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Cyprus boasts one of the most favorable tax systems in Europe, offering numerous advantages to both individuals and legal entities that establish tax residency on the island. The influx of foreign capital significantly benefits the Cypriot economy, with many foreign investors relocating their business activities to Cyprus to capitalize on its low corporate tax rate of 12.5%, among the lowest in Europe. Investors can further reduce their effective tax rate to as low as 2.5% through notional interest deductions on new capital, while those dealing with Intellectual Property products benefit from the IP box regime. Additionally, individuals who become tax residents of Cyprus enjoy various tax benefits. For example, non-domiciled tax residents are exempt from income tax on dividend income, a primary income source for foreign investors, and from the Special Defence Levy for 17 years, which stands at 17% for Cypriots. Pensions from abroad are taxed at just 5% for amounts exceeding €3,420. Clearly, Cyprus offers substantial tax advantages that are hard to find in other European countries. However, there is an urgent need to modernize and holistically reform the tax system. A modern tax system must address several challenges: it should be fair, fiscally neutral, technologically progressive, and environmentally conscious, while adhering to new EU directives and OECD global rules. The anticipated tax reform should aim to maintain or enhance current incentives for foreign investors, ensuring Cyprus remains an attractive destination without depriving the economy of crucial tax revenues. Issues like digitization, profit transfers, and corporate tax base erosion also need to be tackled. Additionally, low-income earners and vulnerable groups, such as state pensioners and large families, should be considered. Raising the tax-free threshold to €25,000 would provide much-needed relief. Introducing taxes on environmental fees and pollutants could significantly contribute to addressing the environmental challenges faced by authorities. The role of the country’s financial authorities and legislative body is crucial in this reform process. They must draft the necessary legislation while assessing and mitigating any potential negative impacts on the economy.

Croatia has emerged as a prime destination for digital nomads, especially since pioneering Europe’s first Digital Nomad Visa (DNV) back in 2020, when many countries were still hesitant towards such initiatives. With its stunning beaches, relaxed lifestyle, and Mediterranean ambiance, Croatia has become a magnet for remote workers seeking a blend of work and leisure. However, the surge in popularity has driven up living costs significantly, influenced by Croatia’s adoption of the Euro and its shift away from Eastern European price standards. Forget the bustling and increasingly expensive destinations like Dubrovnik and Hvar, reminiscent of St. Tropez. For digital nomads, here are the top 4 most desirable cities to live in Croatia: Rijeka As Croatia’s third-largest city, Rijeka boasts a vibrant seaport with a strong Italian heritage. Its Old Town is adorned with Venetian-style buildings, a medieval cathedral, and an ancient Roman castle atop a hill. Rijeka is renowned for its work-friendly cafes, including the popular expat haunt Priroda i društvo, and offers a lively social scene typical of its youthful, university town atmosphere. It’s also more budget-friendly compared to the overcrowded Dalmatian coast, with living costs averaging $1,667 per month, excellent safety ratings, and a multicultural environment where English and Italian are widely spoken. Osijek Located near Croatia’s border with Serbia in the Slavonian region, Osijek is a cultural hub blending a laid-back town vibe with historical richness. Its Austria-Hungary-era Old Town features Croatia’s grandest Neo-Gothic cathedral, the Church of St Peter and St Paul, and a top-tier Museum of Slavonia. Osijek offers ample green spaces and car-free zones, ideal for relaxation after work. Living expenses here are notably lower, averaging $1,303 per month, covering accommodation and dining costs, making it an attractive “workcation” destination away from the Adriatic crowds. Cavtat In the serene Dubrovnik-Neretva County, Cavtat stands out as a quiet fishing village and a hidden gem away from the bustling Dubrovnik. With its tranquil marina and turquoise Adriatic views, Cavtat offers a peaceful retreat, especially in the evenings when day-trippers disperse. Although less equipped for long-term stays compared to larger cities, Cavtat offers affordable month-long Airbnb rentals, averaging $1,964 monthly, providing a picturesque setting for remote work amid Dalmatia’s charm. Zagreb As Croatia’s capital, Zagreb offers a vibrant urban experience distinct from the coastal regions. Known for its dynamic nightlife, modern skyscrapers, and a wealth of coworking spaces, Zagreb is a cultural hub with a walkable Old Town featuring unique museums and a towering medieval cathedral. Despite lacking coastal access, Zagreb attracts nomads interested in Croatian culture and social life, offering a more economical option than Dalmatian Croatia, with an average monthly cost of $1,644.

In this article, we explore the five easiest countries in Europe to get permanent residency without the need for investment. For a more detailed analysis, check out the 15 Easiest Countries to get Permanent Residency in Europe Without Investment. 5. Norway – **Labor Market Mobility:** 85 – **Family Reunion:** 58 – **Permanent Residence Certainty:** 71 – **Average Score:** 71.3 To qualify for permanent residency in Norway, EU/EEA citizens and their family members can apply after living in the country for at least five years. Non-European citizens must maintain valid residence permits for at least three years. Additionally, individuals aged 16 to 64 must pass exams in the Norwegian language and social studies. 4. Estonia – **Labor Market Mobility:** 69 – **Family Reunion:** 76 – **Permanent Residence Certainty:** 77 – **Average Score:** 74 Non-EU/EEA/Swiss nationals planning to stay in Estonia for over a year can apply for a temporary residence permit, which takes about two to three months to process. This permit allows them to live, work, and study in Estonia for up to five years. To qualify for permanent residency, they must have lived in Estonia for five years with a temporary permit, have valid health insurance, legal income, knowledge of Estonian culture and language (B1 level), and a registered address in Estonia’s population register. 3. Sweden – **Labor Market Mobility:** 91 – **Family Reunion:** 71 – **Permanent Residence Certainty:** 90 – **Average Score:** 84 Applicants with a residence permit in Sweden can apply for permanent residency after residing in the country for a certain period, usually at least four years. They must also demonstrate financial self-sufficiency and lead an orderly life. 2. Portugal – **Labor Market Mobility:** 94 – **Family Reunion:** 87 – **Permanent Residence Certainty:** 71 – **Average Score:** 84 Non-European immigrants must first obtain a temporary residence permit and live continuously in Portugal for five years. This permit allows indefinite residence and work in Portugal, given certain criteria are met, such as having a place of residence, financial stability, and basic Portuguese language knowledge. After five years, they can apply for permanent residency and potentially pursue Portuguese citizenship. 1. Finland – **Labor Market Mobility:** 91 – **Family Reunion:** 67 – **Permanent Residence Certainty:** 96 – **Average Score:** 84.6 To be eligible for permanent residency in Finland, one must have resided continuously in the country for four years with an uninterrupted residence permit (A permit). This means maintaining a continuous residence permit for the entire period and applying for extensions before the current permit expires. Additionally, applicants must have lived in Finland for at least two years within the last four years.