Employment Companies

The use of Employment Companies provides an opportunity to use Cyprus as a centre in tax planning for individuals. Expatriates working for foreign companies, performing their duties outside Cyprus, and paid through a Cyprus Employment Company, would benefit from a tax-free status. Due to the existence of double tax treaties, expatriates on short assignments to various countries are treaty-protected if employed through Cyprus - they are entitled to tax exemption in Cyprus. At the same time, because of their short assignment in the other treaty country, they do not become tax resident there either.