A Cyprus corporation should give priority in employment recruitment to Cypriots and EU nationals before resorting to employ a Third Country National (TCN). However, Cyprus has provided an exception in the law for companies of foreign interests, to employ TCN subject to certain requirements. This form is especially useful for a TCN who may incorporate his own company, or in conjunction with others with a minimum investment of EUR 171.000 and be employed by this company in accordance with the employee classifications mentioned below.

COMPANY ELIGIBILITY

In order for companies of foreign interest, including former offshore companies and Cyprus shipping companies, to employ third country nationals in Cyprus, the following must apply:

• Their third country shareholders should own the majority of the company’s shares. The following cases are excluded:
• Public companies registered in any recognized stock exchange
• Former offshore companies that were operating in Cyprus by approval of the Cyprus Central Bank, before the change of the offshore status.

If 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 suitable, the foreign participation should represent an amount equal to or greater than the amount of € 171.000.

• In the case where companies are the shareholders, their final owners (natural persons who are the ultimate beneficial owners) should be declared, in order to receive the approval of the Civil Registry and Migration Department.
• A foreign direct investment of capital amounting to at least € 171.000, legally admitted to Cyprus from abroad. This should be proved by appropriate bank and other documents. This requirement only applies to companies which will employ staff from third countries for the first time.
• To operate in independent offices in Cyprus, housed in suitable premises, separate from any private housing or other office, except in the case of business cohabitation.

EMPLOYEE CLASSIFICATION

Companies that meet the above conditions are entitled to employ third country nationals in the following categories, provided that they first obtain temporary residence and employment permits.

1.Executive Directors

The term ‘Executive Directors’ includes TCN registered as:

• Consulting Directors or Partners
• General Managers of branches and subsidiary foreign companies
• Departmental Managers:-The maximum number of such executives is 5, unless otherwise justified.
  -The annual salary of an appointed Executive Director is €3.872/month. This amount may be adjusted from time to time according to fluctuations in the salary index.
  -There are no restrictions for the residence period of these employees.

2. Middle-management staff, executive staff and any other key personnel

This category includes Directors who are not considered to be Executive Directors as well as other Executive/Middle-management staff or other managerial, clerical or technical personnel:

• The annual salary of the above positions range from €1936 – €3871 per month The amounts may be adjusted from time to time according to fluctuations in the salary index.
• The maximum number of these employees permitted in this category is 10 unless otherwise justified.
• There are no restrictions for the residence period of these employees.

3. Supporting Staff

TCNs employed in other professional, managerial, technical, clerical etc. positions and do not fall under the abovementioned categories are classified in the remaining supporting staff.

Companies are expected to employ Cypriots or European citizens for this category. In case there are no available or suitable Cypriots or European citizens with the required qualifications, a company may employ third country nationals in positions of this category, following the procedure and submitting all the certificates/supporting documents, after an affirmative decision (stamp of contact) is ensured by the Labor Department.
There is no maximum number for the employment of third country nationals under this category, provided that the necessary approvals from the Department of Labour have been obtained. No approval from the Department of Labor is needed for third county nationals who enjoy free access to the labour market.

For employing a greater number of third country personnel under the above categories, duly justified and documented requests by the company must be submitted to the Department. The requests must include information on the salary offered as well as:

• The company’s turnover
• The ratio of third country employees to Cypriots/EU Nationals and
• The company’s operating time in Cyprus.

VALIDITY OF TEMPORARY RESIDENCE AND EMPLOYMENT PERMIT

Where the conditions foreseen in the law are met, the third country national is granted a temporary residence and employment permit. The validity of the permit depends on the duration of the employment contract and can be up to two (2) years, with a right of renewal. Directors, Middle management executives and other key personnel may reside in the Republic without a time limit, provided they hold a valid temporary residence and employment permit.

Employees at a company of foreign interests can change employer and work in a different company of foreign interests, regardless of their duration of stay in Cyprus, provided that:

• they have found employment within one (1) month from the termination of their previous employment,
• the general conditions laid down by the legislation in force, regarding employment of third country nationals, are met.
• the company of foreign interests that will employ them is a beneficiary company, based on the criteria set out by the Council of Ministers.