Cyprus has emerged as a prime destination for businesses aiming to broaden their operations within the European Union, leveraging the Intra-Corporate Transfer (ICT) scheme to streamline this process. Introduced to align with the European Union’s Intra-Corporate Transferees Directive, the ICT scheme in Cyprus was fully implemented on February 17, 2017, following the amendment of the Alien and Immigration Law to incorporate the provisions of the EU Directive 2014/66/EU.
The Essence of the ICT Scheme
The ICT scheme facilitates the transfer of non-EU/EEA managers, specialists, or trainees within the same corporate group from a non-EU branch to a branch in Cyprus. This initiative allows these employees to maintain their employment ties with the parent company while working in Cyprus. The ICT permits serve as both work and residence permits, simplifying the process and reducing the bureaucratic hurdles typically associated with such transfers.
Key Benefits and Impact
- Access to European Markets: By facilitating the transfer of key personnel to Cyprus, companies can leverage their strategic presence to access a broader European market.
- Streamlined Processes: The ICT scheme offers a more streamlined, efficient process for relocating employees, which can significantly reduce the administrative burden on companies.
- Family Reunification: The scheme also supports family reunification, allowing employees to bring their families to Cyprus, which enhances their stability and satisfaction.
- Equal Treatment: Employees benefit from equal treatment regarding social security, and access to goods and services, fostering easier integration into Cypriot society.
Eligibility and Application Process
Eligibility for the ICT scheme requires employees to have been with the company for at least twelve months for managers and specialists, and six months for trainees. The application process involves notifying the Civil Registry and Migration Department, submitting necessary documents including proof of employment and the valid employment contract, and, upon approval, receiving an ICT permit valid for up to three years for managers and specialists, and one year for trainees.
Intra-EU Mobility
A significant advantage of the ICT permit is its support for intra-EU mobility. Permit holders can work in another EU member state for up to 90 days within a 180-day period without a separate work permit. For longer stays, a mobile ICT permit from the host country may be required. This flexibility is crucial for multinational companies that require a fluid movement of skilled personnel across the EU.
Business Impact
The implementation of the ICT scheme in Cyprus has profound implications for business operations within multinational corporations. It not only facilitates the transfer of knowledge and skills across EU offices but also enhances corporate agility by allowing quicker reassignment of key personnel to meet business needs across the region.
Conclusion
Cyprus’ ICT scheme represents a strategic initiative to bolster the island’s attractiveness as a hub for international business and innovation. By simplifying the transfer of key employees within multinational companies, Cyprus enhances its competitive edge as a gateway to the European market, fostering economic growth and cultural exchange. This scheme is a testament to Cyprus’ commitment to supporting international businesses with efficient, practical solutions to mobility and immigration challenges.
For more information or to schedule a consultation, please contact our team at Savva & Associates.
Please get in touch with our team at:
| Charles Savva Managing Director BA, MBA, TEP, CA [email protected] +357 22516671 | Mina Pieri Senior Manager FCCA, MBA [email protected] +357 22510207 | Makis Pavlou Account Manager FCCA [email protected] +357 22510257 |
