Recent Updates: The provisions for taxation of employment income in Article 8 have been amended. The latest amendment was published on June 30, 2023, with a retrospective effect from January 1, 2022.

Key Changes Introduced in Article 8 (23A):

1. New Definition of “First Employment in the Republic”
   • An individual is now considered to have first employment in Cyprus if they haven’t worked in Cyprus for at least 15 consecutive tax years.
     (This is a significant change from prior definitions that did not account for this scenario.)
2. Eligibility for the 50% Exemption
   • The annual remuneration threshold for the 50% exemption has been adjusted:
     • New Threshold: ≥ €55,000
     • Previous Threshold: ≥ €100,000
   • The exemption is available for a maximum period of 17 years for qualifying individuals.

Important Note:

• Special provisions have been created for individuals previously eligible for the 50% exemption under the prior version of Article 8 (23A) but who may not meet all conditions outlined in the amended law.

📈 Stay Informed!

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