Company of Foreign-Interests in Cyprus: Immigration Opportunity

Cyprus is a popular location for foreign businesses looking to establish a presence in the European Union, by registering a Company of Foreign-Interests. One of the reasons for this popularity is the favorable tax regime in Cyprus, which makes it an attractive destination for international companies seeking to reduce their tax liability. Another reason is the country’s highly developed infrastructure, which supports the needs of modern businesses. In this article, we will take a closer look at foreign-interest companies in Cyprus, what they are, and why they are established.

A foreign-interest company in Cyprus is a company that is owned by non-Cypriot individuals or entities. These companies are established in Cyprus for a variety of reasons, including tax efficiency and to take advantage of the country’s favorable business environment. For example, foreign companies may choose to set up operations in Cyprus to benefit from the country’s low corporate tax rate of 12.5%.

Setting up a Foreign Interest Company in Cyprus: Requirements and Key Information

Starting a Foreign Interest Company in Cyprus is a popular option for many non-EU individuals looking to acquire an Immigration Permit and enjoy doing business in a low tax country with round-the-year sunny weather and crystal clear beaches.

To get registered in the Register of Foreign Interest Companies, the company’s shares must be majority-owned by one or more citizens of a third country (i.e., a country outside the EU and EEA states such as Switzerland, Iceland, Liechtenstein, and Norway) or third-country shareholders to hold shares that correspond to an amount equal to or greater than €200,000 (even if this corresponds to less than 50% of the total shares, exemption to majority rule). Additionally, the company must own and operate a registered office in Cyprus.

By meeting these two conditions, you can set up your Foreign Interest Company in Cyprus and take advantage of the favorable tax regimes and other financial incentives offered by the country.

Don’t hesitate to contact us for more information and assistance in setting up your Foreign Interest Company in Cyprus.

Benefits of Registering a Foreign Interest Company in Cyprus for Non-EU Nationals

Are you a non-EU national looking for legal entry and residence in the Republic of Cyprus? Registering a foreign interest company in Cyprus can be an easy solution, with the added benefit of providing the following opportunities:

1. The right to live and work in the Republic of Cyprus indefinitely
2. The right to family reunification

Right to reside in Cyprus without any time limit:

Beneficiaries of a residence permit without a time limit are those employed with Special Skills, i.e. employees of foreign interest companies who:

A) They receive a minimum gross monthly salary of €2500.

B) Holders of relevant academic qualifications or at least two years of relevant experience with position to be filled

C) Holders of an employment contract of at least two years duration. Even if the application is submitted for the issuance of a first license of one (1) year, the contract must have a duration of and similar paper marking for two (2) years.

* A company of foreign interest may also hire people as Support Personnel where the maximum period of stay of a non-EU national for purposes of employment is four (4) years, except in the fields of agriculture and animal husbandry for which the maximum duration has been set at six (6) years.

Cyprus Residence permit for Family Members:

Family reunification as specified in Article 18 on Foreigners and Immigration Law means “the entry and stay in the controlled by Government of the Republic areas of the family members of a third country national who resides legally in the areas controlled by the Government of the Republic, in order to maintain family unity, regardless of whether family ties were created before or after the resident’s entry.”

According to the Aliens and Immigration Law, Nationals of third countries who remain legally in the controlled by Government of the Republic regions, have the right to Family Reunification when:

1. Reside in Cyprus for a period of at least two (2) years,
2. They are holders of residence permits valid for at least one (1) year,
3. They have a reasonable prospect of obtaining the right of permanent residence in the Republic.

However, the Director of the Immigration Department has the discretionary power in the event that the main applicant is employed in a company within the meaning of the Cyprus Companies Law, which has approval to employ foreign personnel, not to require prior residence of at least two (2) years (exemption).

Which family members are qualified for Family Reunification?

• The spouse of the main applicant, provided that the marriage took place at least one (1) year before submitting the application for family reunification. The spouse needs to be at least 21 years old.
• The minor children of the applicant and his/her spouse (All minor children listed above must be under 18 and unmarried).

Duration of residence permit for Family members:

As long as the conditions established by the Legislation are met, to the member family is granted a family reunification residence permit, family members can reside in Cyprus without time limit, provided that the conditions of the legislation continue to be met and as long as they are holders of a valid residence permit.

Family members are granted a first residence permit with one (1) year duration which can be renewed every year as long as the main applicant has his own residence permit, meaning that he is still employed in the Foreign-Interest Company.

Access to employment in Cyprus by Family Members       

 Spouses of a Person employed in a Cyprus Company of Foreign Interest have free access to employment, i.e. no stamped is required contract from the Department of Labor for their employment in a Cypriot company, as long as the requirements of the legislation for issuing a single employment permit are met. Family members do not have access to self-employment.

Steps to set up a Company of Foreign-Interests in Cyprus

1) Registering a company with the Registrar of Companies and securing all the necessary documents:

– Certificate of Incorporation

– Registered Office Address Certificate

– Certificate of Directors and Secretary

– Shareholder’s Certificate proving that the percentage of foreign participation in the shareholding capital is more than 50% of the total

– Articles of Association of the company

– Affidavit regarding the ownership of the company (final beneficiaries) from one of the Directors of the company (in case there are more than one)

– Copies of valid passports of the final beneficiaries

– Rental document or title deed or sales document for new offices of business (must be duly stamped if its value is equal to the annual amount of €5,000 or more)

2) After registering a company with the Registrar of Companies and securing all the necessary documents, an application should be submitted to the Company Facilitation Unit of the Ministry of Energy, Trade and Industry accompanied by the above documents and a letter of intent which should include a brief description of the company, activities (nature of operations as stated in the company’s articles of association), number of staff, expansion plans, etc.

3) The Company Facilitation Unit will assess whether the companies wishing to employ third country nationals meet the criteria of foreign interest companies. If the criteria are met, then the Unit will register the details of the company in the Register of Foreign Interest Companies of the Department of Immigration Records which is the competent department to provide temporary residence and employment permits.

New Policy 2022 for Cyprus Foreign Interest Companies

According to the current Policy of the Council of Ministers that came into force from 02/01/2022, a non-EU national in order to be able to work in a company of foreign interests in Cyprus, had to obtain a temporary residence and employment permit.

After the decision of the Council of Ministers, we have some changes to the current Policy, such as:

1. The maximum permitted number of foreign personnel is abolished. Companies can free to employ any number of highly skilled third-country nationals, without pass a labor market test.
2. Specialized Personnel are not limited to specific professions or skills.
3. All companies commit to employ 30% of their total staff in Cypriots/ EU citizens, over a period of five years. In five years, i.e. after 2.1.2027, the ratio is checked for new hires. If a company does not adhere to the 70:30 ratio, the case will is evaluated based on its own criteria and will be presented to the administration.
4. The examination time for residence and employment applications is set at one (1) month.

Contact us to learn more about how we can help you register your foreign interest company in Cyprus and enjoy the benefits it offers.

Our Services

1. Company registration with the Registrar of Companies.
2. Securing all the necessary documents mentioned above.
3. Application to the Companies Facilitation Unit and letter preparation intentions.
4. Registration of the company in the Register of Foreign Interest Companies.
5. Securing a residence and work permit.
6. Family Reunification Process for your family members.
7. Renewal of residence and work permits.
8. Tax Planning.
9. Substance Solutions.
10. Nominee Services.