Registration of Foreign Employers in Cyprus

 

Non-EU Employers

Non-EU companies are considered by the Cyprus income tax office as companies from 3rd countries and can not be registered directly as foreign employers in the Republic of Cyprus for payroll (social security etc reasons). This is also the case for UK companies following Brexit and the lapse of grace period given by the EU following the departure of the United Kingdom.

 

Solutions

 

1. Use an EU Company: 

As the company belongs to a group, we could use an EU company that belongs to the group (e.g. Engelhart CTP Freight (Switzerland) SA ). By using the EU company we will be able to proceed with the registration of the foreign employer as there are no restrictions in this case. In this case, we will need oficiofficialal translated company's certificates in English or Greek language.  

 

2. Creation of a CY branch:

Instead of using an EU company, you could create a branch in Cyprus through which the UK company will operate in Cyprus. Kindly note that the creation of the branch involves a small fee.

 

Also, by choosing this option you must keep in mind that Financial Statements have to be prepared every year and tax declarations must be submitted too. As the company will have only 1 employee we could prepare the Financial Statements with the minimum cost which ranges between Euro 800 - 1,000 + VAT. 

 

3. Registration of the employee as self-employed: 

The employee can be registered as a self-employed person. In this case, a services agreement must be signed between the self-employed and the company which must include all terms and duties regarding self-employment. 

 

4. Registration through an EU agent: 

We could proceed with the foreign employer registration through an EU agent. In case you are interested in this option please let us know so that we will give you further information and details. 

 

In our opinion, the first option seems to be the most appropriate as we can use a ready company for which there are no restrictions and obstacles. 

 

Please take into consideration the above-mentioned options and let us know which of them is the most suitable for the company's needs and how you would like us to proceed. 

 

Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as legal or tax advice. Please consult with a professional tax advisor for advice on your specific situation.

CYAUSE AUDIT SERVICES

About Us

CYAUSE Audit Services Ltd is performing Statutory compliance services to relocation topics. That of course also includes Foreign employers in Cyprus, remote employees, etc.

CYAUSE Audit Services is an Audit & Assurance firm with offices in Nicosia and Limassol. During 2015 we have been awarded by I.C.P.A.C and the A.C.C.A (local and international association of Chartered Certified Accountants) for the Quality of our Audit Services and our Office's Procedures.

Being a Truly International Audit & Assurance firm, we have associates from all over the world and we are constantly looking for new associates to expand our network further. At present, CYAUSE Audit Services operates internationally as Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience.

Our network covers almost 40 jurisdictions with over 2,000 professionals, it supports more than 10,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and processes at least 170,000 payslips globally.

CYAUSE Audit Services Ltd is also a member of the 3E Accounting Network, an international accounting network which originates from Hong Kong and has more than 80 members from all over the world.

Contact Us

If you would like us to assist you with your investment firm or fund please contact us at enquiries@cyprusaccountants.com.cy or call us at +357 22 336 309.

Learn More about Cyprus Corporate Environment

Information about CYAUSE Audit Services and the Cyprus Corporate & Tax System can be obtained from our Website or our YouTube channel which provides valuable information about the Corporate & Tax Environment of Cyprus.