Foreign Interest Company Personnel
Highly Skilled Employees
Must receive a minimum gross monthly salary of €2,500 and hold either a university degree or at least two years of relevant experience. Employment contracts must be valid for a minimum of two years, even if a shorter residence permit is initially sought.
Support Staff
Employees earning below €2,500 are classified as support staff.
Family Reunification
Spouses and dependent children of highly skilled employees are eligible for residence permits. Spouses are allowed to work in Cyprus without any restrictions or the need for a separate work permit, while dependent children under 18 and full-time university students up to 24 years old may be included under the same application.
Incorporation in Cyprus
Establishment of a Cyprus-registered legal entity is required, including company incorporation with the Registrar of Companies, appointment of a registered office in Cyprus, registration with the Tax Department for issuance of a Cyprus Tax Identification Code (TIC).
BFU Application
Submit an application to the Business Facilitation Unit (BFU), including the following:
Corporate documentation
Certificates of directors, shareholders, and registered office.UBO & investment evidence
Ultimate Beneficial Owner (UBO) documentation and proof of the minimum €200,000 investment.Business premises
Office lease agreement or title deed evidencing ownership.Business rationale
Business plan and letter of intent outlining the company’s activities in Cyprus.
BFU Approval & Register Entry
Once reviewed, the company is entered into the official Register of Foreign Interest Companies and receives confirmation.
Immigration & Personnel Relocation
Highly Skilled Personnel
Third-country nationals employed by a Foreign Interest Company (BCS) may qualify as highly skilled / highly paid personnel provided that:
The gross monthly salary is at least €2,500.
The employee holds a university degree or equivalent qualification, or can demonstrate a minimum of two years’ relevant professional experience.
The employment contract has a minimum duration of two years, regardless of the residence permit period initially granted.
The labour market test is waived, meaning there is no requirement to demonstrate the unavailability of Cypriot or EU candidates for these roles.
Support Staff
- Employees earning less than €2,500 gross per month are classified as support staff.
Family Reunification
- Spouses and minor children of highly paid permit holders may apply for residence permits under family reunification rules.
- Spouses may live and work freely in Cyprus, with no work permit or labour market test required.
Note:
To employ staff and proceed with residence and work permits, the Cyprus company must first be registered with the Cyprus Social Insurance Department and obtain a Social Insurance Number as an employer.
Ongoing Corporate and Immigration Compliance
- Maintain normal corporate operations in Cyprus by keeping an active office and completing all annual corporate, tax, and regulatory filings.
- Ongoing compliance with the renewal of personnel residence and employment permits is required to retain Foreign Interest Company status.
- Cyprus companies are subject to a 15% corporate income tax rate on net taxable profits
- Companies developing and exploiting qualifying intellectual property, such as a proprietary software platform with R&D performed in Cyprus, may benefit from the Cyprus IP Box regime, resulting in an effective tax rate of approximately 3% on qualifying profits
Cyprus companies can register for VAT, recover VAT on eligible business costs, and trade smoothly with EU clients under the EU VAT system
- Companies funded through equity may benefit from the Notional Interest Deduction, which allows a notional interest expense on new equity, potentially reducing taxable profits by up to 80%
- No withholding tax applies on outbound dividends, except where payments are made to jurisdictions with significantly lower corporate tax rates, in which case a 5% withholding tax may apply
- Under EU Parent Subsidiary rules, dividends paid between qualifying EU parent and subsidiary companies may be exempt from withholding tax
- Dividends received by a Cyprus company from another company are generally not subject to additional tax in Cyprus
Note:
A Cyprus company may also benefit from the ability to apply for EU funding and grant programmes and participate in public and private tenders in Cyprus and across the EU, subject to the applicable eligibility criteria.
- Relocated employees earning more than €55,000 per year may benefit from a 50% income tax exemption on their employment income
- This exemption applies to individuals who were not Cyprus tax residents before relocating and can apply for up to 17 years
The first €22,000 of annual income is tax-exempt under the Cyprus personal income tax bands, further reducing the overall tax burden
- Dividend income received by non domiciled individuals is not subject to income tax, with only a 2.65% contribution payable towards the national health system
- Part of the employee’s salary contributes to the Cyprus national health system, providing access to both public and private doctors, clinics, and hospitals, often with no cost for visits or surgeries
- Spouses and children under 18 can relocate to Cyprus quickly under family reunification
- Spouses are allowed to live and work in Cyprus freely, without requiring a separate work permit or labour market test
- Family members benefit from access to healthcare, education, and long-term residence rights
Note:
Family members are usually granted an initial residence permit with a one-year validity, or a permit with a duration aligned to the validity of the sponsor’s residence permit and passport, whichever is shorter.
- Employment through a Foreign Interest Company offers one of the fastest routes to Cypriot citizenship
- Eligibility is based on legal residence, employment, language knowledge, and integration
- Highly skilled employees may qualify after 4 or 5 years of residence, depending on their level of Greek language proficiency:
4 years of lawful residence – B1 Certificate
5 years of lawful residence – A2 Certificate
- Note: Foreign workers do not have to have language certificates if they hold a school leaving certificate or a University degree taught in Greek.
Applicants must demonstrate good character, stable income, suitable accommodation, and intention to reside in Cyprus
- An accelerated examination procedure is available for eligible highly skilled employees and their family members, with a target processing time of up to eight (8) months and a government fee of €5,000 per application
- Foreign Interest Companies allow fast-track relocation and residence permits for non-EU personnel without the usual labour market delays
- Entry permits are typically issued within 7 to 10 working days
- Residence and employment applications are examined within approximately one month
- Temporary residence and employment permits are usually issued within one month from submission
- Permits may be granted for a duration of up to three years, with the right of renewal
- Residence permits require the individual to remain in Cyprus and not be absent for more than 90 consecutive days
- In cases of emergency or exceptional circumstances, such as medical treatment, the Immigration Department must be informed in advance and supporting evidence provided
Eligibility & Personnel Advisory: Assessing employee qualifications, remuneration packages, and roles to ensure full compliance with FIC employment criteria.
Work & Residence Permit Applications: Preparing and filing complete applications for highly skilled and support staff, ensuring rapid and compliant approval.
Family Reunification Support: Managing dependent and spousal applications, including proof of financial means and family documentation.
Relocation & Settlement Assistance: Coordinating accommodation, bank account setup, registration with local authorities, and other relocation essentials.
Payroll, Bookkeeping & Tax Compliance: Handling payroll setup, tax registration, bookkeeping, and VAT-related obligations under Cyprus law.
Renewals & Ongoing Support: Monitoring expiry dates, processing permit renewals, and ensuring ongoing compliance with employment and immigration laws
Frequently Asked Questions
How can the FIC framework help our company bring key personnel to Cyprus quickly?
Once your company is registered as a Foreign Interest Company under the Business Facilitation Unit (BFU), the process of relocating staff becomes significantly faster. It removes the need for a local labour market test and allows the company to employ third-country nationals directly. At KIKLON Partners, we manage the full procedure — from company registration and employee eligibility assessments to the preparation of complete work and residence permit applications — ensuring rapid and compliant approvals.
Why is relocating existing team members through the FIC framework more effective than hiring locally?
Relocating trusted personnel ensures continuity, efficiency, and protection of your company’s operational standards. Through the FIC framework, your key executives, managers, and specialists can legally live and work in Cyprus under long-term permits, allowing your business to grow with people who already understand your brand and systems. KIKLON Partners coordinates the entire relocation — from permits and payroll setup to accommodation and family reunification — making the process smooth and controlled.
Can family members of non-EU employees also live and work in Cyprus?
Yes. The spouses and dependents of highly skilled FIC employees are fully eligible to
relocate. Spouses have unrestricted access to the Cyprus labour market, allowing them to
work in any industry without a separate work permit, while children under 18 and full-time students up to 24 can be included in the same family application. Our team assists with every step — from compiling documentation to ensuring family permits remain valid in line with the employee’s own status.
What are the salary and qualification requirements for highly skilled personnel?
To qualify under the FIC framework, employees must earn a minimum monthly salary of
€2,500 and hold either a university degree or at least two years of related experience.
Employment contracts must be for at least two years, even if a shorter permit is initially
requested. KIKLON Partners ensures compliance with these requirements, prepares full application packages, and supports your HR department in ongoing reporting, renewals, and workforce ratio compliance (30% EU / 70% non-EU).