Cyprus First Employment Exemption

Individuals who were not tax resident in Cyprus were entitled to receive, upon commencing employment in Cyprus, an annual exemption amounting to 20% of their annual income for the first three years of becoming resident in Cyprus. The maximum amount of the exemption was €8,550 per annum.

For the 2015 tax year, this three year period is extended to five years but it is only available until 2020.

With regards to the exemption introduced which related to exempting 50% of the first five years’ income from employment in Cyprus of a person who was not previously resident in Cyprus and received income in excess of €100,000 per annum, this has now been extended to a total of ten years.

However, for employment which commences on or after the 1st January 2015, this exemption is not available to anyone that was resident in Cyprus during the preceding year in which employment commenced or to anyone who was resident in Cyprus in any three of the five tax years preceding the year in which the employment in Cyprus began.

The exemption is available if income exceeds €100,000 per annum. If income falls below this amount in any year, the tax authorities must be convinced that this was not intended as a means to obtain the benefit.

It must be noted that only one of the two exemptions is allowed and can be claimed.

FastCo provides you with specialized tailored solutions. Our team is comprised of professionals who are fully qualified in their field of expertise.

We are a trusted provider of corporate services including:

Company registration
Provision of fiduciary services
Opening of corporate bank accounts
Management and administration of companies
Tax planning

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