To qualify for the 50 per cent income tax exemption on employment income under amended section 8(23A), an individual must meet the following conditions:

• Not have been a Cyprus tax resident for at least fifteen consecutive tax years before the year of commencement of first employment in Cyprus
• Have an annual remuneration exceeding €55,000, achievable within the first or second year of employment in Cyprus
• Started first employment in Cyprus from 1 January 2022 and onwards

The exemption is available for up to seventeen tax years starting from the year of commencing first employment in Cyprus.

Under the amended section 8(23A) of the Income Tax Law, an individual is considered to have "first employment in Cyprus" when, for the first time, after a period of fifteen consecutive tax years during which that person did not perform any salaried services in Cyprus, starts performing salaried services in Cyprus either for an employer resident in Cyprus or for an employer not resident in Cyprus.

Individuals who exercise their employment in Cyprus should consider the guidelines provided under the Circular when examining their eligibility.

Circular 4/2024 (available only in Greek) can be found here.