How are foreign employees of International Business Companies taxed?

If an International Business Company opens an office in Cyprus, the company can acquire permission to employ expatriate staff who will be living and working in Cyprus EU citizens may work in Cyprus but they must obtain a residence permit which is normally granted on application.

Work permits can be obtained by foreign employees of such companies, provided that the employees are employed in executive positions or in positions where there is lack of labour in the local labour force. A work permit is required for third country nationals wishing to work in Cyprus and is granted by a specific employer. These permits are normally issued for a period of one year and can be renewed. 

All Cyprus resident individuals are taxed at the same tax rates on their income arising in Cyprus and abroad. An individual is deemed resident if he lives in Cyprus for one or more periods which exceed 183 days per fiscal year. Non-residents are taxed only on their income arising in Cyprus.

 
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