The employers in Cyprus are obliged to provide to their employees certain employment rights, which are enforceable by the legislation, in order to protect the employees. As an employer you are obliged to inform the employee in writing, within one month after commencement of the employment, of the essential conditions applicable to his contract of employment or employment relationship.
The last thing that you will need when you run your business is a problem with a government authority, for not fulfilling the necessary compliance requirements. It is vital to understand the operating requirements specific to your industry and obtain the relevant license (if necessary) when starting your business. If you do not comply with the regulatory requirements of your business may face serious penalties.
Business planning is very important to develop a successful business and it can also serve as the framework of your business. However it is an ongoing process that requires continuous collection of facts and information and facilitates you to honestly and objectively scrutinise the key areas of your business activity and stay on track. In other words, a comprehensive written business plan is one of your most effective business tools.
Cyprus sustains one of the most attractive corporate tax regimes in the European Union with a corporation tax rate at 12.5% and double tax treaties with over 47 countries. Especially noteworthy is the fact that Cyprus offers one of the most attractive Intellectual Property tax regimes in Europe with a generous 80% exemption of the worldwide royalty income.
The Immovable Property Tax is calculated on the total value of properties owned by a person at the beginning of each year and is payable by 30th November of the same year.
Individuals who reside in Cyprus above 183 days in a calendar year, are considered Cyprus Tax Residents in the relevant year and are liable to be taxed on their worldwide accrued income in Cyprus. Overseas Taxes that were paid by Cyprus Tax Residents can be credited against their personal income tax liability. Individuals who are not Cyprus Tax Residents are taxed in Cyprus on the accrued income that was generated only from Cyprus sources.
All persons working in Cyprus must pay contributions on earnings according to the Cyprus Social Insurance Scheme. The Social Insurance contributions are calculated as a percentage of the insured persons’ earnings and the payment is split between those insured, their employers (if applicable) and in some cases the state. There are three categories of insured persons: salaried stuff, self-employed persons and voluntary contributors.
The Government of Cyprus offers a guaranteed minimum income (GIM / EEE) to ensure a minimum standard of living for its residents. The applicants have to meet certain criteria and apply within the required deadlines. The allowance covers basic needs (such as food, clothing etc) and the rental expense or the interest expense of your housing loan.
The child benefit is paid to the parents who have at least one child below 15 years old, provided that they have been living together in the Republic of Cyprus for the last three consecutive years. This page offers more information about the child benefit in Cyprus, in what circumstances it can be prolonged until the child’s 18th birthday or more, conditions of eligibility, documents required when applying for child benefit, and how is it calculated according to the family’s income.
The maternity grant in Cyprus is a onetime payment of € 544.08 in addition to the maternity benefit. It is paid to each woman who has given birth while living in Cyprus, provided that she is a resident of Cyprus and either her or her husband fulfils the insurance conditions. The maternity grant is also paid for a child born dead after a pregnancy of at least 28 weeks. This page offers information on how to apply for maternity grant.
All pregnant and newly mother workers are entitled to maternity leave, regardless of the time for which they have been working for a specific employer. The maternity leave is 18 weeks starting at anytime between the sixth to the second week prior to the expected week of birth. In case of adoptive mothers of children under 12 years old the maternity leave is 16 weeks. More information on the maternity leave, the rights of pregnant women and adoptive mothers in Cyprus, as well as a clarification of the difference between maternity and paternal leave.
The unemployment period is usually hard and stressful. Knowing your rights and how to get unemployment benefit can make your life easier. Here you can find information on how the unemployment benefit works in Cyprus, how much you should expect to receive and when can you reapply. Unemployed European citizens can transfer their unemployment benefit from Cyprus to their country of origin in case they wish to return. In case of any issues regarding this transfer address to the European Assistance Services.