Cyprus Work Permit for Non-EU Staff: The Employer’s Guide to the Foreign Workers Framework
A Cyprus work permit for a non-EU employee is a two-stage process: the employer must first obtain an approval from the Department of Labour, and only then can the Migration Department issue the entry, residence and employment permit. Since the Council of Ministers approved the Framework for the Employment of Foreign Workers on 19 February 2025, the rules on who may apply, how many third-country nationals a business may employ and what may be deducted from their pay have been set out in a single policy document. This guide explains those rules from the employer’s side.
Table of Contents
- Who the Framework Covers, and Who Is Exempt
- Can Your Business Apply? The Employer Eligibility Test
- The Labour Market Test: Two Weeks, Two Publications, Written Reasons
- How Many Third-Country Nationals Can You Employ? The 30%, 50% and Table A Quotas
- Pay, Housing and the Deductions an Employer May Lawfully Make
- Annex 1: The Accommodation Standards Behind the 25% Deduction
- Timelines: Decision, Appeal, Contract Stamping and Arrival
- Special Categories Exempt from the Labour Market Test
- Getting It Wrong: Revocation, Bars and Criminal Liability
- Frequently Asked Questions
- Speak to Connor Legal
The framework sits on the Aliens and Immigration Law (Cap. 105, as amended by Law 7(I)/2019) and decisions of the Council of Ministers. Employing a third-country national without a work permit, or in breach of its terms, is a criminal offence punishable by imprisonment and/or a fine. A Cyprus work permit is tied to a specific job and employer: if the worker takes other employment, it lapses.
Everything below applies to businesses of Cypriot or European interests hiring under the general route. Foreign-interest companies registered with the Business Facilitation Unit (which has operated within the Business Support Centre since May 2025), EU Blue Card employers and the other special categories in section 3 follow different rules, flagged where relevant.
Who the Framework Covers, and Who Is Exempt
The framework governs the employment of third-country nationals, meaning anyone who is not an EU or EEA citizen. It does not apply to people who already have free access to the Cyprus labour market: spouses of Cypriot or EU citizens resident in Cyprus, recognised refugees, holders of subsidiary protection, asylum applicants, immigration-permit holders and long-term residents.
It also excludes workers whose permits come from a separate legal basis. That list includes employees of foreign-interest companies, EU Blue Card holders, intra-corporate transferees, seasonal workers, students, domestic workers, athletes and staff of diplomatic missions. An employer using one of those routes should not expect the quotas and labour market test described here to apply in the same way.
For everyone else, the Department of Labour grants the approval and the Migration Department of the Deputy Ministry of Migration and International Protection issues the work permit itself. Both must be satisfied before the worker can lawfully start.
Can Your Business Apply? The Employer Eligibility Test
Before a work permit application is considered, the business must show it is organised and viable: any operating licence its activity requires, employer’s liability insurance, a Social Insurance employer number, tax, VAT and social insurance obligations settled, active trading and no liquidation, and adequate staffing with Cypriot, EU or legally resident personnel (agriculture and livestock excepted).
Two conditions catch employers out. The business must not have made anyone redundant from the position it now wants to fill in the eight months before the application, unless the redundant staff were re-hired; and it must not have suspended operations in the previous twelve months, tourism and other sectors with special arrangements excepted. A conviction or administrative sanction for breach of labour law or illegal employment of third-country nationals is also disqualifying.
The employer must also apply a collective agreement or offer equivalent terms to its whole workforce, and provide suitable accommodation where the worker needs it. These conditions build on the obligations in Connor Legal’s Cyprus employment law guide, and are checked again at renewal.
The Labour Market Test: Two Weeks, Two Publications, Written Reasons
Outside the special categories, an employer must first try to fill the vacancy from the Cypriot and EU labour market. The vacancy is notified to the Department of Labour on the statutory or collectively agreed terms for at least two weeks and is posted on the national placement system (CPS) and the EURES network. It must also be advertised on the same terms in at least two newspapers or recruitment websites for at least three days, and, where relevant, notified to trade unions or employer bodies that provide recruitment services.
The qualifications stated in the advertisement are binding. The Public Employment Service refers candidates for interview, and every rejection must be explained in writing; unreported or unconvincing rejections are a ground for refusing the work permit application outright. A candidate who could do the job after short training counts as suitable, and offering below-market terms is not accepted as a reason for failing to recruit locally.
Only after two weeks from lodging the vacancy may the employer apply for approval, on paper or through the Department’s electronic platform, with the terms of employment, copies of the advertisements, evidence of the candidate’s qualifications where required, the operating licence, employer’s liability insurance, a Tax Department clearance for income or corporate tax and VAT, and a union confirmation of collective-agreement coverage where applicable.
How Many Third-Country Nationals Can You Employ? The 30%, 50% and Table A Quotas
The general rule is that third-country nationals may not exceed 30% of the business’s average headcount over the three months before the application. Businesses that apply a collective agreement may go to 50%. For hotels and tourism the reference period is June, July and August of the previous season, and the headcount is measured per district and per employing entity, not per group of companies. Every third-country national on a temporary permit counts towards the quota, whichever route granted it.
Table A raises the ceiling for the occupation of “labourer” in sectors with a documented shortage of local labour. A 100% quota applies to agriculture and livestock, poultry slaughterhouses, fish farms, animal shelters and pet hotels, processing of edible slaughterhouse by-products, animal-waste management, sewer cleaning, refuse collection and recycling. A 75% quota applies to slaughterhouses, landscape-cleaning crews, animal-feed production, car washes and food delivery. In agriculture and livestock the permitted number is set by measurable criteria such as cultivated area and animal numbers, and the framework’s housing and food deduction rules do not apply because a dedicated collective agreement covers the sector.
Table A can be revised by the Ministry after consulting the Tripartite Advisory Committee, and the Minister may approve a different percentage for an individual business by reasoned decision. The Ministry may also freeze or decline to renew approvals in named sectors if local unemployment or wages deteriorate. Employers building headcount plans around these percentages should check the current position before relying on them.
Pay, Housing and the Deductions an Employer May Lawfully Make
The worker must be paid at the level set by legislation, the applicable collective agreement or normal market practice, and is free to join a trade union. Where the employer provides housing, it may deduct up to 25% of gross basic pay for accommodation, but only if the housing meets the Annex 1 criteria below; otherwise the deduction is capped at 10%. Inspectors may ask for evidence of the real cost against the amount deducted, and the worker may opt out of the accommodation arrangement on three months’ notice.
If the employer provides full board (breakfast, lunch and dinner) of an acceptable standard, a further deduction of up to 15% of gross pay is permitted. If no food is provided, the accommodation must include kitchen facilities.
No other deduction is lawful. The framework expressly prohibits deductions to recover the cost of the worker’s travel to Cyprus or to pay fees to third parties such as recruitment agents, unless the deduction is one required by law or forms part of an arrangement more favourable to the worker. Employers who have been recovering agency fees through payroll should treat this as a compliance issue to be corrected before the next inspection.
Annex 1: The Accommodation Standards Behind the 25% Deduction
When the employment contract is submitted for stamping, the employer must identify the accommodation and the number of people who will live there. Bedroom space must be at least 4.5 square metres per person, with a bed and a lockable wardrobe for each occupant, and facilities for men and women must be separated.
Residents must have heating and air-conditioning, electricity, food storage, a refrigerator, washing machine and cooker, drinking water, at least one shower per six people and one toilet per four people, hot and cold water, a dishwashing area, a kitchen or dining area with table and chairs, compliant lighting and ventilation, and an entrance that locks from inside and outside. Inspectors may demand supporting documents for both the standards and the deductions: meeting every item unlocks the 25% deduction, and falling short on any of them drops it to 10%.
Timelines: Decision, Appeal, Contract Stamping and Arrival
The Department of Labour decides within four weeks of a complete application, extendable to six weeks where there are objective difficulties. A refusal must be reasoned in writing. The employer may object to the Minister of Labour within 30 days of the decision being sent, and the Minister must decide within a further 30 days; that decision is final, and objections filed late are not accepted.
An approval is temporary and lasts up to two years, renewable for further periods of up to two years; agriculture and livestock approvals run for three years, and special-category approvals may be renewed beyond four years. Once the employer has identified the person it wants to hire, it must submit the standard employment contract for stamping within six months of the approval date. After six months a contract can be stamped only with a reasoned request; after twelve months the approval terminates automatically and no contract will be stamped.
The stamped contract and approval are then lodged with the Migration Department or the district Aliens and Immigration Unit of the Police, which issues the work permit. On arrival the worker must register with the district branch within seven days. A worker may change employer after six months, in the same occupation, with a Release Document from the current employer and a fresh approval for the new one; earlier if the employer has been found to have breached the terms. Employers should also note the recast Single Permit Directive (EU) 2024/1233, due for transposition by 21 May 2026, which introduces a 90-day decision rule and easier changes of employer; check the Cyprus implementing measures before relying on either.
Special Categories Exempt from the Labour Market Test
Work permit applications in the special categories are examined without a prior labour market test, though the eligibility and quota rules still apply. They cover humanitarian cases (adult children of foreign spouses of Cypriot or EU citizens raised in Cyprus, adult children of foreigners educated here, and recognised trafficking victims or witnesses); employees of licensed charities; and trainee accountants, who may stay three years, must pass at least four papers a year, and are capped at 15% of the firm’s Cypriot and EU trainees.
Highly skilled personnel qualify where the worker holds a relevant tertiary or professional qualification and will earn gross annual pay of more than €35,000 in a managerial or specialist post necessary to the business; the employer files a sworn declaration to that effect. Airline representatives (up to five people, with no quota) and service providers entering temporarily under a contract with a third-country business are also covered, the latter on a summary letter-or-stamp approval.
Support staff of foreign-interest companies registered with the Business Facilitation Unit (including shipping, high-technology, pharmaceutical and biotechnology companies) may be employed on a monthly salary below €2,500 provided they do not exceed 30% of the company’s support staff; the labour market test is normally waived. Staff paid €2,500 or more fall under the foreign-interest company scheme itself, covered in Connor Legal’s headquartering in Cyprus guide. Recently established businesses receive one-year approvals against a staffing forecast, but are not exempt from the labour market test.
Getting It Wrong: Revocation, Bars and Criminal Liability
The Department of Labour revokes or declines to renew an approval where the employer no longer meets the eligibility or quota criteria, has made local staff redundant while keeping third-country nationals in the same post, or has been convicted, sanctioned or found to have breached labour law or the worker’s terms. The employer is heard first, and the Migration Department then cancels the work permit.
The bar on new work permits lasts up to six months for a first breach, two years for subsequent breaches and eight months in every redundancy case. In a redundancy or suspension, third-country nationals in the affected specialty must be let go first, and local staff have priority on resumption. Employing a third-country national without a permit remains a criminal offence under Cap. 105, so employers facing an inspection or revocation notice should take advice before responding.
Frequently Asked Questions
How do I get a work permit for a non-EU employee in Cyprus?
The employer runs a labour market test (vacancy lodged with the Department of Labour for at least two weeks and advertised in two outlets for three days), then applies to the Department of Labour for approval. The stamped contract and approval then go to the Migration Department, which issues the permit.
What is the minimum salary for a Cyprus work permit?
Under the general route there is no single figure: pay must match the level set by law, the collective agreement or market practice for the job. Two thresholds apply to special categories: highly skilled personnel must earn more than €35,000 gross a year, and foreign-interest company support staff are those paid below €2,500 a month.
How many foreign workers can a Cyprus company employ?
Third-country nationals may not exceed 30% of the average headcount over the previous three months, or 50% for employers applying a collective agreement. For labourers in the Table A shortage sectors the ceiling is 100% or 75%. The Minister may approve a different percentage for an individual business.
How long does the Cyprus work permit process take?
The Department of Labour decides within four weeks of a complete application (six with objective difficulties), after the two-week labour market test; the Migration Department then issues the permit. A refusal can be appealed to the Minister within 30 days, who decides within a further 30 days.
Can an employer deduct accommodation costs from a foreign worker’s pay in Cyprus?
Yes, but only within fixed caps: up to 25% of gross basic pay for housing that meets the Annex 1 standards (10% if it does not) and up to 15% for full board. No other deductions are permitted, including recovery of travel costs or recruitment-agent fees.
Speak to Connor Legal
Connor Legal advises Cyprus employers on Department of Labour approvals, labour market test documentation, quota planning across districts and group companies, employment contracts for third-country nationals, accommodation compliance, objections to refusals and responses to revocation notices. If you are planning to hire from outside the EU or have received an inspection or refusal letter, contact Connor Legal before the next filing deadline.
