In recent years, Cyprus has introduced a series of forward-looking tax incentives aimed at attracting and retaining high-caliber professionals and innovative businesses. Among the most significant are the revised Articles 8(23A) and 8(21A) of the Cyprus Income Tax Law, both of which provide substantial tax relief for individuals relocating to Cyprus for employment purposes.

Whether you are a business looking to attract top talent or an individual considering moving to Cyprus for work, understanding these provisions can offer meaningful financial advantages.

What is Article 8(23A): 50% Tax Exemption for High Earners

Article 8(23A), introduced in 2022, provides a 50% income tax exemption for individuals who meet certain criteria. This provision is designed to attract experienced professionals with high earning potential to Cyprus.

Key Features:

• 50% tax exemption on employment income.
• Applies to individuals with annual remuneration exceeding €55,000.
• The exemption is valid for 17 years from the year of employment commencement.
• Applies to new residents, whose employment commenced after 1 January 2022 and provided they were not Cyprus tax residents for at least 15 consecutive years prior to their employment in Cyprus.

Who Can Benefit?

This incentive targets highly paid professionals, executives, and skilled individuals who are relocating to Cyprus for employment.

What is Article 8(21A): 20% Exemption for Mid-Income Professionals

Article 8(21A) is aimed at attracting professionals whose earnings fall into a more moderate bracket.

Key Features:

• Provides a 20% income tax exemption, or €8,550 per year (whichever is lower).
• Applies to individuals earning below €55,000 per annum.
• Valid for a 7-year period, starting from the year of employment.
• Available to individuals whose employment commenced after 26 July 2022 up until the year 2027 and who for a period of 3 consecutive years prior to the commencement of the employment, were employed outside Cyprus by a non Cypriot employer.

Who Can Benefit?

This incentive is designed for young professionals, digital nomads, and skilled workers looking to establish their careers in Cyprus and enjoy a competitive tax environment.

Can You Combine the Two Incentives?

No, Articles 8(23A) and 8(21A) are mutually exclusive. If an individual qualifies for both, they must choose one of the two based on their income level and the expected duration of stay in Cyprus.

Why These Incentives Matter

These provisions align with Cyprus’s strategy to position itself as a regional hub for international businesses and talent. With a favorable tax regime, modern infrastructure, and a high quality of life, Cyprus is increasingly attractive to global professionals and companies alike.

For employers, these incentives mean easier access to a global talent pool, and for employees, they represent a significant boost in net income.

How Can We Help?

At Panpro Ltd, we assist individuals and employers in assessing eligibility and navigating the process for these tax exemptions. Whether you’re relocating to Cyprus or hiring talent from abroad, we ensure you take full advantage of the tax incentives available.

📩 Contact us today to discuss how you or your team can benefit from Articles 8(23A) or 8(21A).