Cyprus Gazettes Law Introducing Partial Income Tax Exemption for Nonresident Employees, Business Operators in Cyprus

The Cypriot Official Gazette March 6 published Law No. 17(I)/2026, amending the Income Tax Law. The law includes measures: 1) introducing a 25 percent individual income tax exemption on remuneration from employment or profits from business activities in Cyprus, capped at 25,000 euros (US$28,850) annually; 2) limiting the exemption to individuals beginning employment or business in Cyprus during 2025-2030, with annual income exceeding 30,000 euros (US$34,618), who weren’t Cyprus tax residents for the preceding seven years, and who meet specified prior residence, education, or overseas employment conditions; 3) applying the exemption in the year of commencement and the following six ...