Cyprus has been an EU member since 2004 and over the years it has developed and upgraded new laws and regulations in accordance to the EU standards. One major addition to the Cyprus immigration law, which has more mobility the last 3 years in Cyprus (after the pandemic), is the relocation of EU citizens in Cyprus mostly for business opportunities.
Yellow Slip Benefits in Cyprus
EU citizens who desire to invest in Cyprus, stay for longer than 3 months and have the opportunity to live, work and experience the life of the east Mediterranean island should easily apply for a yellow slip.
What will be the benefits if the applicant receives a yellow slip?
- The applicant will have the right to live and work in Cyprus for more than three months.
- The applicant will be able to relocate with his/her family (and children) and be able to obtain a medical card from the NHS system in Cyprus.
- The applicant's kids can apply for a yellow slip and be registered in our local schools and continue their learning courses.
- The applicant has the rights to own a business and/or work as an employee in a Cyprus registered company.
- The applicant is allowed to have the same rights as the Cypriot citizens.
- The applicant will have the right to be registered as a non-domicile person (we can add a link with the article of Non-Dom here) and benefit from free tax Dividends.
It is important to note here that the yellow slip is only valid in Cyprus and not in any other EU country. The applicant should apply for the yellow slip only when there is a consideration for a longer stay and investment in Cyprus. Not for just a temporary visit/stay.
If the applicant wants a temporary visit due to an abroad residence/business and wants to benefit from taxes etc, other schemes and visas will apply for each case.
More information about the different types of visa can be obtained here.
Yellow Slip required documents
In the majority of the Yellow Slip cases, we have heard and experienced before, the applicants have been well-informed about the general meaning of what a Yellow Slip is and what benefits they can obtain from it. However, the most common issue in these cases is that the applicants are not informed in respect to the required documents they should gather when applying for a Yellow Slip.
With the help of a service provider, applying for a yellow slip in Cyprus will be very straight forward thing especially when the applicant is an EU citizen and wants to relocate in Cyprus.
All the necessary documentation can be gathered by the service provider and with the help of an official representative, the documents can be submitted to the immigration. More details on the official representative and what his role is, are mentioned below.
The documents required for the yellow slip application are as follows:
- Copy of a valid passport (should be presented as original during the appointment with the immigration).
- Two copies of a rental agreement or a sale agreement of an apartment/house (Title Deed) * (One should be the original rental agreement and the second can be just a scanned copy).
- A recent utility bill (no more than 6-months old) as a proof of address.
- A confirmation/verification letter certified by the Community Mukhtar.
- Two copies of a contract employment** (One should be the original signed contract and the second can be just a scanned copy).
- The applicant should be registered in the Social Insurance and the application from ERGANI should be presented as a copy.
- Proof of Marriage Certificate (Original & translated), if applicable.
- Children apostille Birth Certificates (Original & translated), if applicable.
*The rental agreement/sale agreement should be stamped (both original and copy).
**The employment contract should be stamped (both original and copy).
Alongside with the above documentation, the applicant is required to complete and sign the MEU1 form.
If the family members of the EU citizen are from non-EU, then the MEU2 form should be completed and signed by the non-EU members (an apostille clear criminal record should be presented as well).
Yellow Slip appointment-meeting
It is important to have in mind that during the process of gathering all the necessary documentation, the applicant's service provider should be in a communication with the official representative who will be the last person to receive the full set of documents before the submission to the immigration department.
The documents will be reviewed by the official representative and if the documents are complete and approved, then the official representative will make an appointment to the immigration. The applicant needs to be present during the appointment (along with his/her family if they apply too) and at the end of the immigration meeting, the Yellow Slip will be issued and given to the applicant at the same time.
Kindly note that the whole process should commenced from the date of the applicant's entry in Cyprus and the application should be submitted within the first four months.
Issues when applying for a Yellow Slip
Despite the fact that the preparation of a yellow slip application is very straight forward, issues and mistakes might appear for situation when the applicant will not provide the documents on time or if the documents might be provided incorrectly.
Additional points for the applicants that should be aware of in order to avoid any mistakes happen which will conclude to the wrong approach of issuing a yellow slip:
- Social insurance Registration - Penalties: An issue that some applicants tend to do when they apply for a yellow slip, after the period of the first four months of their entry, is having an incorporated Cyprus company and the employment contract is prepared and signed during the first days of their entrance in Cyprus. Therefore, the applicant might forget to register to the social insurance (while they await for the company to be incorporate in the Registrar of Companies). This will have as a result the late registration to the social insurance and in accordance to the details mentioned in the original signed employment contract, such as salary, period of employment etc, will create penalties for late payments which increases month by month.
- Not permanent residence: The applicant should be in a position to rent or buy a property (either a house or an apartment) when entering Cyprus. One common issue that might appear here is when the applicant will not follow the rent approach, but considers to stay in an Airbnb flat for a limited time of period. Following the Airbnb approach will cause issues and the Airbnb agreement will not be valid.
It is important to note that with the appropriate help of the appointed service provider, these kinds of issues will not appear and it is the role of the appointed service provider to avoid this kind of situation during the preparation phase.
How to mitigate such situations from avoiding to happen during the yellow slip process:
- Follow the instructions of the appointed service provider.
- If any questions might arise from the applicant's side, arrange a meeting with the service provider to explain the situation in order to be more understandable during the preparation phase.
- Gather all required documentation and provide to the service provider on time (avoid late response and communication). As mentioned above, this process should be prepared and submitted within the first four months of the applicant's entry in Cyprus.
- The preparation of an employment contract should be in accordance with the registration to the social insurance department in order to avoid any penalties and for the employer to pay the social insurance on time.
- It is important for the applicant to choose or consult with real estate experts and consider which area is more suitable to live in and be able to get employed.
About Us
CYAUSE Audit Services has extensive experience in the insurance industry has helped tens of insurance brokers and agents register and get licensed by the local Cyprus regulator granting them passporting access to the rest of the European Union.
CYAUSE Audit Services is an Audit & Assurance firm with offices in Cyprus and the UAE. 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 through its membership with BKR International amongst the largest American associations in the world, 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 one of the biggest US Accounting Associations of the word and the 3E Accounting Network, an international accounting network which originates from Hong Kong and has more than 80 members from all over the world.
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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.
