The Cyprus Government has revised and improved its existing policy for Companies wishing to transfer employees to Cyprus and employee Third Country (Non-EU) Nationals).

Under the new Government scheme which entered into force as of January 1, 2022, the Business Facilitation Unit (BFU) of the Ministry of Energy, Commerce and Industry in Cyprus is the responsible authority and the contact point for the applications of foreign companies wishing to expand their activities in Cyprus.

Companies that meet the eligibility requirements may employ up to 70% of their employees from Third Countries (Non-EU) without the approval of the Ministry of Labour.

Requirements for the Employer Company

• Eligible companies are Cyprus Companies where the majority of their shares is owned by third-country nationals (Non-EU).
• If the foreign participation in the share capital is equal to or below 50%, the company would still be eligible when this percentage represents an amount equal to or greater than the amount of €200,000.
• The Employer (Cyprus Company) needs to show evidence of an initial investment of at least €200,000 transferred from abroad and deposited in its accounts in a local bank in Cyprus.
• The funds should be inserted as Capital. For existing companies, previous injections of capital/transfer of funds may also be relied upon.
• Eligible Companies may employ highly skilled staff from Third Countries outside the EU without the approval of the Ministry of Labor.
• The Company should have an office in Cyprus, be up-to-date with its tax, compliance and regulatory filing obligations.
• Eligible companies are required by 2027 to employ at least 30% of their staff from within the EU.

Employees

• Employees of Companies under this new scheme should hold a university diploma or degree or equivalent qualification or certified relevant experience in a corresponding employment position of at least 2 years.
• The minimum gross monthly salary is set at €2,500 and the relevant employee should have a contract of employment with the Cyprus Company for a period of at least 2 years.
• Employees need to have a residence in Cyprus and valid Health Insurance. The Employer is also required to hold a valid Employer’s liability insurance in Cyprus.
• Family members of the Employee may also join him/her in Cyprus under the Family Reunification Process.

EU Nationals

The above restrictions do not apply to EU Nationals and their families who may freely work and live in Cyprus.

However, it is important to note that EU national employees also need to register with the Social Insurance Services, the General Health System and the Immigration Department and obtain the so-called Yellow Slip.

Looking to move to Cyprus? Get in touch with us at info@paraschou.com.cy.