- Tax relief for highly paid individuals employed in Cyprus: Individuals employed in Cyprus with annual income above € 100,000 who become Cyprus tax residents benefit from a 50% tax exemption on salary for a 10-year period.
- Tax relief for non-resident individuals employed in Cyprus: Individuals who were residing abroad before the beginning of their employment in Cyprus and become Cyprus tax residents benefit from a 20% tax exemption on salary with a maximum exemption amount of € 8,550.
- Tax relief for employment income earned abroad: Individuals who are Cyprus tax residents and provide services outside Cyprus for more than 90 days annually to a non-Cyprus resident employer or a foreign permanent establishment of a Cyprus resident employer benefit from 100% exemption on the income received from such services.
- Tax relief for pension: Individuals receiving a pension related to past employment provided abroad are taxed 5% on the pension of more than € 3,420.
- Tax exemption on life insurance & approved funds: Individuals benefit from total tax exemption on any lump sum repayment related to life insurance or approved funds.
- Low social security contribution: Social Security contribution is at 7, 8% on the employee’s gross income with a maximum annual salary of € 54,396.