Hiring in Cyprus

The terms set out role, salary in EUR, working time, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

English is widely used for commercial roles, with Greek the official language.

Fixed-term contracts are permitted, but successive contracts beyond 30 months in total become indefinite, and most EORs default to indefinite terms.

Set probation from day one. Since 2023 probation cannot be extended beyond 26 weeks, so treat any older 104-week clause as a red flag.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Most offices run a 38 to 40 hour week, and sectoral collective agreements set overtime rates where they apply.

Most professional hires sit outside a sectoral agreement, so overtime becomes a contractual matter rather than a statutory one. Put the position in writing either way.

Market practice for professional roles is 20 to 25 days, a little above the statutory floor, so quote the market figure when you budget.

Sickness benefit is paid by social insurance from the fourth day of absence, and any employer top-up is contractual. Maternity and paternity pay also come from social insurance, so confirm whether the EOR tops them up and who carries the cost.

Either side may terminate on notice, and the employer may pay in lieu. Redundancy pay comes from the state Redundancy Fund for employees with at least 104 weeks of service, while unfair dismissal compensation is paid by the employer and can reach two years' wages.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and any contractual severance. Unfair dismissal claims go to the Labour Disputes Court, so keep a documented reason.

Provident funds, private medical cover and group life are standard for professional roles even though they are not mandatory.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer contributions add around 15.4% on top of gross salary, with social insurance, redundancy and training contributions capped at 5,742 EUR a month in 2026. That is before the EOR fee.

The 13th salary is the trap. It is not required by statute, but it is customary and some collective agreements make it binding, so settle the position before you make an offer.

EU and EEA nationals need no permit. Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and Business Facilitation Unit registration, the 2,500 EUR monthly salary floor and third-country staff quotas apply to the sponsor, not to you.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Transfers outside the EEA need a lawful basis.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation here is quick, but the running cost is the point: a registered office, company secretary, accounting, a yearly statutory audit or auditor review regardless of size, and payroll set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.