It is no secret that a large number of IT companies from the CIS have moved to Cyprus. At the moment, it is one of the largest IT hubs in the EU, because the low tax rate and similar culture have made it very attractive for our citizens.
Compared with other EU countries, Cyprus is also interesting due to low cost of living, the availability of Russian and Ukrainian-speaking schools, kindergartens and other institutions and organizations.
In 2020, Cyprus enacted legislative changes for companies of foreign interests (also called international business companies) that have simplified the process of employment of foreign employees in Cyprus.
The main criteria of IBC:
It is worth noting that in our case, obtaining this status in the civil registry and migration office will not be difficult.
Company registration in Cyprus
Opening a corporate account in a bank
Transfer to the account 220 000 EUR
At the same time 171,000 of this amount must be transferred from the account of the owner of the company in a foreign (non-Cypriot) bank to the account of a Cypriot company
Signing a lease agreement for office space
Preparation and signing of the employment contract between the employee and the employer
(with each employee)
Registration of the company in social funds, as an employer
Opening of a personal account in a Cypriot bank for the candidate (each) to obtain a work visa to Cyprus
Standard package of documents for obtaining a work permit:
If everything is collected correctly, then after the visit with the documents to the immigration office, you can immediately come out with a temporary permit, and in three months comes a residence permit card.
The employee will be tied to the company, if he/she quits and goes to work for another company in Cyprus, then he/she will need to resubmit documents (the list will be less in terms of documents to be submitted). But if he leaves the company and does not get employed anywhere, his work visa will be cancelled.
|Social security contribution||8,3%|
|GESY (health insurance)||2,65%|
|Personal income tax (Pay as much as you earn – PAYE)||Progressive scale, up to 19,500 per year not taxed, then by limits of 20%, 25%, 30% and 35%|
The minimum acceptable gross salary is 4,000 EUR and the maximum number of persons in this category is 5.
The minimum allowable gross salary is from 2,000 euros, and the maximum number of people for this category is 10.
The minimum gross wage for this category is 2,000 EUR. There is no hiring limit.
Currently, it takes 7 years to obtain citizenship, during which it is necessary to work and live in Cyprus (most of the time).
However, you should pay attention to the official plan of the state aimed at attracting foreign companies, among other things, it is planned that in the first quarter of 2022, the term of obtaining citizenship will be reduced to 5 years, and in cases where the applicant has a good knowledge of Greek language, down to 4 years.
✔️ What factors should I consider when planning a business or employee relocation?
Tax and legal aspects, infrastructure and accessibility, cost of living, language and cultural context, and employee training and adaptation should be considered when planning relocation.
✔️ What are the benefits of employee or business relocation?
Business relocation can provide access to a new market, reduce the tax burden or improve the conditions for company development. Relocating employees can attract talent, increase motivation and reduce salary costs.
✔️ What can be the challenges and risks of employee relocation?
Challenges may include administrative procedures, business interruptions, loss of customers or partners, and employees adapting to a new environment. Risks include changes in market conditions, unforeseen costs and failure to attract talent.
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