Cyprus work permit for companies of foreign interest under the BFU

Third-country nationals (TCNs) and non-EU/EEA nationals need a permit to work legally in Cyprus. The Business Facilitation Unit (BFU) has simplified the rules for residence permits.

The government did this to attract companies of foreign interest with international activities. A company that qualifies is registered as a company of foreign interest, which opens a fast-track route to hire non-EU staff. Since May 2025 the BFU sits within the Business Support Centre (BSC).

Key takeaways

• The BFU has accelerated the process of work permits for TCN employees. The process now takes about a month.
• It has abolished the labour market test requirement for TCN personnel.
• The work permits last up to 3 years and are renewable.
• Work permits under the BFU have several benefits, including tax and citizenship benefits.
• In Cyprus, the legislation for the employment of TCNs is the Aliens and Immigration Law (cap. 105).

The labour market test

Outside the BFU, the labour market test is the primary criterion for employing a TCN. The employer must show that there are no local personnel to fill the post. To do this, the employer must publish the post for two weeks in the local daily press and at the district labour offices.

Criteria under the BFU

Under the BFU, the employer company does not need to satisfy the labour market test.

An eligible company must satisfy one of the following:

• Companies with third-country shareholders own most of the shares. They must also transfer at least €200,000 to a Cyprus bank account of the company.
• If a foreigner holds only 50% (or lower) of the shares, the foreign participation must be at least €200,000.
• Public companies registered in any recognised stock exchange.
• Former offshore companies approved by the Cyprus Central Bank which have now changed their offshore status.
• Cypriot shipping companies.
• Cypriot high-tech innovation companies.
• Cypriot companies that operate in pharmaceuticals, biogenetics, and biotechnology.
• Companies that share capital owned by persons who have acquired Cypriot citizenship by economic criteria may join the BFU if they satisfy the above criteria.

They must also own or rent office space in Cyprus.

Also, companies are committed to employing 30% of Cypriots / EU citizens over five years. The ratio will be checked in five years. If a company does not comply with the ratio, the case will be evaluated based on its criteria.

Procedure to register the company under the BFU

The documents below must be sent by email to the unit:

• Company Certificates and Memorandum
• Rental agreement or title deed for offices
• Bank statement showing the transfer of €200,000 or documents to satisfy any of the above criteria
• Affidavit from the director to confirm foreign ownership of the company

The BFU replies within about ten working days and sends the certificate confirming registration as a company of foreign interest. The company's employees are then registered with the Migration Department.

Requirements for employees

They must have:

1. A university degree/ diploma or two years of relevant work experience. In other words, the employee must be highly skilled.
2. A minimum gross monthly salary of €2,500 and an employment contract of at least two years. Staff hired under the older regime on at least €2,000 can renew on that figure until 31 December 2026, after which the €2,500 floor applies to everyone.

Documents required

1. The application form for companies of foreign interest, issued by the Migration Department as form MBCS4 (the previous version was MBCS3).
2. Copy of a valid passport. It must stay valid for at least six months beyond the permit applied for, and at least twelve months in any case. The original passport is needed on the day of submission for verification.
3. A copy of the visa used to enter Cyprus and the arrival stamp.
4. CV in English and a copy of the official translated academic qualifications.
5. Reference letter from the previous employer ( if the previous experience will be used instead of a degree).
6. Official Declaration by the Employer covering repatriation costs.
7. Health Insurance that covers inpatient and outpatient care, and transportation of corpses.
8. Medical test results showing that the third country national is free of HIV, syphilis, hepatitis B and C, and tuberculosis (by chest x-ray). One set is done abroad before arrival and must be ratified. A second set is done in Cyprus after arrival and certified by a specialised doctor in Cyprus.
9. Title deed or rental agreement of a house or apartment, stamped if valued over €5,000.
10. The original Contract of Employment duly signed and stamped (two copies).
11. Employer's Liability Insurance.
12. Criminal Record from the country of origin/residence (with Apostille or Cyprus Embassy Stamp).
13. Authorisation of representative.

The process

A highly skilled employee may enter Cyprus with a permit obtained at the Cyprus embassy or an entry permit (form M70) from the Migration Department. The employer company is responsible for obtaining the entry permit for the employee applicant.

After arrival in Cyprus, the employee must apply to the Migration Department. They appear in person at the department's central offices in Nicosia to give biometrics, that is a photo and fingerprints, and a signature. Where an entry permit was used, this must happen within seven days of arrival.

There is no maximum duration for renewing such a permit. The process details and application forms can be found on the Migration Department portal under Companies of Foreign Interests.

Work permit benefits

Employees with a work permit under the BFU will have the following benefits:

• Right to family reunification.
• Their spouses will gain immediate access to the labour market without the need to satisfy the labour market test.

Tax benefits:

• A 50% income tax exemption applies to a new tax resident who takes up first employment in Cyprus on or after 1 January 2022 and earns more than €55,000 a year, if they were not a Cyprus tax resident for at least 15 years before. The exemption runs for 17 years and applies once per person. The BFU minimum salary of €2,500 a month is €30,000 a year, under the €55,000 line, so this exemption reaches higher-paid staff rather than every permit holder.
• Right to register in GeSY, the national health system.

Cyprus citizenship

A further benefit refers to naturalisation. The usual period after which a person may apply for Cyprus citizenship is eight years. Under the BFU, this is reduced to 5. It is further reduced to 4 if the applicant holds a recognised certificate of excellent knowledge of the Greek language.