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CYPRUS PAYROLL SYSTEM

BECOME A REMOTE EMPLOYER - RECRUIT DIRECTLY IN CYPRUS

Cyprus Remote Employer - Payroll Solution for EU Companies

EU Company hires Employees in Cyprus without physical presence

Cyprus have introduced the remote employer scheme where an EU Company can hire anyone in Cyprus without the need of establishing a Cyprus Branch or a Cyprus Subsidiary Company.

These are great news, as the Overseas Employer will only need to assign this task to a Regulated Audit and Assurance firm like Cyprus Audit Services, which in turn, will gather all paperwork and register both the employer and the candidate with the Cyprus social securities and local income tax office.

Once the remote employer and candidate are registered for payroll purposes, the remote employer will have to comply with the local tax and regulations.

Cyprus Remote Employer - Payroll Solution for Non EU Companies

3rd Country Company hires Employees in Cyprus without physical presence

Cyprus have introduced the remote employer scheme where any company whether the EU or from a 3rd Country can hire anyone in Cyprus under the status of remote employer.

In a nutshel, your company will have the following three options:
- to establish a Cyprus Branch
- to establish a Cyprus Company (this company would be a subsidiary)
- to use a Payroll Agent (a 3rd party offering payroll services)

Irrespective of the decission, the process is effortless but slightly costly.

The Overseas Employer will only need to assign this task to a Regulated Audit and Assurance firm like Cyprus Audit Services, which in turn, will gather all paperwork and create the appropriate vehicle and register both the vehicle and the candidate with the Cyprus social securities and local income tax office.

Once the remote employer and candidate are registered for payroll purposes, the remote employer will have to comply with the local tax and regulations.

Responsibilities of the remote employer:

- To pay its employees in Cyprus, on a monthly basis, as per employment contract
- To pay monthly payroll taxes such as: Social Security, National Healthcare and Pay As You Earn Tax (PAYE)
- To provide monthly payslips to the employees

So the requirements are pretty standardised; there is really nothing unusual requested of an overseas employer here in Cyprus. In fact both the local as well as the overseas employer are obliged to follow the same rules, regulations and filing requirements.

Feel free to contact us for a free consultation and we will be more than happy to assist you.

Important Note:
Remote employers outside the EU must follow a different route as they are required to establish a Cyprus Company or a Cyprus branch and then employee staff working in Cyprus.

CYPRUS ARTICLES ON REMOTE EMPLOYERS

CYPRUS PAYROLL CALCULATORS & BROCHURES

Use Cyprus Payroll Calculators:

Other Useful Calculators:

FAQS - FREQUENTLY ASKED QUESTIONS

FAQs - Remote Employer



Real Querry: Remote Employer Offer by CYAUSE Audit Services Real Enquiry - Irish Company seeking to recruit Cyprus employee Real Enquiry - Irish Company seeking to recruit Cyprus employee



Cyprus Employment Contracts: Non-Competition and Non-Solicitation clauses. What are the termination periods in Cyprus? How are severance payments in Cyprus calculated: An employee has to apply for sick pay 48 hours from the start of the leave. It is paid by the state. Can check if it is paid directly to EE or through ER. Shall we include in the employment agreement the bonus status? How are Cyprus courts treating disputed bonuses? How many days of work are considered overtime in Cyprus? What happens when an employee is planning to work remotely from a country different to the Location stated above for more than 30 days, it is the Employee’s obligation to inform the Employer at least 2 weeks before the departure date? Is Travel undertaken outside normal working hours remunerated in Cyprus? Can we mention the Client in ROE model (Remote Overseas Employer)? Does it pose any Labour leasing risk in Cyprus? What is the minimum/statutory term and can this be negotiated with the client? Fixed Term Contracts Renewals in Cyprus Moral rights are not defined under Cypriot laws. Should we keep the definition regardless of application in Cyprus (in Greece this is applied)? Is the Garden Leave term is common/valid/legal in Cyprus? Can we mention the Client in ROE model (Remote Overseas Employer)? Does it pose any Labour leasing risk? Is it possible to upload a confidential payroll file into our bank and pay directly from our account (the bank provides a template)? Please explain your method. How the data transfer management process works form our existing payroll to yours? How could you support our firm as tax consultant for payroll related matters (i.e. defining if certain benefits or benefits in kind are subject to tax, social and health insurance, tax savings proposal, etc)? Which are the main labor / tax related topics you can provide assistance with? How do you process the payroll request? Are you able to provide payroll report in a format that can be directly uploaded in SAP for the accounting posting? Are you able to provide data/reports to HR per request? e.g. for completion of confirmations of income etc.? Which reports you are able to provide (e.g. holidays accrual)? Would you be able to prepare tax returns of relocated employees (EU and third-country citizens)? How do you process annual tax reconciliation? Are you able to offer onsite support?? What is payslip delivery model of your firm. We prefer electronic payslip secured by password sent directly to the employees. Do you have a Software that generates payslip in English language besides local ones?? How long does it take to register the Company or Employee with local authorities for payroll purposes?

Want to know more details?
We have already created several videos in our youtube channel called Cyprus Accountants Academy and several articles about Cyprus Payroll which can be obtained here.

About Cyprus Audit Services (CYAUSE Audit Services)

We provide payroll services and solutions to Remote Employers and International Interest Companies as well as hundreds of local companies on a monthly basis. Our payroll experts are using advanced payroll software to facilitate the needs of our international clients as well as their internal reporting deadlines.

Being an audit and assurance firm payroll work is a rather routine work for us. Given the popularity of Overseas Employers hiring local (Cyprus) staff, our team has also obtained expertise in registering Companies from the EU and 3rd Countries to the Cyprus Social Securities and Payroll in an accurate and timely manner.

Want to know more, feel free to contact me directly on kt@cyprusaccountants.com.cy.