Any foreigner
arriving in Cyprus must possess a valid national passport.
Nationals of
countries of the European Union and of the British Commonwealth (other than
Pakistan and Bangladesh) as well as those of Bahrain, the Czech Republic,
Hungary, Iceland, Japan, Kuwait, Liechtenstein, Lithuania, Norway, Oman,
Poland, Qatar, Romania, the Russian Federation, San Marino, Saudi Arabia,
Slovakia, South Africa, Switzerland, the United Arab Emirates, the United
States of America and Yugoslavia, who are coming to Cyprus as visitors,
do not require an entry visa. Visitors from all other countries are advised
to obtain a visa in advance. The validity of a visitor's visa usually ranges
from one week to three months depending on the case. Executives of international
business companies (IBCs) which do not maintain a fully staffed and fully
fledged office and, therefore, do not live and work on the island, may enter
Cyprus on a visitor's visa, provided they are eligible for such a visa.
ELIGIBLE COMPANIES
In order to protect the good name and economic interests of Cyprus, it has
been decided that IBCs eligible to employ expatriates on the island, are
limited to those which:
· belong to groups with transparent ownership and whose ultimate shareholders
are approved by the Central Bank or to public corporations quoted on any
recognised stock exchange;
· operate from their self-contained office: (a) located in suitable distinct
premises, not part of a private residence or another office; (b) equipped
with appropriate office and telecommunications facilities; (c) open during
normal office hours and staffed with full time personnel;
· comply with the conditions of their Central Bank permit and prove, on
the basis of their annual financial statements, that they are going concerns,
financially sound and credit worthy.
EMPLOYEE CLASSIFICATION
Eligible IBCs may employ expatriates in executive positions on the island.
The maximum number of such executives is 3, unless the Central Bank is persuaded
that a greater number is justified. An expatriate who wishes to be employed
in an executive position on the island, must:
· be at least 24 years old;
· have suitable qualifications;
· receive appropriate remuneration.
The minimum acceptable annual salary for newly appointed executives is CY£12.000.
This amount may be adjusted annually by the authorities according to fluctuations
in the salaries index.
The term "executive" includes expatriates registered as directors or partners
with the Registrar of Companies or general managers of subsidiaries and
branches of publicly quoted overseas companies as well as department managers
of IBCs operating from Cyprus for at least 2 years in accordance with the
conditions and requirements of the Central Bank of Cyprus. The term &non-executive",
refers to expatriates who do not fall under the aforementioned 4 categories
and who may be employed in managerial, professional, administrative, technical
or clerical positions on the island.
IBCs are expected to recruit non-executive staff from within the island.
They may employ expatriates in non-executive positions (in accordance with
the procedure described further below), if comparable Cypriot personnel
is not available. IBCs are advised not to commit themselves to employing
an expatriate in a non-executive position in Cyprus before first securing
his TRE permit from the Migration Officer.
Cyprus has a well-trained and versatile work force. The island ranks among
the leading countries in the world in terms of the proportion of university
graduates to the total population. Qualified staff with wide experience
and fluency in English and other languages are available for employment
at reasonable remuneration. Most legal and accountancy firms are ready to
assist IBCs in securing and extending the TRE permits of their expatriate
staff with minimum inconvenience.
ADMINISTRATIVE PROCEDURES
The Migration Officer, at the Ministry of Interior, is the authority responsible
for the first issue and subsequent renewals of TRE permits granted to all
expatriates employed by IBCs in Cyprus. The Migration Officer acts in consultation
with:
· the International Business Section at the Central Bank of Cyprus regarding
the first TRE permits granted to expatriate executives as well as all renewals
of TRE permits granted to all expatriates, irrespective of their rank;
· the Labour Department at the Ministry of Labour and Social Insurance regarding
the first TRE permits granted to expatriates employed in non-executive positions;
· the Divisional Aliens Section at District Police Headquarters regarding
the first issue and renewal of TRE permits granted to expatriates employed
in non-executive and, if the Migration Officer deems necessary, other positions.
The above mentioned authorities provide advice to the Migration Officer
concerning matters falling within their sphere of competence. The Migration
Officer takes into account their recommendations and replies to the applicants
directly. Under the Aliens and Immigration legislation, any TRE permit:
· may be revoked by the Minister of Interior, acting in his capacity as
Chief Immigration Officer, if he deems it to be in the public interest;
· is considered automatically cancelled, if the conditions under which it
was granted cease to exist.
IBCs should inform the Central Bank, the Migration Officer and the Department
of Customs as soon as any of their expatriate staff resign or are no longer
in their employment.
FIRST PERMITS
A. Executive Staff
The application for an executive's first TRE permit is made to the Central
Bank. The application form (obtainable from the company's lawyer or accountant)
must be accompanied by the following documents:
IN RESPECT OF THE COMPANY
· copy of its permit under the Exchange Control Law;
· list of its directors or partners, issued either by the company's secretary
or by the Registrar of Companies, showing the applicants' names with their
addresses abroad;
· in the case of new IBCs, lease agreement for its office in Cyprus (if
not available, it should be presented to the Central Bank within 2 months).
IN RESPECT OF THE EXPATRIATE
· contract or certificate of employment, stating annual salary and service
duration;
· Forms M61 (application for temporary residence permit) and M64 (application
for employment permit) in duplicate, fully completed and duly signed;
· copy of passport's data pages;
· cheque in favour of the Migration Officer with the prescribed fee of CY£10
for each applicant and member of his family (except children attending schools
in Cyprus, confirmed by their registration certificates).
The Central Bank forwards the relevant documents to the Migration Officer
with its recommendation. Within one month the Migration Officer normally
mails to the expatriate executive his first TRE permit valid for 2 years,
unless his case warrants further consideration.
On receipt of his first TRE permit, the expatriate and all members of his
family possessing separate passports are required to appear in person at
the Aliens Section of their District's Police Headquarters in order to be
registered as expatriates and receive their Alien Registration Certificates
(ARCs). The documents needed for such registration are each person's TRE
permit, passport, 3 passport-size photographs and the prescribed fee of
CY£10.
B. Non-Executive Staff
For the employment of an expatriate in a non-executive position, the IBC
concerned (or its agent) is expected to obtain the special application form
and the model employment contract from its District's Labour Office. The
application form shall be mailed to the Labour Department, Ministry of Labour
and Social Insurance, Nicosia along with the following documents:
IN RESPECT OF THE COMPANY
· copy of its permit under the Exchange Control Law;
· profile describing the nature of its business and details of its office
operations and staff requirements in Cyprus;
· list of its directors or partners, issued either by its secretary or the
Registrar;
· list showing the names of its officers and staff with their position and
nationality.
IN RESPECT OF THE EXPATRIATE
· detailed description of the duties to be performed by the employee;
· complete curriculum vitae and relevant documentary evidence regarding
qualifications, experience and ability to fill the specific position;
· the model employment contract properly completed.
Within 2 weeks from receipt of the above documents, the Labour Department
will inform the company whether it is necessary to announce the vacancy
in the local press. In such a case, an announcement will need to be placed
in one English language and two Greek language newspapers, stating that
applications should be addressed to the IBC with copy to the Labour Department,
Nicosia.
Within one month from the application's receipt, the Labour Department will
reply to the company informing it whether its employment of the proposed
expatriate has been approved. The company or its agent will then have to
take the original model employment contract plus 4 copies (each of which
should bear CY£1 stamp duty) along with the Labour Department's positive
reply to the District Labour Office for official approval.
Finally, the expatriate concerned must submit in person the following original
documents, fully completed and duly signed, to the Aliens Section at District
Police Headquarters:
· Labour Department's positive reply;
· officially approved employment contract;
· Form M61(application for temporary residence permit if the expatriate
is in Cyprus) or M58(application for entry visa if the expatriate is out
of Cyprus);
· Form M64 (application for employment permit);
· the prescribed fee of CY£0 for the expatriate and each member of
his family (except children attending school in Cyprus, confirmed by their
registration certificates);
· each person's passport, 3 passport-size photographs and the prescribed
fee of CY£10 to become registered as Aliens and receive their Aliens
Registration Certificate (ARC).
Following a routine security check, the Aliens Police forwards its recommendation
along with the other documents to the Migration Officer in Nicosia. The
Migration Officer whose decision is final, will mail to the expatriate his
first TRE permit valid for two years.
Every IBC which employs expatriates in Cyprus must display its name outside
its business premises, in a conspicuous position in letters easily legible.
The competent authority may wish to verify that the company's office is:
(a) located in suitable distinct premises, not part of a private residence
or another office; (b) equipped with appropriate office and telecommunications
facilities; (c) open during normal office hours and staffed with full time
personnel.
LDC ACCOUNTS
Upon receipt of his first TRE permit the expatriate concerned is required
to open a Local Disbursement Current (LDC) account denominated in Cyprus
Pounds with a local bank and, if he so wishes, one or more convertible accounts
with other banks in Cyprus or abroad. LDC accounts are intended for the
expatriate's living expenditure on the island.
LDC accounts may only be credited with amounts transferred from convertible
accounts held in Cyprus or abroad. Local currency is not acceptable for
deposit in LDC accounts. However, any currency in the form of notes can
be deposited in LDC accounts provided it is declared at the port of entry.
They may be debited for cash withdrawals or payments to Cypriot residents
in respect of the expatriate's current living expenses. LDC accounts should
not be debited for purchases of real estate, duty free automobiles and shares
traded on the Cyprus Stock Exchange.
The convertible account(s), denominated in any traded currency (including
external Cyprus Pounds) should be used for payments to all non-residents
within or outside the island. Payments of any nature between non-residents
(such as IBCs and their expatriate employees) must be effected in convertible
currency and not from LDC accounts. Thus transfers between LDC accounts
are not permitted. Upon departure of the expatriate any residual balance
in the respective LDC account can be transferred to any convertible account
either in Cyprus or abroad without reference to the Central Bank.
The local bank with which the LDC account is kept can, upon request, issue
a certificate to the holder showing the total amount of his local expenditure
met from foreign exchange during the elapsed period. This figure is arrived
at by adding up all debit entries. The aforementioned certificate must accompany
an expatriate's application to the Central Bank for renewal of his TRE permit.
SUBSEQUENT RENEWALS
After the initial 2 years, TRE permits may be renewed for additional 3 year
periods provided that, during the elapsed period:
THE EXPATRIATE CONCERNED
· lived and worked in Cyprus most of the time;
· covered his living expenditure from his LDC account;
THE COMPANY CONCERNED
· operated continuously from its self contained office: (a) located in suitable
distinct premises, not part of a private residence or another office; (b)
equipped with appropriate office and telecommunications facilities; (c)
open during normal office hours and staffed with full time personnel;
· submitted to the Central Bank its Confidential Annual Report, audited
financial statements, LDC account certificate and other details every year;
· was a going concern, financially sound and credit worthy.
Two months before the expire of a TRE permit, the expatriate must apply
to the Central Bank for a recommendation to renew it. The application form
(obtainable from the company's lawyer or accountant) must be accompanied
by the following original documents:
IN RESPECT OF THE EXPATRIATE
· Form M61 in duplicate, fully completed and signed;
· Copy of the previous TRE permit;
· Copy of the applicant's and his family's passport data pages and Aliens
Registration Certificates (Arcs);
· contract or certificate of employment (stating his annual salary and service
duration);
· LDC account certificate showing his payments to residents during each
of the elapsed years;
· Tax Clearance Certificate (Form IR25/1994) issued to the expatriate by
his District's Income Tax Office;
· in the case of executive staff, cheque in favour of the Migration Officer
with the prescribed fee of CY£10 for each applicant and member of
his family (except children attending schools in Cyprus, confirmed by their
registration certificates).
The Central Bank uses the documents in order to assess the financial performance
of the expatriate's employer and the expatriate's own economic arrangements.
In the case of expatriates employed in executive positions, the Central
Bank forwards its recommendation to the Migration Officer in Nicosia. Within
one month, the Migration Officer will notify the expatriate concerned regarding
the renewal of his TRE permit.
In the case of applicants employed in non-executive positions, the Central
Bank forwards its recommendation together with certain documents to the
expatriate concerned (or his agent), who must submit them to the Divisional
Aliens Section, District Police Headquarters, along with a cheque issued
to the order of the Migration Officer for the prescribed fee of CY£10
for each applicant and member of his family (except children attending schools
in Cyprus, confirmed by their registration certificates). If there are no
impediments, the Aliens Police will reply positively to the Migration Officer,
who will then proceed to renew the applicant's TRE permit.
MINIMUM CRITERIA
The Government and the Central Bank, through the Permanent Consultative
Committee on International Business Companies, have set the following minimum
criteria for the renewal of an expatriate's TRE permit for an additional
3 year period:
(1) The expatriate's LDC account must show annual debits in excess of CY£6.000
for local payments (in addition to purchases of duty free cars and real
estate);
(2) The company's LDC account must show annual debits in excess of CY£12.000
for local payments (in addition to purchases of duty free cars and real
estate);
(3) The company's annual turnover/operating revenue must exceed CY£60.000
unless the company can demonstrate other commercial and economic activity
to the Central Bank's satisfaction;
(4) The expatriate must live and work in Cyprus most of the time. In the
case of one-man enterprises, the expatriate's stay in Cyprus must exceed
9 months per year.
The Central Bank is prepared to show flexibility regarding an expatriate's
length of stay depending on his employer's local expenditure and financial
substance or employment of Cypriot staff (as evidenced by social security
and payroll taxes) or other expatriate staff on a full time basis.
If any one of the minimum criteria is not fulfilled, the Central Bank may
use its discretion and accept compensating combinations of these criteria.
For example, the Central Bank may recommend renewal of an expatriate's TRE
permit for 3 years if:
· the sum of the expatriate's and the company's local payments was slightly
less than CY£18.000 but the enterprise's annual turnover/operating
revenue far exceeded the minimum in (3) above while the enterprise was a
going concern, financially sound and creditworthy; or
· the company's annual turnover/operating revenue was less than CY£60.000
but the expatriate's and the enterprise's local payments far exceeded the
minimum standards in (1) and (2) above; or
· criteria (1), (2) and (3) above were not fully met but during the elapsed
period the enterprise was employing at least one Cypriot on a full-time
basis for whom it was paying social security and payroll taxes.
A 4 member team, consisting of representatives of the Central Bank, the
Migration Department, the Department of Customs and the Police Aliens Section,
may visit, during normal working hours, IBCs whose operations are in doubt
in order to verify that they and their expatriate staff comply with the
terms of their permits.
CHANGE OF EMPLOYER
Expatriates, who for any reason change employer, are treated by the Central
Bank, the Labour Department and the Migration Officer as first time applicants.
Thus, if finally approved, they will receive TRE permits valid for 2 years.
In addition to the usual documents required for the first issue of TRE permits,
an expatriate who changes employer must also submit:
· LDC account certificates showing his payments to residents during the
elapsed years;
· Tax Clearance Certificate (Form IR25/1994) issued by his District's Income
Tax Office;
· original of the TRE permit covering his previous employment;
· contracts with his previous and new employer;
· Form C6 certified by Customs Headquarters allowing the transfer of his
duty-free benefits under his new employer;
· written consent of previous employer for employment with another IBC.
CENTRAL BANK OF CYPRUS, Revised on 4 February 1999
(If you are aware of revisions since this one listed here, please contact us and we will update this page)
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