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 nutshell, 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 decision, 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.
So here are some of the main responsibilities of the overseas 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 employee
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 employers are obliged to follow the same rules regulations and filing requirements.
Important Note: Remote employers within the EU must follow a different route as they are not required to establish a Cyprus Company or a Cyprus branch.
Want to know more?
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.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.