Higher) Education licensed by the Ministry of Education, Sport and Youth. * An enterprise qualifies as ‘High Technology Company’ if:
(a) it is already established and has a presence in the market, and
(b) it has a high level or experimental R&D intensity, and
(c) it developed product/s that fall into one of the following categories: products related to aviation and space industry, computers, information and telecommunication technology (ICT),pharmaceuticals, biomedical, research and development equipment, electrical machinery, chemicals.
People and operational considerations
Moving senior staff and executives involves immigration procedures, employment law compliance and family relocation logistics. Cyprus offers streamlined workpermit pathways and a professional services market comfortable with international hires. The availability of multilingual talent, international schools and lower office costs compared with larger European capitals make substance implementation both practical and costeffective.
Sectoral regulatory and licensing steps
Different sectors require specific regulatory engagement. Financial services, fund management, shipping and energy projects each have licensing and supervisory requirements that must be scoped early. Early regulatory mapping reduces delay, ensures correct corporate form and aligns governance with sector expectations. Engaging local advisers at the outset accelerates approvals and mitigates compliance risk.
Commercial advantages of a Cyprus headquarters
A wellexecuted relocation can lower operating costs, centralise treasury and IP management, and enhance the compliance profile presented to investors and banks. Cyprus’s EU membership simplifies contracts and market access across Europe while enabling a single hub from which to run regional operations across Europe, North Africa and the Middle East.
Key risks and mitigations
Relocation introduces complexity around substance, transfer pricing, employment law and crossborder tax interactions. Common pitfalls include insufficient local activity, poor documentation of board decisions and underestimating payroll or compliance costs. Mitigations include early substance planning, documented governance processes, transfer pricing policies and staged implementation aligned to commercial milestones.
How Ngenius 1 supports relocation
Ngenius 1 offers endtoend relocation services: strategic diagnostics to align corporate form and tax posture, substance design and implementation, resident director placement, payroll and office setup, immigration and permit management for key personnel, and preparation of bankready KYC documentation. We also manage sectoral licensing processes and coordinate with local counsel and administrators to deliver a compliant, commercial transition.
Relocating a headquarters is a strategic move that requires integrated legal, tax and operational planning. With disciplined documentation, demonstrable substance and an experienced implementation partner, Cyprus provides a practical, costeffective platform for companies building an EU base.
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Residence by Employment
EU Blue Card in Cyprus
The EU Blue Card is a residence and work permit for highly qualified third-country nationals that allows legal employment in Cyprus and mobility across most EU and EEA states (excluding Denmark and Ireland) under short- and long-term mobility rules.
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Eligibility and main requirements
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Sectors eligible in Cyprus: Only certain high-skill sectors specified by a ministerial decree are eligible: Information and Communication Technologies (ICT), Pharmaceuticals (research purposes only), and Shipping (excluding ship captains and crew).
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Qualifications: Applicants must either hold a higher-education qualification or demonstrate at least three years of relevant professional experience acquired within the seven years prior to application in specified positions (e.g., ICT services managers or ICT professionals).
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Salary threshold: The minimum gross annual salary required for the issuance of an EU Blue Card in Cyprus is set at €43,632.
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Application length, permit duration and renewal
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Initial validity: The Blue Card issued by Cyprus is granted for up to three years and is renewable upon expiry.
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Non-cancellation for absences: Unlike other temporary permits, the Blue Card is not automatically cancelled if the holder spends more than 90 consecutive days outside Cyprus.
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Processing and launch: Cyprus amended its Aliens and Immigration Law to implement the EU Blue Card and began accepting applications on 7 July 2025.
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Rights and benefits for Blue Card holders
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Work and employment: Holders have the right to reside and access highly qualified employment in Cyprus with employment rights aligned to Cypriot citizens (working conditions, training, social security).
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Family reunification: Spouse and dependent children are eligible for family reunification with permits of equal duration to the cardholder’s permit.
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Travel and short-term mobility: Cardholders can travel and reside in other EU Member States for professional activity for up to 90 days within any 180-day period without a visa.
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Long-term mobility: After legally residing in Cyprus for 12 months, a Blue Card holder can move to another Member State to take up highly qualified employment and apply for a Blue Card there under the long-term mobility provisions.
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Aggregation of residence for long-term EU status: Periods of legal residence in different Member States with an EU Blue Card can be combined when calculating eligibility for EU long-term resident status.
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Path to permanent residence and other practical outcomes
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Faster route to permanent residence: Cyprus law and guidance indicate the Blue Card can facilitate a faster route to permanent residence and eventual citizenship, with some advisers noting eligibility for long-term/permanent residence within roughly 33 months when certain conditions (language, social security contributions) are met.
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Portability of status: The Blue Card’s rules on short-term mobility and the option to apply for another Member State’s Blue Card after 12 months increase career mobility across the EU for holders based in Cyprus.
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Application process, documents and practical tips
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Where to apply: Applications are submitted to the Cyprus Migration Department; the official website provides the application form (FORM MBCEU) and checklists of required documents.
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Typical documentation: Expect to provide a valid passport, employment contract or binding job offer specifying salary above the threshold, proof of qualifications or documented professional experience, medical insurance, and any translated/notarised certificates required by the Migration Department.
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Employer role: Employers usually draft the job contract meeting the salary threshold and may assist with supporting documentation; legal or immigration advisors commonly help ensure completeness and avoid delays.
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When to seek professional help: Use a local immigration lawyer or HR advisor for complex cases (salary structure questions, recognition of foreign qualifications, family reunification complexities, or when relying on professional experience rather than a degree).
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Frequently asked practical questions
Can I bring my family immediately?
Yes; spouse and dependent children can join the Blue Card holder with permits matching the card’s duration.
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Can I change employer while on a Blue Card?
Changes in employment are possible but typically require notification or a formal application amendment to the issuing authority to confirm continued eligibility (salary, sector and job level).
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Does the Blue Card give immediate access to other EU states’ labour markets? It provides visa-free short-term mobility (90/180 days) and the option to apply for another Member State’s Blue Card after 12 months of legal residence in Cyprus.
Is the Blue Card permanent?
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It is a temporary residence permit (commonly up to three years) that can be renewed and contributes towards long-term residence and eventual permanent status if conditions are met.
Employment in a company of foreign interest
Cyprus has become one of Europe’s most attractive destinations for highly skilled international professionals and global businesses. If you are a non-EU highly skilled employee looking to relocate, or a company seeking to employ top international talent, Cyprus offers a clear and efficient pathway to employment, residence, and ultimately long-term European mobility and citizenship.
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There are criteria to be met both at the level of the eligible company which will act as the employer in Cyprus and for the third country national employees to be employed.
Eligible companies fall under the following categories:
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Key Criteria & Requirements
1. Eligible Employers in Cyprus
- Foreign companies operating or intending to operate in Cyprus with independent business premises and at least 50% + 1 share owned by non-EU nationals
- Public companies listed on a recognised stock exchange
- International business companies registered under older offshore regimes
- Cypriot shipping companies
- Cypriot high-tech and innovative companies
- Cypriot pharmaceutical companies or companies active in biogenetics or biotechnology
- Companies majority-owned by individuals who obtained Cypriot citizenship on economic grounds
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2. Workforce Composition Rules
- Third-country nationals may comprise up to 70% of the workforce for five (5) years
- Minimum 30% Cypriot or EU employees required
- Reassessment after five years on a case-by-case basis
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3. Highly Skilled Employee Criteria
- Minimum gross monthly salary of €2,500
- University degree, diploma, equivalent qualification, or two (2) years of relevant experience
- Employment contract of at least two (2) years
- Work permits issued for up to three (3) years
- Permit card issued within approximately one (1) month
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4. Non-Highly Skilled Employees (Support Staff)
- Limited to 30% of total support staff
- Employment contracts must be approved by competent authorities
- Salary determined by applicable legislation
- Employment permits issued for up to three (3) years
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5. Family reunification of third country nationals
Family members may accompany highly skilled employees however an important distinction is drawn between highly skilled personnel and support staff. The spouses of highly skilled personnel have an immediate and free access to the labour market once the financial supporter (i.e the employee) has obtained his/her work permit in the Republic. This option is not available for spouses of support staff (i.e who have a gross monthly salary of less than Euro 2500 per month).
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6. Supporting Documentation include the following:
- Medical examination results
- Clean criminal record certificate
- Valid medical insurance coverage
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Digital Nomad
The Cyprus Digital Nomad Visa Scheme allows non-EU and non-EEA nationals to reside temporarily in Cyprus while working remotely for employers or clients located outside Cyprus.
A limited number of residence permits are issued under this scheme.
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Who Is Eligible
Applicants must be non-EU / non-EEA nationals who:
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Can work remotely using telecommunications technology
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Are either:
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Employed by a company registered abroad, or
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Self-employed, providing services remotely to clients abroad
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Can demonstrate a stable monthly net income of at least €3,500 (after taxes and contributions)
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Key Benefits
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Residence permit valid for 1 year, renewable for up to 2 additional years
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Right of residence for family members (without access to the Cyprus labour market)
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Possibility to become a Cyprus tax resident if residing more than 183 days in a tax year, subject to not being tax resident elsewhere
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Application Procedure (Overview)
Step 1 – Entry into Cyprus
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Entry with a tourist visa (where applicable), or
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Application from within Cyprus if already legally residing
Step 2 – Residence Permit Application
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Application submitted to the Civil Registry and Migration Department in Nicosia within 3 months of arrival
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Applicant must declare employment status (employed or self-employed) and income
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Biometric data (photograph, fingerprints, signature) collected
Step 3 – Renewal
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Renewal application submitted at least one month before expiry
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Permit may be renewed for a maximum of two additional years
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Documents Required
Applications must be supported by standard documentation, including but not limited to:
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Valid passport and copies
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Completed application forms
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Proof of remote employment or self-employment, such as:
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Employment contract with a foreign employer, or
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Service agreements with foreign clients
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Proof of monthly net income of at least €3,500
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Bank statements
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Medical insurance coverage valid in Cyprus
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Medical examination results
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Clean criminal record certificate from the country of residence
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Proof of residential address in Cyprus
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Passport-size photographs
Residence by Investment
The Investor Immigration Permit (formerly known as the Permanent Residency Permit) provides a streamlined and secure pathway to long-term residence for individuals and their families.
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Overview of the Investor Immigration Permit
The Investor Immigration Permit is available to non-EU nationals who invest in Cyprus, typically through the purchase of residential or commercial property, or by investing in Cypriot companies or collective investment schemes. The permit allows for full or part-time residence in Cyprus and is granted for life, with no renewal requirement, provided the investment is maintained and the applicant visits Cyprus at least once every two years.
The programme is designed to attract high-net-worth individuals, entrepreneurs and professionals by offering a fast-track approval process, minimal bureaucratic hurdles and a suite of tax and lifestyle benefits. Applications are typically approved within two months, provided all criteria are met.
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Key Benefits of the Programme
Cyprus offers a unique combination of advantages that make the Investor Immigration Permit particularly attractive:
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Fast-track approval: Applications are processed within approximately two months.
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Lifetime validity: The permit is permanent and does not require renewal.
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Minimal physical presence: Permit holders must visit Cyprus only once every two years.
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No language or medical requirements: There are no interviews, language tests or medical exams.
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Tax residency without domicile: Investors may obtain Cyprus tax residency while retaining non-domicile status.
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Free access to public healthcare (GESY): Permit holders are eligible for Cyprus’s national health system.
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Business opportunities: Investors may act as unpaid directors in Cypriot companies and earn dividend income.
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Pathway to citizenship: The permit may serve as a stepping stone to naturalisation under certain conditions.
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Family Inclusion and Dependent Benefits
The permit extends to the applicant’s spouse and dependent children under the age of 18. Children aged 18 to 25 may also be included if they are unmarried, financially dependent and enrolled in tertiary education abroad. In such cases, each dependent child must submit a separate application and the applicant must demonstrate an additional annual income of €10,000 per child.
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Importantly, once granted, the permit remains valid even if the child exceeds the age of 25 or ceases to be financially dependent. However, future spouses or children of the dependent child cannot be added to the permit. If the parent’s permit is cancelled, the child’s permit is also revoked.
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Higher Investment for Adult Children
Cyprus allows adult children of the applicant to obtain their own Investor Immigration Permit, provided a higher-value investment is made. The base investment of €300,000 must be multiplied by the number of adult children included. For example, an applicant with one adult child must invest €600,000; with two adult children, €900,000, and so forth.
Each adult child must also demonstrate a secured annual income of at least €50,000, which increases by €15,000 for a spouse and €10,000 for each dependent child. The investment may be made jointly or solely in the name of the applicant.
These enhanced requirements aim to strengthen the integrity of the programme and ensure long-term compliance, while preserving Cyprus’s reputation as a credible and transparent jurisdiction.
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Application Criteria
To qualify for the Investor Immigration Permit, applicants must meet the following conditions:
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Annual income: A minimum of €50,000 earned outside Cyprus. This threshold increases by €15,000 for a spouse and €10,000 per dependent child. Income may include salaries, pensions, dividends, rent or interest.
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Clean criminal record: The applicant and spouse must not pose a threat to public order or security.
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Health insurance: Comprehensive coverage for in-patient and out-patient care is required.
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Declaration of non-employment: Applicants must confirm they do not intend to work in Cyprus, except as unpaid directors in companies they have invested in.
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Physical presence: Permit holders must visit Cyprus at least once every two years.
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Ongoing compliance: Applicants must submit a clean criminal record every three years and provide annual evidence of maintaining the investment.
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Investment structure: If the investment does not involve share capital, the applicant may be a shareholder or unpaid director in a Cyprus company. Income from such companies is not considered an obstacle to obtaining the permit.
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Qualifying Investment Categories
Applicants must invest at least €300,000 (excluding VAT) in one of the following categories:
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Residential Property
Purchase of a new house or apartment from a land development company, with a minimum value of €300,000. At least €200,000 plus VAT must be paid prior to application. The funds must originate from abroad and be deposited in a Cypriot financial institution. If the property does not accommodate all dependents, additional property arrangements must be declared.
2. Commercial Property
Investment in offices, shops, hotels or similar developments totalling €300,000. These properties may be resold.
3. Cyprus Company
Investment in the share capital of a Cyprus-registered company with physical operations in Cyprus and at least five employees.
4. Collective Investment Schemes
Investment in units of a Cyprus-based Alternative Investment Fund (AIF, AIFLNP or RAIF) with a minimum value of €300,000.
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Application Process: Step-by-Step
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Onboarding: The applicant selects the investment and gathers documentation for themselves and any dependents. Legal advisors ensure all paperwork is in order.
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Investment execution: The investment is secured and supporting documents are prepared.
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Application submission: The application is lodged with the Ministry of Interior and typically approved within two months.
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Biometrics: Upon approval, the applicant attends a biometric data collection session.
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Permit issuance: The permit is issued within one week of biometrics. Legal representatives may collect and deliver the residence cards.
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Tax and Economic Advantages
Cyprus offers a highly competitive tax regime for individuals and businesses:
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12.5% corporate tax on trading profits
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Non-domicile exemption for 17 years on worldwide dividends and interest income
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No inheritance tax
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No immovable property tax
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Exemption on capital gains from sale of property outside Cyprus
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No withholding tax on outbound payments to non-residents
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EU directive compliance and access to advance tax rulings
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Extensive double tax treaty network
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These incentives make Cyprus an ideal jurisdiction for wealth management, business expansion and tax planning.
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How Ngenius1 can Assist
Ngenius 1 offers a comprehensive, one-stop solution for clients seeking to obtain the Investor Immigration Permit. Services include:
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Guidance on investment selection
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Legal advice on immigration, property and corporate law
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Preparation and submission of applications
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Liaison with government authorities
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Drafting of property and corporate agreements
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Tax structuring advice for individuals and businesses
Tax Benefits
Cyprus’s tax framework has long been a core attraction. Key features valued by foreigners include:
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A competitive corporate tax rate that historically has been among the lowest in the EU for trading profits.
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A broad participation exemption regime for dividends and capital gains in many crossborder holding scenarios.
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No withholding tax on dividends paid to nonresident corporate shareholders in most circumstances.
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A generous network of double tax treaties that facilitates taxefficient repatriation and reduces treaty withholding.
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A nondomicile (nondom) regime for qualifying individuals that can exempt foreign dividends, interest and certain passive income from special defence contributions for a set period.
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No inheritance, net wealth or general estate taxes that complicate intergenerational planning in many other jurisdictions.
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These rules allow wealth managers to structure holding companies, finance companies, and intellectual property arrangements in a way that reduces frictional taxation while remaining compliant with EU and OECD standards. Recent global tax developments have increased scrutiny worldwide, so structures in Cyprus are typically designed with substance, transparency and alignment with the OECD Pillar Two and exchange of information standards in mind.
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The 183-Day Rule & The 60-Day Rule. A New Concept Of Tax Residency In Cyprus
Cyprus currently offers two primary criteria for determining individual tax residency: the 183-Day Rule and the 60-Day Rule.
The 183-Day Rule applies to individuals who spend at least 183 days in Cyprus within a calendar year. Such individuals are automatically considered Cyprus tax residents for that year.
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The 60-Day Rule, introduced in 2017, is a targeted initiative by the Cypriot government to attract foreign investment and enhance Cyprus’s reputation as a European financial centre. It is designed for individuals who do not meet the 183-day threshold and are not tax residents in any other jurisdiction. This includes investors, entrepreneurs, digital nomads, artists, athletes and other professionals who may otherwise be exposed to global tax authorities due to lack of established tax residency.
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Eligibility under the 60-Day Rule
To qualify as a Cyprus tax resident under the 60-Day Rule, an individual must meet all of the following conditions within the relevant tax year:
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Remain in Cyprus for at least 60 days during the tax year
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Not reside in any other single country for more than 183 days
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Not be tax resident in any other country
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Conduct business activities in Cyprus and/or be employed in Cyprus and/or hold a directorship in a Cyprus tax-resident company at any time during the tax year
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Maintain a permanent residence in Cyprus (owned or rented)
It is important to note that even if the above conditions are met, an individual will not be considered a Cyprus tax resident if their business, employment or directorship in Cyprus has ceased.
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Day Count Clarifications
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The day of departure from Cyprus is counted as a day outside Cyprus
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The day of arrival in Cyprus is counted as a day in Cyprus
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Arrival and departure on the same day is counted as one day in Cyprus
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Departure and return on the same day is counted as one day outside Cyprus
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Tax Benefits for Cyprus Tax Residents
Cyprus offers a range of tax incentives to attract high-earning professionals and international talent. Individuals who become Cyprus tax residents under either rule may benefit from the following:
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Non-Domicile Status
Non-domiciled tax residents are exempt from the Special Defence Contribution (SDC) for a period of 17 years. This exemption applies to:
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Dividend income (normally taxed at 17%)
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Interest income (normally taxed at 17%)
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Rental income (normally taxed at 2.25%)
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Employment Incentives
50% Income Tax Exemption Available to individuals commencing first employment in Cyprus on or after 1 January 2022, with annual remuneration exceeding €55,000. The exemption applies for 17 years, provided the individual was not a Cyprus tax resident for at least 10 consecutive years prior to employment. Transitional provisions may apply for earlier employment commencements.
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20% Income Tax Exemption Available to individuals who were not Cyprus tax residents for at least 3 consecutive years prior to employment and were previously employed abroad by a non-resident employer. The exemption applies for 7 years, up to a maximum of €8,550 per annum.
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Employment Income Abroad Income earned from employment outside Cyprus, in a foreign permanent establishment of a Cyprus tax-resident company, is exempt from Cyprus tax if the employment exceeds 90 days per year.
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Next Steps
Individuals who satisfy the 60-Day Rule should consider the following:
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Registering as a tax resident with the Cyprus Tax Department
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Assessing eligibility for non-domicile status
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Gathering and maintaining evidence of tax residency status
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Non-domiciled Cyprus tax residents enjoy significant exemptions on dividends, interest, rental income and gains from the sale of securities, subject to applicable conditions.
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How Ngenius 1 Can Assist
​Ngenius1 provides comprehensive support to individuals and businesses navigating Cyprus’s tax residency framework. Our services include:
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Assessment of eligibility under the 60-Day and 183-Day Rules
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Advice on non-domicile status and related exemptions
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Registration with the Cyprus Tax Department
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Structuring employment and business activities to maximise tax benefits
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Ongoing compliance and documentation support