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Labor Laws in Cyprus

  • Annual Leave: 20 days
  • Maternity Leave: 18 weeks
  • Public Holidays: 14
  • Workweek: 40 hours per week.

Income Tax in Cyprus

Individual income taxes are progressive, ranging from 0% to 35% based on the worker’s earnings.

Value Added Tax (VAT) in Cyprus

The standard sales tax is 19%.

Social Security in Cyprus

Social security contributions for employers and employees are as follows:

Employer Contributions:

  • Social Insurance: 8.8% of insurable earnings
  • Redundancy Fund: 1.2%
  • Training and Development Fund: 0.5%
  • Social Cohesion Fund: 2.0% (no cap)

Employee Contributions:

  • Social Insurance: 8.8% of insurable earnings
  • These contributions are based on the maximum amount of insurable earnings set for 2024, which is €1,209 per week, €5,239 per month, and €62,868 per annum.
  • The Social Cohesion Fund contributions are calculated on actual earnings without a cap. Self-employed individuals have a contribution rate of 16.6% on insurable earnings in 2024.

Work Visas Cyprus

Types of Work Visas in Cyprus:

Cyprus Work Permit

  • Necessary for non-EU nationals to work in Cyprus.
  • Requirements: A valid job offer from a Cypriot employer, proof that no suitable local or EU candidates are available, and various personal documents including a valid passport, medical and police clearance certificates, and proof of health insurance.
  • Validity: Typically issued for up to four years and can be renewed.
  • Process: The employer initiates the application, and it must be approved by the Cyprus Department of Labor before submission to the Civil Registry and Migration Department.

Cyprus Work Visa:

  • Allows entry to Cyprus for employment purposes.
  • Requirements: Must be paired with a work permit, and includes submission of a completed application, valid passport, and additional documents like medical clearance and proof of financial means.
  • Duration: Typically valid for up to 90 days.
  • Process: Applied for at a Cypriot embassy or consulate after obtaining the work permit.

Cyprus Temporary Residence Visa:

  • Required for stays longer than 90 days, including employment.
  • Requirements: Submission of employment proof, accommodation details, and other personal documents.
  • Validity: Valid for the duration of the work contract, up to four years, with renewal options.
  • Process: Apply within one week of arriving in Cyprus at the local police department or the Central Offices of the Civil Registry and Migration Department.

Digital Nomad Visa:

  • Allows remote workers to live in Cyprus.
  • Requirements: Proof of self-employment or remote work capability, minimum monthly income of EUR 2,000, clean criminal record, and health insurance.
  • Duration: Initially valid for six months, with potential extensions up to a year.
  • Process: Apply online or at a Cypriot consulate, providing the necessary documentation.

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