Companies of Foreign Interests in Cyprus and the employment of Third Country Nationals. Essential Information You Should Be Aware Of!
A company registered in Cyprus is permitted to hire nationals from third countries, as long as specific conditions and requirements are met.
Eligibility criteria of a Company to employ third country nationals:
For a Cyprus company to qualify for hiring third country nationals, it must also register as a Company of Foreign Interests through the Cyprus Business Facilitation Unit (BFU) by covering the following:
- Majority share: The majority ownership of the company’s shares must be held by shareholders from a third country. (e.g. third-country shareholder/s collectively possess a nominal capital share of 50% plus (+)).
- Initial investment of €200,000: The ultimate beneficial owner (UBO) is required to deposit €200,000 into an account held by the company at a credit institution authorized by the Central Bank.
- Alternatively, the company may demonstrate proof of an investment amounting to €200,000 intended for business operations in Cyprus (such as purchasing an office, acquiring office equipment, etc.).
- Minority share: If the percentage of a company’s shares owned by a national from a third country is equal to or less than 50%, the company may still qualify, provided that the foreign investment amounts to at least €200,000; this is in addition to the initial investment of €200,000 mentioned previously.
- The company is required to furnish evidence of the office where business activities are conducted. The address provided must reflect a physical site where the business operations occur, as opposed to the address of the company’s registered office. Therefore, the Ultimate Beneficial Owner (UBO) is obligated to either purchase or lease the premises from which the business will be conducted.
Criteria for third country nationals seeking employment with a Company of Foreign Interests and acquiring the ‘Temporary Residence and Employment Permit’:
A national from a third country is permitted to work and live in Cyprus as long as they are employed by a company with foreign interests and meet the following requirements:
- Employment contract stipulating a minimum monthly salary of €2500 gross, with a required employment duration of minimum two years.
- Candidates must demonstrate possession of pertinent academic qualifications and/or relevant professional experience of no less than two years in the same job role.
- Clear Criminal Record from the country of residence.
- The potential employee must possess either a title deed or a rental agreement for a house or apartment located in Cyprus.
Residence and Employment Permit Duration
The duration of the mentioned residence and employment permit is up to a maximum of three (3) years, with the possibility of renewal either with the same employer or with a different one.
Family Members
This permit can also benefit the employee’s family members.
- Third country nationals working for companies with foreign interests are entitled to exercise their right to family reunification. In this context, third country nationals who are family members (including spouses and minor children) may enter and reside in Cyprus once the sponsor has completed the family reunification procedure.
- Family reunification refers to the entry and residence in the Republic of Cyprus of family members of a third-country national who is already legally residing in Cyprus (the sponsor), aimed at preserving family unity, irrespective of whether the family connections were established prior to or following the sponsor’s entry.
- Spouses or partners in civil unions of employees at companies with foreign interests enjoy unrestricted access to paid employment, meaning that a sealed contract from the Department of Labour is not necessary for their employment in a Cypriot company, as long as the legislative requirements for obtaining a single employment permit are satisfied. However, such spouses or partners in civil unions do not have the right to engage in self-employment.
The Golden Knowledge Programme, an expedited Naturalization process designed for third country nationals who are employed by a ‘Company of Foreign Interests’:
Under this program, a national from a third country can apply for expedited – fast-track citizenship after fulfilling a specific period of continuous legal residence in Cyprus, as long as they possess a temporary residence and employment permit through their employment with a company of foreign interests.
The required duration of continuous residence varies from 3 to 4 years, depending on the employee’s proficiency in the Greek language, specifically at levels A2 or B1.
Consideration
A third country national A national from a third country who wishes to invest and reside in Cyprus can choose to do so by setting up their own company classified as a foreign interest. Afterward, they can secure employment within that company to obtain a temporary residence and employment permit. Additionally, if the third country national sustains continuous residence for 3 to 4 years, they may be eligible to apply for citizenship in the future.
Evagoras Anastasiou Law Firm Evagoras Anastasiou Law Firm provides an extensive array of legal services concerning relocation and immigration issues for both employers (companies) and employees (individuals). We are committed to facilitating a seamless transition for you and your family in Cyprus.
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