Cyprus Work Permit for Third-Country Nationals through Companies of Foreign Interests (BFU Guide)

Cyprus Work Permit for Third Country Nationals (TCN) through Companies of Foreign Interests (Business Facilitation Unit – BFU)

Cyprus allows third-country nationals to relocate and work in Cyprus through Cyprus companies of foreign interests, provided the relevant corporate, investment and immigration conditions are satisfied. In practice, the process usually starts with the incorporation of the Cyprus company, followed by the banking and investment stage, registration of the company under the Business Facilitation Unit (BFU), and then the work and residence permit application for the employee.

Cyprus work permits for Third Country Nationals (TCN) are issued by the Migration Department under the Deputy Ministry of Migration and International Protection for non-EU nationals employed by Cyprus companies of foreign interests registered under the Business Facilitation Unit (BFU).

Third Country Nationals (TCN) may relocate to Cyprus and obtain a temporary residence and employment permit, provided they are employed by a Cyprus company of foreign interests duly registered under the Business Facilitation Unit (BFU) and meeting the relevant eligibility criteria.

Before applying to the Cyprus Civil Registry and Migration Department for a temporary residence and employment permit the person willing to migrate to Cyprus and apply for a temporary residence and employment permit must abide by the following entry requirements for Cyprus:

1. Incorporate a Cyprus company with the Registrar of Companies, followed by the establishment of a corporate bank account and introduction of the required investment. The company must then be registered with the Business Facilitation Unit (BFU), after which it becomes eligible to employ third-country nationals and proceed with work and residence permit applications.
2. Eligible companies are those classified as companies of foreign interests, which may be up to 100% owned by non-EU nationals. Such companies must demonstrate an initial investment of at least €200,000, introduced from abroad and evidenced either through a Cyprus bank account or through qualifying business expenditure (e.g. office space, equipment, or other operational assets).The investment must be made within a reasonable period prior to the application (typically within the last 6 months).
3. Where foreign participation is equal to or less than 50% of the total share capital, the foreign investment must still amount to at least €200,000 in order for the company to qualify as a company of foreign interests. The €200,000 threshold applies in all cases. Also eligible are the below types of entities regardless of their shareholders’ nationality however they still need to abide by the above participation amounts:
   1. Public companies listed on any recognized stock exchange​
   2. Companies of international activities (formerly off-shore), which operated before the change of regime, whose data are held by the Central Bank​
   3. Cypriot shipping companies​
   4. Cypriot high-tech/innovation companies (The meaning of high-tech companies is that (a) they are already established and have a presence in the market, (b) they have a high level of experimental R&D intensity, and (c) they developed product/s that fall into one of the following categories: products related to aviation and space industry, computers, information and telecommunication technology (ICT), pharmaceuticals, biomedical, research and development equipment, electrical machinery, chemicals, non-electrical machinery)​
   5. Cypriot pharmaceutical companies or Cypriot companies active in the fields of biogenetics and biotechnology​
   6. Companies of whom the majority of the total share capital is owned by person/s who have acquired Cypriot citizenship by naturalization based on economic criteria, provided that they prove that the conditions under which they were naturalized continue to be met

4. Key personnel (directors, executives and specialists) are generally expected to:

   • Receive a minimum gross monthly salary of €2,500
   • Have relevant academic qualifications and/or professional experience
   • Be employed under a contract of up to 3 years (renewable)

   Companies may also employ third-country nationals as support staff:

   • No €2,500 minimum salary requirement applies
   • Subject to approval conditions and labour market criteria
   • Limited to a maximum of 30% of total support staff
5. The Cyprus company must demonstrate that it operates from independent offices in Cyprus, housed in suitable premises, separate from any private residence or other business, except in cases of permitted business cohabitation.

Companies of foreign interests may employ third-country nationals, subject to the policy that up to 70% of the total workforce may consist of third-country nationals over a transitional period of five years, with the remaining 30% expected to be Cypriot or EU nationals. The exact ratio may be reviewed by the authorities based on the nature and activity of the company.

Requirements prior to relocation and submission of the temporary residence and employment permit application:

Before relocating to Cyprus and applying for a temporary residence and employment permit, the following steps must be completed:

Requirements before arrival in Cyprus:

1. Application form
2. Application fee
3. Copy of a valid passport or other travel document, the validity of which, on the date of submission of the application, expires at least six (6) months after the validity of the requested permit (Minimum acceptable document expiration period: 12 months).
4. Brief Curriculum Vitae (CV) (including copies of academic qualifications of at least two years)
5. Original letter of guarantee issued by a bank or cooperative institution in Cyprus covering possible repatriation expenses. The amount depends on the country of origin. 
6. Employer declaration for covering the return cost of the third country’s national
7. Original results of medical tests conducted abroad, show that the third country national does not bear/suffer from HIV, Syphilis, Hepatitis B and C, and Tuberculosis – TB (through chest x-ray). Ratification is necessary, except in the presence of a bilateral state agreement providing for an exception.
8. Original Certificate of Criminal Record from the country of origin (if the applicant resides in a country other than the country of origin, the certificate should be issued from the country of residence). Ratification is necessary, except in the presence of a bilateral state agreement providing for an exception.

Requirements after arrival in Cyprus:

1. Entry permit (where applicable) or other valid entry documentation
2. Copy of the passport or other travel document’s page, showing the latest arrival in the Republic. When applying, the presentation of the original passport is mandatory, for verification.
3. Original contract of employment, of at least two years of duration, duly signed and stamped, as well as two (2) copies of the stamped original contract, also duly stamped.
   Note: the minimum gross monthly salary of €2,500 applies to employees classified as key personnel (directors, executives and specialists). Employees below this threshold are generally classified as support staff and are subject to separate approval conditions, including labour market criteria.
4. Original results of medical tests, performed in Cyprus, show that the third country national does not bear/suffer from HIV, Syphilis, Hepatitis B and C, and Tuberculosis – TB (through chest x-ray), certified by a Specialised Doctor in Cyprus.
5. Title deed or rental agreement of a house/apartment, dully stamped if valued over €5000.
6. Valid Cyprus Certificate of Health Insurance for medical care that covers inpatient and outpatient care as well as transportation of corpse (Plan A), automatically renewable, OR Registration Certificate in the General Healthcare System (GHS – GESY) (can be obtained from GHS personal doctor) and private insurance issued in Cyprus for transportation of corpse
7. A Cyprus employer´s liability insurance with an automatic renewal

Once all required documents have been collected, the application is submitted to the Civil Registry and Migration Department. The applicant must be physically present in Cyprus for the submission and biometric data capture.

Additional important notes regarding relocation and employment in Cyprus

– Family reunification

• Third-country nationals employed in companies of foreign interests may apply for family reunification, subject to the applicable immigration conditions. Family members (spouse and minor children) may reside in Cyprus under this framework.
• Spouses of employees classified as key personnel with a salary of at least €2,500 are granted immediate access to the Cyprus labour market. This benefit does not extend to employees classified as support staff.
• In cases where family reunification criteria are not immediately met, family members may enter Cyprus under a visitor (dependent) status. Any transition to employment remains subject to separate approval and applicable work permit requirements.

– At the time of submission, the applicant’s photograph, fingerprints and signature (biometric data) are captured by the relevant authorities. The application will not be considered complete or processed unless these biometrics are provided.

– Applications must be submitted either by the employer, the applicant, or an authorised representative, supported by a duly certified authorisation where applicable.

– The validity of the temporary residence and employment permit depends on the duration of the employment contract and can be granted for up to three (3) years, with the possibility of renewal.

– Directors, middle management executives and other key personnel may reside in Cyprus as long as they hold a valid temporary residence and employment permit, which is renewable subject to compliance with the relevant conditions.

– All companies with foreign interests registered with the Business Facilitation Unit (BFU) that continue to employ non-EU residents must, once a year, between 30 March and 30 June, submit to the Migration Department an update of the following:

– Recent audited international Cyprus Company audited financial statements

– Tax Clearance Certificate issued by the Cyprus tax department for the Company

–  Cyprus Certificate of VAT clearance (where applicable).

– Proof of Levy payment with the Cyprus Registrar of Companies (where applicable).

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