Term “Remote Employer”
A remote employer is a company which recruits employees in other countries. So we could have a German company which may have or may not have any employees in Germany. When this company employees additional employees in other countries, this company is then called a remote employer.

Remote employers are becoming increasing popular in Cyprus primarily because Cyprus is such a lovely place to live in and work that talent is willing to relocate to Cyprus and work remotely for these employers. In addition, Cyprus is also a centre of tech people and talent and as a result local expats but also local Cypriots are willing to work for these remote employers.

 

The process of becoming a Remote Employer
For European companies, the processes in now streamlined and straight forward. The company does not need to have physical presence in Cyprus and can become registered with local social securities office and become an employer of local staff.

On the other hand, for non EU companies, called “3rd country companies” the process is relatively more complex as they need to demonstrate substance in Cyprus. Substance can be demonstrated via the existence of a local branch or the creation of a Cyprus Company. The local employees will then be employed by the branch or the Cyprus Company (the latter is usually a subsidiary of the overseas Company).

 

Employee Matters to Address
1) Local Cypriots hired by a Remote Employer
The remote employer will hire the local personnel by registering them as employees of the foreign employer and will contribute towards the social securities system. The remote employer will be deducting PAYE as considered appropriate.

2) Overseas EU employees relocating to Cyprus to work for the remote employer
These employees will require a yellow slip to be able to be registered with the Cyprus social insurance system. This a streamlined service we offer to our clients and it has nowadays become rudimentary. It takes approximately 2 months to obtain a yellow slip and to register an EU employee under the payroll of the remote employer.

Once the remote employer register the employee, then then remote employer will be contributing towards the social securities and be deducting the PAYE of the employees on a monthly basis.

3) Overseas Non EU employees relocating to Cyprus to work for the remote employer
In this scenario these employees will require a special type of visa in order to be able to live and work in Cyprus. We have written numerous articles on visa requirements which can be obtained by visiting the below links.

As immigration is progressive it is always to double check with us to inform you of the latest applicable immigration laws depending always on the applicants personal circumstances.

 

Timeframe to obtain a Visa for a Non EU National
The timeframe to obtain a visa for non eu nationals is signifanclty longer than for EU applicants being 3 months at best. Again, as immigration is progressive the information provided in this article is applicable at the time of writing it.

So the overseas, 3rd country company needs to plan ahead and to understand that relocating overseas staff to Cyprus will take time due to their visa requirements. On the other hand the actual company or branch (mentioned above) will take approximately 3 months to be established but will not be able to register the 3rd country nationals until they legalise all paperwork and work out their visas.

 

Our Experience with Remote Employers
CYAUSE Audit Services has been servicing remote employers for more than 10 years now with great success. The first Cyprus remote employers faced some challenges in the Republic as the Cyprus social insurance contribution officers were not aware of the term nor aware of the practise of being remote employers. Over time this has become a standardised application procedure.

How we work
We provide A to Z services to our remote employers. From the registration off the overseas company with the local authorities such as social insurance contributions and income tax to the collection of the overseas staff paperwork, their legalisation and subsequent application for visas.

The very first task we analyse is the tax situation of the applicant as tax needs could determine different types of visas for remote employees. Each case is truly different as each employee as well as employer have different backgrounds and needs! In the event the employees reside in Cyprus we will make sure we register them with the most suitable and cost effective visa here in the Republic.  

Typically we charge ad hoc until the registrations take place and then once both the employer and employees are registered with the Cyprus Social Insurance Offices we agree a standard payroll package which is payable each month.

Our monthly tasks include the deductions of Social Securities, PAYE and NHS from the salaries and their payments to the appropriate government funds. We process the employees payslips and issue them to the employer each month. If the remote employer has established a company or a breach we will also process their accounting records and proceed with local filings and audit as applicable standards.

 

CYAUSE AUDIT SERVICES

About Us

Our firm has been from the first firms in the republic introducing and actually, explaining the term remote employer to the local authorities. Since then we are currently servicing payroll agents and overseas companies (EU and Non EU) with their payroll needs. Lets not forget that our firm, in its primary role as an accounting, audit and assurance firm is currently servicing hundreds of clients (local and international) with their payroll needs.

Being members of ACCACE Circle, one of the largest payroll processing network in the world equals us with the latest knowledge and insights (primarily technological advancements). We have been handling large volume of data.

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 BKR International, an american Audit & Assurance network 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 kt@cyprusaccountants.com.cy or call us at +357 22 336 321.

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.