Right of residence & employment permits in Cyprus by third country nationals

Cyprus has amended its Aliens & Immigration Regulations in harmony with the EU’s acquis communautaire on the area of entry and stay of third country nationals for self employment and study purposes and long term residence.

RIGHT OF EMPLOYMENT

EU nationals may work in Cyprus freely.  For this, they have a right to a residence permit.  Non EU-nationals are required to obtain an employment permit, usually issued/granted for one year, but they can be renewed.

In order to speed up procedures, the Government of Cyprus announced new proposals to simplify procedures of applications by foreign companies to employ workers from third country nationals.  

A Special Committee was set up in order to examine the more complex applications and to generally improve procedures.

These new proposals announced include among others:

a) Simplification of requirements for granting employment & residence permits to third country employees of foreign companies. 

b) A fast track procedure was established for examining applications

c) Granting of employment & residence permits for an indefinite period for executive personnel. 

d) Reducing documentation needed to accompany applications to the minimum necessary 

e) Simplifying re-entry requirements for workers who frequently travel in & out of Cyprus

f) Encouraging executive personnel to obtain permanent residence permits.

 

ELIGIBLE COMPANIES FOR EMPLOYMENT OF THIRD COUNTRY NATIONALS

All companies including international companies, in order to be eligible to employ third country nationals in Cyprus should fulfil the following criteria:

1) a) The majority of the shareholders should be foreign shareholders.  In the case of shareholders, whose ultimate owners are foreign companies, they should be declared in order to be approved by the Civil Registry & Migration Department.  The following are exempted: a) public companies IN SE and b) international companies operating before the change of regime and for which the Central Bank has all necessary data.

    b) In case the % of foreign participation in the share capital is equal or below the 50%, this % should represent an amount equal or higher than €170,860 in order for a company to be eligible. Applications by service/consulting companies will be examined given that their nature of work does not require a higher capital investment. 

2) For new companies, it should be proved by banking documents etc that the direct foreign capital investment amount at least €170,860 and it was brought to Cyprus legally from abroad.

3) The companies should operate from their shelf–contained offices in Cyprus, which should be located in suitable premises, not part of private residence or another office (except from cases of companies that share lodging).  

 

EMPLOYEE CLASSIFICATION

Companies may employ third-country nationals in the following positions:  The Employees should however first secure a) TEMPORARY RESIDENCE PERMIT and b) EMPLOYMENT PERMIT from the CRMD.

1) EXECUTIVE DIRECTORS (ED)

 – Consulting directors or Partners

 - General Managers of Branches 

 - Departmental Managers

The max number of such Directors is 5 unless the CRMD is persuaded that a greater number is justified. 

The minimum acceptable total annual salary for a newly appointed ED is €41,000.

The completed application form for the employment of third-country nationals are submitted to the CRMD, which issues the TEMPORARY RESIDENCE & EMPLOYMENT PERMIT for a period of up to 2 years within a month or so of its submission. 

 

This Application Form should be accompanied by:

a) Contract of employment stating the annual salary (€41,000 or €20,500) depending on the  kind of employment)

b) M58 for ENTRY PERMIT or M61 for TEMPORARY RESIDENCE PERMITS

c) M64 for EMPLOYMENT PERMIT

d) 1 Photo

e) Fees of €35 per year with application form

f) Copy of passport’s data pages

g) Copy of Alien Registration Certificate

h) Bank Guarantee

i) Certificate of Criminal Record

j) Full Medical Insurance Certificate (valid for 1 year). In case the Employment Permit is valid for more than a year then a renewed Insurance Certificate must be submitted.

k) Medical Examination Certificate & a Chest x-ray for tuberculosis from doctors in Cyprus. This is required even in the case of a renewal of temporary residence/employment permits. 

 

For new companies, 

Need of proof that the third country nationals who will be employed have adequate funds so that their family members do not become a burden on the Social Welfare. 

 

In case the employees are also shareholders of the company, the equivalent amount to an annual salary must be deposited in a Bank in Cyprus, either in their account or the company’s. 

In case they are not shareholders, the equivalent amount to an annual salary must be deposited in a Bank in Cyprus, in the company’s account.

For existing companies, 

This condition is satisfied by submitting the audited financial movement of accounts for the previous year which includes the auditor’s report for the company’s viability and a certificate of tax clearance issued by the Inland Revenue Dept. 

Personnel of this type that is expected to stay in Cyprus for a long period of time may apply to the CRMD for a MIGRATION PERMIT (M67).

There are no restrictions for the residence period of these employees

Applications for renewal & employment permit are submitted to the Civil Registry & Migration Dept.

 

For the renewal of permits, the following are required:

a) Company’s Annual report by the Accountants

b) Audited accounts for the previous year & auditor’s report for the viability of company

c) Income Tax Clearance Certificate for the applicant’s & Corporate tax clearance for the company

d) Certificate of Social Insurance Fund Contributions

e) List of company’s personnel

f) Contract of employment stating the annual salary (€41,000 or €20,500) depending on the kind of employment)

g) M58 for ENTRY PERMIT or M61 for TEMPORARY RESIDENCE PERMITS

h) M64 for EMPLOYMENT PERMIT

i) 1 Photo

j) Copy of passport’s data pages

k) Copy of Alien Registration Certificate

l) Bank Guarantee

m) Full Medical Insurance Certificate (valid for 1 year). In case the Employment Permit is valid for more than a year then a renewed Insurance Certificate must be submitted.

n) Medical Examination Certificate & a Chest x-ray for tuberculosis from doctors in Cyprus. This is required even in the case of a renewal of temporary residence/employment permits. 

o) Copy of previous Residence & Employment Permit

p) Fees of €35 

 

2) MIDDLE-MANAGEMENT STAFF, EXECUTIVE STAFF & ANY OTHER KEY PERSONNEL

This includes Directors who are not considered to be ED with an annual salary ranging from €20,500 - €41,000.

The max number of such Directors is 10, unless the CRMD is persuaded that a greater number is justified. 

The completed application form for the employment of third-country nationals are submitted to the CRMD, which issues the TEMPORARY RESIDENCE & EMPLOYMENT PERMIT for a period of up to 2 years within a month or so of its submission. 

 

This Application Form should be accompanied by:

a) Contract of employment stating the annual salary.

b) M58 for ENTRY PERMIT or M61 for TEMPORARY RESIDENCE PERMITS

c) M64 for EMPLOYMENT PERMIT

d) 1 Photo

e) Fees of €35 per year with application form

f) Copy of passport’s data pages

g) Copy of Alien Registration Certificate

h) Bank Guarantee

i) Certificate of Criminal Record

j) Full Medical Insurance Certificate (valid for 1 year). In case the Employment Permit is valid for more than a year then a renewed Insurance Certificate must be submitted.

k) Medical Examination Certificate & a Chest x-ray for tuberculosis from doctors in Cyprus. This is required even in the case of a renewal of temporary residence/employment permits. 

 

For new companies, 

Need of proof that the third country nationals who will be employed have adequate funds so that their family members do not become a burden on the Social Welfare. 

In case the employees are also shareholders of the company, the equivalent amount to an annual salary must be deposited in a Bank in Cyprus, either in their account or the company’s. 

In case they are not shareholders, the equivalent amount to an annual salary must be deposited in a Bank in Cyprus, in the company’s account.

For existing companies, 

This condition is satisfied by submitting the audited financial movement of accounts for the previous year which includes the auditor’s report for the company’s viability and a certificate of tax clearance issued by the Inland Revenue Dept. 

The completed form is submitted to the CRMD with all necessary certificates/docs for the renewal of permits too.

Personnel of this type that is expected to stay in Cyprus for a long period of time may apply to the CRMD for a MIGRATION PERMIT (M67).

 

There are no restrictions for the residence period of these employees

For the renewal of permits, the following are required:

a) Company’s Annual report by the Accountants

b) Audited accounts for the previous year & auditor’s report for the viability of company

c) Income Tax Clearance Certificate for the applicant’s & Corporate tax clearance for the company

d) Certificate of Social Insurance Fund Contributions

e) List of company’s personnel

f) Contract of employment stating the annual salary 

g) M58 for ENTRY PERMIT or M61 for TEMPORARY RESIDENCE PERMITS

h) M64 for EMPLOYMENT PERMIT

i) 1 Photo

j) Copy of passport’s data pages

k) Copy of Alien Registration Certificate

l) Bank Guarantee

m) Full Medical Insurance Certificate (valid for 1 year). In case the Employment Permit is valid for more than a year then a renewed Insurance Certificate must be submitted.

n) Medical Examination Certificate & a Chest x-ray for tuberculosis from doctors in Cyprus. This is required even in the case of a renewal of temporary residence/employment permits. 

o) Copy of previous Residence & Employment Permit

p) Fees of €35 

 

 

3) SUPPORTING STAFF

All third country-nationals employed in other professional, managerial, technical etc positions in Cyprus and do not fall under the above mentioned categories. 

Companies are expected to employ Cypriots or EU citizens for this category. In case there are not available or suitable Cypriots or EU citizens, a company may employ third country nationals following the procedure and submitting all certificates/docs etc after an affirmative decision is ensure by the Labour Dept. 

The completed application form for the employment of third-country nationals are submitted to the District Aliens & Immigration Branches of the Police except for the District of Nicosia where the application is submitted to the District Office of the CRMD after an affirmative decision is ensured by the Labour Dept, which examines if there are available Cypriot or EU citizens in the market to be employed in this position.   

 

This Application Form should be accompanied by:

 

A) Contract of employment stating annual salary and duration stamped by the District Labour Office given that the employers have a permit to employ third country nationals.

B) M61 for TEMPORARY RESIDENCE PERMIT & M64 fully completed & signed.

C) Copy of passport’s data pages

D) Copy of Alien Registration Certificate

E) Certificate of Criminal Record

F) Letter of Guarantee by the employer.  For their family, a letter is required from the third country national. 

G) Fees of €35 per year

H) Medical Examination Certificate & a Chest x-ray for tuberculosis from doctors in Cyprus.

 

The completed form is submitted to the District Aliens & Immigration Branches of the Police except for the District of Nicosia where the application is submitted to the District Office of the CRMD for the renewal of permits too.

 

For the renewal of permits, the following are required:

 

A) Copy of previous permit

B) Income tax Clearance of the applicants issued by the Inland Revenue

C) Certificate of Social Insurance Fund Contributions of previous year

D) Contract of employment stating annual salary and duration stamped by the District Labour Office given that the employers have a permit to employ third country nationals.

E) M61 for TEMPORARY RESIDENCE PERMIT & M64 fully completed & signed.

F) Copy of passport’s data pages

G) Copy of Alien Registration Certificate

H) Letter of Guarantee by the employer.  For their family, a letter is required from the third country national. 

I) Fees of €35 per year

J) Medical Examination Certificate & a Chest x-ray for tuberculosis from doctors in Cyprus.

 

 

SUBMISSION & EXAMINATION OF APPLICATIONS

All third country-nationals should obtain a a) TEMPORARY RESIDENCE PERMIT and b) EMPLOYMENT PERMIT from the CRMD.  The Director of the CRMD takes into account the recommendations of the Registrar of Companies and Official Addressee, the Labour Dept & Social Insurance and the Cyprus Police.

Family members of Executive Directors and MIDDLE-MANAGEMENT STAFF, EXECUTIVE STAFF & ANY OTHER KEY PERSONNEL are submitted to the CRMD with all necessary certificates. 

Family members of SUPPORTING STAFF are submitted to the District Aliens & Immigration Branches of the Police except for the District of Nicosia where the application is submitted to the District Office of the CRMD.

 

The Application Forms for the TEMPORARY RESIDENCE PERMITS should be accompanied by:

 

a) M61 for TEMPORARY RESIDENCE PERMIT 

b) One Photo

c) Fees of €35 per year

d) Copy of passport’s data pages

e) Bank Guarantee

f) Full Medical Insurance Certificate (valid for 1 year). In case the EMPLOYMENT PERMIT is valid for more than a year then a renewed Insurance Certificate must be submitted.

g) Marriage Certificate etc issued by the relevant authority of the country of origin & birth certificates of children.

 

GENERAL

In case that a company of foreign interests terminates its activities in Cyprus, it is obliged to notify the CRMD.

In case when employees are bound to be away for an official assignment for a period more than 3 months, which results to the immediate of their residence permit, will have to:

1) obtain in advance a re-entry permit by the CRMD

2) Before coming back to Cyprus to ensure a consular entry visa by the Embassy of the Republic abroad. If there is no Cypriot Consulate abroad, then the CRMD should be informed so that the re-entry is allowed.

3) Persons whose TEMPORARY RESIDENCE PERMIT has been invalidated, should apply to the CRMD for a renewal as soon as they re-enter the country in order to renew their permit for the remaining period that their previous permit was valid for. No need for certificates etc except for a confirmation for the company that the person is employed within.

 

Author: Marilena Pirilidou
Date: 20/06/2009