Digital Nomads ...
Digital Nomads Eye Cyprus as Remote-Work Destination – Visa Scheme Reopens with Fresh Momentum
The island of Cyprus is increasingly positioning itself as a hub for remote-working professionals, thanks to the re-opening of its Digital Nomad Visa Scheme. The scheme targets non-EU / non-EEA nationals, allowing them to reside in Cyprus while providing services remotely to companies or clients abroad. Experts say this initiative dovetails with Cyprus’s ambition to become more than a sun-and-sea lifestyle location: it aims to be a professional base for tech, fintech, IT-services and remote work more broadly.
The programme originally launched in 2021, and after a short suspension the government has now reopened it and made around 500 new spots available. According to the article, demand is strong, particularly among nationals of Russia, Israel, Belarus, Ukraine and the UK. The fact that the scheme is popular with foreign professionals engaged in sectors such as software development, digital marketing, fintech and consultancy is highlighted.
In terms of benefits, Cyprus offers favourable tax treatment: for example, mid-level earners and foreign professionals can exploit incentives, including personal income tax exemptions (for salaries above a threshold) and non-domicile regimes that exclude dividends and capital gains under certain conditions. The localisation of foreign professionals helps to stimulate the local business ecosystem, create technology-led clusters and strengthen the island’s global remote-work appeal.
From a local business-ecosystem perspective, the presence of foreign professionals is feeding into a rise in technology-driven firms registering in Cyprus. Data cited shows that 1,605 firms were registered in 2022, 286 in 2023, 465 in 2024, and 93 in the first quarter of 2025 , signalling growing momentum (though the article notes caveats over the full data).
This development is notable for several reasons:
Strategic pivoting: Cyprus has long relied on tourism, hospitality and real-estate as inputs to its economy. The digital-nomad visa scheme signals a strategic pivot toward knowledge-economy sectors and remote-work friendly infrastructure. If successful, this can diversify the economic base.
Lifestyle plus work competitive advantage: The combination of Mediterranean lifestyle (sun, sea, climate, safety) with favourable tax and business conditions gives Cyprus a credible appeal for remote professionals. Many locations worldwide compete for similar talent; Cyprus appears to be offering a differentiated package.
Ecosystem implications: While the visa scheme brings in talent, the more critical question is whether Cyprus can retain and integrate this talent into local ecosystems (startups, R&D, local employment) rather than just serve as a base for remote work for overseas clients. The data on rising company registrations is encouraging, but we should monitor the quality and longevity of those firms.
Risks and caveats: Attracting digital nomads is not without its challenges. Among them: infrastructure (internet, coworking space, regulatory ease), integration (legal, tax residency, social inclusion), and ensuring there is enough local value-added rather than turning into a passive “remote address.” There is also a question of scale and sustainability: 500 new spots is modest; the bigger question is whether Cyprus will scale this over years and build the related supporting ecosystem (e.g., venture capital, incubator networks, tech talent pipelines).
Broader signal: The move suggests that smaller EU nations are increasingly competing for mobile professionals and remote-work talent, which may shift traditional talent flows , especially post-Covid. Cyprus is tapping that trend.
In my view, this is a smart move by Cyprus, well-timed. If the government backs it with matching investment in infrastructure (broadband, coworking, digital services), regulatory clarity and talent retention policies, then the island could emerge as one of Europe's more attractive remote-work hubs. For businesses or tech professionals looking for a Mediterranean base with access to Europe and a favourable tax environment, Cyprus merits serious consideration
Market Cyprus - News Service
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