Proposed legislation to relax tax exemptions for returning expats

The House Finance Committee this week reviewed proposed legislation that would introduce additional relaxations in the 50 per cent tax exemption policy for highly paid expatriate workers returning to Cyprus.

According to reports on the new bill, the prerequisite for first employment in the Republic of Cyprus will be eliminated, while as a compensatory measure, the prerequisite years of non-residence in the Republic of Cyprus will be increased, in order for the beneficiaries to be included in the framework.

In addition, with the proposed bill, the basic law will be amended so that the exemption of the remuneration from the first employment in the Republic of Cyprus will be granted until the exhaustion of the period of 17 tax years and is not terminated in case the person changes employer.

Moreover, the prerequisite years outside the Republic of Cyprus for the inclusion of beneficiaries under the law will be increased, from 10 to 15 consecutive years.

Based on the law, it is provided that beneficiaries are persons with incomes over €55,000, with an application period of ten years.

Speaking to the committee, a Ministry of Finance representative said that this amendment is expected to have a positive effect, strengthening the prospects for the further development of the Cypriot economy.

Finally, it was also reported that the bill will be submitted to the House next week, where provisions for a transitional period will be incorporated.