Cyprus has a thriving economy with a large talent pool. The nation was ranked 22 on IMD’s Global Talent Ranking for 2022. Plus, more than half the Cypriot population has a university degree, and over 75% speak English proficiently. But that’s not all. The nation’s attractive tax structure and competitive employment costs add to the appeal of this destination for talent acquisition. This is a key reason why the employment rate in the nation grew from 69.7% in the last quarter of 2020 to 73.6% in the first quarter of 2023.
If you are looking to hire employees to work remotely from Cyprus, enlisting the services of an Employer of Record (EOR) in the country will make the process seamless. They will be a reliable partner in navigating the complexities of a new jurisdiction and ensuring compliance with the local labour laws.
Here’s what you need to know about using EOR solutions in Cyprus.
What is an EOR Solution in Cyprus?
An Employer of Record allows your organisation to legally hire talent in another country, without needing to establish a physical presence in the nation or risking the violation of its employment laws.
An EOR is a third-party service provider that takes on the role of the legal employer of your workforce, along with all employer-related tasks and responsibilities on your behalf. They are responsible for relocating and onboarding new hires, managing payrolls and HR functions. However, you remain in control of all final decisions regarding hiring, terminating, and daily tasks and operations.
Corporates choose EOR as a solution due to the efficiency and cost-effectiveness of managing an international team. It cuts through the red-tape of setting up local bank accounts and understanding intricate employment laws. The benefit of using local expertise allows them to focus on their core business activities and to get their operation up and running quickly.
Key services offered by the best EOR solution in Cyprus include:
- Drafting and managing compliant employment contracts.
- Overseeing relocation and visa logistics/visa sponsorship.
- Managing payroll, taxes and social security payments for the workforce.
- Offering all statutory benefits employees are entitled to.
- Ensuring compliance during employee termination and offboarding.
- Providing ongoing support with the country’s labour laws.
Choosing the Right Employer of Record in Cyprus
An EOR gives you access to global talent quickly and in a hassle-free manner. However, your experience of hiring a remote workforce completely depends on who you choose to hire & pay employees for you in Cyprus. Here’s a look at some aspects to consider to make an informed choice.
- Check the experience and licenses of the service provider, such as whether they are registered with the “Business Facilitation Unit” (BFU) of Cyprus as a “Foreign Interest Company.” This registration authorises the EOR to employ third-country nationals on your behalf.
- Check if they will handle all the immigration requirements while onboarding and terminating employees, such as work permits and visas.
- Make sure they take care of all payroll-related responsibilities, social insurance, applicable income tax, and other payments in a timely and safe manner.
- The EOR should also monitor the probation period for each worker and draw up a compliant employment contract at the end of the period.
- They should also provide employee support to help you retain the talent you want.
- When an employee is no longer required or needs to be terminated for any other reason, the EOR solution provider in Cyprus should manage the transition, handling payroll deregistration, closing of bank accounts, notification to the authorities and visa cancellation, where applicable.
Partnering with an EOR provider in Cyprus is the best way to overcome language barriers and cultural differences without needing to gain familiarity with local practices.
Access Financial is a leading global provider of end-to-end EOR solutions. With over two decades of experience, we offer comprehensive hiring, payroll, social security, tax, and immigration solutions for recruitment firms, corporates, and contractors/employees. We are registered with the “Business Facilitation Unit” (BFU) in Cyprus as a “Foreign Interest Company”, and authorised to employ third-country nationals. We can address all necessary immigration requirements, including work permits and visas, in the shortest time possible. Contact our team to learn more about how EOR could be the solution to your employee needs.