The Council of Ministers approved on October 15th 2021, the “Strategy for Attracting Businesses for Activities or/and Expansion of their Activities in Cyprus”.

The strategy includes a series of actions and reforms in several areas of intervention, aiming to enhance Cyprus position as an international high-growth business centre.

ELIGIBILITY CRITERIA

Eligible businesses must meet the following criteria:

1. Third-country shareholders should own the majority of the company’s shares.

OR

In cases where the percentage of foreign participation in the company’s share capital is equal to or less than 50% of the total share capital, in order for the company to be considered as eligible, then the foreign participation should represent an amount equal to or greater than the amount of € 200.000 as nominal capital.

OR

Companies that fulfill the following criteria:

• Public companies registered in any recognised stock exchange
• Cypriot shipping companies
• Cypriot high-tech/ innovative companies *
• Cypriot pharmaceutical companies or companies active in the sectors of biogenetics and biotechnology

AND

• The establishment/ operation of independent offices in Cyprus, in suitable premises, separate from any private housing or other office, except in the case of business co-habitation.

*An enterprise qualifies as “High Technology Company” if:

a) It’s already established and has a presence in the market, and

b) it has a high level or experimental R&D intensity, and

c) It developed product/s that fall into one of the following categories: product related to aviation and space industry, computers, electronic and telecommunication products, pharmaceuticals, biomedical, research and development equipment, electrical machinery, chemicals, non-electrical machinery.

CRITERIA FOR THE ISSUANCE OF WORK PERMITS FOR 3RD COUNTRY NATIONALS WORKING IN FOREIGN COMPANIES

(AS HIGH SKILLED WORKERS)

• Minimum gross monthly salary of at least €2,500
• University diploma or degree or equivalent qualification or confirmation of relevant experience in a corresponding job of at least 2 years duration.
• Employment contract of not less than two years duration.

Duration of residence and employment permits:

Up to 3 years (renewable)

Timeframe of issuance of residence and employment permits:

Within 1 month

Number of employees allowed:

Maximum number of third-country nationals is set at 70% of all employees over a period of 5 years. Re-assessment after 5 years, on a case by case basis, if criterion of 30% Cypriot employees is not met.

EMLOYMENT OF SUPPORT STAFF

Employment of third-country nationals is permitted, provided that it does not exceed 30% of all support staff and provided that the third-country national and the employer have entered into an employment contract duly ratified by the competent authority in accordance with the existing applicable law. The salary level is determined on the basis of the existing applicable legislation.

Duration of residence and employment permits Up to 3 years

FAMILY REUNIFICATION OF THIRD COUNTRY-NATIONALS

Immediate and free access to the labor market for spouses whose financial supporter has obtained a residence and work permit in the Republic, and who receive a minimum gross monthly salary of € 2,500 (excluding support staff).

TAX INCENTIVES

• Tax exemption of 50% to new non domicile employees with employment remuneration of €55,000 and above – period 10 years
• Tax exemption of 50% for existing non domicile employees with employment remuneration of €100,000 and above – extended period 17 years.
• Tax exemption of 50% for existing non domicile employees with employment remuneration between €55,000 & 100,000 – period 10 years.
• Examine the possibility of extending the 50% tax exemption for investment in certified innovative companies to corporate investors.

CITIZENSHIP

• Right to apply for citizenship after 5 years of residence and work in the Republic, instead of 7 that is valid today
• Further reduction to 4 years if the criterion of holding a recognized certificate of very good knowledge of the Greek language is met.

How can TOTALPRO help?

We can act as your single point of contact to set up your business, obtain residency permits for you and your family, and comply with all ongoing requirements:

• We can assist with the incorporation of the foreign interest company;
• Establishment of appropriate independent office, or shared office space services;
• Preparation of Employment Contracts;
• Medical Insurance;
• Assistance with the purchase/rent of residential property;
• Migration Applications from A to Z for the employees as well as their families;
• Registration to Social Insurance;
• Registration to Tax Authority.