By: Monica Constantinou, Associate Lawyer @ Omirou & Omirou Advoates & Legal Consultants
Digital nomads is the new trend in “doing international business”. They may establish a workspace anywhere and at any time. The Council of Ministers of Cyprus in 15th October 2021 agreed to launch the ‘Digital Nomad Visa Scheme’ beginning in January 2022.
The scheme offers numerous incentives for nationals from non-EU and non-EEA countries who want to benefit from living in Cyprus while working for businesses that are based outside of Cyprus. This program provides a residence permit with the intention to allure in skilled people and new businesses to Cyprus, which will contribute and support the nation’s economic growth.
The ‘Digital Nomad Visa’ attracts employees who are employed by foreign companies or who are self-employed offering services remotely for clients located abroad. The digital nomads who are qualified for a Digital Nomad Residence Permit have the right to reside in Cyprus for one year with the right to extend it for two more years. Their family members including spouses, partners and minors may also be granted residency rights for the same period. This right of residence expires when their Digital Nomad visa expires. Additionally, no record of any other employment or economic activity in Cyprus should have transpired during this period.
Cyprus is an alluring destination for digital nomads who desire to experience island life, Mediterranean culture, and more than 300 days of sunshine. Cyprus belongs to both the Commonwealth and the European Union. In comparison to nations like the UK, France, and its neighbours, Cyprus is considered as one of the safest nations in the world with political stability and a low cost of living. It is a multicultural island with diverse population, where English is regarded as a second language. Cyprus’s low taxation is one of the reasons why it is regarded as a commercial and financial centre. A Digital Nomad will be regarded as a tax resident of Cyprus if they stay more than 183 days during the same calendar year, and provided they are not tax residents of any other country. They will therefore be eligible for a range of tax advantages. This scheme will help them to have a steady and adequate monthly net income.
Digital nomads look for both freedom and a fulfilling job. The Cypriot government is eager to make Cyprus a digital hub for nomadic entrepreneurs and companies. Cyprus is ready to attract foreign talented professionals and digital nomads through more efficient residency permits. The ‘Cyprus Digital Nomad Visa Scheme’ will contribute to the development of the new businesses and therefore to the economic growth of the country.
