Cyprus: Offshore Legal and Tax Regimes
Tax Treatment of Foreign Employees of Offshore Operations
This section refers to the taxation of foreign employees of offshore operations, see Income Tax for the general principles of individual taxation in Cyprus, which also apply to the resident employees of offshore entities.
Salaries from services provided from outside Cyprus for more than 90 days to a non Cypriot resident employer or in the permanent establishment of a Cypriot resident employer are not taxed in Cyprus.
Expatriate employees who at the start of their employment were non-residents of Cyprus, for the first three years of their employment will be exempted from tax on 20% of their salary or CY£5,000 (prior to the introduction of the Euro in Cyprus) whichever is the lowest.