Digital nomads
Digital nomadism describes a lifestyle where individuals leverage technology to work remotely, often traveling across various global locations. Central to this lifestyle is the use of the Internet, which allows digital nomads to connect with clients or employers, collaborate with colleagues, and access the essential tools and resources required for their work. As a result, they have the freedom to live and work from any part of the globe, provided there’s a stable internet connection.
Many are drawn to the digital nomad lifestyle because of the flexibility it offers in terms of work schedules. But beyond that, it also presents a unique opportunity to immerse oneself in diverse cultures and communities, blending work with exploration.
Typically, digital nomads engage in careers that support independence. They might be freelancers, entrepreneurs, or even employees of organizations that embrace remote work. The term “digital nomad” encompasses a broad range of professions, including, but not limited to: Content creators, for example writers or bloggers, Graphic designers and web developers, Software engineers and programmers, Marketing and social media specialists.
Digital Nomad Visa in Cyprus
In January 2022, Cyprus introduced a digital nomad visa, targeting non-European citizens who wish to work from the island for employers or clients based overseas. Initially granted for up to one year, this visa can subsequently be renewed every two years for an additional two-year duration each time. To qualify for the Digital Nomad Visa, applicants must demonstrate a stable monthly income of at least 3,500 euros net, post-tax deductions.
A notable feature of this visa is its inclusivity: the Cypriot government has extended the visa application to encompass immediate family members of the digital nomad. However, there are stipulations. Those under this visa category cannot seek employment within Cyprus or engage in any local economic or business ventures. Simply put, employment is restricted solely to foreign entities for the duration of the visa. Meanwhile, family members are granted the privilege to reside in Cyprus as long as the primary visa holder maintains an active status.
Cyprus stands as an alluring destination for digital nomads for several reasons. Its membership in the European Union, its strategic position in the Eastern Mediterranean, and its consistently pleasant weather make it a hotspot. Coupled with robust infrastructure and a prime location that offers ease of access to Africa, Asia, and Europe, Cyprus emerges as a top choice for those embracing a remote work lifestyle.
Tax incentives
Cyprus has proactively rolled out a series of tax incentives aimed at drawing skilled individuals to its shores. Notably, individuals who have recently migrated to Cyprus can avail a tax exemption of 50% on an annual salary exceeding 55,000 euros. This benefit is extended for up to 17 years. However, it’s crucial to note that this provision is relatively new. It applies solely to employees commencing their employment post-January 2022, and who haven’t been classified as Cyprus residents in the preceding 10 years.
Another salient feature of Cyprus’ tax legislation is its provision for tax exemption on overseas income. This is applicable for individuals who have resided in Cyprus for a duration shorter than six months.
For digital nomads, Cyprus offers additional perks. They are exempt from Cypriot taxation until the 183rd day of their stay. Beyond this period, the individual is deemed a tax resident, triggering the imposition of local taxes.
The surge in digital nomads choosing Cyprus is a testament to the country’s forward-looking economic vision. It signifies a nation receptive to innovation and primed to thrive in the digital era. Furthermore, the burgeoning network of digital nomads within Cyprus fosters connections, idea-sharing, and collaboration. This not only catalyzes business growth but also cultivates a robust sense of community, laying the groundwork for a prosperous future.
For more information about Cyprus, its tax incentives, relocation information and more, click here.
