Author: Mr. Charalambos Papasavvas
Advocate – Legal Consultant
Managing Partner of PAPASAVVAS & LISKAVIDOU LLC
Founder of RELOTECH EXPERTS
Founder of NEOCOURSES INNOVATION CENTER
Eligibility and Work Permits
Once a company qualifies as eligible, it can submit applications to issue work permits for highly skilled employees from non-EU countries and their families. The work permits, valid for three years, are typically processed within one month of submitting the completed
application.
Hiring Limits for Non-EU Nationals
Eligible foreign companies are allowed to employ up to 70% of their total workforce as non-EU nationals, provided this percentage is reached over a five-year period, beginning January 1, 2022. The first evaluation of this requirement will occur on January 1, 2027.
Criteria for Highly Skilled Employees
Employees of foreign interest companies categorized as “highly skilled” can apply for a three-year residence permit if they meet the following conditions:
- They receive a minimum monthly salary of €2,500.
- They hold a university degree or an equivalent qualification, or have at least two
years of relevant work experience. - They have an employment contract valid for at least two years.
Family Reunification and Employment Rights
Eligible companies may also apply for residence permits for the family members of non-EU employees through the family reunification process. Spouses of non-EU employees working for these companies are granted unrestricted access to Cyprus’ labor market for paid
employment.
Employment of Support Staff
Companies may also hire non-EU nationals as support staff, provided they earn less than €2,500 per month. However, these support staff members must not exceed 30% of the company’s total support workforce. Employment contracts for this staff must be validated by
the competent authorities.
Tax Incentives for Employees
20% Tax Exemption
A 20% tax exemption on earnings, up to a maximum of €8,550 per year, is available for employees who were non-residents of Cyprus for at least three consecutive years and were employed by a non-Cypriot resident employer before moving to Cyprus. This exemption is
available for seven years, regardless of the tax residency status of the employer or employee.
50% Tax Exemption
A 50% tax exemption is available for employees with an annual salary of at least €55,000, provided they were non-Cypriot residents for 10 consecutive years prior to starting employment in Cyprus. This exemption is available for a period of 17 years. Employees who
began their first-time employment in Cyprus before January 1, 2022, may also be eligible for the 50% tax exemption, depending on specific criteria
