Remote’s guide to employing in

Cyprus
cyprus flag

Make employment in Cyprus easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Cyprus, all in one easy-to-use platform.

  • Capital City

    Nicosia

  • Currency

    Euro (€, EUR)

  • Languages

    Greek and Turkish

  • Population size

    1,189,265

Services available in this country:
Employer of Record ProductContractor ManagementGlobal Payroll

Facts & Stats

Cyprus Map Illustration
  • Capital City

    Nicosia

  • Currency

    Euro (€, EUR)

  • Languages

    Greek and Turkish

  • Population size

    1,189,265

  • Ease of doing business

    Easy

  • Cost of living index

    $$$ (36 of 139 nations)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    19%

  • GDP - real growth rate

    3.1 (2019)

The Republic of Cyprus (Greek: Κυπριακή Δημοκρατία; Turkish: Kıbrıs Cumhuriyeti) is a Mediterranean island nation nestled just off the coasts of Israel, Turkey, and Egypt. The famed tourist hotspot is rich with history and natural beauty.

Beyond a storied cultural heritage that has been 12,000 years in the making, Cyprus is an advanced, high-income economy with an exceptionally high rating on the human development index. Free public education and low income inequality makes Cyprus an attractive market for skilled talent and multinational corporations.

Grow your team in Cyprus with Remote

Looking to employ workers in Cyprus? Companies hiring in Cyprus must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Remote can employ your team in Cyprus on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Cyprus team. You can also pay contractors now in Cyprus with Remote.

Risks of misclassification

Cyprus, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Cyprus may lead to fines and penalties for the offending company.

Employing in Cyprus

Cypriot labour regulations are contained in several legislations that spell out provisions for employee protections and workers’ rights applicable to Cyprus’ workforce of 440,000.

Employees in Cyprus enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Cyprus.

Minimum Wage

The minimum monthly wage in Cyprus has increased to €1,000 gross for full-time employees who have completed 6 months of continuous employment with the same employer, starting from 1 January 2024. The minimum wage for employees who have not completed the 6-month continuous employment period is set to €900.

This minimum wage does not apply to domestic workers, agricultural and livestock workers and shipping workers, as well as to workers for whom the minimum wages in the hotel industry applies.

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.

Onboarding Time

We can help you get a new employee started in Cyprus fast. The minimum onboarding time we need is only 5 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

14 Public holidays

Jan
Monday 1 January 20241New Year's Day (Πρωτοχρονιά)
Saturday 6 January 20242Epiphany (Θεοφάνια)
Mar
Monday 18 March 20243Orthodox Clean Monday (Ορθόδοξη Καθαρή Δευτέρα)
Monday 25 March 20244Greek Independence Day (Ελληνική Ημέρα Ανεξαρτησίας)
Apr
Monday 1 April 20245Cyprus National Day (Εθνική Ημέρα Κύπρου)
May
Wednesday 1 May 20246Labour Day (Ημέρα Εργασίας)
Friday 3 May 20247Orthodox Good Friday (Ορθόδοξη Μεγάλη Παρασκευή)
Monday 6 May 20248Orthodox Easter Monday (Ορθόδοξη Δευτέρα του Πάσχα)
June
Monday 24 June 20249Orthodox Pentecost Monday (Ορθόδοξη Πεντηκοστή Δευτέρα)
Aug
Thursday 15 August 202410Assumption Day (Κοίμηση της Θεοτόκου)
Oct
Tuesday 1 October 202411Cyprus Independence Day (Ημέρα Ανεξαρτησίας Κύπρου)
Monday 28 October 202412Greek National Day (Ελληνική Εθνική Ημέρα)
Dec
Wednesday 25 December 202413Christmas Day (ημέρα των Χριστουγέννων)
Thursday 26 December 202414Boxing Day (Δευτέρα χριστούγεννων)

Competitive benefits package in Cyprus

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practising “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

Our benefits packages in Cyprus are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Taxes in Cyprus

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Cyprus.

  • 12.5%

    Corporate tax rate

  • 8.3%

    Social insurance

  • 2%

    Social cohesion

  • 1.2%

    Redundancy

  • 0.5%

    Training & development

  • 2.9%

    National health system

  • 8%

    Holiday fund

Types of leave

Employees are entitled to four weeks of paid leave after completing 48 weeks on the job every year. Within that bracket, employees who work 5 days a week are entitled to 20 days of leave annually, while employees who work 6 days weekly are entitled to 24 days of paid annual leave.

Employment termination

Termination process

Employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, or any other work-related offences.

Notice period

Like its severance obligations, notice periods in Cyprus depend on how long an employee has worked with the employer.

  • 26 – 51 weeks of employment: 1 weeks’ notice

  • 52 - 103 weeks of employment: 2 weeks’ notice

  • 104 - 155 weeks of employment: 4 weeks’ notice

  • 156 - 207 weeks of employment: 5 weeks’ notice

  • 208 - 259 weeks of employment: 6 weeks’ notice

  • 260 - 311 weeks of employment: 7 weeks’ notice

  • 312 weeks and above: 8 weeks’ notice

Severance pay

In Cyprus, severance pay entitlements are calculated based on an employee’s tenure with the employing organisation, ranging across:

  • 2 weeks’ pay: employment for up to 4 years

  • 2.5 weeks’ pay: employment for 5 to 10 years

  • 3 weeks’ pay: employment for 11 to 15 years

  • 3.5 weeks’ pay: employment for 16 to 20 years

  • 4 weeks’ pay: employment for over 20 years

Probation periods

Probation periods cannot exceed 6 months.

Fair Pricing in Cyprus

Employer of Record

Hire and pay your global team

Starting at USD 599/month

for annual plans

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localised benefits

Contractor Management

Compliantly onboard and pay contractors

USD 29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

USD 50

per employee/month

Top features

  • Reduce costs by centralising payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labour authority reporting handled for you

HRIS

Manage all of your employees in one place

Free
Sign up

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app