The criteria for the naturalization of third country nationals have been amended by way of introduction of the Civil Registry (amending) Law (Law 141(I)/2002), published in the Official Gazette of the Republic of Cyprus on 19 December 2023. More specifically, according to the newly introduced section 111B of the said law, a third country national may be eligible to apply for naturalization provided that he/she satisfies the below criteria:
- He/she has legal (other than legal residency under the status of asylum seeker, subsidiary protection, temporary protection or student) and continuous residency (physical presence) in the Republic of Cyprus for the 12 (twelve) months immediately preceding the date of submission of the application for naturalization (the “Continuous Stay“); it is worth to mention that periods of absence not exceeding in total 90 (ninety) days, do not interrupt the Continuous Stay.
- During a period of 10 (ten) years, which immediately precedes the above-mentioned 12-month period of Continuous Stay, the applicant must have legally resided (physical presence) in or served in the public service of the Republic of Cyprus for periods which cumulatively amount to at least 7 (seven) years.
- He/she is of good character.
- He/she has sufficient knowledge of Greek language of B1 level, as determined by the Common European Framework of Reference for Languages (CEFR), evidenced by virtue of language certificates (recognized to this end) obtained upon successful completion of a written exam.
- He/she has sufficient knowledge of the key elements of the modern political and social reality of Cyprus.
- He/she has appropriate accommodation as well as stable and regular financial resources, sufficient to maintain himself/herself and his/her dependent family members.
- He/she intents, in case of obtaining of a naturalization certificate, to reside in the Republic of Cyprus or continue to serve in the public service of the Republic of Cyprus.
Apart from the amendment to the main criteria, the Civil Registry (amending) Law (Law 141(I)/2002) introduced a simplified naturalization procedure (the “Simplified Fast Track Naturalization Process”) available to third country nationals residing in the Republic of Cyprus for the purpose of employed as high skilled employees at companies to be determined by virtue of a decision of the Council of Ministers (the “Person(s) eligible for the Simplified Naturalization Process”). That said and considering that the “Strategy for Attracting Businesses for Activities or/and Expansion of their Activities in Cyprus” approved by the Council of Ministers on 15 October 2021 taking effect as of 2022 (the “Strategy”), provided for a series of initiatives and incentives for the purpose of attracting investments by companies for operating and/or extension of their business or operations in Cyprus as well as talented human resource in Cyprus, it is expected that the decision of the Council of Ministers shall provide for the eligibility to apply for the simplified procedure for naturalization of employees of international business companies qualified in accordance to the Strategy. On that basis, third country nationals eligible to apply under the Simplified Naturalization Process may apply for naturalization provided that he/she satisfies the below criteria:
- He/she has legal and continuous residency (physical presence) in the Republic of Cyprus for the 12 (twelve) months immediately preceding the date of submission of the application for naturalization (the “Continuous Stay“); it is worth to mention that periods of absence not exceeding in total 90 (ninety) days, do not interrupt the Continuous Stay.
- During a period of 10 (ten) years, which immediately precedes the above-mentioned 12-month period of Continuous Stay, the applicant must have legally resided (physical presence) in or served in the public service of the Republic of Cyprus for periods which cumulatively amount to at least 4 (four) years; it is worth to mention that periods of absence from the Republic of Cyprus not exceeding 90 (ninety) days are not considered as absence for the purposes of calculating the duration of residency and are taken into account in the aforesaid periods.
- He/she is of good character.
- He/she has sufficient knowledge of Greek language of A2 level, as determined by the Common European Framework of Reference for Languages (CEFR), evidenced by virtue of language certificates (recognized to this end) obtained upon successful completion of a written exam.
- He/she has sufficient knowledge of the key elements of the modern political and social reality of Cyprus.
- He/she has appropriate accommodation as well as stable and regular financial resources, sufficient to maintain himself/herself and his/her dependent family members.
- He/she intents, in case of obtaining of a naturalization certificate, to reside in the Republic of Cyprus or continue to serve in the public service of the Republic of Cyprus.
OR
- He/she has legal and continuous residency (physical presence) in the Republic of Cyprus for the 12 (twelve) months immediately preceding the date of submission of the application for naturalization (the “Continuous Stay“); it is worth to mention that periods of absence not exceeding in total 90 (ninety) days, do not interrupt the Continuous Stay.
- During a period of 10 (ten) years, which immediately precedes the above-mentioned 12-month period of Continuous Stay, the applicant must have legally resided (physical presence) in or served in the public service of the Republic of Cyprus for periods which cumulatively amount to at least 3 (three) years; it is worth to mention that periods of absence from the Republic of Cyprus not exceeding 90 (ninety) days are not considered as absence for the purposes of calculating the duration of residency and are taken into account in the aforesaid periods.
- He/she is of good character.
- He/she has sufficient knowledge of Greek language of B1 level, as determined by the Common European Framework of Reference for Languages (CEFR), evidenced by virtue of language certificates (recognized to this end) obtained upon successful completion of a written exam.
- He/she has sufficient knowledge of the key elements of the modern political and social reality of Cyprus.
- He/she has appropriate accommodation as well as stable and regular financial resources, sufficient to maintain himself/herself and his/her dependent family members.
- He/she intents, in case of obtaining of a naturalization certificate, to reside in the Republic of Cyprus or continue to serve in the public service of the Republic of Cyprus.
Going further, it is important to note that family members (ie spouse and partner under a Civil Union, dependent disable adult person) of (a) Person(s) eligible for the Simplified Naturalization Process may apply or be naturalized simultaneously with the latter provided that such family members also meet the criteria applicable to that person (without the need for the periods of stay in the Republic of Cyprus of the Person eligible for the Simplified Naturalization Process and his/her family member(s) to be concurrent).
The time frame for the completion of examination of applications submitted under the Simplified Fast Track Naturalization Process has been set pursuant to the Civil Registry (amending) Law (Law 141(I)/2002) to 8 (eight) months, while outstanding applications for naturalization submitted on the basis of the regime in place prior to the introduction of the Civil Registry (amending) Law (Law 141(I)/2002), shall be handled, processed and supplemented in accordance with the provisions of that law, in accordance to the already determined sequence for examination, regardless of submission of supplementary information on information.
In view of the ambiguities with regards to some of the criteria as well as the way of implementation thereof, the expected decision(s) of the Council of Ministers will enlighten the way of interpretation of the newly revised and/or incorporated naturalization procedures.
An individual is considered to be tax resident in the Republic of Cyprus provided that he/she was physically present in the Republic of Cyprus for a period exceeding 183 days. However, an individual may opt to become tax resident in the Republic of Cyprus under the “60-day rule”, provided that he/she fulfils the relevant criteria:
(a) Does not reside in any other country for more than 183 days in aggregate within a tax year;
(b) Resides or remains in Cyprus for a period of at least 60 days during the tax year;
(c) Carries out any business and/or is employed in the Republic and/or possess any office in any tax resident person of the Republic of Cyprus for any time during the tax year in question;
(d) Maintains permanent place of residence in the Republic of Cyprus, either owned or rented.
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The spread and wide use of digital platforms promoting the short-term accommodation rentals of private properties around the world demonstrated the existence of a gap in the legislation of the Republic of Cyprus. The issues that arose in view of the gap in the legislation for the commercial exploitation of private properties for short leasing was addressed by the Government through the passing of the Law on the Regulation of the establishment and operation of Hotels and Tourist Accommodations in 2020 (Law 9(I)/2019), which amended the Law on the Regulation of the establishment and operation of Hotels and Tourist Accommodations in 2019 (Law 34(I)/1969). On that basis, a major innovation was the introduction of the notion of ‘self-service’ or ‘self-catered’ establishment, the meaning of which is expressly distinguished from the notion of ‘hotels’ and ‘tourist accommodation’, as well as the establishment of a Register designated to be used for the listing and licensing of the ‘self-service’ or ‘self-catered’ premises (the “Register of Self-Service (Sharing Economy) Establishments”), maintained and monitored by the Deputy ministry of Tourism. In particular, according to the Law 34(I)/2019, a ‘self-service’ or ‘self-catered’ establishment may constitute an individual tourist furnished villa or house or apartment, which is registered with the Register of Self-Service (Sharing Economy) Establishments.
In particular, a ‘self-service’ or ‘self-catered’ establishment distinguishes in that the only service provided is the provision of the premises on a short-term basis for accommodation purposes. On the other hand, ‘hotels’ (including main hotel buildings, complexes of small houses, traditional premises etc) and ‘tourist establishments’ constitute premises within which other services -beyond accommodation services- are provided as well (it is noted that criteria apply on the categorization of an establishment as a hotel or tourist establishment).
First and foremost, in order for an establishment to be eligible to be registered with the Register of Self-Service (Sharing Economy) Establishments for the purpose of being rented-out on a short-term basis, it must bear the features and fulfil the technical and operational standards for its classification in one of the following classes of premises:
- tourist furnished villas, being establishments that have -among others- independent and direct external access, privacy, autonomy of plot of land and construction, as well as a private garden (as designated).
- tourist furnished houses, being furnished houses in a raw or in a complex that have -among others- operational autonomy, private, common or external access and privacy.
- apartments, being individual units in a jointly-owned building which can property be occupied and exploited as a distinct and autonomous unit for residential purposes.
In any case, the areas, interior and exterior (including parking space are), of each such ‘self-service’ or ‘self-catered’ establishment must have been constructed in accordance to the respective planning and building permits as well as to the applicable laws and regulations, while the interior areas of each such establishment must consist of at least a living area (separate or not), sleeping area (may be unified with the living are in the case of studios), cooking area and a washroom (bath); in this respect, it is noted that the maximum accommodation capacity for each such house is 10 persons (in a 4/5 bedroom house) while any house a having more than 3 bedrooms, must have a second washroom (bath). Of course, the establishments, of any class, must be connected to the utilities and have all appropriate installations, including air-conditioning (cold – hot), water supplying (cold – hot), drainage and electrical installation. To this end, it goes without saying that the construction of the establishment must be permanent and all necessary planning and/or building permits, in accordance to the type and use of the premises, must have been obtained.
Provided that an establishment fulfils the operational and technical standards and specifications, as explained above, in order for such an establishment to be registered with the Register of Self-Service (Sharing Economy) Establishments, there is a series of prerequisites:
- the registered owner, the beneficiary, the owner of the unit or the (property) manager, as the case may be, be registered with the Tax Department for the purposes of Direct Taxation; to this end a declaration is made by the applicant at the time of filing of the application for the registration of a ‘self-service’ or ‘self-catered’ establishment with the Register of Self-Service (Sharing Economy) Establishments.
- the registered owner, the beneficiary, the owner of the unit or the (property) manager, as the case may be, be registered with the Tax Department for the purposes of Indirect Taxation – VAT, provided that there is an obligation for registration in accordance to the relevant Law on Value Added Tax of 2000 (Law 95(I)/2000); if registered for VAT purposes, this must be declared at the time of filing of the application for the registration of a ‘self-service’ or ‘self-catered’ establishment with the Register of Self-Service (Sharing Economy) Establishments.
- conclusion of insurance policy for the ‘self-service’ or ‘self-catered’ establishment, against any risk, fire and civil liability.
In light of the aforesaid and in an effort to facilitate the tracing of taxable commercial transactions and enhance transparency for tax purposes, the European Directive 2021/514 (amending Directive 2011/16/EU) on administrative cooperation in the field of taxation (DAC7) of 22 March 2021, has been introduced (the “EU Directive 2021/514”). The aim of the said EU Directive 2021/514 is to “impose a reporting obligation on (digital) platform operators […] [who] are better placed to collect and verify the necessary information on all sellers operating on and making use of a specific digital platform”, within the scope of which (obligation) digital platforms carrying out activity in the field of renting of immovable property also fall, either on a domestic or cross-border level. Thus, it follows that digital platforms operations ‘offering’ rental accommodation options to consumers are under an obligation to declare to the tax authorities the ‘private providers’ of such accommodations, irrespective of the obligation of any such ‘private provider’ (depending on the laws and regulations of his country of tax residence) to declare the income derived from businesses relating to the exploitation of, inter alia, ‘self-service’ or ‘self-catered’ establishments for short-term leasing.
As a concluding remark, it appears that the criteria and obligations introduced relating to the provision of ‘self-service’ or ‘self-catered’ accommodation services aim to secure that the standards of this alternative type of accommodation are of a satisfactory level, analogous to the standards of traditional types of accommodation, giving the consumers more options on choosing the accommodation type that better suites their requests and needs.
private properties for short leasing was addressed by the Government through the passing of the Law on the Regulation of the establishment and operation of Hotels and Tourist Accommodations in 2020 (Law 9(I)/2019), which amended the Law on the Regulation of the establishment and operation of Hotels and Tourist Accommodations in 2019 (Law 34(I)/1969). On that basis, a major innovation was the introduction of the notion of ‘self-service’ or ‘self-catered’ establishment, the meaning of which is expressly distinguished from the notion of ‘hotels’ and ‘tourist accommodation’, as well as the establishment of a Register designated to be used for the listing and licensing of the ‘self-service’ or ‘self-catered’ premises (the “Register of Self-Service (Sharing Economy) Establishments”), maintained and monitored by the Deputy ministry of Tourism. In particular, according to the Law 34(I)/2019, a ‘self-service’ or ‘self-catered’ establishment may constitute an individual tourist furnished villa or house or apartment, which is registered with the Register of Self-Service (Sharing Economy) Establishments.
In particular, a ‘self-service’ or ‘self-catered’ establishment distinguishes in that the only service provided is the provision of the premises on a short-term basis for accommodation purposes. On the other hand, ‘hotels’ (including main hotel buildings, complexes of small houses, traditional premises etc) and ‘tourist establishments’ constitute premises within which other services -beyond accommodation services- are provided as well (it is noted that criteria apply on the categorization of an establishment as a hotel or tourist establishment).
First and foremost, in order for an establishment to be eligible to be registered with the Register of Self-Service (Sharing Economy) Establishments for the purpose of being rented-out on a short-term basis, it must bear the features and fulfil the technical and operational standards for its classification in one of the following classes of premises:
- tourist furnished villas, being establishments that have -among others- independent and direct external access, privacy, autonomy of plot of land and construction, as well as a private garden (as designated).
- tourist furnished houses, being furnished houses in a raw or in a complex that have -among others- operational autonomy, private, common or external access and privacy.
- apartments, being individual units in a jointly-owned building which can property be occupied and exploited as a distinct and autonomous unit for residential purposes.
In any case, the areas, interior and exterior (including parking space are), of each such ‘self-service’ or ‘self-catered’ establishment must have been constructed in accordance to the respective planning and building permits as well as to the applicable laws and regulations, while the interior areas of each such establishment must consist of at least a living area (separate or not), sleeping area (may be unified with the living are in the case of studios), cooking area and a washroom (bath); in this respect, it is noted that the maximum accommodation capacity for each such house is 10 persons (in a 4/5 bedroom house) while any house a having more than 3 bedrooms, must have a second washroom (bath). Of course, the establishments, of any class, must be connected to the utilities and have all appropriate installations, including air-conditioning (cold – hot), water supplying (cold – hot), drainage and electrical installation. To this end, it goes without saying that the construction of the establishment must be permanent and all necessary planning and/or building permits, in accordance to the type and use of the premises, must have been obtained.
Provided that an establishment fulfils the operational and technical standards and specifications, as explained above, in order for such an establishment to be registered with the Register of Self-Service (Sharing Economy) Establishments, there is a series of prerequisites:
- the registered owner, the beneficiary, the owner of the unit or the (property) manager, as the case may be, be registered with the Tax Department for the purposes of Direct Taxation; to this end a declaration is made by the applicant at the time of filing of the application for the registration of a ‘self-service’ or ‘self-catered’ establishment with the Register of Self-Service (Sharing Economy) Establishments.
- the registered owner, the beneficiary, the owner of the unit or the (property) manager, as the case may be, be registered with the Tax Department for the purposes of Indirect Taxation – VAT, provided that there is an obligation for registration in accordance to the relevant Law on Value Added Tax of 2000 (Law 95(I)/2000); if registered for VAT purposes, this must be declared at the time of filing of the application for the registration of a ‘self-service’ or ‘self-catered’ establishment with the Register of Self-Service (Sharing Economy) Establishments.
- conclusion of insurance policy for the ‘self-service’ or ‘self-catered’ establishment, against any risk, fire and civil liability.
In light of the aforesaid and in an effort to facilitate the tracing of taxable commercial transactions and enhance transparency for tax purposes, the European Directive 2021/514 (amending Directive 2011/16/EU) on administrative cooperation in the field of taxation (DAC7) of 22 March 2021, has been introduced (the “EU Directive 2021/514”). The aim of the said EU Directive 2021/514 is to “impose a reporting obligation on (digital) platform operators […] [who] are better placed to collect and verify the necessary information on all sellers operating on and making use of a specific digital platform”, within the scope of which (obligation) digital platforms carrying out activity in the field of renting of immovable property also fall, either on a domestic or cross-border level. Thus, it follows that digital platforms operations ‘offering’ rental accommodation options to consumers are under an obligation to declare to the tax authorities the ‘private providers’ of such accommodations, irrespective of the obligation of any such ‘private provider’ (depending on the laws and regulations of his country of tax residence) to declare the income derived from businesses relating to the exploitation of, inter alia, ‘self-service’ or ‘self-catered’ establishments for short-term leasing.
As a concluding remark, it appears that the criteria and obligations introduced relating to the provision of ‘self-service’ or ‘self-catered’ accommodation services aim to secure that the standards of this alternative type of accommodation are of a satisfactory level, analogous to the standards of traditional types of accommodation, giving the consumers more options on choosing the accommodation type that better suites their requests and needs.
Admittedly the terms “tradename” and “trademark” are usually confused because of their similarities (to some extend), which however -in fact- distinct the said terms between them.
In so far as tradenames are concerned, these can be registered at a national level (with the Department of Registrar of Companies and Intellectual Property (“DRCIP”) of the Republic of Cyprus) and such a tradename registration afford the owner of the respective trademark (whether physical or legal person) the right and the ability to carry on its business activity using the said tradename. It is important to note that national tradenames may only be comprised of words (ie word marks) and are not considered as entities having separate legal personality. Last but not least, it is essential to note that the registration of a national tradename does not afford any intellectual property protection over the said tradename.
On the other side, a trademark may comprises, among others, of words, figures, shapes, positions, patterns, colours, sounds, motion, multimedia, holograms or combination of such elements, while, depending on the geographical extent of the protection to be afforded and the particular needs of the owner thereof, a trademark may be registered at a national level (eg in the Republic of Cyprus), at a community (EU) level or at an international level.
A national trademark is only protected at a national level (ie only within the Republic of Cyprus) while not maintained and protected internationally; thus, a Cyprus trademark will only give its owner national protection. In the course and for the purposes of the registration of a national trademark, and in any event before applying for the registration thereof in Cyprus, searches must be contacted in order to find out the eligibility of the trademark to be registered and, in particular, whether (i) the trademark is capable of registration and (ii) there is a similar or identical trademark, already registered. In terms of the procedure for the registration of a national trademark, following completion of the search for its eligibility for registration, an application is submitted to the DRCIP to this end. Upon examination of the application, which may take approximately a couple of months, the DRCIP shall proceed with the publication of the notice for the registration of the trademark in the Official Gazette of the Republic of Cyprus. The Registrar (heading the DRCIP) will not grant its permission for the registration of the trademark, unless a period of three (3) months from the publication date has been lapsed. In the absence of any objections against the registration of the trademark, the Registrar registers the trademark and issues the respective certificate. The registration of the trademark remains valid for a period of ten (10) years from the date of registration and must be renewed (at a cost) at its expiration.
Where broader protection (within European Union is required), a trademark may be registered at a community level. More specifically, a community trademark offers its owner enhanced protection since a community trademark is well protected in all countries of the European Union on the basis of a single registration with the competent authority. At first stage, before proceeding with the submission of an application for the registration of a community trademark, searches must be contacted in order to find out whether (i) the trademark is capable of registration and (ii) there is a similar or identical trademark, already registered. Then, an application for the registration of a community trademark is filed. Upon examination of the aforesaid application and provided that no errors or defaults will be detected, the desired tradename will be published in the Community Trademarks Bulletin (translated in all the official languages of the European Union) giving everyone the right to object to the application. The period granted for oppositions is three (3) months from the publication date. In the absence of any objections against the registration of the trademark, the approval for the registration of the community trademark is granted. Kindly note that the registration of the trademark is valid for a period of ten (10) years from the date of its registration whereas once it is registered, the trademark is established as a trading name and protection is given for non-EU jurisdictions as well, provided that the trademark will be a well-known and recognized mark (subject to the laws and regulations of such other non-EU jurisdictions). In this respect, it is worth noting that even if the registration of a community trademark is approved, if the trademark is not used within the European Union within five (5) years from its registration, its cancellation may be requested. In addition, it should be noted that such a trademark will also be vulnerable to attack in the event that the trademark is not used for all the goods and/or services, as the case may be, which have been specifically declared on the application form.
Moreover, where enhanced protection is sought outside the European Union, a trademark may be registered at an international level, in which case, protection is granted in the countries where the trademark is specifically registered. In this respect, it is worth noting that there two options in securing the registration of an international trademark. The first one is, after the conduct of all appropriate searches for verifying that (i) the trademark is capable of registration and (ii) there is a similar or identical trademark, already registered, to file an application directly to the competent international organization. The second option is to follow the procedure for the registration of a national trademark and then, upon registration of the trademark at a national level, proceed through the DRCIP with the filing of an application for the registration of the same trademark with each of the third countries where protection is needed (district registration in each country). In any event, the terms and the duration of validity of the protection to be afforded over the trademark depend on the laws and regulations applicable in each third country where the trademark is to be registered.
In light of the above, when someone is considering on whether to proceed with the registration of a tradename or a trademark, the first point to decide on is the nature of the mark and whether intellectual property protection is also sought. In the event that the said test results in the registration of a tradename, then the situation is relatively simple. If, however, it turns that the registration of a trademark would better suit the needs, then the scope and geographical extent of protection for such a trademark must be analysed.
First and foremost, it should be stressed that in order for a third country national to be employed in the Republic of Cyprus (areas controlled by the government of the Republic of Cyprus), it is a prerequisite to obtain a Temporary Residence and Work Permit or equivalent approval following filing of an application to this end to the Civil Registry and Migration Department (Migration Section) of the Ministry of Interior (the “Civil Registry and Migration Department (Migration Section)”). In this regards, it is of particular importance to stress that by securing a temporary or even permanent residence permit, a third country national is not entitled to be employed in the Republic of Cyprus unless so is expressly provided in the terms of the specific permit and/or of the scheme under which the permit is obtained. The procedure to be followed, the supporting information / documentation required and the timeframe for the completion of the process vary in accordance to the specific type of permit.
Generally speaking, Cyprus legislation makes provision for sector-specific categories in which third-country nationals may be temporarily employed for the purpose of performing work, depending on their status in the Republic of Cyprus and/or the type of permit for which they have or are going to apply; such categories include, among others, general employees (admitted in sectors where there is need for support in the absence of local or European personnel), domestic workers, food handlers, athletes, coaches, livestock labourers, agriculture workers, priests, nurses, bartenders, creative artists, performing artists, creative supportive staff and the supporting staff of a performing artist. Of course, there is also the option for an employer to employ high-skilled third country nationals, in which case the procedure is more concise. In any case, the rules, terms, conditions as well as the volume of admission of third-country nationals to any such specific categories are determined by the Council of Ministers considering and/or relying on the proposal of the Minister of Labour.
A crucial criterion for applying for most of the types of work permits available, is for the employer to obtain and/or secure an approval from the Labour Department (Ministry of Labour, Welfare and Social Insurance) (the “Labour Department”), which is the competent authority for securing that there are no Cypriots or citizens of Member States of the European Union, available or adequately qualified for the specific job or post prior to recommending the employment of third country nationals. To be more precise, the employer who is interested in employing third country national(s) must, upon receipt of the approval from the Labour Department, submit an application accompanied by -among others- the contract of employment and the remaining documents certified by the Labour Department, for the purpose of acquiring an entry visa that will enable the third country national to enter the Republic of Cyprus (in case he/she is not already in the Republic of Cyprus) and then, upon the arrival of the third country national in the Republic of Cyprus (if applicable), proceed with the submission of the main application for the registration and acquisition of the respective residence and work permit, depending on the type and nature of employment.
Apart from the above, there is also the option to transfer a third country national from a foreign company to a company situated and operating in the Republic of Cyprus. more specifically, the Civil Registry Law (Cap.105) has been amended for the purpose of accommodating the provisions of Directive 2014/66/EU of the European Parliament and of the Council of 15 May 2014 on the conditions of entry and residence of third-country nationals in the framework of an intra-corporate transfer (the “EU Directive 2014/66/EU”) relating to the intra-corporate transferee permit (ICP) that can be granted in order for third-country nationals employed by an employer entity or undertaking established in a third country to be able to be employed by an employer entity or undertaking of the same group of companies established in the Republic of Cyprus. In this regards, it is important to stress that in order for the involved undertakings to be qualified as part of a group of companies, the said entities or undertakings must be considered as linked in any of the following ways:
(a) one of the undertakings holds, directly or indirectly, the majority of the subscribed capital of the other;
(b) one of the undertakings controls the majority of the votes attached to the issued share capital of the other;
(c) one of the undertakings is entitled to appoint more than half of the members of the administrative, management or supervisory body of the other; and
(d) the undertakings are in fact managed on a unified basis by a common parent undertaking/owner.
In light of the above, it must be underlined that in order for an employer to be eligible to obtain a work permit for an intra-company transferred employee, it is a prerequisite that the said employer forms part of a group of companies within which the transfer shall take place, while such an employer must prove its good standing and clean criminal record, as well as its compliance with all its legal obligations, including the settlement of taxes and the payment of contributions for employees. In the same way, it is extremely important for the involved entities or undertakings, namely the foreign entity and the Cyprus one, to be able to prove the employment existing or future relationship, as the case may be, between each of them and the intra-company transferred employee by providing official documentation to this end, issued by the competent governmental authority or body of the respective jurisdiction.
All in all, there are different procedures on the basis of which a third country national may be employed in the Republic of Cyprus while each type of residence and work permit is subject to a series of benefits, limitations and restrictions. Lastly, we cannot disregards the fact that, apart from the classic / standard procedures for the general employment of third country nationals, the government of the Republic of Cyprus, in order to adapt to the evolved needs of our times, has also developed various schemes, strategies and programs that were in force from time to time while it has recently introduced and does currently apply a Strategy for attracting, among others, businesses of foreign interests for activities or/and expansion of their activities in the Republic of Cyprus, which may also serve the needs for the employment of third country nationals in various key positions provided that the employer and each of the prospective employees satisfy the relevant criteria set forth in the said Strategy.
Introduction
Recently, the Civil Registry Law of 2002 (L.141 (I) 2002) has been amended, to introduce provisions on the electronic identity card (“EID”). More specifically, chapter three of the Civil Registry Law establishes the legal framework governing the EID matters. The new EID was created to help individuals to prove and verify themselves, without visiting the competent authorities and/or departments in person. EID users will therefore gain access to the Government’s online services, by purely using their EID.
An example of the use of the EID in private sector would be that of the banking services, where an interested party will be able to use the EID when applying for a bank loan, without having to visit the commercial establishments of the bank. Although this constitutes a common practice abroad, Cyprus authorities have not yet adopted the use of the EID in online services sector. Hence, the Government has initiated the proceedings for establishing the EID regime in Cyprus.
What is an EID?
An EID is a digital ID that can be used in the place of an ID card and can be stored digitally. EID is particularly useful for individuals who wish to prove and verify their identity electronically and gain access to various online services, offered both in public and private sector, in Cyprus and across the European Union (“EU”).
The purpose of the EID
The purpose of the EID is to provide a safe and convenient way to individuals to prove and verify their identity online, every time they access a public or a private service. Therefore, individuals will be able to arrange any outstanding obligations they might have electronically anywhere in the world, at any given time, without having to visit in person the competent department/authority. EID is therefore equivalent to an identity card and is considered as a valid, safe, and reliable method to access online services.
It is worth noting that the electronic identity card is recognized in all Member States, so EU citizens can use the EID for identification purposes anywhere in the territory of the EU. One of the reasons that EU decided to adopt the concept of an EID is to eliminate the leak of personal data, especially during the sign up procedure on social networks and websites. In a few years’ time, EID will be used in such a way that users will no longer need to provide their personal details and data to every website that they are signing up and creating an account.
Who is eligible for electronic identity?
According to article 65A of the Civil Registry Law, a person who satisfies the following criteria has the right to apply for an EID in the Republic of Cyprus:
- Has a Cypriot citizenship
- Is over 18 (eighteen) years old
- Holds a valid biometric ID card issued by the Republic of Cyprus
- Does not hold any other valid EID
How can I apply for Electronic Identity?
According to the decree issued by the Ministry of Interior on the basis of article 65G of the Civil Registry Law, the application for the issuance of an EID can be submitted either electronically or in person, by visiting the premises of the EID provider. It must be noted that the EID provider will be a private company, which would be in charge for the operation of the authentication and verification procedure of the EID applicants. The name of the EID provider is yet to be announced.
The EID provider will double check the applicants’ details and if they are valid and verified, it will then communicate with the officer in charge from the Civil Registry Department. The latter will approve or reject the application and he/she shall inform the EID provider accordingly. It should be noted that the whole procedure for the issuance and renewal of an EID will take up to five (5) working days from the date of the submission of the relevant application. According to article 65A (7) of the Civil Registry Law, EID will be valid for three (3) years. The holder of an EID also has the right to renew his/her EID before its expiration date. The EID can be suspended or revoked, where deemed necessary.
The provision of security services constitutes a regulated activity that can only be carried on by persons licensed to this end by the Cyprus Police, which is the supervisory authority. That said, in order for a license to be issued, the interested person must submit an application to this end the competent department of the Cyprus Police, which (application) must be accompanied by all material information and documentation.
In the course and for the purpose of the application for the issue of a license, the applicant must specifically indicate the security services that he is interested in providing. In this respect, it is worth-noting that a security services provider may offer all (private agency providing general security services) or some (private agency providing special security services) of the following services:
(a) Surveillance, safeguard, custody of movable or immovable property or installations;
(b) Protection of natural persons (individuals)
(c) protection for smooth operation of spectacles, exhibitions, conferences, competitions or sport or other events;
(d) safe transport and custody of money, securities and precious items;
(e) instalment, maintenance and monitoring of the operation of alarm systems, fire detection systems, fire safety systems, fire fighting systems, closed circuit TV and access control, anti-theft and protection of merchandise systems;
(f) installation and management of centre of receipt, check and transmission of alarm signals;
(g) check of passengers and luggage within airports and ports using special machinery;
(h) preparation of studies and design of electronic and physical security system;
(i) control or regulation of the movement of the public with the use of vehicles or other means within private property or an area the entry to which is restricted to the public in order for such property or area to be protected;
(j) private investigation services;
(k) facilities for the secure storage of movable property;
(l) the provision of armoured vehicles for the transfer of money or other items;
(m) operation and custody of places for the confinement of illegal immigrants or places for the reception of asylum seekers or refugees;
(n) any other services so determined by an order of the Minister of Justice and Public Order.
In addition to the above, it is worth to stress that, pursuant to a recent Order of the Minister of Minister of Justice & Public Order issued on 11/06/2021, the check of passengers, luggage and objects in areas of governmental buildings and buildings of governmental organizations, departments and services, with the use of special machinery, may also be provided by provided by provided security service providers (provided that these are duly licensed).
Of course, an application must be well supported and sufficiently documented while all the criteria, set forth in the Law, must be met. One of the core criteria is the existence and staffing of the provider’s premises / offices. In particular, the provider must have premises / officers which must be adequately staffed; especially in cases where the private agency is interested in providing security services with guards, a head-office must operate 24/7, which must be able to contact and cooperate with the Cyprus Police in case of emergency. In this respect, it is worth to note that the staff to be employed by the provider must be qualified (age and origin criterion, physical and mental fitness, no connection with serious criminal offense or disciplinary offenses involving dishonesty or moral depravity, narcotic drugs or other psychotropic substances, weapons, ammunition or explosives etc.) and trained (attendance of training course organized under the auspices of the Cyprus Police at a college/facility designated by the Police Commissioner) in accordance with the provisions of the Law.
Provided that everything is line and before the approval of the application, the competent authority examines the trademark (logo) to be used for trading purposes as well as the uniform which the provider’s staff (and guards) shall use since these must be approved by the Chief of the Cyprus Police. In this regards, it is recommended for the uniform to consist of trousers (in black, brown, beige or blue), shirt (short sleeve and long sleeve), t-shirt (short sleeve and long sleeve) that may even be a hoodie/ pullover, sweater, jacket and tie. On the front left or right side of the shirt, t-shirt, hoodie/ pullover, sweater, jacket, the words “ΙΔΙΩΤΙΚΕΣ ΥΠΗΡΕΣΙΕΣ ΑΣΦΑΛΕΙΑΣ” and “PRIVATE SECURITY SERVICES” MUST be printed along with the trademark (logo) of the provider.
Moreover, as a general rule, the possession of guns and/or weapons is restricted; however, the proper and licensed possession, use, acquisition or transfer of firearms falling within Category D of Law 113(I)/2004, is exempted from the restriction.
Lastly, it is quite important to note that an entity, which is willing to proceed with the provision of security services, must make sure that the specific purpose is explicitly provided for in its Memorandum of Association; otherwise, a Court Application may have to be submitted in order for the Memorandum of Association to be adjusted accordingly.
On April 24, 2013, the Council of Ministers approved the policy for the issue and renewal of Temporary Residence and Employment Permits for third country nationals employed by International Business Companies / Companies of Foreign Interests operating in the Republic of Cyprus (the “Policy”). The said Policy was introduced as an incentive to attract investors for transferring and/or establishing their businesses in the Republic of Cyprus and, to this end, it afforded -those eligible to take advantage of its provisions- with a series of benefits, including the employment of a relatively large number of high-skilled third-country nationals in particular professions and/or businesses through an expedited admission procedure, which may not require the receipt of any consent(s) and/or approval(s) of any other services and/or authorities.
In view of the demanding framework with regards to investment programs of any kind and in the course of applying stricter criteria for the admission of third country nationals in the Republic of Cyprus on that basis, the Policy has been amended on October 7, 2020 following a proposal to this end submitted to and approved by the Council of Ministers (the “Revised Policy”). Retrieving from the Revised Policy, a Third Country National may apply for a Temporary Residence and Employment Permit in the event that he will be employed by an International Business Company / Company of Foreign Interests having physical presence and operating in the Republic of Cyprus provided that the employer meets certain qualification criteria:-
- The majority (51%)* of the employer – company’s shareholders are foreign shareholders. The following cases are excluded:
– Public companies registered in any recognized stock exchange
– Former offshore companies that were operating in Cyprus by approval of the Cyprus Central Bank, before the change of their offshore status.
– Cypriot shipping companies.
– Cypriot companies of high technology / innovation, that will be certified by the Deputy Ministry of Research, Innovation and Digital Policy based on the applicable framework.
– Cypriot pharmaceutical companies or companies operating in the fields of biogenetics and biotechnology.
– Persons who have acquired Cypriot citizenship by naturalization based on economic criteria, given that they will prove that the conditions under which they were naturalized are still met.
- The percentage of foreign shareholding stake in the employer – company must represent an amount equal to or greater than the amount of the required direct foreign capital investment.
- The direct foreign capital investment must amount to at least €200.000,00 (for the prescribed purposes) and must be legally brought in Cyprus form abroad (through the prescribed means).
- The employer – company should operate from its self-contained offices in Cyprus; to be more precise, the employer – company must have physical presence in Cyprus.
Nonetheless, an approved International Business Company (of foreign interests) has the right to employ a certain number of foreign nationals in official or key positions, such as directors, managers, middle management executives and other key personnel; such employees may be employed in any of the following key-positions:
(a) Directors (Directors or Partners registered in the Registrar of Companies and Official Receiver; General Managers of branches and of mother companies of alien companies; Departmental Managers; Project Managers) with minimum gross monthly salary at €4.000,00 (subject to periodical adjustments depending on fluctuations in the wage index).
(b) Middle management executives and other key personnel (upper / middle management personnel and other administrative, secretarial or technical staff) with minimum gross monthly salary in between €2.000,00 (subject to periodical adjustments depending on fluctuations in the wage index).
(c) Specialists in specific fields (Software and System Engineers, Application and Data Architects, Information and Communication Technology and Enterprise Solution Architects, Technical Assurance Professionals, Telecom and Space Engineers, Data scientists, Machine Learning Engineers, Web Developers and designers, UX User Experience Professionals, Quantitative Analysts, Quality Assurance Analysts, Mobile Application Developers, Augmented Reality/ Virtual Reality Programmers, Digital Marketing Specialists, Video Production Multimedia Specialists for Mobile Apps and Software, Analysts for Mobile Apps and Software, Designers of Prototype for Mobile Devices, DevOps Engineers, Cyber Security Specialists, Artificial Intelligence, Robotics and Big Data Specialists, Pharmaceutical Formulation Technologists, Pharmaceutical Engineer Validation Specialists, Pharmaceutical Patents Specialists, Pharmaceutical Regulatory and Quality Assurance Professionals, Marine Engineers, Naval Architects) with minimum gross monthly salary in between €2.000,00 (subject to periodical adjustments depending on fluctuations in the wage index).
(d) Support staff; if it is proved that there are no qualified Cypriots or European citizens available, the employer – company may employ, through the standard procedure established for General Employment, third country nationals in posts in this category.
Overall, the Revised Policy introduced some ‘minor’ amendments for enhancing its application by persisting and emphasising on the employers’ business and physical presence. The amendment of the previous Policy was imperative in view of the need to ensure its proper implementation by filling in any gaps that could operate in a way that would facilitate the misuse of the procedure.
We are glad to announce that A. KARITZIS & ASSOCIATES LLC contributes to the 5th edition of the exclusive Cyprus Chapter to The Gambling Law Review, published in the United Kingdom by Law Business Research Ltd.
The Gambling Law Review covers the main perspectives of gambling in various jurisdictions; in particular, the Cyprus Chapter seeks to address the main areas underpinning the legislative framework governing gambling activities (betting, gaming and lotteries) in the Republic of Cyprus and offer readers insight, information and guidance in relation to a rapidly evolving and growing industry.
The information provided in this publication is general and may not apply in a specific situation, nor does it necessarily represent the views of authors’ firms or their clients. Thus, such information should not be used as a substitute for professional consultation; legal advice should always be sought before taking any legal action based on the information provided. The publishers accept no responsibility for any acts or omissions contained herein. Although the information provided is accurate as at May 2019, be advised that this is a developing area.
For further details or clarifications of the subject guide or/and any assistance, you may require please do not hesitate to contact our Corporate/Commercial Department at: mail@karitzis.com.
