How to open a company in Cyprus and relocate your employees

Cyprus has become one of Europe’s leading destinations for international businesses seeking tax efficiency, access to the EU market, and employee relocation opportunities. One of the most effective legal structures for achieving these goals is a Foreign Interest Company (FIC). This structure not only allows you to establish a business in Cyprus but also enables obtaining Cyprus residence permits for business owners, key personnel, and their family members.

For entrepreneurs, this offers an opportunity to address several objectives simultaneously:

• establish a business within the EU;
• organize team relocation;
• legalize employees’ residence status;
• transfer operational activities to Cyprus;
• create an efficient tax structure.

In this article, we explain what a Foreign Interest Company in Cyprus is, who may obtain a residence permit through this route, applicable requirements, and how employee relocation works in practice.

Foreign Interest Companies in Cyprus: Requirements and Key Features

A Foreign Interest Company (FIC) is a Cyprus-registered company in which more than 50% ownership belongs to non-EU nationals and where a minimum foreign capital investment of €200,000 has been made.

This status allows the company to employ third-country nationals and obtain Cyprus work and residence permits for them through a simplified procedure.

To qualify for FIC status, several key requirements must be met:

1. Investment of at least €200,000The shareholder’s contribution to the company’s share capital must amount to at least €200,000. If third-country shareholders do not hold a controlling stake in the company (less than 50%), the total contribution from foreign shareholders must still be no less than €200,000. This is not a government fee or mandatory state payment. The funds remain available to the company and can be used for business operations and development. The investment must originate from outside Cyprus and be transferred by the company’s foreign beneficial owner. Alternatively, documentary evidence of investments amounting to €200,000 for business purposes in Cyprus may also be accepted (for example, office premises, equipment, and other business assets). Feod Group specialists assist clients in selecting the most efficient structure before the project launch stage.

2. Genuine Business Presence in CyprusThe company must carry out actual business activities and not exist solely as a formal structure. Authorities generally assess: existence of office premises or workspace; business activity; operational presence of the company; ability to demonstrate real business substance in Cyprus. Each project is assessed individually based on the specifics of the business and its corporate structure.
3. Registration with the Business Facilitation UnitForeign Interest Companies must register with the Business Facilitation Unit (BFU). The company must then obtain approval from the Migration Department as a recognized Foreign Interest Company.

Benefits of Foreign Interest Company Status

Foreign Interest Company status in Cyprus provides substantial advantages for both businesses and employees:

• No restrictions on the number of foreign employees
• No labor market test requirement
• Cyprus residence permit with work authorization
• Family relocation opportunities
• Right to live and work in a European jurisdiction
• Potential pathway to Cyprus permanent residence and citizenship
• Ability to combine business structuring, team relocation, and tax planning within one framework

Who Can Obtain a Residence Permit Through an FIC Company

Residence permits are commonly obtained by:

• Company Owners: Business owners may participate in managing the Cyprus structure and relocate to Cyprus.
• Directors and Senior Management: Executives and managers of international divisions.
• Key Personnel: Companies may transfer employees possessing essential qualifications and expertise.
• Family Members: Family members of the main applicant may also relocate.

Residence Permit Through a Foreign Interest Company for Business Owners in Cyprus

Foreign Interest Company status is not only used by international businesses relocating employees to Cyprus. This route is also widely used by entrepreneurs who establish a company in Cyprus, appoint themselves as directors, and apply for residence permits on this basis.

For business owners, this structure allows several goals to be achieved simultaneously: establishing a company within a European jurisdiction, obtaining legal residence status in Cyprus, relocating business operations, and organizing family relocation.

An additional advantage is the long-term immigration perspective. Subject to compliance with legal and residency requirements, this status may eventually provide a pathway toward permanent residence and, subsequently, Cyprus citizenship through naturalization.

Requirements for Employing Non-EU Nationals

• The minimum gross salary must be at least €2,500 per month.
• The applicant must demonstrate qualifications relevant to the position. Generally, this requires a relevant university degree or at least two years of related professional experience.
• Employment agreement with a Cyprus company. Employment contracts are usually concluded for 1–2 years. The maximum validity period of a work permit is three years regardless of the employment duration specified in the contract.
• Proof of accommodation in Cyprus (property purchase agreement or lease agreement for a minimum period of 12 months).

It is also important to note that companies are required to reserve 30% of positions for Cyprus and EU nationals during the first five years of operation. Additional compliance checks regarding the 70/30 ratio are expected to be implemented in 2027.

Residence and Work Permit Procedure for Foreign Interest Companies in Cyprus

Obtaining residence and work permits for employees through a Foreign Interest Company involves several stages. Depending on the business structure and number of transferred employees, the procedure may vary; however, the process generally includes:

1. Registration of a Cyprus company, opening a corporate bank account, and establishing the required corporate structure, including fulfillment of the €200,000 investment requirement.
2. Obtaining Foreign Interest Company (FIC) status through the Business Facilitation Unit (BFU).
3. Registration in the Foreign Interest Companies Register at the Civil Registry and Migration Department in order to obtain authorization for employing foreign personnel.
4. Preparation of employment contracts and documentation for employees relocating to Cyprus.
5. Arranging employee accommodation in Cyprus. For residence permit applications, proof of accommodation is required. Typically, a residential lease agreement or ownership documents must be provided.
6. Submission of work permit and residence permit applications for foreign employees and their family members.
7. Registration of employees with the social insurance and tax authorities.
8. Opening personal bank accounts for employees after completion of immigration procedures.

With proper business structuring and document preparation, many stages can be completed simultaneously, significantly accelerating both employee relocation and business launch in Cyprus.

Why Companies Choose Feod Group

Feod Group has specialized in international law for more than 30 years and has been assisting clients in Cyprus since 2007. We provide comprehensive one-stop solutions — from corporate structuring and company registration to employee relocation and residence permit applications.

Feod Group provides full legal support at every stage:

• company registration and corporate structuring in Cyprus;
• obtaining Foreign Interest Company status;
• assistance with residence permits and relocation of owners and employees;
• family relocation support;
• tax structuring;
• ongoing legal business support.

Obtain a Personalized Business Relocation Strategy

Contact Feod Group specialists for an individual consultation. We will assess your business structure, recommend the optimal model, and develop a step-by-step residence permit strategy for your company and team.

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