Digital Nomad Visa in Cyprus for Non-EU Citizens

Digital Nomad Visa: как стать цифровым кочевником на Кипре?
1 June 2022 Vlad Yazykov
2071

What is a Digital Nomad Visa program in Cyprus?

The Digital Nomad Visa (DNV) is a document that allows to reside in the country to those who work online and pay taxes for their work in another country. In the early 2020s, as the number of online jobs increased worldwide, the European Union introduced a number of business initiatives for third-country immigrants who do not want or cannot live where their main employer is located.

In the spring of 2021, Nicos Anastasiades started talking about Digital Nomad Visa and other "digital" innovations as part of a New Plan to restore and offset losses in the tourism market. It was then that the government considered and approved the possibility of introducing DNV for those foreigners working remotely who are not yet planning or generally not going to get a permanent residence permit, but want to live in Cyprus for a while, renting or buying local real estate. At the same time, DNV recipients can count on a reduction in the naturalization period.

Digital Nomad Visa can be obtained by hired remote employees of digital companies, self-employed in IT and digital spheres, startups, freelance employees. The visas of the first Cypriot "digital nomads" are valid for a year with the possibility of extension. Visa documents are considered for up to three weeks — much faster than for a visitor residence permit.

DNV also allows the relocation of the worker's dependents. The minimum income of a digital nomad who wants to get a visa should be from 3.5 thousand euros per month, it is also necessary to have housing for the entire stay and full medical insurance.

Additional incentives under the new investment program are as follows:

  1. Creation of a new department of Business Facilitation Unit for interaction with businessmen from the field of innovation and high technology (including for issuing licenses and permits).
  2. The mechanism of simplified employment in Cyprus for highly qualified specialists with a minimum wage of 2.5 thousand euros and a signed employment contract for at least 2 years (in addition, they must have at least 2 years of relevant work experience or a diploma of specialized higher education).
  3. When registering employees under the new rules with a digital visa, foreign companies must have a Cyprus office, operate in specific industries: shipping, pharmaceuticals, biotechnology and biogenetics.
  4. Working in Cyprus as a highly qualified foreign cadre, they get the opportunity to send Cypriot social contributions to the social fund of their country.
Important! A foreign organization in Cyprus gets the opportunity to attract employees from third countries if the number of foreign workers in the company's staff is less than 70% in the last 5 years (so 30% should be Cypriots). As for the support staff, the ratio is the opposite: at least 70% should be citizens of Cyprus, 30% can be foreigners.

Who can use this program?

Digital nomad is a category of migrants with growing popularity. They are mobile, have good purchasing power, and are the personification of innovative opportunities and talents.

The category of digital nomads includes citizens of countries outside the EU or the EEA if:

  1. They can perform work remotely using telecommunication technologies.
  2. They are hired employees, self-employed persons, owners of innovative companies, freelance employees of ICT enterprises.
  3. They can prove that they have a stable and sufficient monthly net income of at least 3.5 thousand euros (after deducting contributions and taxes).

Advantages of a digital Nomad in Cyprus

Persons who have received a Cyprus Digital Nomad Visa have the following advantages:

  1. They can reside for a year in Cyprus with the possibility of extending this period.
  2. Their family members can stay on the island for the same period, without the right to employment or economic activity in Cyprus.
  3. If a digital nomad resides in the Republic of Cyprus for one or more periods, which in total exceed 183 days during one tax year, then they are considered tax residents of Cyprus, provided that they are not tax residents of any other country.

The main incentives of Digital Nomad Visa are:

  1. Simplification of the process of opening ICT companies.
  2. A less complicated process of obtaining residence permits for the heads of ICT organizations.
  3. The possibility to apply for a Cyprus passport in 5 years (or even in 4 years with a sufficient level of Greek language proficiency).
  4. 50% exemption from income tax for a period of 10 years at a salary level of over 55 thousand euros per year (if additional criteria are met).
  5. Extension of some tax benefits for employees up to 17 years.

Benefits for Digital Nomad Family Members

  1. Family members of a Digital Nomad Visa recipient can reside in Cyprus for the same period as the visa main holder, without the right to work or carry out any economic activity in Cyprus.
  2. The family members are a spouse/partner in a civil union and minor children.
  3. Family members also need to obtain a temporary residence permit in accordance with the procedure given below.

Procedure for obtaining a Digital Nomad Visa

Step 1. Entry to Cyprus

Step 2. Applying for a residence permit

  1. Within 3 months after arrival, the applicant must submit an application to the Department of Civil Registry and Migration Department to obtain a residence permit, paying the appropriate fees.
  2. If the applicant legally resides in Cyprus under a different status, they have the right to apply for a residence permit as a digital nomad at the Department of Civil Registration and Migration in Nicosia.
  3. Applications can be submitted in person or through an authorized representative.
  4. Applications that are not accompanied by all the necessary documents will not be accepted for consideration.
  5. Any changes to the applicant's data during the examination of the application should be immediately notified to the Department.
  6. The amount of the relevant fees indicated below is paid for submitting the application.
  7. The applicant must indicate in the application the type of their employment (self-employment or work for an employer registered abroad) and confirm their monthly net income.
  8. All necessary documents must be attached to the application, and biometric data (photo and fingerprints), as well as the applicant's signature, will be taken when submitting it. From persons under the age of six years at the time of filing the application, only a photo is submitted. These data are also taken into account when extending a temporary residence permit.
Important! The period for obtaining a residence permit under such a program is only 5-7 weeks, which is very fast compared to other options offered by Cyprus.

Fees

  1. Issuance or extension of a temporary residence permit: 70 euros.
  2. Registration in the Department (only in cases of initial registration): 70 euros.

Application review time

The period of consideration of the application is from 5 to 7 weeks.

The validity period of the temporary residence permit

The first temporary residence permit is issued for a period of one year. In case of extension, a temporary residence permit is issued for a period of no more than two years.

Application and accompanying documents

The application form (MVIS4) and the lists of documents that must accompany the application of the digital nomad and their family members.

To summarize

Cyprus has been creating favorable conditions for holding companies and corporations for several decades, including through favorable Double taxation Avoidance Agreements and low tax rates.

Since January 1, innovative companies in the field of artificial intelligence, technology and research have received serious privileges, including thanks to the special Cyprus intellectual property regime with an effective tax rate of 2.5%. It is also obvious that there is an increase in interest from virtual asset (crypto) service providers who need a transparent regulatory environment for stable operation (the Securities Commission has already announced new directives for crypto businesses within the framework of AML requirements).

Have you decided to buy an apartment or a house in Cyprus? Contact DOM! The website has a huge selection of real estate — residential and commercial. Experienced agency specialists will be happy to help you make the right choice.

See also:

  1. Quotas for obtaining Cyprus citizenship
  2. Buying real estate in Cyprus for cryptocurrency
  3. Permanent residence in Cyprus - permanent residence permit through real estate investments
  4. Buyer's Acceptance of New Apartment in Cyprus
  5. Real estate for yachtsmen in Cyprus
  6. Rent to buy scheme in Cyprus: myth or reality?
Source: DOM
Photos: pixabay.com
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