Opportunities for work in Cyprus: features, salary level, doing business

How to obtain a work permit for a foreigner

You can’t just come to the island and start working. If a visitor wants to find a job, having arrived in the country on a tourist visa and without permission to do so, the employer simply will not contact such a person. First, you need to obtain a work visa, which is valid for 4 years. After this, go through certain stages and obtain a work permit. To be employed in Cyprus, you must be:

• invited employee to one of the companies in Cyprus;
• have your own business in the republic;

and:

• have no criminal record in your home country;
• have enough funds for the first time until you receive your first salary;
• have rented or own property on the island;
• have the necessary experience and knowledge to conduct work;
• have an average knowledge of the language spoken by Cypriots.

The employer is responsible for obtaining a work visa to the republic. In order to issue it to a foreign citizen, the company must also take specific steps to obtain permission to invite a foreign employee. The head of the company must prove that there is no suitable Cypriot applicant in Cyprus. To do this, information about the requirements for the applicant and the proposed average salary is published on the website with vacancies and local newspapers. If a suitable employee is not found within 40 days, the employer has the right to hire a foreign person who has the necessary knowledge and experience.

A foreigner entering for the first time must fill out an online application on the official website of the embassy of the republic. Receive a pro-visa within 1-3 days, valid for 90 days. All information in the form must be entered in Latin letters. During this time, the employer will be able to issue a work visa, and the employee will be able to change his/her status of stay.

To enter with a pro visa you will need the following documents:

• international passport;
• printed form;
• certificate of absence of criminal prosecution;
• availability of health insurance;
• bank statement in the amount of at least 400 €;
• receipt of payment of customs duty;
• documents confirming the availability of rental housing or a confirmation document confirming the reservation of a room in one of the hotels in Cyprus.

Applying for a temporary visa is absolutely free. But to obtain a work visa, obtain a temporary residence permit, prepare the necessary documents and register with the migration department, you will have to spend 250-300 €. Upon arrival on the island, the migration service inspector has the right to contact the employer to clarify the veracity of the information received. And will ask for confirmation of the employee’s expectations.

The only place where it is possible to find income without a work permit is the tourist resort town of Ayia Napa. Youth clubs, party areas, cafes and restaurants are located throughout the territory. Such establishments constantly require personnel for the positions of waiters, bartenders, etc. Employment in this kind of establishment is considered illegal, but it will help you earn some income until an employer with favorable conditions is found.

Business in Cyprus

Since 2013, the Republic of Cyprus has not been listed as an offshore zone, but business interest in the island has not waned. This is facilitated by the quick registration of a company in Cyprus, the low level of taxes and the advantages of investor status. Those wishing to conduct business on the island must obtain a residence permit and invest at least 255,000 € in the state economy.

The most popular investment for foreigners in both republics is real estate. Housing prices in 2021 increased by 4.2%. Sales for the first quarter of 2021 exceeded the same period last year by 41%. Russian companies in Cyprus are mainly engaged in the field of tourism, the provision of various services and real estate. There is a lot of competition, so running a business is quite difficult.

Features of the legal status of Russian business in Cyprus

Before opening a business in Cyprus, a Russian must officially obtain the right to live on this island and conduct business. Usually for foreigners this is the procedure for obtaining a residence permit. But the island of Cyprus is not entirely ordinary in this regard. The peculiarity is that the northern third of Cyprus is controlled by Turkey, and these territories are semi-legally owned by the Turkish Republic of Northern Cyprus, and the southern part of the island is owned by the Republic of Cyprus, an EU member state.

Different jurisdictions require different conditions for obtaining a residence permit (RP). Therefore, first of all, you need to determine for yourself the city in which you would like to settle, and then look for opportunities to officially move and open a business.

A simpler procedure for accepting immigrants has been established in Northern Cyprus. This part of the island is also attractive for tourists and, therefore, business related to the tourism sector will be relevant here too.

Obtaining a residence permit for the Republic of Cyprus is a more difficult task. But in the end, the immigrant will receive much more opportunities due to access to the infrastructure of the European Union.

Formally, both the Republic of Cyprus and Northern Cyprus provide residence permits to those Russian citizens who declare their intention to conduct business on the island. But in practice, opening a company in Cyprus is not as easy as it seems. Main difficulties:

• the enterprise must be organized in such a way that it provides at least three jobs for Cypriots;
• inflated prices for all administrative and infrastructure services for non-residents of Cyprus;
• work style characteristic of a southern state (slowness and optionality).

However, if you still manage to open and get your company on its feet in Cyprus, you will be able to achieve significant success, because, in contrast to the imposing Cypriots, you will be able to attract clients with diligence and efficiency.

How to get a job in Cyprus as a citizen of the Russian Federation

Work in Cyprus for Belarusians, Ukrainians, Russians, etc. can be found on local advertisement sites, as well as on the website of the employment service. An additional advantage will be knowledge of English and experience working in international companies. You can also use the services of special recruitment agencies to search for foreign employees. Also, by visiting various exhibitions, conventions and similar events, you can acquire profitable connections or meet a Cypriot employer.

The most common vacancies are positions in medicine, dentists, specialists in economic fields, as well as in the field of programming. During the tourist season, employees are needed for seasonal work:

• maids in hotels;
• cooks;
• assistant cooks;
• reception staff;
• guides, etc.

After receiving a work visa and official permanent employment, an immigrant can apply for permanent residence and then citizenship. Obtaining citizenship can take 7-8 years.

Dismissal procedure

Most immigrants are interested in how to find a job in Cyprus with a good salary. At the same time, not always knowing what exactly he has rights to in the process of work. In addition to the amount of tax deduction and social security payment from your salary, you need to know the dismissal procedure.

There are two ways to end your employment relationship with your employer:

1. At your own request. In this case, it is necessary to notify the employer 10 days before the planned last working day. The company's management is obliged to pay wages for the last month including the day of dismissal + unused vacation. The vacation lasts for 24 days, 2 days from each month. If an employee cannot/does not want to work the required period, then the amount for 10 working days is deducted from the amount of earnings.
2. Dismissal at the request of the employer. The employee is also notified of dismissal 10 days in advance. Just as in the case of voluntary dismissal, the company’s management waits 10 days and pays the amount owed. In another case, he may fire him on the same day, but pay the dismissed employee money for 10 unworked days, since he did not warn him in advance.

These employment conditions apply to Southern and Northern Cyprus.

How much money do you need to live in Cyprus?

A family of 4 people spends 1200 € per month. You need to understand that people are different. Some are thrifty owners, while others throw everything down the drain.

To determine how much money is needed, let’s calculate: housing will cost 400 euros (including utilities), food – 300 and 300 for unforeseen expenses that will still arise (travel, medicine, clothing, etc.). That is, if you save, you can live on the minimum wage. Those who are not used to limiting themselves will have a hard time.

Cost of some services and products in Cyprus (figures are in euros):

• hairdresser – 10;
• visit to the doctor – from 30;
• chicken – 2;
• jeans – from 25;
• T-shirt – from 8;
• milk – 1.2;
• apples – 1.

If you calculate and compare everything, it turns out that Cyprus is not such a cheap country. Prices and salaries are the same as in Russia. Although, judging by official data, Cypriots are richer than Europeans (property is also taken into account).

Minimum salary in Cyprus

The level of salaries on the island differs depending on the position held and the city of residence. Of course, having a higher education and experience can provide an opportunity to get your dream job. But finding a suitable vacancy may take more than one month.

The labor legislation of the republic stipulates that the minimum wage for a certain category of professions cannot be less than 900 € per month. This list includes:

• cleaners;
• security guards;
• sellers;
• nannies;
• nurses, etc.

A quarter of the population receives the minimum wage for officially employed citizens. Three quarters of Cypriots legally employed in Cyprus receive above average salaries.

Standard of living: Russians about life in Cyprus

Home-produced goods are cheaper, but imported ones are quite expensive. The fruits and vegetables grown there are of very good quality, color and taste. No matter what time of year, every Cypriot always has fresh vegetables, fruits and hot snacks on his table. Seafood, fish, lamb and pork – the locals especially love these products. As in our country, it is cheaper to eat and cook at home than to eat in public establishments.

Average salary in Cyprus

You can live relatively well in Cyprus, receiving a minimum income. In order to afford various expensive entertainment or purchases, you will have to work hard. Earning, on average, 1300 €, you can afford more. A family of three can live well on a salary of about 2,000 €.

For skilled workers

Of course, to get a salary above the minimum you need to look for an employer with a good pay offer or be a qualified employee. Specialists with work experience or special skills can expect a salary of 1,500 to 2,000 € per month.

Qualified employees include:

• engineer;
• chef;
• hotel manager;
• Mechanics;
• accountant;
• designer, etc.

Salaries for these vacancies can reach up to 4,000 € per month.

Without knowledge of the language

Any migrant who starts life in a new country without knowing the local language will find it difficult not only to find work, but also to communicate. But this problem can be solved. Since the island is home to a large Russian-speaking population, finding temporary work is quite possible.

The most popular professions in Cyprus with an average salary and minimal language skills are jobs that require physical labor, for example:

• cleaners;
• dishwashers;
• gardener's assistants;
• construction assistant;
• sellers of Russian products in a Russian store;
• beauty industry employees, etc.

You can count on a good salary without knowing the language if you work intensively, 9 hours a day and with one day off a week. In this case, you can receive a monthly salary of about 1100-1400 €.

Six EU countries still do not have a fixed minimum wage. Among them is Cyprus - here only certain categories of workers have a minimum wage. For the minimum wage to become national, it is necessary to reduce the unemployment rate, which is only growing during the pandemic.

As of January 1, 2021, 21 of the 27 states of the European Union had a minimum wage established at the legislative level. There is no minimum wage in countries such as Denmark, Italy, Cyprus, Austria, Finland and Sweden.

In EU states in Eastern Europe, with the exception of Greece and Slovenia, the monthly minimum wage is usually below €700, and in Western Europe, except Spain and Portugal, it is above €1,500.

Minimum wage below 700 euros

The 21 community countries with national minimum wages can be divided into three main groups depending on the level. Ten states had minimum wages (before any taxes and social security contributions) below €700 per month. These are Bulgaria (332 euros), Hungary (442 euros), Romania (458 euros), Latvia (500 euros), Croatia (563 euros), Czech Republic (579 euros), Estonia (584 euros), Poland (614 euros), Slovakia (623 euros) and Lithuania (642 euros).

Minimum wage from 700 to 1200 euros

In five other states, located mainly in the south of the EU, the minimum wage ranged from 700 to just over 1,100 euros per month: Greece (758 euros), Portugal (776 euros), Malta (785 euros), Slovenia (1,024 euros) and Spain (1108 euros).

Minimum wage above 1500 euros

In the remaining six countries located in the west and north of the EU, the minimum wage was above 1,500 euros per month: France (1,555 euros), Germany (1,614 euros), Belgium (1,626 euros), the Netherlands (1,685 euros), Ireland (1,724 euros) ) and Luxembourg (2202 euros). By comparison, the US federal minimum wage in January 2021 was €1,024.

Thus, in the European Union, the highest minimum wage is 6.6 times higher than the lowest. However, the minimum wage gap between EU states narrows significantly when differences in price levels are taken into account. After removing price differences, the minimum wage ranges from €623 (purchasing power standard) per month in Bulgaria to €1,668 in Luxembourg, meaning the highest minimum wage is 2.7 times higher than the lowest.

Minimum wages can also be measured in relative terms, that is, as a share of average earnings. According to the latest data from a four-year study of the income structure of European Union residents, in 2018 the minimum wage was more than 60% of average monthly earnings in only four countries: France (66%), Portugal (64%), Slovenia (62%) and Romania ( 61%). In contrast, the minimum wage was less than half the average earnings in six countries: Croatia, the Czech Republic and Latvia (49% each), Spain (44%), Malta (43%) and Estonia (42%).

What about Cyprus?

There is no concept of a national minimum wage in Cyprus. An exception is made only for representatives of certain professions, for example, salespeople, cleaners, security guards, nannies in kindergartens, and so on - for such employees the minimum wage is 870 euros. The Cypriot authorities have already announced that the time has come to introduce a national minimum wage, but the pandemic intervened in the plan - the unemployment rate increased from 6% to 8%, which means that all changes will have to be postponed until better times.

List of in-demand professions in Cyprus for immigrants

Talented people who can contribute to the development of a business or country are valued everywhere. Since Cyprus is a favorite destination for tourists, the republic almost always has a shortage of personnel in the service sector. You can get a job not only in a restaurant or hotel, but also in a car rental company.

You shouldn’t count on a high salary in the service industry right away, but for the first time it will be enough to provide for yourself. The average salary, for example, in Paphos or Nicosia is 1000-1100 € per month. In the business city of Limassol, salaries start from 1400 €. It is up to the immigrant to decide which city is better to live and work in. In some cases, you can get a job with hotel accommodation if renting separate housing will be expensive. The main vacancies that the republic offers for immigrants:

It is not possible to get a job in a government organization, even if you have citizenship of the Republic of Cyprus. Becoming a firefighter, policeman or serving in the army under a contract is possible only if a citizen has graduated from a Cypriot school at one time. Apart from the fact that, according to other requirements and parameters, he is fully suitable for the open vacancy.

Job

In short, there are two options for getting a job on the island. The first is to take a highly qualified position. Jobs related to IT and engineering professions are popular among Russians. Finding a job in the construction or industrial sector is more difficult. The job is usually provided to the applicant on the condition that there are no applicants from Cyprus or the European Union for this position.

You can earn more than 2,000 euros per month in a qualified position.

The second option is unskilled labor: waiters, escorts from travel agencies, guides, croupiers, cooks, etc. Working as a waiter, you can earn up to 1,000 euros, and as a cook, up to 1,500 euros per month. The average salary in Cyprus is about 1,500 euros.

Payroll taxes

Cyprus tax legislation has its advantages. Compared to other EU countries, taxes on the island are not high for all types of income. Among them are:

• personal income tax persons – 35%;
• legal persons – 12.5%;
• when selling local real estate – 20% (assessed as capital gain);
• VAT – 19%.

Tax residents of Cyprus are required to pay tax on their worldwide income. Tax residents are considered to be citizens who are on the island for 183 or more days a year.

Depending on your annual income, different percentages are paid. For example:

• earnings less than €19,500 per year are not subject to tax deductions;
• income from 19,500 to 28 thousand is subject to deduction in the amount of 20%;
• from 28 thousand to 36300 – 25%;
• from 36,300 to 60 thousand € per year you will have to pay tax in the form of 30% of the total amount of earnings;
• Profits of more than 60 thousand per year are subject to taxation at the rate of 35%.

The following amounts are not subject to tax deductions:

• for contributions to reserve funds;
• to participate in trade union institutions;
• for charity.

Income taxes are paid every year during the reporting period. A citizen who owns a business submits a declaration independently if the income exceeds the established minimum. The employer does this for officially employed persons.

VAT applies to all types of products and services. The tax percentage varies depending on the type. The minimum payment is 5%. In addition to the main taxes on the island, there are additional taxes. These include taxes:

• to change the owner;
• for real estate;
• for dividends;
• per car.

Average salary in Cyprus

Statistics show that Cypriots earn quite well. The income of men is estimated at 2134 euros per month, and for women it is 132 units less.

But statistics are a strange thing: in Russia they long ago reached the level of 50 thousand rubles, but in reality they receive 15-20 thousand. You cannot forget about this, and you should not count on a significant increase in your budget, especially in the first year of your stay on the island.

The migrant will be able to find a field for work, paid in 1000-1200 units of EU currency. Of course, the amount will be higher if a talented specialist with a worldwide reputation is hired.

Unemployment benefits in Cyprus

It is easy to become unemployed in Cyprus. If an employee holding a position ceases to cope with the responsibilities entrusted to him or does not improve his level of qualifications, he may be dismissed by the employer.

Who can count on unemployment benefits in 2021:

• citizens who do not have permanent employment;
• part-time people who do not receive an income equal to the subsistence level;
• persons registered with the Department of Labor as unemployed;
• citizens who do not have diseases that may prevent them from starting work as soon as possible.

Persons who have been legally residing on the island for more than 5 years are eligible to receive unemployment benefits. And also those who made contributions to the Social Insurance Fund during this period. Payments are accrued within 156 days to citizens under 63 years of age. If a job search candidate is employed, he is removed from the register and payments stop. Repeated application is possible if the candidate worked for six months after deregistration and before re-registration.

Cypriot employment services conduct programs for Russian-speaking nationalities and indigenous residents to change their occupation. The entire course takes up to 90 hours of training, and upon completion the state pays an amount not exceeding the established minimum wage.

Employment in Cyprus for foreigners

To obtain legal employment in Cyprus, foreigners from the CIS countries, including Russians and Ukrainians, will need to find an employer in advance and conclude an employment contract. On this basis, a work permit is issued and a work visa is issued.

As a rule, a Cypriot company obtains a work permit for a foreign employee. To do this, a special application and a list of approved documents are submitted to the Civil Registration and Migration Department or the Foreigners and Immigration Department of the local police.

Documents for obtaining a work permit in Cyprus

1. Application in the prescribed form (M.58 and M.64).
2. A copy of the foreign passport of the foreign employee.
3. Medical insurance.
4. Certificate of no criminal record.
5. A copy of the employment contract, certified by the seal of the Department of the Ministry of Labor and Social Insurance of Cyprus.
6. In case of forced deportation, confirmation from a financial institution in the foreigner’s country that there is a minimum of 350-950 euros in the account.
7. Payment of the state fee for filing an application (about 40 euros).

One of the main conditions for issuing a work permit in Cyprus to an applicant from third countries, for example, Russia and Ukraine, will be the lack of required specialists among local residents and EU citizens. Having a profession that is in short supply is considered a big plus.

Typically, a foreigner must have sufficient qualifications, work experience, and be fluent in English, and, if possible, Greek and Turkish. Of course, a lot depends on the vacancy. In general, in Cyprus there is an opportunity to find work for both qualified workers and unskilled specialists.

Cyprus legislation provides for various options for work visas and, depending on the type of professional activity of the foreigner (self-employment or hired labor), there are categories from A to F. Regular permanent employment in Cyprus requires a work visa of category E.

As a rule, a work permit is initially issued for 12 months with the right to extension. No later than 8 days after arriving in the country, you must submit an application for a residence permit, which is issued within 6 months.

In order to obtain Cypriot citizenship, you will need to reside permanently in the country for at least 5-7 years. However, there are also more expedited procedures, for example through large investments in the local economy.