Harris Kyriakides
Harris Kyriakides

New labour framework expands opportunities for highly-skilled workers in Cyprus

Posted on 10 January 2025 | 4 mins read

The Cypriot government has taken significant steps to address labour market shortages and enhance its workforce by implementing decrees issued by the Cyprus Ministry of Labour. These decrees, published in the official gazette, introduce updated employment policies targeting highly qualified workers from non-EU countries and foreign students residing in Cyprus. The measures aim to attract top-tier talent and provide foreign students with greater access to the job market, reinforcing Cyprus as an attractive destination for skilled professionals and businesses.

Opportunities for highly qualified professionals

One of the cornerstone initiatives of the decrees is the facilitation of employment for highly qualified non-EU nationals in key sectors, including Information and Communication Technology (ICT), pharmaceutical research, and maritime (excluding ship captains and crew). To support this objective, the decrees align with the European Blue Card Directive, allowing qualified professionals to live and work across the European Union.

Highly skilled workers are now eligible for a European Blue Card if they secure employment in the specified sectors and meet the minimum gross annual salary requirement of €43,632 – a figure set at 1.5 times the average annual salary in Cyprus. This strategic approach not only addresses current workforce gaps but also strengthens the island’s competitiveness as a hub for innovation and expertise.

Additionally, streamlined processes under the Business Facilitation Unit (BFU) enable companies to efficiently apply for Cyprus work permits and residency permits for eligible non-EU employees. Companies must meet criteria to register as Foreign Interest Companies (FIC), such as demonstrating foreign ownership or substantial investment of at least €200,000 in Cyprus. Employees in these firms earning a minimum gross monthly salary of €2,500, with relevant qualifications or experience, benefit from fast-tracked permits.

Enhanced employment rights for foreign students

Foreign students already in Cyprus as of 1 December now have expanded opportunities to work while studying. The decrees extend the range of economic activities and professions in which students can be employed, including trade, health and social care, manufacturing, agriculture, catering, and hotels. This replaces the previous deadline of March 2024, allowing more students to benefit.

To qualify for employment, students must secure a work contract with a certified employer and meet several conditions, such as presenting a valid residence permit, proof of full-time studies, and documentation of their study hours. Employers are required to notify the Labour Department of the students’ monthly work schedules, ensuring transparency and compliance.

Family reunification and local labour market compliance

The decrees also emphasise the legal framework governing family reunification under the Aliens and Immigration Law (Cap. 105). Qualified third-country nationals residing legally in Cyprus can apply for family reunification, allowing their spouse and minor children to join them. To be eligible, applicants must have lived in Cyprus for at least two years, hold a residence permit valid for at least one year, and demonstrate a reasonable prospect of obtaining permanent residency.

Furthermore, the decrees maintain compliance with local labour market rules, requiring employers to prioritise Cypriot and EU workers where applicable. However, exemptions apply for highly skilled employees within Foreign Interest Companies when no local candidates meet the qualifications.

Why Cyprus stands out for skilled professionals and businesses

Cyprus offers a unique combination of professional and personal advantages for highly skilled employees and their families. Its favourable tax system, dynamic business ecosystem, and high quality of life make it an attractive destination for professionals seeking career advancement. For companies, the streamlined procedures and robust legal protections enable them to attract top-tier talent, equipping their teams to compete globally.

The government’s recent initiatives underscore its commitment to strengthening the workforce and addressing the evolving needs of the labour market. By facilitating the entry of highly skilled employees and integrating foreign students into the economy, Cyprus positions itself as a hub for growth, innovation, and global competitiveness.

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