Cyprus Highlights:
- An EoR (Employer of Record) package is the most efficient and effective way to deploy local and foreign employees in Cyprus.
- 1WB acts as an EoR ensuring full compliance with country’s regulations.
- The whole deployment process for foreigners takes about 4 weeks whereas for locals within 1 week.
- Handling payroll processing, immigration and taxes compliantly, swiftly and cost efficient.
- Income tax is deducted at source, taking into account the following band rates:
| Taxable Income (Euros) | Tax Rate % |
|---|---|
| €0 – €19.500 | 0% |
| €19.501 - €28.000 | 20% |
| €28.001 - €36.300 | 25% |
| €36.301 - €60.000 | 30% |
| Over €60.000 | 35% |
- Corporation tax is flat rate at 12.5%.
- VAT is charged at the standard rate of 19%.
- Social security contributions, explain as follows:
| Contribution Type | Amount |
|---|---|
| Social Insurance fund | 8.3% |
| Redundancy fund | 1.2% |
| Industrial Training fund | 0.5% |
| Social Cohesion fund | 2% |
| Central holiday fund (if not exempt) | 8% |
| Maximum annual insurable income of employee | €54.864 |
| Self-employed contributions | 14.6% |
- Work permit - 1WB can sponsor work permits for foreign employees and the processing time is about 4 weeks.