CY
50% Exemption for Foreign Workers
Active
Percentage exemption
Cyprus · special tax regime
Rate
—
Duration
17 years
Prior non-residency
15 years
required before applying
Standard top income tax
35.0%
Cyprus, without the regime
Overview
- Regime
- 50% Exemption for Foreign Workers
- Country
- Cyprus
- Type
- Percentage exemption
- Status
- Active
- Effective from
- Jan 1, 2022
- Expires on
- —
Details
- Summary
- 50% of qualifying Cyprus employment income exempt from personal income tax for high earners taking first employment in Cyprus.
- Eligibility
- First employment in Cyprus from 2022 onward; not Cyprus tax resident for 15 consecutive years before starting; annual employment remuneration exceeds €55,000 (may be met in year one or two).
- Benefits
- 50% of employment income exempt from PIT for up to 17 tax years (once per lifetime).
- Requirements
- Salaried employment in Cyprus; cannot combine with other Article 8 employment exemptions.
- Limitations
- Employment income only; not available for self-employment or dividends. Exemption skipped in years the €55,000 threshold is not met.
- Income types covered
- Employment income
- Duration details
- 17 tax years from year first employment commences
Other regimes in Cyprus
| Name | Type | Rate |
|---|---|---|
| Non-Domicile Regime | Non dom | — |
View source Cyprus Tax Department / Income Tax Law art. 8(23A)