Combining sun, sea and stability, Cyprus is carving out a name for itself as a base for digital nomads, who can enjoy tax benefits and a Mediterranean lifestyle as they work remotely.
“Cyprus is emerging as a prime destination for digital nomads and remote workers,” says Pambos Sergiou, Partner at PwC Cyprus. “It offers favourable conditions for mid-level earners, along with the development of vibrant, supportive communities tailored to this group.”
Growing momentum
Cyprus’ Digital Nomad Visa scheme, launched in 2021, is gaining steady traction. Over a three-year period, 500 visas were issued to remote professionals. Following a short suspension, the scheme has now reopened with an additional 500 spots available, he specifies.
The scheme is designed to attract nationals from non-EU and non-EEA countries, allowing them to reside in Cyprus while providing services, primarily in the field of information technology to clients or companies based abroad.
Its broader aim is to strengthen Cyprus’s position as a hub for electronic service provision. By combining this with the island’s many other advantages, the scheme seeks to attract digital nomads in a way that supports the growth of the local business ecosystem and contributes to the country’s overall economic development.
According to Sergiou, demand remains strong, reflecting the island’s growing popularity among a globally mobile workforce. “We anticipate that all the new permits will be taken up,” he notes. “The interest is clearly there.”
Technology-driven community
According to Philokypros Roussounides, general secretary of Cyprus’ Chamber of Commerce, the Digital Nomad Visa is popular with nationals from Russia, Israel, Belarus, Ukraine and the UK.
Although official demographic data is limited, the trend is clear: most digital nomads and remote professionals choosing Cyprus are engaged in the technology sector.
“There is a blend of foreign experts in the IT and forex sector, which creates a trend in Cyprus as more individuals are now looking to these professions.”
In turn, this also raises the bar and quality for local staff working or eyeing the industry, Roussounides explains.
“To the best of our knowledge, the majority are working in tech-related fields, whether software development, fintech, digital marketing, or consultancy,” says Sergiou.
This concentration of talent is fostering communities and networks that further enhance Cyprus’s appeal. The result is a self-reinforcing cycle that is helping to solidify the country’s position on the global remote work map.
Tackling challenges
While the advantages are evident, not all is rosy, Roussounides stipulates. There are challenges that come with the influx of digital nomads, he explains, which includes increased demand for accommodation, spiking up rent prices for rent - to the tune of 15% to 20%, making it far less affordable for locals.
Additionally, there needs to be a broader vision for digital nomads. “We need to strengthen public transport, the health infrastructure, schooling system, so that when they arrive, they can receive all these services.”
A plan needs to be in place to create a more centralised information access point, and possibly even creating a digital nomad zone where these individuals could live, so as not to affect rent for locals.
Competitive edge
A key factor drawing remote workers to Cyprus is its highly favourable tax regime. Through a variety of incentives, the system rewards both individuals and businesses who choose to relocate to the island.
“Individuals can benefit from personal income tax exemptions of up to 50% for salaries above €55,000, as well as the non-domicile regime, which provides tax exemptions on dividends and capital gains,” explains Sergiou. “There are also attractive provisions for those who set up Cyprus-based companies.”
However, he is quick to point out that taxation alone isn’t the full story.
“Tax considerations are important, but what truly sets Cyprus apart is the lifestyle. We’re talking about a Mediterranean climate, strong healthcare and education systems, and a well-developed infrastructure that supports remote work. Add to that a growing ecosystem in tech and related sectors, and it’s clear why so many are making the move.”
According to Roussounides, the long-term residency of the digital nomads can allow Cyprus to build a name for itself as an innovation hub in tech, provided there is a strategy for it.
Growing numbers
While official figures remain limited, “anecdotal evidence” suggests that Cyprus continues to attract significant numbers of digital nomads and foreign executives as a base, Sergiou explains.
Since the launch of the Digital Nomad Visa scheme, the state has opened a total of 1,100 residence permits. Citing data from the Business Facilitation Unit, the presence of foreign companies on the island has also grown according to Sergiou. Specifically, 1,605 firms were registered in 2022, 286 in 2023, 465 in 2024, and 93 in the first quarter of 2025 alone.
“These numbers indicate real momentum. Cyprus is no longer just a lifestyle destination, it’s a serious professional hub.”
Navigating the system
While Cyprus offers an accessible business and personal environment, there are some bureaucratic hurdles newcomers may face, particularly when it comes to compliance procedures.
“New residents and investors may experience longer acceptance timelines with banks or professional services firms compared to other EU countries,” Sergiou notes. “This is largely due to the increased focus on regulatory compliance in recent years, but overall the system remains efficient and navigable with the right guidance.”