Cyprus at a glance
Taxes in Cyprus
Employer Contributions
Total employer tax: 12.5%–20.5%
| Contribution Type | Rate |
|---|---|
| Social Insurance | 8.8% |
| Redundancy Fund | 1.2% |
| Industrial Training Fund | 0.5% |
| Social Cohesion Fund | 2% |
| Holiday Fund (if applicable) | 8% |
Total employer tax: 12.5%–20.5%
| Contribution Type | Rate |
|---|---|
| Social Insurance | 8.8% |
| Redundancy Fund | 1.2% |
| Industrial Training Fund | 0.5% |
| Social Cohesion Fund | 2% |
| Holiday Fund (if applicable) | 8% |
Income tax: 0%–35% | Social security: 11.45%
| Contribution Type | Rate |
|---|---|
| Social Insurance | 8.8% |
| National Health Insurance System (NHIS) | 2.65% |
| Gross Income | Tax Rate |
|---|---|
| €0 – €22,000 | 0% |
| €22,001 – €32,000 | 20% |
| €32,001 – €42,000 | 25% |
| €42,001 – €72,000 | 30% |
| Over €72,001 | 35% |
Employer of Record in Cyprus
How Remote& EOR Works
Remote& acts as the legal employer of your Cypriot workers — handling payroll, tax filings, statutory benefits, and employment contracts — while you direct the day-to-day work.
| Party | Role |
|---|---|
| Your Company | Manages work tasks, performance, and team direction |
| Remote& | Runs payroll, files taxes, administers benefits, ensures legal compliance |
| Employee | Works for your company under a locally compliant Cypriot contract |
Ask Remi:
"Hire a financial analyst in Cyprus — €3,500/month, starting August 1" Remi handles everything: contract, social insurance registration, payroll setup, and NHIS enrollment.
Benefits in Cyprus
- Health insurance: Both employer and employee contribute to the National Health Insurance System (NHIS), providing healthcare access for employees and dependents
- Pension: Social insurance contributions from both parties secure retirement benefits
- Unemployment and accident insurance: Covers unemployment benefits and work-related injuries through the Social Insurance Fund
- Private health insurance top-up
- Meal allowances or vouchers
- Mobile phone and internet allowances
- Supplementary pension schemes
- Company car or transport allowance
- Childcare assistance
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 20 days (5-day week) or 24 days (6-day week) + 14 public holidays |
| Sick Leave | First 3 days employer-covered; Social Insurance Fund pays a percentage thereafter |
| Maternity Leave | 18 weeks (can start up to 9 weeks before due date) |
| Parental Leave | Unpaid leave for each child under age 8 |
| Special Leave | Unpaid leave for personal/family events (weddings, funerals, caregiving) |
Employment conditions
Probation
Maximum probationary period is 6 months, with at least 7 days' notice required during this period.
Intellectual Property
Employees must inform employers about inventions or creative works developed in the course of their employment, particularly those connected to the employer's business activities.
Employee Rights & Protections
Cypriot workers benefit from: equal pay rights, anti-discrimination protection, protection from overwork, safe working conditions, unfair dismissal protection, anti-harassment protections, and pay transparency obligations.
Payments
End of employment in Cyprus
Employment termination in Cyprus is governed by the Termination of Employment Law (Law 24 of 1967), which sets out rules for dismissals, resignations, notice periods, and severance compensation.
Frequently asked questions
Four main routes: run payroll from HQ for short-term cases; engage contractors for project-based work; establish a local entity; or use Remote& as Employer of Record. EOR offers the fastest compliant path without needing to set up a Cypriot company.