Fast-track company or employer of record: which to choose

Both let you employ people in Cyprus, but they suit different plans. The fast track is for a company with foreign interests that registers with the Business Support Center (BSC); registration is completed within ten business days of a complete e-form. The company can then hire highly skilled non-EU staff earning at least €2,500 gross a month on a contract of at least two years, with no quota, and the Migration Department aims to decide permits within a month. An employer of record is a provider in Cyprus that employs your people on your behalf, runs payroll and pays social insurance, so you need no local company. A firm that employs workers and hires them out falls under the Temporary Agency Work Law of 2012, so check how the provider is licensed. Non-EU staff need a work permit on either route; the employer side costs about the same.

Companies with foreign interests registered with the Business Support Center (BSC) can hire highly skilled non-EU staff earning at least €2,500 gross a month, with no quota but a commitment that 30% of staff are Cypriot or EU citizens within five years. The Migration Department aims to decide within a month.

• Registration. The company files the BSC e-form; the BSC completes registration within ten business days of a complete file.
• Staff conditions. A university degree or at least two years of relevant experience, and an employment contract of at least two years.
• Permits. Issued for one to three years. Renewals are filed online between 90 and 30 days before expiry.
• Families. Dependants can join as dependent visitors where the employee earns at least €24,000 a year, plus 20% for a spouse and 15% per child.

A provider in Cyprus employs your people on your behalf. It is the legal employer: it signs the employment contract, registers with Social Insurance Services, runs payroll and pays the contributions every month. You pay it the salary costs plus a service fee and avoid setting up a company.

Check the provider before you sign. A firm that employs workers and hires them out to a user company falls under the Temporary Agency Work Law of 2012, which sets licensing, certification and inspection of agencies. Procedures for the entry, residence and employment of non-EU workers also need a licence from the Department of Labour, so permits are arranged by a licensed provider or an advocate.

An EU company can also post its own staff to Cyprus under the Posted Workers Law 63(I)/2017. It keeps the contract, files a written statement before the posting and sends A1 forms to Social Insurance Services. Posted workers get Cyprus terms on minimum wage, overtime, leave and working time.

No. EU, EEA and Swiss citizens can work in Cyprus without a work permit. If they stay longer than three months, they register for the Registration Certificate (MEU1, the Yellow Slip) within four months of arrival, on the basis of their employment. This is why an employer of record works fastest for EU staff: once the contract is signed and the employer has notified the hire in ERGANI, they can start. Non-EU staff wait for the permit on either route.

The employer's contributions are the same whether you employ directly or through an employer of record, which passes them on with its fee. For a gross salary of €60,000 in 2026, with the same rules as the employer view of the net salary calculator:

• Social insurance: 8.8% × €60,000 = €5,280.
• Social Cohesion Fund: 2% × €60,000 = €1,200.
• Redundancy Fund: 1.2% × €60,000 = €720.
• Human Resource Development Fund: 0.5% × €60,000 = €300.
• GESY: 2.9% × €60,000 = €1,740.
• Total on top of salary: €9,240, so the employee costs about €69,240 a year.

Social insurance, redundancy and training contributions stop at the insurable earnings ceiling of €68,904 a year. A 8% contribution to the Central Holiday Fund applies on top unless the employer is exempt. An employer of record adds its monthly fee.

• The employer, your company or the provider, registers with Social Insurance Services before hiring anyone.
• Each new hire is notified at least one day before the start date, electronically through the ERGANI system.
• A non-EU employee starts only after the permit is approved.
• The employee gets a tax number and gives the employer form T.D.59 to claim deductions.

If you plan to keep a team in Cyprus for years, set up the company. If you need one or two people quickly, start with an employer of record.

• Mostly EU staff, few people, uncertain plans: an employer of record or a posting from your EU company.
• Non-EU specialists earning €2,500 or more a month: the fast track, which needs your own company registered with the BSC.
• A team that will grow here: your own company, with substance in Cyprus that also helps with banks and tax residence.

Many companies start with an employer of record and move staff to their own company later. For non-EU staff the permit is tied to the employer, so plan the move with the permit side in mind.