Within this post-pandemic era, there is an increase in the number of digital nomads and location-independent businesses. This change has also increased the number of digital nomads in Cyprus as well. More and more business owners are finding Cyprus suitable to visit and grow their businesses.
This article will explain the experiences of being a digital nomad in Cyprus and the critical information you need to know before picking Cyprus for your destination.
1. Mediterranean Climate
If you enjoy warm weather and swimming in the sea while getting a cinnamon tan, Cyprus’ closeness to the equator makes it the ideal location for you. Cyprus has an average yearly temperature of 25°C during the day and 15°C at night. Every year, it receives 300 days of sunshine. It’s a lovely area to live and work, with the island’s strong emphasis on art and entertainment contributing to the ideal lifestyle.
Read more about Cyprus Weather
2. Non-Dom Taxation Policy
Cyprus taxation scheme allows the digital nomads to become tax residences within 60 days. This scheme allows the digital nomads in Cyprus to benefits from the most attractive taxation system in the EU. To be eligible for the non-dom taxation policy, you need to:
- Spend at least 60 days in Cyprus without being taxed in other countries
- Spend more than 183 days per year in Cyprus
- Have a permanent home in Cyprus (Rental or Ownership)
- Have your own business or be an employer in Cyprus
Here are some of the attractive taxation schemes in Cyprus:
- The lowest corporate income tax rate of 12.5% in Europe
- Tax exemptions for Dividend income, Interest income, Profits from the sales of securities, and more
- A tax-free threshold of €19,500 for income taxes
- 20% income tax for incomes within €19,501 — €28,000
- 25% income tax for incomes within €28,001 — €36,300
- 30% income tax for incomes within €36,301 — €60,000
- 35% income tax for incomes within €60,001 and more
Read more about Cyprus Taxation System
3. Quality of Life to Living Expenses
Cyprus has a much lower cost of living than similar countries while ranking 27th in the Economist Intelligence Unit’s 2019 Quality of Life rating. And yet, the island has high-quality healthcare, education, and housing. Cyprus is a peaceful country with many advantages for nomads that reside there or plan to relocate there.
The friendliness of Cypriots is well-known, as is their cordial greeting to tourists. Cyprus is a place where you should be able to relax and enjoy yourself. The island life is built on the concept of having a healthy work-life balance while reaching your goals.
4. Fast Company Formation Procedure and Low Fees
Forming a corporation in Cyprus is a straightforward procedure. It takes no more than ten days to complete the registration procedure. Costs charged by different business entities (including government fees) range from €1,000 to €2,500.
5. Strategic Location for Digital Nomads in Cyprus
In the eastern Mediterranean, Cyprus lies at a crossroads between Europe, the Middle East-Asia, and Africa. Because of its location, Cyprus is a perfect place for doing business with three continents. This is attractive to the digital nomad in Cyprus and running their healthy business.
Cyprus is presently the safest place globally for countries with populations of less than 5 million people. Cyprus is also the EU’s safest migrant destination, ranking sixth.
6. Majority of People Talk English
The official language of Southern Cyprus is Greek, while English is taught in schools. Almost everyone in Larnaca, Cyprus, speaks English. This perk comes in handy if you are planning to operate your business here and live comfortably.
7. Entrepreneurs and Digital Nomads Communities
By doing quick research online, you can find several digital nomads and entrepreneurs’ communities. The members of these groups meet up frequently and support each other to settle down faster and easier. These communities are packed with diverse members from different parts of the world, giving the new digital nomads in Cyprus a chance to get to know other cultures.
Also, check Cyprus Digital Nomads Facebook Group
8. Choosing Your City in Cyprus
Every city of Cyprus has its personality and way of living. It is up to the digital nomads in Cyprus to pick a city to settle than and operate. Here is some quick information about each city:
- Larnaca: the wine capital of Cyprus, is also the finest place to sample the delectable flavors of rich Cypriot cuisine and unusual Mediterranean delights. Cyprus’ international airport is located in Larnaca and the considered to have a nice balance of everything among all island’s cities.
- Nicosia: Nicosia, Cyprus’ capital, was named one of Europe’s top 20 most refined places to live in. It provides a fascinating combination of country and city life, steeped in history and rich cultural traditions.
- Limassol: Limassol, known as Cyprus’s commercial and entertainment hub, has many options for businesses and job seekers. It is regarded as a city with everything, including adventure, history, opportunity, romance, and much more.
- Paphos: the favorite destination amongst British immigrants, and it hosts the largest community of ex-pats. For seven years in a row, it was voted one of the best cities of Cyprus live in, and in 2007, Paphos garnered the title of Europe’s cultural city.
Cyprus' New Digital Nomad Visa Program
As part of the recent news in 2021, Cyprus has announced its new Digital Nomad Visa Program starting from January 2022.
Applicants who are employed, self-employed, or freelancers can get permits issued for one year with the option to renew for another two years.
Holders of the Digital Nomad Visa must earn at least €3,500 per month, have medical insurance, and have a clean criminal record.
The digital nomads in Cyprus should prove their income by the employment agreement or other relevant proof and a bank account.
In the case of having family members. The income amount is increased by 20% if there is a spouse/civil partner and by 15% for each child.
As mentioned at the beginning of this article, if you want to live as a digital nomad in Cyprus, you are making an excellent choice to pick Cyprus as your destination. The geographical benefits and the straightforward procedure of starting a business in Cyprus are there for you to take advantage of.