Cyprus has a population of over 1.2 million people, with key sectors including industrial, mining, agriculture, and tourism. The corporate income tax rate is 12.5% with the tax year corresponding to the calendar year.
Labor and Payroll Considerations in Cyprus:
- Employment contracts do not need to be written, but employees must be given details of employment in writing
- Minimum wage only applies to certain job types
- Income tax and social security are withheld from employee pay
- Cyprus uses a Pay As You Earn (PAYE) system
- If the company is eligible to be considered an International Business Company (IBC), they should register with the Civil Registry and Migration Department (CRMD) in order to employ foreign nationals
- Companies without IBC status need to prove to the labor office the foreign worker has expertise not found in Cyprus
Managing payroll in Cyrus can be challenging, but with cloud-based technology and customized reporting, Blue Marble makes it easy. Our hybrid service model gives you a dedicated US-based service team and direct access to in-country experts when questions come up. Our global consultants can help set up business entities and more. Click here to get started simplifying your payroll in Cyprus.