Work Cyprus

To be employed in the Republic of Cyprus, citizens of third countries need to obtain a work permit and the corresponding residence permit.

Categories of employment

- Agriculture and livestock: Employers need to obtain permission to hire workers from third countries from the Department of Labor.

- Seasonal workers: Similarly, permission is required from the Department of Labor.

- Domestic staff: Employers must meet specific criteria assessed by the Department of Civil Registry and Migration.

- Companies with foreign participation: Approval is required from the Business Facilitation Unit of the Ministry of Energy, Commerce, and Industry.

Permission obtaining procedure

1: Employer’s permission: The employer submits an application to the relevant authority (e.g., Department of Labor) to obtain permission to hire a foreign worker.

2: Application for a residence permit: After obtaining permission, the worker applies for a temporary residence permit with the right to work at the Department of Civil Registry and Migration.

Required documents:

- For the employer:

Completed application form.

Proof of lack of suitable candidates among Cypriot or EU citizens.

Employment contract approved by the Department of Labor.

- For the worker:

Valid passport (at least 2 years validity).

Health insurance.

Criminal record certificate from the country of origin.

Medical certificates proving the absence of certain diseases.

Proof of accommodation in Cyprus.

Receipt for the payment of the state fee.

Duration and extension

- Validity period: Usually, the permit is issued for 1 year with the possibility of extension.

- Extension: An application for renewal should be submitted at least a month before the current permit expires.

Additional information

Changing employers: The worker can only work for the employer specified in the permit. To change employers, a new permit must be obtained.

Family members: In some cases, family members may get a residence permit, but they do not always have the right to work.

For the most up-to-date information, it is recommended to visit the official website of the Department of Civil Registry and Migration of the Republic of Cyprus.

European Union citizens

Freedom of movement and employment: EU citizens have the right to freely move and work in any Union country, including Cyprus. For this, you need to register with the migration service within three months of entry and obtain a registration certificate known as the "Yellow Slip".

Restrictions on certain positions: Some positions, especially in the public sector, may only be available to Cypriot citizens. For example, only citizens of the Republic of Cyprus are accepted into the public service.

Citizens of third countries

Need for a work permit: Citizens of third countries are required to obtain an official permit to work in Cyprus. This includes obtaining a work visa and a residence permit with the right to work.

Employment Process

Employer: A company wishing to hire a third-country citizen must prove that they could not find a suitable candidate among Cypriot or EU citizens. Only then can they employ workers from third countries.

Company requirements: Companies with foreign participation wishing to hire third-country nationals must meet certain requirements, including financial stability and having an office space in Cyprus.

Employee quotas: There are restrictions on the number of foreign employees in a company. For instance, support staff from third countries should not exceed 30% of the total number of employees.

General Provisions

Social guarantees: All workers, regardless of citizenship, have the right to equal working conditions and social guarantees in accordance with Cyprus legislation.

Taxation: Foreign workers are required to pay taxes following the Cypriot tax legislation.

For the most up-to-date information, it is recommended to refer to official sources, such as the Department of Civil Registry and Migration of the Republic of Cyprus.

Online Resources

Job Portals: There are many websites where employers post open positions. It is recommended to regularly check these resources and subscribe to notifications about new job openings.

International and specialized platforms: LinkedIn, EURES, Glassdoor, Indeed, Monster.

Local sites: Cyprus Jobs, Ergodotisi, Kariera, JobsCyprus.

Hotel and restaurant job sites: Hospitality Jobs Cyprus, HotelJobs.

Newspapers and local resources: Cyprus Mail, In Cyprus.

Public Employment Services

Public services offer assistance in job searching, including consultations and access to a job database. Contact a local branch for registration and support.

Recruitment Agencies

Many agencies specialize in staff recruitment for Cypriot companies: GRS Recruitment, StaffMatters Recruitment, WorkForce Cyprus. Contact them, provide your resume, and discuss potential employment opportunities.

Direct Contact with Employers

Identify companies of interest and visit their official websites. Many organizations publish vacancies directly on their resources.

Even if there are no open positions currently, sending a resume and cover letter can be beneficial. Employers often keep such applications for future opportunities.

Professional Associations 

Participating in events: Attending professional seminars, conferences, and exhibitions helps expand network contacts and may lead to job offers.

Association membership: Joining professional associations of your profile in Cyprus may give access to exclusive jobs and resources.

Educational Institutions and Internships

Universities and colleges: Many educational institutions have career centers that assist students and alumni in finding jobs and internships.

Internships: Completing an internship can be a great way to gain experience and establish connections with potential employers.

Language Skills

English: Widely used in business and service sectors. Proficiency in English at a good level is a significant advantage when job searching.

Greek: Is the official language of Cyprus. Knowing Greek increases employment chances, especially in sectors aimed at the local population.

Qualification and Experience

Education: Having a diploma confirming the relevant qualification is particularly important for high-skilled positions. In some cases, diploma recognition may be required.

Work experience: Practical experience in the relevant field increases a candidate’s competitiveness.

Specific skills: Certain professions require specialized skills or certificates.

Legal Status and Work Permit

EU citizens: Have the right to work in Cyprus without a special permit but must register with migration authorities and obtain a registration certificate.

Third-country citizens: Must obtain a work visa and a work permit.

Other requirements:

Medical checks: Certificates confirming the absence of certain diseases may be required.

Certificate of no criminal record: In some cases, confirmation of a clean criminal record is required.

Financial stability of the employer: The employer must be able to ensure payment of wages not lower than the industry average.

Skilled labor

Information Technology: High demand for programmers of various specializations, mobile app developers, and cybersecurity specialists.

Financial sector: Bank employees, financiers, accountants, and auditors are needed.

Medical field: Doctors, nurses, and other medical specialists are in demand.

Education: Teachers and specialists in the education sector, especially those with work experience and relevant qualifications.

Jurisprudence: Lawyers and legal specialists, especially with international experience.

Unskilled labor

Tourism and hospitality: Waitstaff, bartenders, housekeepers, animators, and other service industry employees.

Agriculture: Workers for seasonal agricultural work, including harvesting and plant care.

Construction: Laborers, masons, carpenters, and other building trades specialists.

Retail trade: Salespeople, cashiers, and warehouse staff.

Cleaning and janitorial services: Personnel for cleaning offices, homes, and public buildings.

State pension system

Mandatory social insurance: All working individuals, including the self-employed, are required to participate in the social insurance system by making regular contributions that ensure the right to receive a state pension.

Retirement age: The standard retirement age in Cyprus is 65. However, there is an option for early retirement at 63, provided there is sufficient insurance coverage.

Amount of pension: The size of the state pension depends on the amount of contributions and the length of insurance coverage. The minimum required coverage for a pension is 15 years.

Private pension plans

Supplementary pension schemes: Many employers offer their employees participation in private pension plans that supplement the state pension and provide a higher level of income post-retirement.

Individual pension plans: Financial institutions offer various pension products that allow individuals to save independently for retirement.

Taxation of pensions

Taxation of local pensions: Pension payments received by Cyprus residents are subject to taxation according to local laws. There are certain tax benefits and deductions for pensioners.

Taxation of foreign pensions: Pensions received from abroad are also taxed in Cyprus; however, double taxation agreements concluded between Cyprus and other countries may apply.

Pension provision for foreign citizens

EU citizens: European Union citizens working in Cyprus have the right to participate in the Cypriot pension system under the same conditions as Cypriot citizens. Their pension rights can be transferred between EU countries in accordance with European legislation.

Non-EU citizens: Foreign workers from non-EU countries are also required to join Cyprus's social insurance system, which grants them the right to receive a pension under the established conditions.

For the most up-to-date information, it is recommended to refer to official sources, such as the Ministry of Finance of Cyprus and the Social Insurance Department.

Pension insurance

State pension: Mandatory participation for all working individuals, including the self-employed. Contributions are made to the Social Insurance Fund, ensuring the right to a pension upon reaching retirement age.

Medical insurance

State healthcare system: All residents of Cyprus are required to participate in this system, which provides access to medical services. Contributions are collected from the incomes of employees, employers, and self-employed persons.

Unemployment Insurance

Unemployment Benefit: Provided to individuals who have lost their job through no fault of their own, subject to meeting certain criteria, including a minimum contribution period.

Health and Maternity Insurance

Sickness Benefit: Paid to insured individuals in the case of temporary incapacity due to illness.

Maternity Benefit: Provided to women during maternity leave under established conditions.

Insurance against Occupational Accidents and Occupational Diseases

Compensation: Paid to workers who have been injured in the workplace or suffer from occupational diseases.

Disability Insurance

Disability Benefit: Provided to individuals recognized as incapacitated due to disability, subject to certain criteria.

Survivor's Pension Insurance

Survivor's Pension: Paid to dependents in the event of the insured person's death.

Social Assistance

Minimum Guaranteed Income: Provided to individuals and families with low income to ensure basic needs are met.

Participation in the social insurance system is mandatory for all working individuals in Cyprus, including foreign nationals working in the country. Contributions are typically deducted from salaries and supplemented by employer contributions. The amount of contributions and the conditions for receiving benefits are regulated by the legislation of the Republic of Cyprus.

For the most current information, it is recommended to contact official sources such as the Ministry of Finance of Cyprus and the Department of Social Insurance.

Dismissals

Probationary Period: The minimum probationary period is 6 months and may be extended by agreement of the parties up to 2 years. During this period, the employment contract may be terminated without prior notice and explanation.

Notice of Dismissal: After the probationary period, the employer is obliged to notify the employee of the upcoming dismissal depending on the length of service:

From 6 to 12 months: 1 week.

From 1 to 2 years: 2 weeks.

From 2 to 5 years: 4 weeks.

From 5 to 10 years: 6 weeks.

More than 10 years: 8 weeks.

Restrictions on Dismissal: Notice of dismissal should not coincide with periods of annual leave or maternity leave. Furthermore, the employer cannot dismiss an employee during official sick leave if its duration does not exceed 12 months.

Leaves

Annual Paid Leave: Employees are entitled to a minimum of 4 weeks of paid leave per year:

For a 5-day workweek: 20 working days.

For a 6-day workweek: 24 working days.

Leave may be replaced with monetary compensation only in the case of termination of employment relations.

Maternity Leave: Women are entitled to 18 weeks of maternity leave, of which 11 weeks must be taken during the period starting 2 weeks before the expected date of childbirth.

Parental Leave: Each parent is entitled to unpaid parental leave of up to 18 weeks for each child under 8 years old.

Sick Leave: Paid sick leave is provided from the 4th day of incapacity and is covered by social insurance. Employees must provide a medical certificate within 48 hours from the start of the sick leave.

Public Holidays

Cyprus has 14 official public holidays, during which employees are entitled to a paid day off:

January 1: New Year's Day.

January 6: Epiphany.

The first Monday of Lent: Clean Monday.

March 25: Greek Independence Day.

April 1: National Day.

Good Friday: Friday before Easter.

Easter Monday: Monday after Easter.

May 1: Labor Day.

Monday of the Holy Spirit: Monday after Pentecost.

August 15: Dormition of the Theotokos.

October 1: Cyprus Independence Day.

October 28: Ochi Day.

December 25: Christmas.

December 26: Boxing Day (St. Stephen's Day).

If an employee works on a public holiday, the pay should be increased in accordance with labor legislation or collective agreements.

To obtain the most up-to-date information, it is recommended to refer to official sources such as the Ministry of Labour and Social Insurance of Cyprus.

Main professional unions in Cyprus

Pancyprian Federation of Labour: One of the largest and oldest unions representing a wide range of workers across various industries.

Cyprus Workers Confederation: A leading union organization actively participating in collective bargaining and the protection of labor rights.

Democratic Labour Federation of Cyprus: A union focused on promoting decent working conditions, equality, and social values.

Pancyprian Public Servants Organization: Represents the interests of public sector employees, ensuring the protection of their rights and interests.

Role and benefits of professional unions

- Collective bargaining: Unions negotiate with employers to conclude collective labor agreements that establish working conditions, salaries, and social guarantees.

- Protection of workers' rights: Provide legal support and advice to members in case of labor disputes or violations of rights.

- Training and development: Organize upskilling and training programs to enhance workers' professional skills.

- Social support: Provide various forms of social assistance, including support in cases of unemployment or difficult life situations.

- Participation in legislative initiatives: Actively participate in the development and promotion of labor legislation aimed at improving working conditions and social protection.

Membership in a professional union provides workers with access to collective support and resources that can significantly improve their workplace position and ensure the protection of their rights.

For additional information and to join a union, it is recommended to contact the respective organization directly or visit their official websites.

Company registration

Types of companies: The most common form is a private limited company. Public companies, partnerships, and branches of foreign companies can also be registered.

Taxation

Corporate tax: The corporate tax rate is 12.5%, which is one of the lowest in the European Union.

Value-added tax: The standard VAT rate is 19%, with reduced rates of 9% and 5% for certain goods and services.

Double taxation agreements: Cyprus has agreements with more than 60 countries, facilitating international trade and investment.

Accounting and audit

Financial reporting: Companies are required to maintain accounting records in accordance with International Financial Reporting Standards.

Audit: An annual audit is mandatory for all companies, regardless of size.

Labor legislation

Labor contracts: Must comply with national standards, including minimum wages for certain professions, working hours, and conditions.

Social insurance: Employers are required to make contributions for their employees to the Social Insurance Fund.

Licensing and permits

Specific industries: Some activities require special licenses or permits, such as in financial services, construction, or healthcare.

Banking services

Opening a bank account: Requires the submission of the company's incorporation documents, information about beneficial owners, and proof of business activity.

Investment opportunities and incentives

Support programs: The Cypriot government offers various programs and incentives for investors, including grants and tax benefits in specific sectors.

Legal system

English common law: The legal system of Cyprus is based on English common law, providing predictability and transparency in business conduct.

Geographical location and infrastructure

Strategic location: Cyprus is located at the crossroads of Europe, Asia, and Africa, making it a convenient hub for international trade.

Developed Infrastructure: Modern telecommunications, transport, and banking system contribute to effective business management.

Considering these features, Cyprus offers favorable conditions for entrepreneurial activity, combining advantageous taxation, strategic location, and developed infrastructure.

For more detailed information, it is recommended to refer to official sources such as the Ministry of Energy, Commerce, and Industry of Cyprus, as well as professional consultants in the field of law and taxation.