Employing in Cyprus

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Enter the Cypriot market without the requirement of opening a local entity.

Expanding into
Cyprus

Global expansion is a step to make for any business, regardless of what you wish to achieve. The opportunities that can come with an expansion can be both incredibly exciting as well as intimidating and confusing, especially when you consider all of the registration procedures that needs to be done and documentation required.

Bell Tower, Early Christian Basilica of Chrysopolitissa, Paphos, Cyprus
Bell Tower, Early Christian Basilica of Chrysopolitissa, Paphos, Cyprus

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Expanding to countries such as Cyprus – which is characterized by a highly-skilled and productive workforce, complex employment and tax laws, an infrastructure network linking to the rest of Europe Asia and the Middle East, and leading sectors in ICT, tourism, shipping, energy, industry, construction, and agriculture – can bring both excitement to the possibilities, but also significant stress to ensuring the entity with the country’s rigorous legal structures and laws.

Ensuring compliance without the sufficient knowledge of the country’s laws also adds to the stress of getting your new entity off the ground and ready to test new markets. Going at it without the proper support can increase the costs, time and risks involved.

Each new markets bring new challenges, and these can be worked through more efficiently and cost-effectively with the support of an International Professional Employer Organization (PEO) such as Bradford Jacobs, especially through our Employer of Record (EOR) framework.

This can be best utilized when businesses are just beginning their expansion process and require more information before committing to incorporating an entity and fully establishing themselves in that market.

Country EOR Guide - Bradford Jacobs

Download our Guide to Cyprus

Learn all about expanding into Cyprus and see what we can do to make your expansion easier.

Download our Guide to Cyprus

Learn all about expanding into Cyprus and see what we can do to make your expansion easier.

Country EOR Guide - Bradford Jacobs

Hiring Staff
in Cyprus

Hiring Staff
in Cyprus

The Main Sectors of the Cyprus Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

The nation’s industrial and manufacturing sector has in recent years witnessed a gradual decline as the services sector continues rising. Manufacturing accounts for about 6% of the country’s GDP. The sector also employs about 9% of the nation’s labor force.

Some of the main products manufactured in the country include textiles, food, and beverages, pharmaceuticals, machinery, and equipment.

This sub-sector forms part of the dominant services sector and offers a wide range of individual services including company registration, finance, insurance, ship management, soliciting, accounting, auditing and more. This sub-sector contributes approximately 9% of total employment.
The agricultural sector together with forestry and fisheries account for about 1.94% of the country’s GDP. The sector has witnessed a considerable decline due to the steady development of other sectors of the economy. The sector, however, is still crucial as it employed an estimated 2.41% of the nation’s labor force. Agriculture takes up about 13.5% of the country’s land.
In 2020, total turnover of the broad construction sector was EUR 4.9 billion, contributing an estimate of 6.3% of overall gross value added. Pre-pandemic, the number of workers employed by this sector stood at approximately 32,731 people.
This sub-sector forms part of the dominant services sector and offers a wide range of individual services including company registration, finance, insurance, ship management, soliciting, accounting, auditing and more. This sub-sector contributes approximately 9% of total employment.

The Main Sectors of the Cyprus Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

Panorama of Paphos at night, Cyprus
The nation’s industrial and manufacturing sector has in recent years witnessed a gradual decline as the services sector continues rising. Manufacturing accounts for about 6% of the country’s GDP. The sector also employs about 9% of the nation’s labor force.

Some of the main products manufactured in the country include textiles, food, and beverages, pharmaceuticals, machinery, and equipment.

This sub-sector forms part of the dominant services sector and offers a wide range of individual services including company registration, finance, insurance, ship management, soliciting, accounting, auditing and more. This sub-sector contributes approximately 9% of total employment.
The agricultural sector together with forestry and fisheries account for about 1.94% of the country’s GDP. The sector has witnessed a considerable decline due to the steady development of other sectors of the economy. The sector, however, is still crucial as it employed an estimated 2.41% of the nation’s labor force. Agriculture takes up about 13.5% of the country’s land.
In 2020, total turnover of the broad construction sector was EUR 4.9 billion, contributing an estimate of 6.3% of overall gross value added. Pre-pandemic, the number of workers employed by this sector stood at approximately 32,731 people.
This sub-sector forms part of the dominant services sector and offers a wide range of individual services including company registration, finance, insurance, ship management, soliciting, accounting, auditing and more. This sub-sector contributes approximately 9% of total employment.

Commercial Laws in
Cyprus

  • Cyprus Tax Department – The Department ensures the consistent application of the laws, ensuring fair taxation in a way that enhances the confidence of the taxpayer, the minimization of tax evasion and the effective collection of tax revenues of the state with the least possible cost.The Cyprus Tax Department is responsible for the implementation of the Laws on Direct and Indirect (VAT) Taxation, the collection of government revenues deriving from these Laws, the implementation of Double Tax Agreements between the Republic of Cyprus and other countries, and the Exchange of Information on Tax Matters on the basis of European Directives and other International Conventions.
  • The Department of Labor – a part of the Ministry of Labor, Welfare and Social Insurance of the Republic of Cyprus, is responsible for issues of employment, including equality between men and women. It is also responsible for the promotion and implementation of Government policy in the fields of employment and training of human resources, as well as for the care of persons with disabilities.

For more information on compliance highlights in Cyprus Download Our Cyprus Country Guide…

In Cyprus, employment agreements are determined in written employment contracts, although it is not mandatory by law.

In Cyprus, an employment contract is not required to be concluded in writing, but the law does oblige the employer to provide the employee with an agreement that must be signed by both parties, and include specific information regarding the terms of their employment:

  • Personal/contact information about both parties
  • The place of work and the registered address of the business
  • The position or specialization of the employee
  • The commencement date of the contract and its duration (if fixed-term contract)
  • Notice periods
  • Annual leave entitlement
  • All payments which the employee may be entitled to and the time schedule for their payment
  • Working times for the employee’s working days and weeks
  • Application of collective agreements, if applicable

For more information on labour contracts law in Cyprus Download Our Cyprus Country Guide…

A person is eligible to pay taxes in Cyprus if they are registered as a local employee or self-employed individual and is taxed on their individual income. If you are a non-resident in Cyprus, you are only subject to paying taxes on your income derived in Cyprus, as the country benefits from a double taxation treaty.

Eligibility for tax also depends on an individual’s residency status in the country. According to tax laws, an individual is classed as a tax resident if any of the following criteria are met:

  • An individual resides in Cyprus for at least 183 days in a tax year.
  • If the individual does not stay in any other country for more than 183 days in a tax year, is not a tax resident in any other country and stays in the Cyprus for at least 60 days.
  • Exercises business in Cyprus, is employed in Cyprus and/or holds an office with a Cyprus tax resident.

Maintains a permanent home (by owning or leasing) in Cyprus.

For more information on tax contributions and benefits in Cyprus Download Our Cyprus Country Guide…

Commercial Laws in Cyprus

The ancient stones and columns are the preserved parts of the Aphrodite sanctuary in Kouklia, Cyprus.
  • Cyprus Tax Department – The Department ensures the consistent application of the laws, ensuring fair taxation in a way that enhances the confidence of the taxpayer, the minimization of tax evasion and the effective collection of tax revenues of the state with the least possible cost.The Cyprus Tax Department is responsible for the implementation of the Laws on Direct and Indirect (VAT) Taxation, the collection of government revenues deriving from these Laws, the implementation of Double Tax Agreements between the Republic of Cyprus and other countries, and the Exchange of Information on Tax Matters on the basis of European Directives and other International Conventions.
  • The Department of Labor – a part of the Ministry of Labor, Welfare and Social Insurance of the Republic of Cyprus, is responsible for issues of employment, including equality between men and women. It is also responsible for the promotion and implementation of Government policy in the fields of employment and training of human resources, as well as for the care of persons with disabilities.

For more information on compliance highlights in Cyprus Download Our Cyprus Country Guide…

In Cyprus, employment agreements are determined in written employment contracts, although it is not mandatory by law.

In Cyprus, an employment contract is not required to be concluded in writing, but the law does oblige the employer to provide the employee with an agreement that must be signed by both parties, and include specific information regarding the terms of their employment:

  • Personal/contact information about both parties
  • The place of work and the registered address of the business
  • The position or specialization of the employee
  • The commencement date of the contract and its duration (if fixed-term contract)
  • Notice periods
  • Annual leave entitlement
  • All payments which the employee may be entitled to and the time schedule for their payment
  • Working times for the employee’s working days and weeks
  • Application of collective agreements, if applicable

For more information on labour contracts law in Cyprus Download Our Cyprus Country Guide…

A person is eligible to pay taxes in Cyprus if they are registered as a local employee or self-employed individual and is taxed on their individual income. If you are a non-resident in Cyprus, you are only subject to paying taxes on your income derived in Cyprus, as the country benefits from a double taxation treaty.

Eligibility for tax also depends on an individual’s residency status in the country. According to tax laws, an individual is classed as a tax resident if any of the following criteria are met:

  • An individual resides in Cyprus for at least 183 days in a tax year.
  • If the individual does not stay in any other country for more than 183 days in a tax year, is not a tax resident in any other country and stays in the Cyprus for at least 60 days.
  • Exercises business in Cyprus, is employed in Cyprus and/or holds an office with a Cyprus tax resident.

Maintains a permanent home (by owning or leasing) in Cyprus.

For more information on tax contributions and benefits in Cyprus Download Our Cyprus Country Guide…

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