Five reasons to expand your business and hire employees in Cyprus
The world is changing every day! The pace at which the world is changing is so fast that if you can’t change with the tide or position yourself for adaptation, the great fall bemoans your growth. The rapid advancement in digitalization and tech is championing change in every sector and nation. Places that are not positioned for change are left behind in the race while those that have adapted are attracting development. Top nations championing change are not just interested in infrastructural and economic development, they also invest a lot of time and resources in ensuring sustainability and peace.
It is, however, the dream of every business or business personnel that is intentional about their growth to extend their tentacles to these fast-developing nations. Thus, many companies are on a mission to leverage the available opportunities in these foreign markets through global expansion. Although global expansion is important for the growth of businesses, every intending company needs to exercise care and professionalism in executing its plans. Thus, companies must be ready to devote their time and resources to expand their business excellently. They must also be ready to prepare a differential or distinguishing entrance into the new market, to ensure instant impact and growth.
In this article, we will be sharing some of the important information you need to know about international expansion to a fast-growing and safe economy in the middle-east region. We will provide you with the relevant insights and requirements in expanding to and hiring talents from Cyprus.
Working in Cyprus
One of the best but less pronounced places every employer and business must consider for global expansion is Cyprus. The country is one of the nations in the world with good economies, skilled labor, less stringent laws, and easy market entrance. Thus, employers are encouraged to access the large pool of talents in Cyprus for roles in their respective companies. Businesses are also encouraged to expand their product and service offerings to the Mediterranean country.
Cyprus became a member of the European Union in 2004, and ever since then, the country has been one of the most preferred marketing and hiring locations for several international corporations seeking European settlement. Job possibilities have risen in several sectors such as IT and technology, as well as financial services and business services. Companies in these fields have discovered that the island provides an advantageous landscape, facility, and location for their activities. As a consequence, workers of these businesses may live fulfilling work and personal life in Cyprus, which comes with several advantages.
Below are some of the information you need to work in Cyprus:
- About 95% of people in Cyprus speak English at a very high level although the country’s maiden language is Greek. Businesses are often carried out in English as well as in Greek without any communication glitches.
- While English is the primary business language in Cyprus, most employers need talents with some level of proficiency in Greek. Electrical engineering, finance, information technology, etc are common sectors in great demand.
- Cyprus’s working environment is comparable to the working environments in other established European nations, with the added benefit of low personal tax rates.
- The Mediterranean island has one of the lowest income tax rates in Europe, which means that the net wages of workers are frequently greater due to reduced living expenses and tax rates.
- In a corporate setting, a typical workweek is roughly 40 hours between Monday and Friday. The minimum vacation allotment is 21 days, with the possibility of increasing to 25 days later on.
- Workers in Cyprus are opportune to at least 11 hours of uninterrupted rest every 24 hours and 24 hours of uninterrupted rest in a week. Two 24-hour rest periods must be taken every 14 days.
- The vast majority of companies provide the 13th wage to their workers, and it is usually paid around Christmas.
- In Cyprus, the government does not provide a regulated and law-binding minimum wage for its employees. However, the Ministerial Council sets minimum salaries for certain professions.
Expansion checklist in Cyprus
Do you already have expansion plans to Cyprus or has this article inspired you to expand to Cyprus? Either way, the next thing you need to know are the important criteria and requirements you must take into consideration before expanding to Cyprus. This section gives a glimpse of the important questions you must answer, boxes you must tick, and criteria you must meet to establish your readiness to expand. Although there are several items on the checklist, we have categorized the items into 5 categories which include legal obligations, business and market analysis, governmental policies, the company’s capacity, and the influence of the local culture.
- Legal Obligations: Employers need to be aware of all the rules and regulations binding talent hiring, starting a business, and carrying out a business in Cyprus. Employers must know their legal responsibilities to the government, their employees, the citizens, and the country itself. The company must check if they are ready to work with the provided laws and stay compliant with them. Employers should seek the involvement of legal professionals in interpreting and understanding the legal bindings in Cyprus.
- Business and Market Analysis: This is a very important criterion that must be considered by employers before hiring talents to and from Cyprus or expanding their product or service offerings. The company should diligently check if the country can provide them with the needed skills and talents if the talents are innovative or conservative, what is the future of the Cyprus market, if the current and future market trends are favorable for your business, can your business survive, last long, and profit in the market, etc.?
- Governmental Policies: What are the current tax and financial policies in the country? Is the government fair and good enough for its citizens and visiting businesses? Are there favorable immigration, labor, and protection policies for companies working directly or indirectly in Cyprus? Does Cyprus allow survival or a sustainable business model?
- Company’s Capacity: What is the company’s managerial culture? Is the company having the financial capacity to work in Cyprus? What are the current and future overviews of the business financial roadmap? Can you handle the challenges that you might be faced with during and after the expansion? What is your expansion motive?
- Local Culture: are you planning to hire local talents from the region? Is your product or service adding value to Cyprus? Will language be a barrier? Is your business in line with the cultures of the land? And lots more.
The world bank classified the economy of Cyprus as a high-income economy while IMF classified the Mediterranean Island as one of the advanced economies in the world. Euro is the official currency in Cyprus since 2008. The country has a nominal per capita GDP of $30,663, and a nominal GDP estimate of about $27.726 billion as of 2022. The service sector accounts for the highest segment (85.5%) of its economy while the industry and agricultural sector accounts for most of the remaining parts. The unemployment rate as of February 2022 stood at 6.4% while the labor force is about 52% of the country’s total population. According to the last quarter of the 2021 fiscal year, the average gross salary of employees was found to be about 2,062 Euros per month while the annual equivalised average net salary is about 17,582 Euros. The country is ranked as one of the best countries with ease-of-doing-business.
Reason for expansion and hiring in Cyprus
- Increase your revenue potential and profitability or potential growth
Having been described as one of the best and most advanced economies in Europe, Cyprus is just the best place to expand your business. As business owners with a strong eye for growth and profits, it is important to consider Cyprus as one of the next stops for your company. The tax laws and rates in the country are affordable and not so stringent. Furthermore, the fact that Cyprus is a new member of the European Union and a country with sizable companies and industries, the nation will be a good spot to attract customers, dominate the market, franchise your business all over the country, and grow with ease and profits.
- Access Cypriot Pool of Talents
Cyprus is the home to some of the most highly skilled talents around the world. The Cypriot government provides youths especially the unemployed youths with employable skills and job opportunities. The country partner with employers in training youths and providing job opportunities for them after the training. Aside from this, Cyprus is blessed with workers having great knowledge of IT and technology, tourism, agriculture, and the service industry. Cypriot workers will bring excellent work ethics and workplace culture to your organization since they are well acquainted with that style of work from childhood.
- New Customer Base
Having enjoyed the benevolence of the customers in your previous location, especially in the United States, it’s high time you explore the wealth in other nations. By expanding to Cyprus, you get the chance to introduce your product and service to a new set of customers. Introducing your product/service to a new customer is just the icing on the cake there because expansion to the Cyprus market will bring close to happy customers with excellent quality of life and human development traits. Cyprus citizens are known for their amazing loyalty status such that once they become your customers, they also take up the responsibility of promoting and marketing your market offerings. A new customer base further gives you the chance to invest, and develop/modify new market offerings. New customers will also bring growth to your business and revenue.
- Diversity, Innovation, and Creativity
One of the best decisions you can make for your business is expanding to Cyprus. Beyond that, one of the most convincing reasons why you need to expand to Cyprus is the wealth of diversity and innovation in the country. Businesses are mostly conducted in English and Greek, thus making creativity and diversity a must-have in the country. Limiting your business to the walls of your home country will only limit your profit and market strength. With the introduction of your business to the Cypriot market, you have the chance to diversify your market (products and/or services) and then stabilize your revenue. When one segment of your business seems to be declining or the economy of your home country is unstable, what will make you stand out during seasons like this is your diversification to other sectors or locations. In terms of innovation and creativity, Cypriots are said to be good critical thinkers and this is what every company that wants growth must pursue. Innovation is the bedrock of change and the driver for growth. If you keep limiting yourself to the talents in your home country alone, you will struggle with growth.
- Competitive Advantage
As an employer or businessman who seeks local or global market dominance, developing a differential competitive advantage is the best go-to strategy you can implement. You might be a winner or have experienced a certain level of success in your home country, translating the same energy and taking over the global market will you the controller. An expansion to Cyprus will bring to you new customers, wider recognition, talents and financial attraction, etc, all of which will add up to give you great success and then an excellent competitive advantage.
How WeHireGlobally can help
You must have realized that expansion to Cyprus is one of the best things that can happen to your business. However, the cost, stress, requirements, and criteria you must fulfill to make the process a reality might be your limiting factor. However, victory is here! With WeHireGlobally, you can expand safely and seamlessly to the Mediterranean Island of Cyprus. We already have a working base in Cyprus and thus, you don’t need to stress over building or establishing a local subsidiary. Our professionals are well versed with all legal, labor, and tax obligations of employers to employees and employees to employers. We ensure that your company enjoys 100% risk mitigation and total compliance with all regulations. With WeHireGlobally, you can access a large pool of talents from anywhere in the world or hire them to work with you in Cyprus. We make all onboarding and employee management easy for you so that you can focus on your company’s growth and development.