Corporate Immigration in Cyprus

1. Legal framework 

1.1 Which legislative and regulatory provisions govern corporate immigration in your jurisdiction?

The immigration sector in Cyprus is regulated by a series of legislative instruments, the most prominent of which are:

• the Companies Law (Cap.113);
• the Law on the Right of Union citizens and their family members to move and reside freely within the territory of Cyprus (L.7(I)/2007);
• the Law on the Aliens and Immigration (Cap.105);
• the Aliens and Immigration Regulations of 1972. It should be noted that these regulations contain amendments to the Aliens and Immigration Law (Cap.105);
• the Aliens and Immigration (Visas) Regulations of 2004 (R.D.A.498/2004);
• the Law on the Immovable Property Acquisition (Aliens) (Cap.109);
• the Immovable Property Acquisition (Aliens) Regulations of 1972;
• the Immovable Property Acquisition by Aliens (Conditions, Limitations, Prerequisites and Criteria for the Granting of Permit) Regulations of 1990;
• the Law on Aliens and Immigration (Prerequisites for entrance and residence of third-country nationals for the purpose of research, studies, training, voluntary work, exchange of pupils or education programme) (L.7(I)/2019);
• the Law on the Immovable Property Acquisition (Aliens) (Cap.109);
• the Civil Registry Law (L.141(I)/2002);
• the Law on the Prevention and Combatting of Trafficking and Exploitation of Human Beings and Protection of Victims (60(I)/2014);
• the Directive 2003/109/EC concerning the status of third country nationals who are long-term residents (Long-term Residents Directive); and
• the Directive 2003/86/EC on the right of family reunification.

1.2 Do any special regimes apply in specific sectors?

On 02.02.2022, a new special regime for foreign businesses who wish to operate and expand their activities in Cyprus entered into force.

Through the newly established Business Facilitation Unit (BFU), the government is aiming for a real gamechanger for foreign companies wanting to be incorporated in Cyprus, by setting-up almost everything required for a new company, through one single governmental unit.

The new special scheme available for foreign businesses, provides among others the following:

• A single point of contact. At the BFU, a company could be registered, among others, with the Registrar of Companies, Social Insurance Services, Tax/ VAT Authorities and Civil Registry and Migration Department, all from a sole point of contact.
• Lower barriers of entry. A company is eligible to be registered only if the following are met:

A. 50% of its shareholding is owned by third country national. It should be noted that exceptions apply to the following sectors:

1. 1. listed companies on any recognised stock exchange;
   2. Cypriot Pharmaceutical Companies;
   3. Cypriot Shipping Companies;
   4. Former offshore companies,;
   5. Companies whose UBOs have acquired the Cypriot Citizenship by Investment;
   6. Cypriot Companies of high technology / innovation a company which the percentage of the foreign participation in the share capital of the company is equal or below 50% of the total share capital, provided that the percentage of the share capital represents an amount equal to or grater than the amount of Euro 200.000.

B. Operate from their independent offices in suitable premises.

• • Unlimited number of third-country national employees regardless of categorization. Pursuant to the previous scheme, foreign entities were allowed to apply through the fast-track procedure for only 5 Directors with monthly salary of at least €4,000 and 10 key-personnel with monthly salary of at least €2,000, now there are no limits regardless of their category (Director or Key-personnel). The only requirement is that in 5 years’ time, the company will need to prove that 30% of its total workforce are EU Nationals. If that is not the case, the government will examine it on a case-by-case basis. Additionally, the following requirement must be met:
  • Minimum gross monthly salary of €2500;
  • A university degree or diploma or equivalent qualification or credentials confirmation of relevant experience in a corresponding employment position of at least 2 years duration.
  • submit provision of an employment contract of not less than 2 years.
  • Duration of Temporary Residence Permits. The maximum duration of the Temporary Residence/Work Permits has been increased from 2 years to 3.
  • Free access to the labour market for IBC employees’ spouses (or legal equivalents). The previous scheme stated that IBC Employees had access to Family Reunification for their immediate family, as soon as their permit was issued. Their spouses were also allowed employment in eligible employers i.e., other registered IBC companies or companies that have the Labour Department’s approval to employ third-country nationals with a stamped Employment Contract, which was evidently a very lengthy process. With the new scheme, spouses, or legal equivalents, once they are registered as dependents of an IBC employee, can enjoy free access to employment in Cyprus, with any employer they see fit, as long as they fulfil the requirements of the position they are applying for.
  • An easier path towards Citizenship by Naturalization. With the new scheme, a new, more favourable process for Citizenship through Naturalization was teased and the government is in the process of amending the relevant law.

A second scheme available, is the provision of the Digital Nomad Visa for people who wish to live in Cyprus but work remotely in companies operating abroad. The visa will be granted for a period of twelve months, with the right to renew for another two years. The beneficiaries should have a salary of at least €3,500 euro per month, medical coverage and a clean criminal record.

1.3 Which government entities regulate immigration in your jurisdiction? What powers do they have?

The Ministry of Interiors though the Civil Registry and Migration Department and the district Immigration Units, in cooperation with the Labour Department belonging to the Ministry of Labour, Welfare and Social Insurance are the appropriate authorities which are handling almost all migration-related matters in Cyprus.

The Civil Registry and Migration Department though its immigration sector has the power to enforce any legislation and policies enacted by the Council of Ministers, the Minister of Interior and the Ministerial Committee for the Employment of Third Country Nationals. Particularly, the immigration sector is responsible for managing applications and issuing residence permits to third country nationals, that is, from countries outside the EU and the European Economic Area who are either in Cyprus or abroad at the time of the application. The immigration sector also deals with illegal migration, judicial applications, sham marriages and related matters. It is noted that, the above authorities provide the following services to the public through:

• Civil Registry and Migration Department central offices.

Civil registry is responsible for (i) maintaining an up-to-date civil registry; (ii) Granting Cypriot citizenship (iii) Delivering passports; (iv) Issuing documents to refugees; (v) maintaining the central registry of civil marriages; and (vi) issuing marriage certificates, birth certificates, voting booklets and death certificates whilst the Migration Department is responsible for (i) issuing residence permits to long-term residents; (ii) dealing with applications concerning family reunification and issuing the appropriate permit; (iii) issuing work permits to individuals who enter the country for employment (including domestic employment, employment at a foreign company and general employment); (iv) issuing residence permits to individuals for studying purposes in Cyprus; (v) dealing with applications from individuals intending to volunteer or carry out research; (vi) imposing administrative fines on employers who illegally hire students who are third country nationals without the appropriate permit, and on the illegal employees.

• Citizens’ “One Stop Shops”;
• District Administrations; and
• Aliens and Immigration District Units of the police.

1.4 What is the government’s general approach to immigration in your jurisdiction?

The Cyprus government general approach to immigration fully reflects the aims stipulated by EU parliament, namely to set up a balanced approach to managing regular immigration and provide incentives and support measures to promote the integration of legally resident third-country nationals.

Having said that, Cyprus governments have passed through the years numerous primary and secondary legislation to follow the needs of a constantly changing economy and to make Cyprus a friendly and easily accessible international business center for foreign businesses.

2. Business travel

2.1 Do business visitors need a visa to visit your jurisdiction? What restrictions and exemptions apply in this regard?

Generally, yes. However, Cyprus joined the EU in 2004 and citizens of all EU and EEA countries have since been free to enter, leave, travel, study, live and work in Cyprus. Therefore, no visa is required by any EU and EEA citizen.

Furthermore, no visa is required for certain categories of persons, including – among others – holders of diplomatic, service and/or special passports from certain countries and eligible flight crew members, crew of vessels and aircraft and crew of ships sailing in international waters.

2.2 Do the requirements vary depending on sector or purpose?

No. It should be noted that a business visitor who is coming from a third-country and this third-country is a country without visa-free entry to Cyprus, must apply (within reasonable time prior to

proposed date of travelling) for a business visa through a Cyprus embassy. Applicants must provide the embassy with evidence that they have been invited to Cyprus by a company or are participating in a business event, conference or seminar. Depending on the embassy’s workload, the visa will be issued within approximately 10 days.

2.3 What is the maximum stay allowed for business visitors?

The maximum period of stay in Cyprus for any business visitor may not exceed 90 days during any 180-day time period.

2.4 What activities are business visitors allowed to conduct while visiting your jurisdiction?

A business visitor – the holder of a business visa – can undertake any kind of work for the duration of his/her visa. For a stay of less than 90 days, the visa holder has the right to extend his/her stay in Cyprus up to a maximum of 90 days.

If a business visitor wishes to stay more than 90 days, he/she must apply for a work or temporary residence permit depending on the reason for the visit and extension. Further, the holder of a business visa can apply to the Ministry of Foreign Affairs to cancel the final stamp on their visa and therefore extend it for up to 90 days.

2.5 Is authorisation required for business visitors to provide or receive short-term training?

N/A

3. Work permits

3.1 What are the main types of work permit in your jurisdiction? What restrictions and exemptions apply in this regard?

The main types of work permit in Cyprus are the following:

1. Employment permit at an innovative start-up business;
2. Entry and Temporary Residence and Employment Permit;
3. Work permits for third-country nationals working in foreign companies; and
4. Cyprus digital nomad visa.

3.2 What is the maximum stay allowed under each type of work permit? Can this be extended?

The maximum duration which is allowed under:

1. the employment permit at an innovative start-up business is one year with the option of renewal for at least another year.
2. the Entry and Temporary Residence and Employment Permit is 4 years, with the exception of the livestock farming and agriculture sectors, where the maximum period has been set to 6 years. It should be noted that the following third country nationals are exempted from this limitation:

• • highly skilled personnel employed in companies with turnover of more than a million or hundreds of thousands euros and with activities within the priorities set for economic development,
  • athletes and coaches of individual or team sports,
  • religious icon painters (until the completion of a specific project),
  • journalists/ correspondents,
  • Syrian nationals of Cretan descent – Kurdish (approved catalogues),
  • Homogeneous third country nationals.

3. the Cyprus digital nomad visa is one year with the option of renewal for maximum two years.

It is of utmost important to note that the Work permits for third-country nationals working in foreign companies has no restrictions on length of time employed.

3.3 What criteria must be satisfied to obtain each kind of permit?

The criteria which must be satisfied are the following:

a. For the Employment permit at an innovative start-up business:

The applicant must be a non-EU country national who is the only founder and meets, has access to €20.000, which may include venture capital funding, crowdfunding or other sources of funding and has very good knowledge of the Greek and / or English language.

Furthermore, the enterprise must be innovative (i.e its research and development costs must represent at least 10% of its operating costs, in at least one of the three years preceding the submission of the application, as certified by an external auditor, based on international accounting standards).  In the case of a new enterprise without any financial history, the evaluation will be based on the Business Plan submitted by the applicant. The Business Plan must provide that the enterprise’s head offices and tax domicile be established in Cyprus. The head offices may be common co-working spaces (e.g. business accelerators, incubators, digital hubs etc.) or co-location with other enterprises.

b. For the Entry and Temporary Residence and Employment Permit;

c. Work permits for third-country nationals working in foreign companies;

See question 1.2 above

d. Cyprus digital nomad visa:

The applicant must be a national from non-EU and non-EEA countries, who can perform his/her work location-independently using telecommunications technology, to reside temporarily in Cyprus and work for an employer registered abroad or perform work through telecommunications technology for companies or clients located abroad. Further, the applicant must prove that he/she has stable and sufficient monthly net income of at least €3500 (after the deduction of contributions and taxes).

3.4 Do any language requirements apply for each kind of permit?

No.

3.5 Are any work permits subject to quotas?

No.

3.6 Do any specific rules apply with regard to the following:

a. Work in specific sectors?

Cyprus legislation makes provision for sector-specific categories which enable third-country nationals to be temporarily employed in Cyprus for the purpose of performing short-term work; such categories include general employees (admitted in sectors where there is need for support in the absence of local or European personnel), domestic workers, food handlers, athletes, coaches, livestock labourers, agriculture workers, priests, nurses, bartenders, creative artists, performing artists, creative supportive staff and the supporting staff of a performing artist. The rules, terms, conditions, as well as the volume of admission of third-country nationals to any such specific categories, are determined by the Council of Ministers considering and/or relying on the proposal of the Minister of Labour

b. Shortage occupations?

See question 3.6 (a) above.

c. Highly skilled workers?

High-skilled third country nationals may be entitled to apply for an EU blue card granting the right to enter (multiple entries), reside and work in Cyprus. It is up to the Council of Ministers of Cyprus to determine from time to time the volumes of admission of highly skilled employees, considering and/or relying on the proposal of the Minister of Labour, Welfare and Social Insurance.

d. Investors and high-net worth individuals?

Since the Cyprus Investment Program (CIP) was abolished in November 2020, the Cyprus Government revised the current investor’s immigration scheme which was initially introduced as a fast-track procedure for granting immigration permits to third country nationals who invest in Cyprus, provided that specific criteria are met.

According to the updated version of the Investor Scheme, a third country national must satisfy the following financial and qualitative criteria:

• • invest at least EUR300,000 in real estate either residential or commercial projects (from the primary market and under conditions from the secondary market), invest in the share capital of a Cyprus Company with activities in Cyprus of the value of EUR300,000 or invest the same or higher amount in Undertakings of Collective Investment in Cyprus (such as AIF, AIFLNP, RAIF);
  • prove that he/she has an insured annual income of at least EUR30,000 which derives from employment, pensions, dividends on shares rents and so on. This annual income must increase by EUR5,000 for each dependent family member and EUR8,000 for each dependent parent.
  • applicant and their spouse must submit a clean criminal record certificate from their country of residence or from the Cyprus if they reside there; and
  • in the cases of investment other than residential, the applicant must present information about their place of residence in Cyprus (for example, title deed, sale-purchase agreement, rental agreement).

3.7 What are the formal and documentary requirements for obtaining each kind of permit?

The formal and documentary requirements for each permit are the following:

a. Employment permit at an innovative start-up business;

An application form may be submitted either while the applicant (founder) is abroad or while he/she stays legally in the Republic. The application must be accompanied by a Business Plan indicating, inter alia, all the office locations the enterprise is planning to operate in Cyprus and how many employees the enterprise will recruit. Furthermore it must be accompanied by a short CV; proof of a very good knowledge of Greek or English language; a copy of a valid passport or other travel document of the applicant, with a validity covering at least two (2) years before the date of application; Bank account statements providing that the applicant has access to €20.000 and in the case of an existing enterprise, recent audited accounts.

b. Entry and Temporary Residence and Employment Permit;

An application “MGEN2” or “MNSP2” must be submitted for the issue of Entry and Temporary Residence and Employment Permit. The application must be submitted by the employer, to the Civil Registry and Migration Department through the appropriate District Office of the Aliens and Immigration Unit of the Police or at the Central Offices of the Civil Registry and Migration Department in Nicosia.

The application should be submitted along with the contract of employment certified by the Department of Labour of the Ministry of Employment and Social Insurances, which is the competent Department for securing that there are no Cypriots or citizens of Member States of the European Union, available or adequately qualified for the specific job or post prior to recommending the employment of third country nationals.

c. Work permits for third-country nationals working in foreign companies;

 See question 1.2 above

d. Cyprus digital nomad visa.

An application form (MVIS4) must be submitted at the Civil Registry and Migration Department accompanied with copy of valid passport or other travel document with validity of at least three (3) months from the date of the submission of the application, copy of passport or other travel document page that shows the last entry in the Republic, employment contract of indefinite duration or of at least equal duration to the requested residence permit, employer’s confirmation that the applicant can perform his/her duties remotely and that the project / work does not concern activity or provision of services to an employer registered in Cyprus, duly stamped copy of the company’s registration certificate abroad, stating the legal name, registered base, activity field and corporate purpose of the company, information on the status of the applicant in the company, Evidence that the applicant has sufficient and stable monthly living resources amounting to at least €3500, after the deduction of contributions and taxes, original Certificate of Criminal Record from the country of origin, original blood analysis results showing that the applicant does not bear/suffer from HIV, syphilis, hepatitis B and C and chest x-rays for tuberculosis (TB), duly certified by a specialized Doctor, certificate of Health Insurance for medical care that covers inpatient and outpatient care and transportation of corpse, and title deed or rental agreement of a house/apartment, duly stamped if valued over €5000. All documents accompanying application forms should be officially translated and duly certified/ ratified.

3.8 What fees are payable to obtain each kind of permit?

The fees associated with the submission and issuance of the any available permit are those related to the submission of its application. Ancillary costs with regards to certification, legalisation and translation of documents may also apply.

3.9 What is the process for obtaining a permit? How long does this typically take?

The process for obtaining the permits is as follows:

a. Employment permit at an innovative start-up business;

Step 1 submission of an application for the establishment of a startup (see question 3.7 aboe), Step 2 evaluation of the said application by the Ministry of Finance and issuance of the Notification of Initial Approval, Step 3 submission of an application for entry permit and Step 4 submission of an application for work and residence permit.

b. Entry and Temporary Residence and Employment Permit;

Third country nationals must proceed for registration at the appropriate District Office of the Aliens and Immigration Unit of the Police, or the Central Offices of the Civil Registry and Migration Department in Nicosia, within 7 days from the date of the arrival. When submitting the application, the physical presence of the third country national is required in order to receive his/her biometric features (fingerprints and photograph) and his/her signature, according to the legislation. If the application is submitted for an entry permit, after the granting of the entry permit and the arrival of the third country national in the Republic, he/she must register where the application was submitted within seven (7) days of his/her arrival and provide his/her biometric features (photo and fingerprint) and signature, according to the legislation

c. Work permits for third-country nationals working in foreign companies;

See question 1.2 above

d. Cyprus digital nomad visa.

Within 3 months of arrival, the applicant should submit the relevant application along with the required documents (see question 3.7) at the Civil Registry and Migration Department in Nicosia, after arranging an appointment through the online platform, to obtain a temporary residence permit.

3.10 Once a work permit has been obtained, what are the rights and obligations of the permit holder? What are the penalties in case of breach?

Upon issuance of the permit, the applicant must comply with all the conditions of the said permit. Failure to comply with the conditions of the said permit will be a sure cause of non-renewal. Furthermore, a possible breach of its terms may be a criminal offence resulting to, inter alia, the issuance of an order to leave the Republic.

4. Settlement

4.1 What are the criteria for obtaining settlement in your jurisdiction? What restrictions apply in this regard?

To apply for permanent residence, the applicant must have a minimum annual income of EUR10,000. A permanent residence permit will be given to applicants who can prove that they want to migrate to Cyprus. Applicants must convince the authorities that the applicant or their family will live in Cyprus for at least six months in a year (about 185 days).

Furthermore, foreign individuals can apply for a permanent residence permit in Cyprus if they:

• Category A: intend to invest in the agricultural, fishing or animal farming sectors, provided they have acquired the required land and they have capital available of about EUR430,000.
• Category B: intend to work as a self-employed person in the mining sector, provided that they have the minimum capital of at least EUR350,000; and the applicable mining permit.
• Category C: intend to work as a self-employed person in a trade or profession, provided they have the minimum capital of EUR260,000, the valid professional permit and a valid business permit from the authorities.
• Category D: intend to work as a self-employed person in a profession or science, in the Republic, provided they have the corresponding academic or professional qualifications for which there is a demand for such profession in Cyprus and that they are in possession of adequate funds to reside in Cyprus.
• Category E: have been offered permanent employment in Cyprus, which will not create undue local competition.
• Category F: have fully and freely at their disposal a secure annual income, high enough to give them a decent living in Cyprus, without having to engage in any business, trade or profession. The annual income required is a minimum of EUR9,568.17 for a single applicant and an additional EUR4,613.22 for every dependent person.

The fast-track procedure for obtaining a permanent residence permit has recently been revised by the Cypriot Government in an effort to encourage foreigners to invest in Cyprus. The applicant must meet a number of financial and qualitative criteria as follows

• The applicant must invest in real estate either residential or commercial in Cyprus of a value of at least EUR300,000. The property investment can be done from the primary market i.e., directly from the construction developer and under specific conditions from the secondary market (resale);
• The applicant must invest in the share capital of the Cyprus company with activities in Cyprus of the value of EUR300,000; or
• The applicant must invest the amount of EUR300,000 in Undertakings of Collective Investments in Cyprus (AIF, AIFLNP, RAIF).

The applicant must also show that he/she:

• Has a secure annual income of at least EUR30,000. This is increased by EUR5,000 for every dependent spouse or child, and by EUR8,000 for every dependent parent or parent-in-law. The income must derive from abroad and can include (but is not limited to) salaries from employment, pensions, dividends from shares, fixed deposits and rents.
• Submit a clean criminal record certificate from their country of residence or from the Republic (if applicable).
• Submit, a contract of sale or the title deeds to a property in his or her name (and the name of his or her spouse if appropriate) as a proof of residence (in the case of investments other than residential), which has been filed at the Department of Lands and Surveys, of a total market value of at least EUR300,000 (not including VAT) and official payment receipt of at least EUR200,000 (excluding VAT), irrespective of the delivery date of the property. The full payment of the property value must be made into an account at a bank or financial institution in Cyprus.
• Will visit Cyprus at least once every two years.

4.2 Do any specific rules apply to foreign citizens with ancestral connections?

No.

4.3 What are the formal and documentary requirements for obtaining settlement?

See question 4.1 above

4.4 What fees are payable to obtain settlement?

The fees associated with the submission of any of the above application and issuance of the relevant permanent residence are those related to the submission of its application. Ancillary costs with regards to certification, legalisation and translation of documents may also apply.

4.5 What is the process for obtaining settlement? How long does this typically take?

For each of the Categories A-F mentioned in question 4.1 above as well as the fast track procedure a different application must be filed.

With regard to Categories, the examination period, from the date of submission of the completed application is approximately twelve to eighteen months.

With regard to the fast track procedure, it is estimated that the examination period of the application for the fast-track procedure, from the date of submission of the completed application will be approximately two months.

4.6 Is the settlement process the same for EU citizens?

No.

5. Dependants 

5.1 What are the criteria to qualify as a dependant? What restrictions apply in this regard?

The main criteria to qualify as dependant are to be a (i) spouse and/or (ii) children (under 18 years may qualify for a family reunification visa, while children over 18 must make a separate application although they still qualify as dependants) and/or parents.

Additionally, there are specific criteria for persons who can apply for family reunification. An individual applying for a family reunification visa (the sponsor) must have either:

• Worked in Cyprus for a minimum period of two years. The sponsor can apply for family reunification while the dependant is abroad.
• Is holding a residence permit with a duration of at least one year.
• Been employed as an executive manager or executive staff. The sponsor can only apply for family reunification if their dependant is in Cyprus.

By way of derogation, the Director of the CRMD has issued that, if the sponsor is employed by a Cyprus company licensed to employ third country nationals, then the requirement for the previous stay of at least two years for family reunification purposes will not apply.

Pursuant to section 18 of the Law on the Aliens and Immigration (Cap.105), the sponsor must submit an application accompanied with the following documents to obtain a family reunification visa:

• A completed MSR1 form.
• The sponsor’s residence or work permit and any other permits received in the past.
• Certified passport copies of all the family members (the passports must be valid for a further two years).
• A certified marriage certificate. The couple must have been married for a minimum of one year and the spouse must be over the age of 21.
• The child’s school certificate (if applicable).
• The sponsor and their family must present a clean criminal record, except for children who are 16 years old or younger. If the individual has been in Cyprus for six months or longer, they can request the report of a clean criminal record in Cyprus.
• Certified adoption documents, if the sponsor’s child is adopted.
• A certificate of a medical examination results for all family members conducted in Cyprus and validated by a doctor (except for children who were born in Cyprus, or are under the age of six).
• Proof of rented or owned accommodation, duly stamped.
• Proof of medical insurance for the sponsor and his family (Plan A) or registration certificate in the General Healthcare System (GHS-GESY) and private health insurance for inpatient healthcare for the sponsor and the family members.
• The sponsor’s contract of employment duly stamped, which must be of a minimum duration of 18 months from the date of application or of open duration.
• A tax clearance certificate, if the sponsor has been living and working in Cyprus before the application for family reunification.
• Proof of social insurance contribution since the sponsor’s arrival in Cyprus.
• The sponsor’s VAT returns.
• Declaration of any profit that the sponsor has from sources other than their employment.
• A recent and original bank statement of the sponsor.
• Copies of utility bills (such as electricity, water, phone and so on). If the sponsor’s employer pays the bills, this must be stated and these bills must be shown instead.
• Original letter of guarantee issued by a bank in Cyprus with validity of ten years covering possible repatriation expenses. The amount depends on the country of origin.

The initial validity duration of the family reunification visa is one year. If the sponsor’s child is 18 years or older, then they must apply for a different visa (although still as a dependant). In these cases, the initial period for which the visa is given varies depending on the case. A dependant who is over the age of 18 years must apply for another type of visa. A person over the age of 18 is considered a dependant if both of the following apply:

• They are studying in Cyprus or abroad.
• They are not employed or does not have their own source of income.

5.2 What rights do dependants enjoy once admitted as such?

Section 18 LD (1) of the Law on the Aliens and Immigration (Cap.105) clearly states that the “members of the sponsor’s family shall be entitled on the same terms and conditions as the sponsor to have access to (a) to education; (b) to paid employment and self-employment; (c) basic and further training and retraining”.

However, section 18 LD (2) of the Law on the Aliens and Immigration (Cap.105) provides that the exercise of paid employment or independent professional activity by a dependant shall be subject to the terms and conditions of employment of third-country nationals in the Republic as in force from time to time, as determined under Cap.105 and applicable national policies and procedures. Furthermore, the access of family members to paid employment or independent professional activity shall be limited for a period of up to twelve months for the purpose of exploring the labour market of the Republic, after which the exercise of paid employment or independent professional activity shall be permitted upon application.

For the sake of completeness, according to Cyprus laws, the employment of children under the age of 15 is prohibited while the employment of teens between the age of 15–18 may be permitted subject to the terms and conditions set forth in the Cyprus legislation.

5.3 How are civil/unmarried partners and same-sex partners treated in this regard?

As stated in question 5.1 above, the application may be filed for “family reunification” purposes as defined in section 18 of the Law on the Aliens and Immigration (Cap.105). It should be noted that he notion of “family members” is construed narrowly. However, it is clear that, if the dependant is married to the applicant either by religious marriage or by way of a civil marriage or civil union will suffice. For the sake of completeness, it is noted that although the religious and civil marriage are only available to heterosexual couples, the civil union arrangement is also available for same-sex couples as well.

6. Intra-company transfers

6.1 Is there a specific regime for the transfer of employees from an overseas branch of a multinational to your jurisdiction?

Yes. Cyprus has implemented a new intra-corporate transferee (ICT) permit. This ICT permit is in line with the European Union (EU) ICT Directive, facilitates intra-EU mobility, and doesn’t have the employer eligibility criteria (i.e the work and residence permit for international companies).

The Ministry of the Interior signed an Order in October 2017, implementing the new ICT permit in accordance with the Alien and Migration (Amendment) (Ref. 2) Law of 2017, which entered into force on 17th February 2017, and in which Directive 2014/66/EU was transposed into Cypriot law.

The new Intra-corporate transfer enables the temporary transfer for work or training of a third country national for a period exceeding 90 days by an undertaking or group established in a third country to an entity belonging to the undertaking or to the same group and established in the EU and includes the mobility of third country nationals between companies of the same group based on one or more second Member States of the EU.

6.2 What is the maximum stay allowed under this regime? Can this be extended?

If the application is approved, the transferee is issued with the intra-corporate transferee residence permit, which is in a card format. Depending on the merits of each individual case, the maximum duration of the permit can be:

Manager: 3 years or equal to the transfer, if shorter.

Specialist: 3 years or equal to the transfer, if shorter.

Trainee Employee: 1 year or equal to the transfer, if shorter.

Upon application, the above duration can be extended.

6.3 What criteria must the employer satisfy to obtain a permit under this regime?

The main criteria of the employer pursuant to section 18 of the L.9(I)/2017 is to provide the authorities with sufficient documents evidencing that the host entity and the company

established in a third country belong to the same company or group of companies.

6.4 What are the formal and documentary requirements to obtain a permit under this regime?

Upon  filing the MICT application at the Civil Registry and Migration Department of the Ministry of Interior, the employer shall provide the following documents:

• Copy of a valid passport or other travel document, the validity of which must at least cover the total required period of the intra-corporate transfer in the EU (not only in Cyprus).
• Evidence, certified by the Department of Labour, that the host entity and the undertaking established in a third country belong to the same under­taking or group of undertakings.
• Evidence of employment within the same undertaking or group of undertakings, for at least twelve (12) uninterrupted months immediately preceding the date of the intra-corporate transfer, certified by the Department of Labour.
• Work contract and, if necessary, an assignment letter from the employer, certified by the Department of Labour. The Work contract /assignment letter must contain the following:

1. 1. details of the duration of the transfer and the location of the host entity or entities;
   2. evidence that the third-country national is taking a position as a manager in the host entity or entities in the areas under the effective control of the Republic of Cyprus;
   3. the remuneration as well as other terms and conditions of employment granted during the intra-corporate transfer;
   4. evidence that the third-country national will be able to transfer back to an entity belonging to that undertaking or group of undertakings and established in a third country at the end of the intra-corporate transfer.

• Evidence, certified by the Department of Labour, that the third-country national has the professional qualifications and experience needed in the host entity to which he or she is to be transferred.
• Certificate of Health Insurance for medical care that covers inpatient and outpatient care and transportation of corpse (Plan A).
• Original Certificate of Criminal Record from the country of origin (if the applicant resides in a country other than the country of origin, the certificate should be issued from the country of residence).
• Original blood analysis results showing that the third country national does not bear/suffer from HIV, syphilis, hepatitis B and C and chest x-rays for tuberculosis (TB), from the country of origin.
• Evidence, certified by the Department of Labour, certifying that the third-country national fulfils the conditions laid down under the national law for the exercise of the regulated profession to which the application relates – Only if applicable.

Immediately after the arrival of the third-country national in Cyprus, the employer shall provide the Department with:

• Original blood analysis results showing that the third country national does not bear/suffer from HIV, syphilis, hepatitis B and C and chest x-rays for tuberculosis (TB), from a Government Hospital of the Republic or duly certified by a Government Doctor of the Republic.
• Copy of passport or other travel document page that shows the last entry in the Republic.
• Original Entry Permit (Μ70).
• Rental agreement or property sale contract or title deed.

6.5 What fees are payable to obtain a permit under this regime?

Pursuant to the RDA 346/2017 issued by the Minister of Interior on 27.10.2017 the fees are as follows:

• for an application for an entry permit for the purpose of intra-corporate transfer and for an intra-corporate transfer permit in the amount of EUR 110;
• for an application for renewal of an intra-corporate transferee permit Euro 85;
• for an application for a long mobility permit EUR 90;
• for an application for renewal of a long mobility permit EUR 85.

6.6 What is the process for obtaining a permit? How long does this typically take?

The procedures for entry, stay and work in Cyprus in the context of intra-corporate transfer depend on whether Cyprus is the first or second Member State.

i. Cyprus is the First Member State

When the transferee will reside and work in Cyprus the longest or if the transferee will reside and work only in Cyprus, then Cyprus is the first Member State. In such cases, in order to enter Cyprus, the transferee should file an application so as to obtain an entry permit, given that the provisions of the legislation are met.

The MICT1/MIC TM1 application for an entry permit shall be submitted when the third-country national is abroad, by the company in Cyprus (employer) at the central offices of the Civil Registry and Migration Department in Nicosia.

After obtaining the entry permit and the arrival of the transferee in Cyprus, the remaining necessary documents must be submitted to the Department. During the submission of the documents, transferee will be registered in the Aliens Register (if not already registered) and his/her biometric data (fingerprints, photo) and signature will be captured.

This application is processed within 90 days from its submission, provided that it is fully completed and all the necessary accompanying documents have been submitted.

If the application is approved, the transferee is issued with the intra-corporate transferee residence permit, which is in a card format.

ii. Cyprus is the second Member State – Mobility

The procedures for entry, residence and work when Cyprus is the second Member State, i.e. when the transferee will reside and work here for a shorter period than in another EU Member State, depend on the duration of the transfer. For the mobility to be possible, the transferee must hold a valid intra-corporate transferee permit issued by the first Member State, covering the entire duration of the mobility.

7. New hires

7.1 Are employers in your jurisdiction bound by labour market testing requirements before hiring from overseas? Do any exemptions apply in this regard?

Employers do not have to conduct a resident labour market test before hiring foreign employees. However, it is advisable, vacant positions to be advertised for two months indicating the qualifications and language skills required. Where no candidate is found to match the relevant requirements during this time, the employer can proceed with a work permit application for a foreign employee.

7.2 If labour market testing requirements apply, how are these satisfied and what best practices should employers follow in this regard?

As per question 7.1 above.

7.3 Which work permits are primarily used for new hires? What is the process for obtaining them and what fees are applicable, for both employer and employee?

Usually, and unless the proposed employment falls under a particular regulatory framework requiring particular treatment, employers use the path of general employment for new hires.

Firstly, the employer interested in employing a third-country national must apply to the competent district Labour Department requesting an official written approval. Once the employer is granted the said approval, the third-country national shall proceed to all necessary arrangements for the purpose of obtaining an entry permit, which then shall be used by the third-country national, in order to enter Cyprus. Upon its entrance, the third country national must attend the competent district Immigration

Unit in order to provide additional documentation, supplementary to those provided in the course of the issue of the entry permit, and biometrical data.

7.4 Is labour market testing required if the new hire is to extend his or her residence?

No.

7.5 Can new hires apply for permanent residence?

Yes. Pursuant to the provisions of the Law on the Aliens and Immigration Cap.105 and provided that a third-country national satisfies the criteria for applying for a permanent residence under any of the relevant categories, such a third-country national may be eligible to apply for a long-term permit.

8. Sponsorship

8.1 Are any licences or authorisations required to sponsor foreign nationals? What other criteria apply in this regard?

A sponsor is responsible for representing the employee for whom a visa is acquired for the duration of his or her employment with the sponsor.

A company wishing to become a sponsor and employ third country nationals must have:

• Obtained the Ministry of Labour’s permission to do so.
• Foreign individuals as a majority of its shareholders.
• A strict ownership structure and transparent capital sources.
• A fully operative administrative office.
• Stable financial growth confirmed by annual financial statements.

A company wishing to be granted authorisation to sponsor foreign nationals must submit the following documents:

• • original full set of corporate documents of the company (bearing the seal of the Registrar of Companies);
  • provide a description of the company’s business and details of its operations;
  • list of names, full addresses, passport numbers and nationality of the initial shareholders of the applying company (companies whose shares are trading on a recognised stock exchange and international companies which were operating before the change of regime and for which the Central Bank of Cyprus possesses all necessary data are exempted from this requirement);
  • list of the company’s personnel;
  • bank account showing a minimum amount of EUR41,006 (applicable for a Cyprus Company with Foreign Interests);
  • deed title of lease agreement or contract of sale and purchase of the offices of the company in Cyprus; and
  • proof of a deposited amount of no less than EUR200,000 (that is, banking and other documents showing direct foreign capital investment amounting to at least EUR200.000 and legally brought in Cyprus from abroad (applicable for a Cyprus Company with Foreign Interests)).

Existing companies must go through an administrative procedure and submit certain documents to the Civil Registry and Migration Department..

The types of sponsored employment visas in Cyprus are:

• Immigration permits for persons under Category E.
• Cyprus start-up visa.
• Visas for domestic workers.
• General employment visas.
• Residence permits for the employment of third country nationals in Cypriot companies with foreign interests.
• Long-term residence permits for third country nationals (including their family members) who have resided legally and continuously in Cyprus for five years.

A third country national or the employer can apply to obtain a residence or employment permit based on one of the above categories and the application must be submitted along with all the required documents, depending on the category of visa applied for.

8.2 What obligations do sponsoring employers have to ensure continued immigration compliance?

The sponsoring employers have an obligation stemming from the law to ensure compliance with the immigration laws and regulations as amended from time to time. The competent authority (Ministry of Labour) also has a duty to monitor such compliance and is granted wide powers from the law, such as among others, the power to conduct investigations, to impose fines and to revoke the sponsoring employers’ license.

8.3 Are sponsoring employers subject to any local training requirements?

No there is no compulsory training requirement for sponsoring employers.

8.4 How is compliance with the sponsorship regime monitored? What are the penalties for non-compliance?

The Director of the Civil Registry and the Migration Registry can impose sanctions on the employers who employ illegally staying third country nationals as follows:

• Administrative fines and/or administrative sanctions.
• Payment of the cost of returning the third country national back to their country (repatriation expenses).
• Subject to the provisions of any other law, the Director can impose the following measures:
  • partial or complete exclusion from public benefits, aid or subsidy, including EU funds under the administration of Cyprus, for up to five years;
  • exclusion from all public contracts as defined by the law on public procurement for up to five years;
  • partial or complete recovery of public benefits, aid or subsidy that have been granted to the employer within 12 months from the date of discovering the illegal employment;
  • temporary or permanent closure of the premises that have been used for the breach, or suspension or withdrawal of the practising licence, if this is justified by the circumstances; and/or
  • inclusion on the register of employers at the Department of Labour of employers who illegally employed third country nationals.

9. Trends and predictions

9.1 How would you describe the current immigration landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

The Council of Ministers, with its Decision on 15.10.2021, decided to replace the current policy regarding the issuance of temporary residence and employment permits to employees of existing and new companies of foreign interests registered in the Republic with a new Strategy for Attracting Businesses for Activities or/and Expansion of their Activities in Cyprus. This is a welcome and very important initiative towards attracting both international investments and talent. It includes a series of actions and reforms in several areas of intervention, aiming to enhance Cyprus position as an international high-growth business centre.

It is unquestionable that Cyprus immigration was affected by the unpredictable factor of covid-19 pandemic negatively (since a number of investments were frustrated due to the uncertainty) and positively (since investors and employees decided to relocate from their home

and seek a second home). Further, Cyprus offers significant tax and immigration incentives to investors wishing to relocate or redomicile their businesses.

It is also unquestionable that, the Cyprus Investment Programme, which was discontinued at

the end of 2020, has negatively affected the immigration landscape. However, the political and financial instability in the regions of Middle East and Ukraine creates a new trend since individuals and companies from these regions are attracted.

10. Tips and traps

10.1 What are your top tips for businesses seeking to recruit talent from abroad and what potential sticking points would you highlight?

All interested parties – investors, employers and their lawyers – should be vigilant in identifying:

1. the appropriate scheme available for each case so as the final decision will serve both parties’ (i.e employer and employee) interests better than their best alternative does;
2. potential disputes and deadlocks which may arise during the negotiations stage;
3. potential fees and costs up until the issuance of the relevant permits;
4. favourable tax schemes (exceptions) available for both employers and employees; and
5. finally, Cyprus’ brilliant educational establishments, world class medical facilities, one of the lower crime rates in Europe as well as the prime location, warm weather through the year and hospitality.