Once an eligible company has been registered, it can proceed with the submission of applications for the issuance of work permits for highly skilled employees from non-EU countries and their families. These work permits will be issued within one month from the date of the submission of the completed application documents and will be valid for a period of 3 years.
To further ease the employment of non-EU staff, eligible foreign companies are allowed to hire a maximum of 70% of non-EU citizens as their total number of employees. However, this limit must be achieved over a period of 5 years, from the date of the enactment of the new regulations (i.e., 1/1/2022). The first evaluation of this condition will be undertaken on 1/1/2027.
Employees of foreign interest companies are now titled “high skilled employees” and they can apply for residence permit for up to 3 years given that:
- They will be paid a minimum gross monthly salary of at least €2,500.
- They hold a university diploma or degree or equivalent qualification or confirmation of relevant experience in a corresponding job of at least 2 years duration.
- They have an employment contract of not less than two years duration.
Additionally, eligible companies provide an opportunity for family members of non-EU citizens working for them to apply for residence permits in Cyprus under the family reunification process. Spouses of non-EU citizens employed by eligible companies are entitled to unrestricted access to Cyprus’ labour market for paid employment.
Moreover, the company can also employ third country nationals as support staff (with a gross monthly salary of less than €2500), given that the percentage of this staff will not exceed 30% of the total support staff. An employment contract between the third country national and the employer duly validated by the competent authority, will also have to be in place.
Two tax exemptions are available for employees commencing their first-time employment in Cyprus.
A 20% tax exemption is granted on remuneration, up to a maximum of €8,550 per annum, for employees who were not Cypriot residents for at least three consecutive years and were employed by a non-Cypriot resident employer prior to their employment in Cyprus. This exemption applies for seven years, regardless of the tax residency status of the employee or employer.
A 50% tax exemption is available for employees with an annual remuneration of at least €55,000 who were not Cypriot residents for 10 consecutive years prior to their employment in Cyprus. This exemption applies for 17 years. Employees who commenced their first-time employment before January 1, 2022, may also qualify for the 50% tax exemption, subject to certain eligibility criteria.
Our business relocation services include:
- Corporate set-up including legal, tax, accounting, audit and banking.
- Operational infrastructure.
- Residence and work permits for company personnel and family members.
- Identification and vetting of new premises.
- Legal & conveyancing for property rental or purchase.
Our team of lawyers know and understand the requirements needed in relocating an existing business to Cyprus. We will create the correct corporate structure to enable you to operate your business from Cyprus with full confidence and in the minimum time frame.