Cyprus: Immigration Comparative Guide

1 Legal framework

1.1 Which legislative and regulatory provisions govern corporate immigration in your jurisdiction?

Immigration in Cyprus is regulated by a series of legislative instruments, the most prominent of which are as follows:

• the Companies Law (Cap 113);
• the Law on the Right of Union Citizens and Their Family Members to Move and Reside Freely within the Territory of Cyprus (7(I)/2007);
• the Law on Aliens and Immigration (Cap 105), as amended by the Aliens and Immigration Regulations 1972;
• the Aliens and Immigration (Visas) Regulations 2004 (RAA 498/2004);
• the Law on Immovable Property Acquisition (Aliens) (Cap 109);
• the Immovable Property Acquisition (Aliens) Regulations 1972;
• the Immovable Property Acquisition by Aliens (Conditions, Limitations, Prerequisites and Criteria for the Granting of Permit) Regulations 1990;
• the Law on Aliens and Immigration (Prerequisites for entrance and residence of third-country nationals for the purpose of research, studies, training, voluntary work, exchange of pupils or education programme) (7(I)/2019);
• the Civil Registry Law (141(I)/2002);
• the Law on the Prevention and Combating of Trafficking and Exploitation of Human Beings and Protection of Victims (60(I)/2014);
• the EU Long-Term Residents Directive (2003/109/EC); and
• the EU Family Reunification Directive (2003/86/EC).

1.2 Do any special regimes apply in specific sectors?

On 2 February 2022, a new regime for foreign businesses that wish to operate and expand their activities in Cyprus entered into force.

The newly established Business Facilitation Unit (BFU) should prove a real gamechanger for foreign companies seeking to incorporate in Cyprus, enabling them to complete almost all steps involved in this process through a single governmental unit.

The advantages of the new scheme include the following.

Single point of contact. At the BFU, a company can register with numerous government bodies through a single point of contact, including:

• the Registrar of Companies;
• the Social Insurance Services;
• the tax authorities; and
• the Civil Registry and Migration Department.

Lower barriers to entry: A company is eligible to register under the scheme if the following criteria are met:

• At least 50% of its shares are owned by third-country nationals. Exceptions apply to:
• • companies on listed a recognised stock exchange;
  • Cypriot pharmaceutical companies;
  • Cypriot shipping companies;
  • former offshore companies;
  • companies whose ultimate beneficial owners have acquired Cypriot citizenship by investment; and
  • Cypriot high-technology/innovation companies where the percentage of foreign participation in the share capital is equal to or below 50% of the total share capital, provided that this percentage represents a value of at least €200,000; and
• It operates from independent offices in suitable premises.

Unlimited number of third-country national employee: Under the previous scheme, foreign entities could submit applications through the fast-track procedure only for:

• five directors with a monthly salary of at least €4,000; and
• 10 key personnel with a monthly salary of at least €2,000.

Under the new scheme, there are no such limits, regardless of category (director or key personnel). The only requirement is that in five years' time, the company must be able to prove that 30% of its total workforce is comprised of EU nationals. If that is not the case, the government will examine the composition of its workforce on a case-by-case basis. Additionally, the following requirements must be met in relation to the personnel:

• a minimum gross monthly salary of €2,500;
• a university degree or diploma or equivalent qualification, or credentials confirming relevant experience in a corresponding position for at least two years; and
• the existence of an employment contract for not less than two years.

Duration of temporary residence permits: The maximum duration of temporary residence/work permits has been increased from two to three years.

Free access to the labour market for eligible employees' spouses: Under the previous scheme, family reunification was available for the immediate family of employees of companies with foreign interests (IBC companies) as soon as their permit was issued. Their spouses were also allowed to take up employment with eligible employers – that is, other registered IBC companies or companies with Labour Department approval to employ third-country nationals – under a stamped employment contract, which evidently involved a very lengthy process. Under the new scheme, once they have been registered as the dependant of an IBC employee, spouses and their legal equivalents can enjoy free access to employment in Cyprus with any employer they see fit, as long as they fulfil the requirements for the relevant position.

An easier path to citizenship by naturalisation: Under the new scheme, a more favourable process for citizenship through naturalisation has been introduced and the government is in the process of amending the relevant law to bring this into full effect.

Digital Nomad Visa: A second scheme available is the Digital Nomad Visa for people who wish to live in Cyprus but work remotely for companies operating abroad. The visa is granted for a period of 12 months, with the right to renew for a further two years. Beneficiaries should have a salary of at least €3,500 per month, medical cover and a clean criminal record.

1.3 Which government entities regulate immigration in your jurisdiction? What powers do they have?

The Ministry of Interiors though the Civil Registry and Migration Department and the district Immigration Units, in cooperation with the Labour Department under the Ministry of Labour, Welfare and Social Insurance, are responsible for almost all migration-related matters in Cyprus.

The Civil Registry and Migration Department has the power to enforce all legislation and policies enacted by the Council of Ministers, the minister of interior and the Ministerial Committee for the Employment of Third-Country Nationals. In particular, it manages applications and issues residence permits to third-country nationals (ie, nationals from countries outside the European Union and the European Economic Area) who are either in Cyprus or abroad at the time of the application. It also deals with illegal migration, judicial applications, sham marriages and related matters.

The following authorities provide immigration services to the public:

• the Civil Registry, which is responsible for:
• • maintaining an up-to-date civil register;
  • granting Cypriot citizenship;
  • issuing passports;
  • issuing documents to refugees;
  • maintaining the central register of civil marriages; and
  • issuing marriage certificates, birth certificates, voting booklets and death certificates;
• the Migration Department, which is responsible for:
• • issuing residence permits to long-term residents;
  • dealing with family reunification applications and issuing the appropriate permits;
  • issuing work permits to individuals who enter the country for employment (including domestic employment, employment by a foreign company and general employment);
  • issuing residence permits to individuals for studying purposes in Cyprus;
  • dealing with applications from individuals intending to volunteer or carry out research; and
  • imposing administrative fines on employers that illegally hire students who are third-country nationals without the appropriate permit, and on the illegal employees;
• citizens' ‘one-stop shops';
• district administrations; and
• the district Aliens and Immigration Units of the police force.

1.4 What is the government's general approach to immigration in your jurisdiction?

The Cyprus government's general approach to immigration reflects the aims of the EU Parliament – that is, to adopt a balanced approach to the management of regular immigration and provide incentives and measures to promote the integration of legally resident third-country nationals.

Over the years, successive Cypriot governments have passed primary and secondary legislation to reflect the needs of a constantly changing economy and make Cyprus a friendly and easily accessible international business centre for foreign businesses.

2 Business travel

2.1 Do business visitors need a visa to visit your jurisdiction? What restrictions and exemptions apply in this regard?

Generally, yes. However, Cyprus joined the European Union in 2004 and citizens of all EU and European Economic Area (EEA) countries have since been free to enter, leave, travel, study, live and work in Cyprus. Therefore, no visas are required by EU and EEA citizens.

Visas are also not required for certain categories of persons, including:

• holders of diplomatic, service and/or special passports from certain countries; and
• eligible flight crew members, crews of vessels and aircraft and crews of ships sailing in international waters.

2.2 Do the requirements vary depending on sector or purpose?

No. Business visitors from third countries that do not benefit from visa-free entry to Cyprus must apply to the relevant Cyprus embassy for a business visa (within reasonable time prior to the proposed travel date). Applicants must provide the embassy with evidence that they have been invited to Cyprus by a company or are participating in a business event, conference or seminar. Depending on the embassy's workload, a visa will be issued within approximately 10 days.

2.3 What is the maximum stay allowed for business visitors?

The maximum stay in Cyprus for any business visitor is 90 days during any 180-day period.

2.4 What activities are business visitors allowed to conduct while visiting your jurisdiction?

The holder of a business visa can undertake any kind of work for the duration of his or her visa. Where the visa is for a stay of less than 90 days, the holder has the right to extend his or her stay in Cyprus up to a maximum of 90 days.

If a business visitor wishes to stay more than 90 days, he or she must apply for a work or temporary residence permit, depending on the reason for the visit and extension. Further, the holder of a business visa can apply to the Ministry of Foreign Affairs to cancel the final stamp on the visa and thus extend it for up to 90 days.

2.5 Is authorisation required for business visitors to provide or receive short-term training?

N/A.

3 Work permits

3.1 What are the main types of work permit in your jurisdiction? What restrictions and exemptions apply in this regard?

The main types of work permit in Cyprus are as follows:

• permits for employment at an innovative start-up;
• entry and temporary residence and employment permits;
• work permits for third-country nationals working in foreign companies; and
• the Cyprus Digital Nomad Visa.

3.2 What is the maximum stay allowed under each type of work permit? Can this be extended?

The maximum durations of the visas outlined in question 3.1 are as follows:

• Permit for employment at an innovative start-up: One year, with the option of renewal for at least another year.
• Entry and temporary residence and employment permit: Four years, except in the livestock farming and agriculture sectors, where the maximum period is six years. The following third-country nationals are exempt from this limitation:
• • highly skilled personnel employed in companies with a turnover of more than €1,000,000 and with activities that match the government's priorities for economic development;
  • athletes and coaches of individual or team sports;
  • painters of religious icons (until the completion of a specific project);
  • journalists/correspondents;
  • Syrian nationals of Cretan descent and Kurds; and
  • homogeneous third-country nationals.
• Cyprus Digital Nomad Visa: One year, with the option of renewal for a maximum of two years.

In the case of work permits for third-country nationals working in foreign companies, there are no restrictions on duration.

3.3 What criteria must be satisfied to obtain each kind of permit?

Permit for employment permit at an innovative start-up: The applicant must:

• be a non-EU country national who is the only founder and meets the requirements of the enterprise below;
• have access to €20,000, which may include venture capital funding, crowdfunding and/or other sources of funding; and
• have very good knowledge of the Greek and/or English language.

Furthermore, the enterprise must be innovative (ie, its research and development costs must represent at least 10% of its operating costs in at least one of the three years preceding the submission of the application, as certified by an external auditor, based on International Accounting Standards). In the case of a new enterprise without any financial history, the evaluation will be based on the business plan submitted by the applicant. The business plan must provide that the enterprise's head offices and tax domicile will be established in Cyprus. Its head offices may be common co-working spaces (eg, business accelerators, incubators, digital hubs) or co-locations with other enterprises.

Entry and temporary residence and employment permits/work permits for third-country nationals working in foreign companies: Please see question 1.2.

Cyprus Digital Nomad Visa: The applicant must be a national from a non-EU or non-European Economic Area country who can perform his or her work independently of location using telecommunications technology. The visa allows the applicant to reside temporarily in Cyprus and work for an employer registered abroad or perform work through telecommunications technology for companies or clients located abroad. The applicant must prove that he or she has stable and sufficient monthly net income of at least €3,500 (after the deduction of contributions and taxes).

3.4 Do any language requirements apply for each kind of permit?

No.

3.5 Are any work permits subject to quotas?

No.

3.6 Do any specific rules apply with regard to the following:
(a) Work in specific sectors?
(b) Shortage occupations?
(c) Highly skilled workers?
(d) Investors and high-net worth individuals?

(a) Work in specific sectors?

Under Cyprus law, third-country nationals can be temporarily employed in Cyprus for the purpose of performing short-term work in certain sectors. These include:

• general employees (admitted in sectors where there is need for support in the absence of local or European personnel);
• domestic workers;
• food handlers;
• athletes;
• coaches;
• livestock labourers;
• agriculture workers;
• priests;
• nurses;
• bartenders;
• creative artists;
• performing artists;
• creative supportive staff; and
• the supporting staff of a performing artist.

The applicable rules, terms and conditions, and the quotas of third-country nationals within such specific categories, are determined by the Council of Ministers, considering and/or relying on the opinions of the Minister of Labour.

(b) Shortage occupations?

See question 3.6(a).

(c) Highly skilled workers?

Highly skilled third-country nationals may be entitled to apply for an EU blue card granting the right to enter (multiple times), reside and work in Cyprus. It is up to the Council of Ministers of Cyprus to determine from time to time the quotas for the admission of highly skilled employees, considering and/or relying on the opinion of the minister of labour, welfare and social insurance.

(d) Investors and high-net-worth individuals?

Since the Cyprus Investment Programme was abolished in November 2020, the Cyprus government has revised the current Investor Scheme, which was initially introduced as a fast-track procedure for granting immigration permits to third-country nationals who invest in Cyprus and meet specific criteria.

According to the updated version of the Investor Scheme, a third-country national must satisfy the following financial and qualitative criteria:

• Invest:
• • at least €300,000 in real estate (either residential or commercial projects), either on the primary market or, under certain conditions, on the secondary market;
  • in the share capital of a Cyprus company with activities in Cyprus of a value of €300,000; or
  • at least €300,000 in undertakings for collective investment in Cyprus;
• Prove that he or she has an insured annual income of at least €30,000 derived from employment, pensions, dividends on shares rents and so on. This annual income must increase by €5,000 for each dependent family member and €8,000 for each dependent parent;
• Submit a clean criminal record certificate for himself or herself and his or her spouse from their country of residence, or from Cyprus if they reside there; and
• In the case of investments other than residential investments, present information about his or her place of residence in Cyprus (eg, title deed, sale and purchase agreement, rental agreement).

3.7 What are the formal and documentary requirements for obtaining each kind of permit?

Permit for employment at an innovative start-up: An application form may be submitted either while the applicant (founder) is abroad or while he or she is staying legally in Cyprus. The application must be accompanied by:

• a business plan indicating, among other things, all office locations that the enterprise plans to operate in Cyprus and the number of employees that the enterprise will recruit;
• a short CV;
• proof of the applicant's very good knowledge of the Greek or English language;
• a copy of his or her valid passport or other travel document, with a validity extending for at least two years after the date of application;
• bank account statements proving that the applicant has access to €20,000; and
• in the case of an existing enterprise, recent audited accounts.

Entry and temporary residence and employment permit: Form MGEN2 or MNSP2 must be submitted for the issue of an entry and temporary residence and employment permit. The application must be submitted by the employer to the Civil Registry and Migration Department through the appropriate district office of the Aliens and Immigration Unit of the police or at the central offices of the Civil Registry and Migration Department in Nicosia.

The application should be submitted along with a contract of employment certified by the Department of Labour of the Ministry of Employment and Social Insurance, which is the competent department for ensuring that there are no Cypriots or citizens of EU member states available or adequately qualified for the specific job or post prior to recommending the employment of third-country nationals.

Work permits for third-country nationals working in foreign companies: See question 1.2.

Cyprus Digital Nomad Visa: Form (MVIS4) must be submitted to the Civil Registry and Migration Department, accompanied by:

• a copy of the applicant's valid passport or other travel document with validity for at least three months from the date of submission of the application;
• a copy of his or her passport or other travel document page that shows the last entry to Cyprus;
• an employment contract of indefinite duration or of at least equal duration to the requested residence permit;
• confirmation from the employer that:
• • the applicant can perform his or her duties remotely; and
  • the project/work does not concern activities with or the provision of services to an employer registered in Cyprus;
• a duly stamped copy of the company's registration certificate abroad, stating its legal name, registered base, field of activity and corporate purpose;
• information on the applicant's status in the company;
• evidence that the applicant has sufficient and stable monthly living resources amounting to at least €3,500, after the deduction of contributions and taxes;
• an original certificate of criminal record from the applicant's country of origin;
• an original blood analysis results showing that the applicant does not have HIV, syphilis or hepatitis B or C, and chest X-rays for tuberculosis, duly certified by a specialised doctor;
• a certificate of health insurance for medical care that covers inpatient and outpatient care and the repatriation of a body; and
• the title deed or rental agreement of a house/apartment, duly stamped if valued at over €5,000.

All documents accompanying application forms should be officially translated and duly certified/ratified.

3.8 What fees are payable to obtain each kind of permit?

The fees associated with the submission and issuance of a permit relate to submission of the application. Ancillary costs with regard to certification, legalisation and translation of documents may also be incurred.

3.9 What is the process for obtaining a permit? How long does this typically take?

Permit for employment at an innovative start-up:

• Submission of an application for the establishment of a start-up (see question 3.7).
• Evaluation of the application by the Ministry of Finance and issuance of the notification of initial approval.
• Submission of an application for an entry permit.
• Submission of an application for a work and residence permit.

Entry and temporary residence and employment Permit: Third-country nationals must register at the appropriate district office of the Aliens and Immigration Unit of the police, or the central offices of the Civil Registry and Migration Department in Nicosia, within seven days of arrival. When submitting the application, the physical presence of the third-country national is required in order to record his or her biometric features (fingerprints and photograph) and his or her signature, according to law. Following the grant of an entry permit and the arrival of the third-country national in Cyprus, he or she must register where the application was submitted within seven days of arrival and provide his or her biometric features (photo and fingerprint) and signature, according to law.

Work permits for third-country nationals working in foreign companies: See question 1.2.

Cyprus Digital Nomad Visa: Within three months of arrival, the applicant should submit the relevant application along with the required documents (see question 3.7) to the Civil Registry and Migration Department in Nicosia, after arranging an appointment through the online platform, in order to obtain a temporary residence permit.

3.10 Once a work permit has been obtained, what are the rights and obligations of the permit holder? What are the penalties in case of breach?

Upon issuance of a permit, the applicant must comply with all conditions of the permit. Failure to do so constitutes grounds for non-renewal. Furthermore, possible breach of its terms may constitute a criminal offence resulting to the issuance of an order to leave Cyprus, among other things.

4 Settlement

4.1 What are the criteria for obtaining settlement in your jurisdiction? What restrictions apply in this regard?

To apply for permanent residence, the applicant must have a minimum annual income of €10,000. A permanent residence permit will be issued to applicants who can prove that they want to migrate to Cyprus. Applicants must convince the authorities that they or their family will live in Cyprus for at least six months a year (about 185 days).

Furthermore, foreign individuals can apply for a permanent residence permit in Cyprus if they fall within the following categories:

• Category A: They intend to invest in the agricultural, fishing or animal farming sectors, have acquired the necessary land and have capital available of about €430,000.
• Category B: They intend to work as a self-employed person in the mining sector, have a minimum capital of at least €350,000 and have obtained the applicable mining permit.
• Category C: They intend to work as a self-employed person in a trade or profession, have the minimum capital of €260,000 and have obtained the relevant professional permit and a valid business permit from the authorities.
• Category D: They intend to work as a self-employed person in a profession or science in Cyprus, have the corresponding academic or professional qualifications for which there is demand in Cyprus, and possess adequate funds to reside in Cyprus.
• Category E: They have been offered permanent employment in Cyprus, which will not create undue local competition.
• Category F: They have fully and freely at their disposal a secure annual income which is high enough to give them a decent living in Cyprus without having to engage in any business, trade or profession. The annual income required is a minimum of €9,568.17 for a single applicant and an additional €4,613.22 for every dependant.

The fast-track procedure for obtaining a permanent residence permit was recently revised by the Cypriot government in an effort to encourage foreigners to invest in Cyprus. The applicant must meet a number of financial and qualitative criteria, as follows:

• Invest:
• • in either residential or commercial real estate in Cyprus with a value of at least €300,000. The property investment can be done on the primary market (ie, purchased directly from the developer) or, under specific conditions, on the secondary market (resale);
  • in the share capital of a Cyprus company with activities in Cyprus with a value of €300,000; or
  • at least €300,000 in undertakings for collective investment in Cyprus;
• Show that he or she has a secure annual income of at least €30,000. This is increased by €5,000 for every dependent spouse or child, and by €8,000 for every dependent parent or parent-in-law. The income must derive from abroad and can include (but is not limited to) income from employment, pensions, dividends from shares, fixed deposits and rent;
• Submit a clean criminal record certificate from his or her country of residence or from Cyprus (if applicable);
• Submit a contract of sale or the title deeds to a property in his or her name (and the name of his or her spouse, if appropriate) as proof of residence (in the case of investments other than residential), which has been filed at the Department of Lands and Surveys, of a total market value of at least €300,000 (excluding value added tax (VAT)) and an official payment receipt of at least €200,000 (excluding VAT), irrespective of the delivery date of the property. The full payment of the property value must be made into an account at a bank or financial institution in Cyprus; and
• Demonstrate that he or she will visit Cyprus at least once every two years.

4.2 Do any specific rules apply to foreign citizens with ancestral connections?

No.

4.3 What are the formal and documentary requirements for obtaining settlement?

See question 4.1.

4.4 What fees are payable to obtain settlement?

The fees associated with any of the above applications and the issuance of the relevant permanent residence relate to the submission of the application. Ancillary costs with regard to the certification, legalisation and translation of documents may also be incurred.

4.5 What is the process for obtaining settlement? How long does this typically take?

For each of the Categories A to F mentioned in question 4.1, as well as the fast-track procedure, a different application must be filed.

With regard to Categories A to F, the examination period from the date of submission of the completed application is approximately 12 to 18 months.

With regard to the fast-track procedure, the examination period from the date of submission of the completed application is approximately two months.

4.6 Is the settlement process the same for EU citizens?

No.

5 Dependants

5.1 What are the criteria to qualify as a dependant? What restrictions apply in this regard?

A spouse and/or children under 18 years may qualify for a family reunification visa; while children over 18 and/or parents must make a separate application, although they still qualify as dependants.

Additionally, specific criteria apply to persons who can apply for family reunification. An individual applying for a family reunification visa (the sponsor) must:

• have worked in Cyprus for at least two years. The sponsor can apply for family reunification while the dependant is abroad;
• hold a residence permit with a duration of at least one year; and
• have been employed as an executive manager or executive staff. The sponsor can only apply for family reunification if the dependant is in Cyprus.

By way of derogation, the director of the Central Registry and Migration Department has stated that if the sponsor is employed by a Cyprus company that is licensed to employ third-country nationals, the requirement for a previous stay of at least two years for family reunification purposes will not apply.

Pursuant to Section 18 of the Law on the Aliens and Immigration, the sponsor must submit an application accompanied by the following documents to obtain a family reunification visa:

• a completed Form MSR1;
• the sponsor's residence or work permit and any other permits received in the past;
• certified passport copies of all family members (the passports must be valid for a further two years);
• a certified marriage certificate. The couple must have been married for a minimum of one year and the spouse must be over the age of 21;
• the child's school certificate (if applicable);
• clean criminal records for the sponsor and his or her family members, except for children aged 16 years old or younger. If the relevant individuals have been in Cyprus for six months or longer, they can request a clean criminal record in Cyprus;
• certified adoption documents, if the sponsor's child is adopted;
• a certificate of medical examination results for all family members conducted in Cyprus and validated by a doctor (except for children who were born in Cyprus or are under the age of six);
• proof of rented or owned accommodation, duly stamped;
• proof of medical insurance for the sponsor and his or her family (Plan A) or a registration certificate in the General Healthcare System and private health insurance for inpatient healthcare for the sponsor and his or her family members;
• the sponsor's contract of employment, duly stamped, which must be of a minimum duration of 18 months from the date of application or of indefinite duration;
• a tax clearance certificate, if the sponsor has been living and working in Cyprus before the application for family reunification;
• proof of social insurance contribution since the sponsor's arrival in Cyprus.
• the sponsor's value added tax returns;
• a declaration of any profits that the sponsor has from sources other than his or her employment;
• a recent and original bank statement of the sponsor;
• copies of utility bills (eg, electricity, water, phone). If the sponsor's employer pays the bills, this must be stated and these bills must be shown instead; and
• an original letter of guarantee issued by a bank in Cyprus with a validity of 10 years covering possible repatriation expenses. The amount depends on the country of origin.

A family reunification visa is initially valid for one year. If the sponsor's child is 18 years or older, he or she must apply for a different visa (although still as a dependant). In this case, the initial period for which the visa is issued will vary depending on the circumstances. A dependant who is over the age of 18 must apply for another type of visa. A person over the age of 18 is considered a dependant if he or she:

• is studying in Cyprus or abroad; and
• is not employed or does not have his or her own source of income.

5.2 What rights do dependants enjoy once admitted as such?

Section 18LD(1) of the Law on the Aliens and Immigration clearly states that "members of the sponsor's family shall be entitled on the same terms and conditions as the sponsor to have access to (a) to education; (b) to paid employment and self-employment; (c) basic and further training and retraining".

However, Section 18LD(2) provides that the exercise of paid employment or independent professional activity by a dependant is subject to the terms and conditions of employment of third-country nationals in Cyprus, as in force from time to time, as determined under the Law on the Aliens and Immigration and applicable national policies and procedures. Furthermore, the access of family members to paid employment or independent professional activity is limited for a period of up to 12 months for the purpose of exploring the Cypriot labour market, after which the exercise of paid employment or independent professional activity will be permitted upon application.

According to Cyprus law, the employment of children under the age of 15 is prohibited; while the employment of teens between the ages of 15 and 18 may be permitted subject to terms and conditions of Cyprus law.

5.3 How are civil/unmarried partners and same-sex partners treated in this regard?

As stated in question 5.1, an application may be filed for ‘family reunification' purposes as defined in Section 18 of the Law on the Aliens and Immigration. The notion of ‘family members' is construed narrowly. However, if the dependant is married to the applicant, either by religious marriage or by way of a civil marriage or civil union, this will suffice for such purposes. Although religious and civil marriage are only available to heterosexual couples, the civil union arrangement is also available for same-sex couples.

6 Intra-company transfers

6.1 Is there a specific regime for the transfer of employees from an overseas branch of a multinational to your jurisdiction?

Yes. Cyprus has introduced a new intra-corporate transferee (ICT) permit which is in line with the EU ICT Directive (2014/66/EU). This facilitates intra-EU mobility and has no employer eligibility criteria (ie, the work and residence permit for international companies).

The Ministry of the Interior signed an order in October 2017 to implement the new ICT permit in accordance with the Alien and Migration (Amendment) (Ref 2) Law of 2017, which entered into force on 17 February 2017 and transposed the EU ICT Directive into national law.

The new ICT permit allows the temporary transfer of a third-country national for work or training for a period of more than 90 days by an undertaking or group established in a third country to an entity belonging to the undertaking or to the same group and established in the European Union; and facilitates the mobility of third-country nationals between companies of the same group based on one or more second EU member states.

6.2 What is the maximum stay allowed under this regime? Can this be extended?

If the application is approved, the transferee will be issued with an ICT permit, which is in card format. Depending on the merits of each individual case, the maximum duration of the permit is as follows:

• Manager: Three years or equal to the transfer, if shorter.
• Specialist: Three years or equal to the transfer, if shorter.
• Trainee employee: One year or equal to the transfer, if shorter.

Upon application, the maximum duration can be extended.

6.3 What criteria must the employer satisfy to obtain a permit under this regime?

The main requirement for the employer, pursuant to Section 18 of the Alien and Migration (Amendment) (Ref 2) Law, is to provide the authorities with sufficient documentation evidencing that the host entity and the company established in a third country belong to the same company or group of companies.

6.4 What are the formal and documentary requirements to obtain a permit under this regime?

Upon filing the ICT permit application at the Civil Registry and Migration Department, the employer must provide the following:

• a copy of a valid passport or other travel document whose validity at least covers the total period of the intra-corporate transfer in the European Union (not only in Cyprus);
• evidence that the host entity and the undertaking established in a third country belong to the same undertaking or group of undertakings, certified by the Department of Labour;
• evidence of employment within the same undertaking or group of undertakings for at least 12 uninterrupted months immediately preceding the date of the intra-corporate transfer, certified by the Department of Labour;
• a work contract and, if necessary, an assignment letter from the employer, certified by the Department of Labour. The work contract/assignment letter must contain the following:
• • details of the duration of the transfer and the location of the host entity or entities;
  • evidence that the third-country national is taking a position as a manager in the host entity or entities in the areas under the effective control of Cyprus;
  • the remuneration and other terms and conditions of employment during the intra-corporate transfer; and
  • evidence that the third-country national will be able to transfer back to an entity belonging to that undertaking or group of undertakings and established in a third country at the end of the intra-corporate transfer;
• Evidence, certified by the Department of Labour, that the third-country national has the professional qualifications and experience needed in the host entity to which he or she is to be transferred;
• a certificate of health insurance for medical care that covers inpatient and outpatient care and the repatriation of a body (Plan A);
• an 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 in the country of residence);
• original blood analysis results showing that the third-country national does not have HIV, syphilis or hepatitis B or C, and chest X-rays for tuberculosis from the country of origin; and
• evidence, certified by the Department of Labour, that the third-country national fulfils the conditions laid down under the national law for the exercise of the regulated profession to which the application relates (if applicable).

Immediately after the arrival of the third-country national in Cyprus, the employer must provide the Department of Labour with:

• original blood analysis results showing that the third-country national does not have HIV, syphilis or hepatitis B or C, and chest X-rays for tuberculosis, from a government hospital of Cyprus or duly certified by a government doctor of Cyprus;
• a copy of the third-country national's passport or other travel document page showing the last entry to Cyprus;
• an original entry permit (Μ70); and
• a rental agreement or property sale contract or title deed.

6.5 What fees are payable to obtain a permit under this regime?

Pursuant to Regulatory Administrative Act 346/2017 issued by the minister of interior on 27 October 2017, the fees are as follows:

• Application for an entry permit for the purpose of an intra-corporate transfer and for an ICT permit: €110
• Application for renewal of an ICT permit: €85
• Application for long-mobility permit: €90
• Application for renewal of a long-mobility permit: €85

6.6 What is the process for obtaining a permit? How long does this typically take?

The procedures for entering, residing and working in Cyprus in the context of an intra-corporate transfer depend on whether Cyprus is the first or second member state.

Cyprus is the first member state: If the transferee will reside and work in Cyprus the longest or will reside and work only in Cyprus, then Cyprus is the first member state. In this case, to enter Cyprus, the transferee should apply to obtain an entry permit, given that the provisions of the legislation are met.

The MICT1/MIC TM1 application for an entry permit must be submitted before the third-country national arrives in the country by the employer in Cyprus to the central offices of the Civil Registry and Migration Department in Nicosia.

Once the entry permit has been obtained and the transferee has arrived in Cyprus, the remaining documents must be submitted to the department. At this point, the transferee will be registered in the Aliens Register (if not already registered) and his or her biometric data (fingerprints, photo) and signature will be recorded.

The application will be processed within 90 days of submission, provided that it is fully completed and all necessary accompanying documents have been submitted.

If the application is approved, the transferee will be issued with an ICT permit, which is in card format.

Cyprus is second member state – mobility: The procedures for entering, residing and working in Cyprus when Cyprus is the second member state (ie, when the transferee will reside and work in Cyprus for a shorter period than in another EU member state) will depend on the duration of the transfer. For mobility to be possible, the transferee must hold a valid ICT permit issued by the first member state covering the entire duration of the period of mobility.

7 New hires

7.1 Are employers in your jurisdiction bound by labour market testing requirements before hiring from overseas? Do any exemptions apply in this regard?

Employers need not conduct a resident labour market test before hiring foreign employees. However, it is advisable to advertise vacant positions for two months, indicating the qualifications and language skills required. If no local candidate is found to match the relevant requirements during this time, the employer can proceed with a work permit application for a foreign employee.

7.2 If labour market testing requirements apply, how are these satisfied and what best practices should employers follow in this regard?

See question 7.1.

7.3 Which work permits are primarily used for new hires? What is the process for obtaining them and what fees are applicable, for both employer and employee?

Usually, and unless the proposed employment falls under a particular regulatory framework that requires special treatment, employers follow the path of general employment for new hires.

First, an employer that is interested in employing a third-country national must apply to the competent district Labour Department to request official written approval. Once the employer has been granted this approval, the third-country national can proceed to make all necessary arrangements to obtain an entry permit, which will allow him or her to enter Cyprus. Upon arrival, the third-country national must attend the competent district Immigration Unit in order to provide additional documentation, supplementary to that provided to obtain the entry permit, and his or her biometrical data.

7.4 Is labour market testing required if the new hire is to extend his or her residence?

No.

7.5 Can new hires apply for permanent residence?

Yes. Pursuant to the Law on the Aliens and Immigration, and provided that a third-country national satisfies the criteria for applying for permanent residence under any relevant category, the third-country national may be eligible to apply for a long-term permit.

8 Sponsorship

8.1 Are any licences or authorisations required to sponsor foreign nationals? What other criteria apply in this regard?

A sponsor is responsible for representing the employee for whom a visa is obtained for the duration of his or her employment with the sponsor.

A company that wishes to become a sponsor and employ third-country nationals must have:

• obtained the Ministry of Labour's permission to do so;
• foreign individuals as a majority of its shareholders;
• a strict ownership structure and transparent capital sources;
• a fully operative administrative office; and
• stable financial growth confirmed by annual financial statements.

To obtain authorisation to sponsor foreign nationals, a company must submit the following documents:

• an original full set of corporate documents of the company (bearing the seal of the Registrar of Companies);
• a description of its business and details of its operations;
• a list of names, full addresses, passport numbers and nationalities of the initial shareholders of the applying company (companies whose shares are traded on a recognised stock exchange and international companies which were operating before the change of regime and for which the Central Bank of Cyprus possesses all necessary data are exempt from this requirement);
• a list of company personnel;
• a bank statement showing a minimum amount of €41,006 (applicable for a Cyprus company with foreign interests);
• a deed title of lease agreement or contract of sale and purchase of the company offices in Cyprus; and
• proof of a deposited amount of no less than €200,000 (ie, banking and other documents showing direct foreign capital investment amounting to at least €200,000 and legally brought into Cyprus from abroad (applicable for a Cyprus company with foreign interests)).

Existing companies must go through an administrative procedure and submit certain documents to the Civil Registry and Migration Department.

The types of sponsored employment visas in Cyprus are as follows:

• immigration permits for persons under Category E;
• the Cyprus Start-up Visa;
• visas for domestic workers;
• general employment visas;
• residence permits for the employment of third-country nationals in Cypriot companies with foreign interests; and
• long-term residence permits for third-country nationals (including their family members) who have resided legally and continuously in Cyprus for five years.

A third-country national or the employer can apply to obtain a residence or employment permit based on one of the above categories. The application must be submitted along with all required documents, depending on the category of visa applied for.

8.2 What obligations do sponsoring employers have to ensure continued immigration compliance?

Sponsoring employers are obliged under law to ensure compliance with the immigration laws and regulations as amended from time to time. The Ministry of Labour has a duty to monitor such compliance and has wide powers under the law, such as the power to:

• conduct investigations;
• impose fines; and
• revoke a sponsoring employer's licence.

8.3 Are sponsoring employers subject to any local training requirements?

There is no compulsory training requirement for sponsoring employers.

8.4 How is compliance with the sponsorship regime monitored? What are the penalties for non-compliance?

The director of the Civil Registry and the Migration Registry can impose sanctions such as the following on employers that employ illegally staying third-country nationals:

• administrative fines and/or sanctions;
• payment of the cost of returning the third-country national to his or her home country (repatriation expenses); and
• subject to the provisions of any other law:
• • partial or complete exclusion from public benefits, aid or subsidies, including EU funds under the administration of Cyprus, for up to five years;
  • exclusion from all public contracts as defined by the law on public procurement for up to five years;
  • partial or complete recovery of public benefits, aid or subsidies that were granted to the employer in the 12 months prior to the discovery of the illegal employment;
  • temporary or permanent closure of the premises that have been used for the breach, or suspension or withdrawal of the practising licence, if this is justified by the circumstances; and
  • inclusion on a register of employers that have illegally employed third-country nationals maintained by the Department of Labour.

9 Trends and predictions

9.1 How would you describe the current immigration landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

On 15 October 2021, the Council of Ministers decided to replace its policy on the issue of temporary residence and employment permits to employees of existing and new companies with foreign interests registered in Cyprus with a new Strategy for Attracting Businesses for Activities or/and Expansion of their Activities in Cyprus. This is a welcome and very important initiative to attract both international investment and talent. It includes a series of actions and reforms in several areas of intervention, with the aim of enhancing Cyprus's position as an international high-growth business centre.

Immigration has unquestionably been affected by the COVID-19 pandemic, both negatively (as a number of investments were frustrated due to the prevailing uncertainty) and positively (as investors and employees decided to relocate and/or seek second homes in Cyprus). Cyprus also offers significant tax and immigration incentives to investors that wish to relocate or redomicile their businesses.

The discontinuation of the Cyprus Investment Programme at the end of 2020 has also negatively affected the immigration landscape. However, political and financial instability in the Middle East and Ukraine is driving interest in Cyprus among individuals and companies from these regions.

10 Tips and traps

10.1 What are your top tips for businesses seeking to recruit talent from abroad and what potential sticking points would you highlight?

All interested parties – investors, employers and their lawyers – should seek to understand the following:

• the appropriate scheme available in each case, so that the final decision serves the interests of both parties (ie, employer and employee) better than the best alternative;
• potential disputes and deadlocks which may arise during the negotiation stage with the relevant authorities upon filing relevant application(s);
• the potential fees and costs incurred in obtaining the relevant permits;
• favourable incentives and exceptions available for both employers and employees; and
• the advantages of relocating to Cyprus, including its advanced educational establishments, world-class medical facilities and notably low crime rates, as well as its prime location, pleasant climate and warm hospitality.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.