The International HR & Payroll Company
That Speaks Your Language

At IRIS FMP, we’re here to simplify Cyprus payroll and HR. As a trusted, leading global payroll and HR expert, operating with 88 in-country teams, we have the expertise to ensure your overseas employees are paid on time, every time.

Navigating the challenges associated with payroll and HR in Cyprus is not always simple, especially if compliance is your top priority during a global expansion. With differing laws, cultures and regulations, it can seem overwhelming to manage everything. Fortunately, our expert teams are here to help, including support with:

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    Cyprus Payroll 

    We eliminate the complications of global payroll and manage everything, including local pay, benefits, and more. Through our payroll support, your global workforce will be paid accurately, on-time, every time.  

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    Cyprus HR 

    We’re trusted by companies to deliver our HR services in support of their global employees, from local legislation to compliance. Our HR support is here to help you thrive.

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    Cypriot Employment Law Compliance

    With our help, make onboarding new talent feel seamless whilst remaining compliant. As an in-country expert, we can help with contracts, policies, handbooks and more.

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    Global Payments Services

    We are able to provide compliant, global payment services for all kinds of businesses. We help to make cross-border transfers cost-effective for businesses.

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    Location Data

    Cyprus FlagCyprus
    Europe (Southern Europe)
    Calling Code
    Timezone in Capital
    (europe/nicosia) 7:45 AM
    Euro (EUR)
    $1 = €0.93
    Main Language
    Greek (modern)(ελληνικά)
    Other Business Languages
    English, Greek and Turkish
    Tax Year Start
    1st January
    Tax Year Start
    31st December

    Details correct at time of publication. You should not rely on these details without first seeking professional international advice.

    A trusted advisor for global expansion

    We support businesses in 135 countries worldwide to reach their expansion goals.

    Global Expansion in Cyprus

    The easternmost Mediterranean island of Cyprus is located south of Turkey, and was once an integral component of the Ottoman Empire. It’s had a turbulent past, and today there remains a divide between the Turkish/Cypriot north and the Greek/Cypriot south. This separation, however, has not impacted on Cyprus’ thriving economic scene. It’s long been a popular tourist destination, accounting for around 15% of the country’s GDP. Other main sources of income include exporting citrus fruit, potatoes, clothes, and cement.

    The main airport in Cyprus is Larnaca International Airport, located on the southern coast. From here it’s possible to take direct flights to 83 destinations in 35 countries, in Europe and the Middle East. Within Cyprus itself public transport comprises buses and taxis.

    Anyone considering business expansion into Cyprus needs to give due consideration to Cypriot HR and payroll legislation. It is imperative that all business owners are 100% compliant with local law; a concern that can lead to undue stress at an already busy time. The experts at IRIS FMP are adept at navigating international employment law, and are able to offer the advice and knowledge needed for a seamless expansion.

    Employer Must-Dos

    Employers must submit the following in Cyprus:

    • Audited accounts according to auditing standards
    • Annual Corporate Tax Return to be submitted electronically
    • MDW2 Application for foreign workers

    Payroll in Cyprus

    What tax considerations are there?

    Personal Income Tax (PIT)

    Residents of Cyprus are taxed on their total worldwide income, whereas non-residents are taxed only on income derived from within Cyprus. Income tax is charged at a progressive rate; those earning less than €19,500 annually are exempt, then the brackets are as follows:

    • €19,501 – €28,000 = 20%
    • €28,001 – €36,300 = 25%
    • €36,301 – €60,000 = 30%
    • €60,001 + = 35%

    Corporate Income Tax (CIT)

    The standard CIT rate in Cyprus is 12.5% and, as with PIT, this applies to the total worldwide income for resident companies, and Cypriot-derived income for foreign companies.

    All companies need to be registered online and submit their annual tax return electronically. Tax must be paid provisionally for the current year’s projected income. This should be paid in two equal instalments, on 31st July and 31st December every year. In the event that more tax is owed than what has been paid provisionally, the remainder is owed by 1st August of the following year.

    Tax is paid according to self-assessment. The Cyprus Tax Authority has six years to raise an enquiry if necessary, or 12 years in the event of fraud or wilful deceit.

    HR in Cyprus

    What are the regular working hours in Cyprus?

    Most employees in Cyprus work a five day week totalling no more than 48 hours – including overtime. Office hours tend to be between 8am and 6pm between September and May, and between 8am and 7pm from June to September.  Shops have varying hours depending on location and time of year, with festival periods seeing reduced hours.

    Vacation, maternity and sickness

    There are 15 public holidays in Cyprus on which employees are not expected to work. In addition to this, full time employees are entitled to 20 days of annual leave per year, or 24 days of annual leave if they work a six day week.

    Pregnant employees are entitled to 18 consecutive weeks of maternity leave, 11 of which are compulsory. These 11 must start two weeks before the expected due date. In the event of multiple births, maternity leave is extended by four weeks per child. A woman must provide a medical certificate detailing the expected due date. Maternity leave pay is paid for by the state under the Social Insurance Law, as long as sufficient contributions have been made and additional conditions are met.

    If an employee is off sick for more than three days, they must provide a doctor’s note in order to qualify for payment. For anything less than this, payment is not mandatory – rather it’s at the company’s discretion. For longer periods of sickness, sick pay is provided by the state. An employer is permitted to dismiss an employee who has been off sick for more than 26 weeks.


    Should an employee or employer wish to end the contract, appropriate notice must be provided. None is required for the first six months, then one week must be given if the contract has been in effect for between six months and one year. Notice periods then grow progressively, up to eight weeks for those who have worked for more than six years.

    When an employee wishes to end a contract a severance pay is due – apart from in the event of unlawful activity. This starts at two week’s wages for every year of service if the employee has worked for up to four years, and increases progressively up to four week’s wages for every year of service if they have worked more than 20 years.

    Learn More About Global Employment Law

    Understand everything you need to know about worldwide HR and payroll legislation with our guide. We cover a range of aspects from maternity pay to tax law.

    IRIS FMP’s Cypriot Payroll and HR Solutions

    Professionals seeking business expansion to Nicosia, Limassol, Larnaca or another bustling Cypriot city need to be confident in their compliance with local employment law. HR and payroll in Cyprus need not be the most stressful aspect of your expansion plan; instead seek advice and guidance from the experts at IRIS FMP. We have knowledge in a broad range of employment aspects across the world, and our services include:

    • HR audits
    • HR consultation
    • Communication with social bodies
    • Local law consultation
    • Translation services
    • Multi-currency payroll
    • Hard and soft copy payslips
    • Payroll consultation
    • Payroll processing
    • Annual leave processing
    • Sickness processing
    • Maternity leave processing
    • End of year tax administration

    Stay Compliant with Employment Law in Cyprus

    Throughout expansion into Cyprus you can be confident in your compliance with local HR and payroll legislation with help from the IRIS FMP team.