How to open a company and relocate your employees to Cyprus
Many companies, including global giants, are actively “moving” their offices and relocating employees to Cyprus due to the advantages of the tax system, high-quality infrastructure, affordable ways to obtain a residence permit and the high standard of living, medicine and education. Foreign citizens have the right to establish an international company in Cyprus, which can employ citizens of non-EU countries. Such a company may obtain work permits for eligible employees and residence permits for them and their family members. As of 1 January 2022, Cyprus has a new policy for the employment of employees from third countries and the issuance of work permits has been significantly simplified. This initiative aims to attract foreign investment and talented workforce to the country. Companies Of Foreign Interests have the right to invite employees to work with the citizenship of third countries that are not part of the European Union.
Сompanies of foreign interests
Cyprus Companies Of Foreign Interests – are companies duly registered in the Republic of Cyprus, the majority of shares of which are owned by non-EU nationals and represent a capital of at least €200,000, which must be transferred to the company’s accounts from outside Cyprus. Companies of this type allow employees and their family members to obtain residence and work permits on preferential terms.
At the same time, maximum quotas for foreign personnel have been abolished. Companies are free to recruit any number of highly paid third-country nationals without having to confirm that there are no suitable candidates among European Union and Cypriot nationals for a particular position.
However, all companies commit to invest 30% of their total staff in Cypriots/EU citizens over a period of five years. In five years, that is after 2.1.2027, the ratio for new hires will be checked. If a company does not adhere to the 70/30 ratio, the case will be evaluated on its own merits and put before the management for an administrative decision.
The official website of the Department of Civil Registration and Migration states that before a Cypriot company with a foreign interest is allowed to employ non-EU citizens, the company must first register with the Business Facilitation Unit (BFU). Next, the company must be approved by the Migration Department as a company with foreign interest.
The BFU will check whether companies are eligible and will grant them a written confirmation of their registration at the new Register of Foreign Interest Companies. The registration will be submitted to the Department for the purpose of issuing residence and employment permits.
Employer criteria: which companies are considered companies with foreign interests?
The shareholder’s share in the authorized capital must be at least 200,000 euros;
In the case where third-country shareholders do not own a majority of the company’s shares (i.e. equal to or less than 50%), the minimum contribution of foreign shareholders must be at least 200,000 euros. This is a key factor determining a company with foreign participation in Cyprus.
In both cases described above, the company may alternatively provide proof of investment of €200,000 for the purposes of running its business in Cyprus (e.g. office premises, office equipment, etc.).
The company must operate from offices in Cyprus. Coworking spaces or shared offices are permitted. If the nature of the company’s business allows employees to work from home and an office will not be needed, such cases will be considered individually and may be approved.
Obtaining a residence permit in Cyprus through employment
In accordance with special provisions for Cypriot companies with foreign interest, foreigners can be employed in a company in Cyprus as Director and department heads, senior and middle management personnel, project managers and other specialists.
Criteria for employees
Employees are entitled to obtain a residence and work permit in Cyprus subject to the following conditions:
Receiving a minimum gross monthly salary of €2500. It is noted that third-country nationals who already hold residence and employment permits at the BCS Key Personnel level of companies of foreign interests, with a monthly gross salary of €2000 or more, will continue, for the next 5 years – until 31.12.2026, to renew their residence permit at the same employer without an increasing their payroll.
Possession of relevant academic qualifications or at least two years of relevant experience to the position to be filled.
Possession of an employment contract of at least two years’ duration. Even if the application is submitted for a one-year permit, the contract must have a duration and corresponding stamp duties for 2 years.
What is the validity period of the residence permit for employees?
The validity period of the permit depends on the duration of the employment contract and can be up to three years in a row.
The maximum duration of stay of a third-country national working in a company with foreign interests applies without any time limit, provided that he has a valid temporary residence and work permit.
Advantages of a Cyprus company with foreign interest for the founder and for employees:
Employment of employees. Companies can hire employees from third countries and are not required to prove that there are no suitable candidates among EU and Cypriot citizens.
Residence permit and work permit. Third country nationals have the right to obtain residence and work permits in Cyprus.
Family reunification. Employees have the right to family reunification so that their family joins them and also resides in Cyprus.
Reduction of income tax. Remunerations of employees whose first employment in Cyprus began from 1 January 2022 onwards are 50% exempt from income tax for 17 years (starting from the month of employment) if their annual remuneration exceeds €55,000. Read more: Tax system of Cyprus
Tax exemption. The first €19,500 of annual income is not subject to income tax.
Simplified naturalization. On November 30, 2023, the “Law on granting citizenship in an accelerated manner to highly qualified foreign specialists” was approved. According to which, highly paid specialists from third countries working in Cyprus can obtain citizenship after just 4 or 5 years of residence on the island, proficient in Greek at level A2 or B1. This provides additional opportunities for the rapid naturalization of foreign professionals in Cyprus.
Our company's Cypriot lawyers will provide you with legal support and advice on issues related to business, taxation and immigration status in Cyprus, providing you with the necessary information.
Our services include:
Assistance in choosing the right tax regime
Legal support for registering a company with foreign capital
Providing a legal address, secretary, nominee service
Registration with tax authorities
Relocation of employees and support in obtaining work and residence permits in Cyprus
Elena Georghiou – Founder and Managing Director of Feod Group. Has two higher educations: the first at the Odessa State Polytechnic University, majoring in automation and computer engineering (1986) and second in the Moscow State Law Academy, majoring in law (1991). Has work experience in London i...
Elena Georghiou – Founder and Managing Director of Feod Group. Has two higher educations: the first at the Odessa State Polytechnic University, majoring in automation and computer engineering (1986) and second in the Moscow State Law Academy, majoring in law (1991). Has work experience in London immigration law firms. Is a regular participant in seminars and trainings on immigration, corporate and private law of the European Union. Elena Georghiou has more than 25 years of legal experience and heads the specialized Residency and Citizenship practice across European countries, UK and USA advising HNWIs and their families on:
immigration planning;
consultations on obtaining alternative (second) citizenship;
Residency and Citizenship by Investment;
business immigration;
preparation of appeals, working with complex immigration cases.
She advises individuals and corporate clients for wealth/business structuring and assets protection. Central to her Managerial role in the company she initiated and united high level lawyers and other top professionals around the word in order to provide Feod Group clients with bespoke level of legal and business services word wide, keeping the staff focused on the opportunities and challenges faced by each individual client. Speaks Russian, Ukrainian, English.
Since 1992, Feod Group has been providing a wide range of legal, business and immigration services in Europe, the USA and other countries of the world.
The company has accredited western lawyers, experts in various fields of law and jurisdictions of the world.
Having offices in Europe and the USA, Feod Group provides rapid paperwork and maximum customer comfort.
We provide our clients with related services, such as relocation and adaptation abroad, organizing family relocation abroad, enrollment of children in schools and many other services.
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