Registration of Foreign Employers in Cyprus

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.