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1. Programmes and schemes for cross-border mobility

2. Legal framework

Programmes and schemes for cross-border mobility

There are some main top-level programmes/schemes for cross-border mobility in Cyprus.

Your First EURES Job Mobility Scheme

EURES is a cooperation network designed to facilitate the free movement of workers within the EU 27 countries plus Switzerland, Iceland, Liechtenstein, and Norway. The network is composed of the European Coordination Office (ECO), the National Coordination Offices (NCOs), EURES Partners and the Associated EURES Partners.

Partners in the network may include Public Employment Services (PES), Private employment services (PRES), trade unions, employers' organisations and other relevant actors in the labour market. The partners provide information, placement and recruitment services to employers and job-seekers whereas the European and National Coordination Offices oversee the organization of the activities at European and national level respectively. EURES Cyprus is well integrated into the operations of the Public Employment Services (PES) of the Department of Labour. All EURES Services in Cyprus are offered by the PES through a network of seven EURES Advisers in all major cities in Cyprus. All EURES Advisers have received the proper training at EU Level.

In every district and local PES office, EURES services are highly visible. EURES desks, clearly marked with EURES signs, are situated next to other PES services while job-seekers can access the EURES Job Portal from the self-service area available in all offices.

Your first EURES Job is a ‘targeted mobility scheme’ for young people, financing mobility in Europe. Candidates must be nationals and legal residents in any of those countries. The scheme aims to help young people up to 35 years old to find a job, traineeship or apprenticeship in another member state. It also helps employers to find the workforce they need for their hard-to-fill vacancies.

The public funding available at top level to support the above-mentioned opportunity is not available.

The EURODYSSEE Programme

Eurodyssée is a programme for young people aged between 18 and 30 years old, who are resident in one of the programme’s member regions. Under this programme, trainees are entitled to traineeships from three to seven months, language courses, accommodation, monthly allowance or salary, insurance cover, and certificates.

In Cyprus, Eurodyssee is jointly managed by the Department of Labour (EURES Network) of the Ministry of Labour and Social Insurance and the Union of Cyprus Municipalities (UMC). For support and guidance, youth who are interested must contact the Department of Labour.

According to the Eurodyssee news, the Eurodyssee programme in Cyprus is co-funded by the Republic of Cyprus and the European Social Fund. 

Erasmus for Young Entrepreneurs - Cyprus

Erasmus for Young Entrepreneurs is a cross-border exchange programme that gives new or aspiring entrepreneurs the chance to learn from experienced entrepreneurs running small businesses in other Participating Countries. New entrepreneurs gather and exchange knowledge and business ideas with an experienced entrepreneur, with whom they stay and collaborate for a period of one to six months.

There are three areas selected by the European Commission to guide youth throughout their exchange: help with the application, help to establish a successful relationship with a suitable entrepreneur, as well as providing answers to questions. Youth should choose a local contact point, which is active in their region. Youth may also be offered the opportunity to participate in an induction course to prepare them for the exchange. There is no information about the public funding for the above-mentioned opportunity.

Cyprus Start-up Visa for Foreign Nationals of Non-EU Countries

The Cyprus Startup Visa  scheme allowed talented entrepreneurs from third countries (outside the European Union (EU) and outside the European Economic Area (EEA)), individuals or a team, to enter, reside and work in Cyprus in order to establish / operate / develop a Startup with a high growth potential. The scheme’s goal is the creation of new jobs, the promotion of innovation and research, the development of the business ecosystem and consequently the economic development of the country. The scheme supported the establishment of new innovative Startup or the move of established innovative Startups to Cyprus. The scheme is valid until December 2026 and up to 150 can be issued.

There is no information about the support and guidance to young people engaging in this cross-border mobility. The public funding made available at top level to support above-mentioned opportunity is not available.

Legal framework

There are no top-level policy measures setting a clear legal framework applying to incoming and outgoing young workers, trainees/apprentices and young professionals/entrepreneurs. However, information about each country’s regulations, such as social security issues, can be found on the website of the EURES Network under the section Living and Working. The page on living and working conditions in Cyprus highlights several key aspects such as the work environment, the employment rights, the cost of living, the healthcare and education services and finally the social security schemes.

Especially for incoming young people who would like to work in Cyprus, information can be found on the website of the EURES Cyprus.

Social security system

Cyprus maintains a comprehensive social insurance system aimed at providing financial support to individuals during periods of sickness, unemployment, retirement, and other life events. This system is funded through contributions from employers, employees, self-employed individuals, and the state. The Social Insurance Scheme, governed by the Social Insurance Law, is mandatory for all individuals gainfully employed in Cyprus, whether as employees or self-employed persons. The scheme offers various benefits, including sickness allowance, unemployment allowance, maternity and paternity benefits, pensions, as well as support for widowhood, orphanhood, employment accidents, and occupational diseases.

Rights and Obligations for Entry and Stay of Young Foreigners

• EU Nationals: Citizens of EU member states can enter, reside, and work in Cyprus without needing a visa or work permit. However, they must register with the Civil Registry and Migration Department within four months of arrival by submitting relevant documents such as a valid passport or identity card, confirmation of employment or proof of sufficient financial means, and passport-sized photographs. Upon successful registration, they receive a Registration Certificate confirming their right to reside and work in Cyprus.

• Non-EU Nationals: Non-EU citizens intending to work in Cyprus must obtain a Temporary Residence and Employment Permit. This requires submitting documents such as a valid passport, an employment contract with a Cypriot employer, an entry permit issued by the Civil Registry and Migration Department, medical examinations certifying good health, proof of comprehensive health insurance, and evidence of adequate accommodation in Cyprus. The permit is typically valid for one year and can be renewed annually. Additionally, non-EU nationals must register with local immigration authorities upon arrival.

Specific Taxation Arrangements for Young EU Nationals Working in Cyprus

Cyprus has introduced tax incentives to attract foreign talent, particularly benefiting young professionals from EU countries:

• 20% Tax Exemption: Effective from 26th of July 2022, individuals whose first employment in Cyprus began on or after this date may qualify for a 20% exemption on their remuneration, capped at €8 550 annually (Ministry of Finance, Income Tax Law). This exemption applies to those commencing employment in Cyprus between 2012 and 2025 and is available for five years, starting from the tax year following the year of employment. It can be extended to seven years if the individual was not a resident of Cyprus for at least three consecutive tax years prior to employment and was employed outside Cyprus by a non-resident employer.

• 50% Tax Exemption: For individuals whose first employment in Cyprus started on or after 1st of January 2022, and whose annual remuneration exceeds €55 000, a 50% income tax exemption is available for 17 years (Ministry of Finance, Income Tax Law). To qualify, the individual must not have been a resident of Cyprus for at least 10 consecutive years immediately before starting employment.

These tax exemptions are designed to make Cyprus an appealing destination for skilled professionals, significantly reducing the tax burden for young EU nationals working in the country.