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Working in Cyprus: minimum wage, contracts, tax breaks and self-employment

By The Hello Expat editorial team·Updated on 23 October 2026·6 min read

In this article
  1. Do you need a work permit?
  2. What is the minimum wage in Cyprus?
  3. What should your contract say?
  4. How do probation and notice work when working in Cyprus?
  5. What contributions come out of your pay?
  6. Which tax breaks exist for newcomers?
  7. What if you lose your job?
  8. How does self-employment work?
  9. Which mistakes do people make?
  10. What about the north?
  11. What is the quick checklist for working in Cyprus?

A job offer in Limassol or Nicosia gives a gross monthly figure and a number of hours, and on its own that tells you very little. Working in Cyprus is easier for Europeans than for most expats elsewhere: no work permit, a short probation period by law, and a tax system that treats lower incomes kindly. The details, however, are in the notice periods, the social contributions and the exemptions for new arrivals.

Do you need a work permit?

EU, EEA and Swiss citizens do not. They work and set up as self-employed on the same footing as Cypriots, and register their stay if they stay more than three months; see Cyprus residence registration. British citizens need a residence permit that allows work, unless their rights were acquired before 1 January 2021. Read moving to Cyprus from the UK.

EURES is the best tool for finding a job before you leave. Once you live in Cyprus, you can register as a job seeker with the District Labour Office with your passport or ID. Online registration exists but is only validated after an officer calls you on a Cypriot phone number. A non-resident cannot register as unemployed.

What is the minimum wage in Cyprus?

Since 1 January 2026: €979 gross a month for the first six months of continuous service with the same employer, then €1,088 gross for a full-time worker. The mechanism is reviewed every two years. Domestic workers, agricultural and livestock workers and seafarers are excluded; the hotel sector has its own order (no. 55/2025) with minimums by category. An employer cannot pay less than the order, even with your agreement.

What should your contract say?

The employer must give you in writing the workplace, the position, the start date, paid leave, salary and supplements, hours and working days. The usual week is 38 to 40 hours (38 to 42 in shops), with a legal maximum of 48 hours including overtime. Employees get 11 consecutive hours of rest per day and at least 35 consecutive hours per week, a 15-minute break after six hours, and at least 20 working days of paid leave on a five-day week (24 on a six-day week) after a year, plus 14 to 17 public holidays. See daily life in Cyprus.

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How do probation and notice work when working in Cyprus?

  • Probation. For the first 26 weeks the law provides no notice, either way. A longer probation, up to 104 weeks, must be set in writing at hiring. During it the employer need not give notice.
  • Notice from the employer (in writing): 1 week from 26 to 51 weeks of service, 2 weeks from 52 to 103, 4 weeks from 104 to 155, 5 weeks from 156 to 207, 6 weeks from 208 to 259, 7 weeks from 260 to 311, and 8 weeks from 312 weeks (six years). The employer may pay instead of having the notice worked. During notice, by agreement with your employer, you can have up to 8 hours a week (40 in total) to look for work, without loss of pay.
  • Notice if you resign: 1 week from 26 to 51 weeks, 2 weeks from 52 to 259 and 3 weeks from 260. Your contract or a collective agreement may require more.

What contributions come out of your pay?

EURES (2025 figures) gives 8.8% from the employee and 8.8% from the employer for social insurance, plus the employee's GeSY contribution of 2.65%. Your employer registers you with the Social Insurance Services and deducts your income tax. Without registration you have no unemployment or pension rights and no GeSY access, so check it in the first weeks. See healthcare in Cyprus.

Which tax breaks exist for newcomers?

Two exemptions exist for people who start their first job in Cyprus. The first is 20% of the salary exempt, up to €8,550 a year, for seven years, for a first employment starting between 26 July 2022 and 31 December 2027, after three consecutive years working abroad for a non-Cypriot employer. The second is 50% exempt for 17 years if the pay exceeds €55,000 a year, the job started from 1 January 2022, and you were not Cypriot tax resident during the 15 consecutive years before that first employment. The two cannot be combined, and both have strict conditions. The details are in Cyprus non-dom status.

What if you lose your job?

Register at the District Labour Office first, then at the social insurance office; the claim can also be made online with CY Login (information line 1450). The benefit lasts at most 156 days per period of unemployment if contribution conditions are met (among them at least 26 weeks of insurance since you were first insured), and it is paid from the fourth day of unemployment. Self-employed people are not entitled. The amount depends on your insured earnings, so ask the Social Insurance Services for your figure. With a form U2 you can keep your former country's allowance for at least three months (up to six, depending on the country) if you were registered as unemployed at home for at least four weeks, with some exceptions, and register at the labour office in Cyprus within seven days.

How does self-employment work?

You register as self-employed with the Social Insurance Services and the Tax Department. In 2026 you contribute 16.6% on an insurable income set by your occupation (at least €714.60 per quarter), plus 4% for GeSY and 0.5% for the Human Resource Development fund since January 2026. The 2026 quarters run from 5 January to 5 April, 6 April to 5 July, 6 July to 4 October and 5 October 2026 to 3 January 2027. The Cyprus VAT threshold is €15,600 of annual turnover: you do not have to register for VAT until you exceed it, and below it, according to the European Commission, a business under the exemption does not notify VAT activity, file periodic VAT returns, charge VAT or keep VAT books.

For your income tax, the normal bands apply (0% up to €22,000 in 2026). From the 2026 tax year, an individual with turnover up to €120,000 does not need audited or reviewed accounts; between €120,000 and €200,000 a limited review can be enough under conditions, and above that a full audit is required. You still issue invoices and receipts and keep your books for six years. A freelancer working remotely for a foreign client is taxable in Cyprus when tax resident.

A private company (Ltd) is registered with the Registrar of Companies: the lawyer who sets it up signs the HE1 declaration, the articles are signed in Greek, the registration fee is €165, and corporate tax is 15% from 1 January 2026. A Ltd prepares annual accounts under IFRS, filed with the Registrar with its annual return and, depending on the case, the auditors' report.

Which mistakes do people make?

  • Accepting less than the minimum.
  • Resigning during probation with no plan B. The employer can dismiss you without notice, too.
  • Assuming hotel jobs follow the national minimum.
  • Registering for unemployment without a Cypriot phone number.
  • Under-estimating the minimum self-employed contribution. It depends on your occupation, not your actual turnover.

Before you choose a status or sign a contract that relies on a tax exemption, have your situation confirmed by a chartered accountant or a tax adviser in Cyprus, who can also handle VAT and the annual return.

What about the north?

An activity in the part of the island not controlled by the Republic does not fall under these rules, and the Republic's labour inspectors, social insurance and tax services do not operate there.

What is the quick checklist for working in Cyprus?

Check the contract, the probation clause, the social registration and the tax exemption conditions before you sign. Keep your payslips and your social insurance statement: they prove your rights to unemployment benefit and, later, to a pension. Then working in Cyprus turns into the straightforward part of the move.

Frequently asked questions

Do EU citizens need a work permit in Cyprus?+

No. EU, EEA and Swiss citizens can work freely. They register their stay with the Migration Department if they stay more than three months.

What is the minimum wage in Cyprus?+

€979 gross a month during the first six months with an employer, then €1,088 gross, for a full-time job, under the orders in force since 1 January 2026.

How long is the probation period?+

For the first 26 weeks the law requires no notice. A longer probation, up to 104 weeks, is allowed only if fixed in writing at hiring.

How long can I receive unemployment benefit?+

The Cypriot benefit is paid for at most 156 days per period of unemployment, if you meet the contribution conditions. Insurance periods in other EU countries count with form U1. Self-employed people are not covered.

When must a self-employed person register for VAT?+

When annual turnover exceeds €15,600. Below it you may register voluntarily.

Sources consulted

  • Department of Labour, Employment Guide (probation, notice, termination)
  • Department of Labour Relations, FAQ on the minimum wage
  • gov.cy, Unemployment benefit
  • Your Europe, Transferring unemployment benefits (form U2)
  • EURES, Living and working conditions: Cyprus
  • Social Insurance Services, Amount of contribution of self-employed to the Social Insurance Fund 2026 (quarters from 5 January 2026 to 3 January 2027)
  • European Commission, SME VAT rules: Cyprus
  • Department of Registrar of Companies, applying to incorporate a company
  • Income Tax Law 118(I)/2002, consolidated text (CyLaw): article 8(21A) and 8(23A) exemptions
  • Assessment and Collection of Taxes Law 4/1978, consolidated text (CyLaw): article 30, audit thresholds for individuals from the 2026 tax year

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In this article

  1. Do you need a work permit?
  2. What is the minimum wage in Cyprus?
  3. What should your contract say?
  4. How do probation and notice work when working in Cyprus?
  5. What contributions come out of your pay?
  6. Which tax breaks exist for newcomers?
  7. What if you lose your job?
  8. How does self-employment work?
  9. Which mistakes do people make?
  10. What about the north?
  11. What is the quick checklist for working in Cyprus?

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