How to stay compliant

Employer-of-Record (EOR) in Cyprus: Do You Need One?

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How to stay compliant

Employer-of-Record (EOR) in Cyprus: Do You Need One?

So you want to hire someone in Cyprus. Problem is, your company is located somewhere else.  

If you’ve done some research, you’ve probably been told you should be using an Employer-of-Record (EOR). Why? Well, if your company isn’t located in Cyprus, using an EOR can help you bypass the traditional obstacles to hiring full-time employees.  

But there’s a catch: EOR solutions in Cyprus are expensive—usually at least $500 per month per employee—and can take time to set up. And because you’re complying with a different set of labor laws, logistics and benefits can end up costing you lots of time and money. While they will save you time from setting up your own entity, they’re rarely cheap or fast.

The good news? There’s another way to hire remote workers in Cyprus, and it doesn’t involve forking out huge amounts of money for an EOR.  

The solution: Hire your teammates in Cyprus as contractors. If you’re hiring remotely and your teammates have autonomy, there’s a good chance you can make compliant contractor hires. You still have to use locally-compliant contracts, but the process is a lot easier, more affordable, and faster.

We built Thera to help you make contractor hires, in 150+ countries (like Cyprus). So you can hire the people you want on your team, without paying thousands for an EOR. You can get set up in a couple of clicks—and you’ll only pay $49 per contractor per month.  

It’s just as easy as it sounds. No catch. Here’s what Thera looks like vs. an EOR in Cyprus:

Everything you should know about using an EOR in Cyprus

Are you considering expanding your business to Cyprus? If you are, then you might be wondering how to hire employees in this country. One option is to use an Employer of Record (EOR) service. In this post, we'll discuss everything you should know about using an EOR in Cyprus, including any legal or regulatory conditions specific to the country. We'll also explore why hiring an independent contractor might be easier than using an EOR.

What is an EOR?

An EOR is a third-party service provider that acts as the legal employer of your workers. This means that the EOR takes care of all the administrative tasks related to employment, such as payroll, taxes, benefits, and compliance with local regulations. You, as the client, retain the right to manage the day-to-day activities of your employees, including their work assignments, schedules, and performance.

Legal and regulatory conditions in Cyprus

Cyprus has a complex legal and regulatory framework that governs employment relationships. Some of the key requirements that an EOR must comply with in Cyprus include:

- Registering with the Department of Labour

- Obtaining a work permit for non-EU employees

- Complying with minimum wage and working hour regulations

- Providing social security and health insurance coverage

- Maintaining accurate payroll records and submitting taxes on time

Why hiring an independent contractor might be easier

While using an EOR can be a convenient option for companies that want to establish a presence in Cyprus quickly, it's not always the best choice. One alternative is to hire independent contractors instead of employees. Here are some reasons why this might be easier:

- No need to deal with employee-specific laws: Independent contractors are not subject to the same legal and regulatory requirements as employees.  

- More flexibility: Independent contractors are typically hired for specific projects or tasks, which means that you can adjust your workforce according to your needs. You don't have to worry about terminating contracts or paying severance if you no longer need their services.

- Lower costs: Hiring independent contractors can be more cost-effective than using an EOR. You don't have to pay for benefits, social security, or health insurance, which can often be complex in foreign countries.

Hiring contractors? Thera can save you a ton of time

If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.

With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.

Sound interesting? Click here to book a demo and see the platform firsthand

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