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.
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.
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.
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.
