What is an intra-corporate transfer
An intra-corporate transfer is a temporary posting of a third-country national, for the purpose of working or training, for a period of more than 90 days from an undertaking or group of undertakings established in a third country to an entity belonging to that undertaking or to the same group of undertakings established in the EU.
The definitions and conditions of admission are governed by the EU Directive on intra-corporate transfer (Articles 3 and 5 of Directive 2014/66/EU).
Personnel that can be transferred
The personnel who may be transferred to the EU under intra-corporate transfer under the legislation are:
- Employees who hold managerial positions and lead the management of the enterprise.It includes the management of the enterprise or branch, supervision and control of the work of other employees, etc (Managers).
- Employeeswithin the group of undertakings who possess specialised knowledge essential to the undertaking’s fields of activity, techniques or management (Specialists).
- Paid personswith a university degree who are transferred to an enterprise in order to be trained in techniques or methods (Trainee employees).
It is important to note that prior to being transferred from a company branch located outside of the EU to a branch in the Republic of Cyprus transferees must have been employed by the company for a specific time period. For managerial positions 12 months, specialists 12 months and trainees 6 months.
Duration of Intra-corporate transfer in the EU
The period of validity of the intra-corporate transfer permit is of at least one year or the duration of the transfer (whichever is shorter) and may be extended to a maximum of 3 years for managers and specialists, and 1 year for trainee employees.
Mobility
Upon the fulfilment of certain conditions, holders of an ICT permit can from one Member State, to work in other Member States if the entity where they will work belongs to the same group of companies. If the duration of the mobility is shorter than 90 days during a 180-day period, employees are subject to short-term mobility rules. Long-term mobility occurs when the mobility period exceeds 90 days.
In short-term mobility, the transferee may reside and work in Cyprus by the intra-corporate transferee permit issued by the first Member State, given that the legislative requirements are met. During the short-term mobility, the transferee may work in any company in Cyprus belonging to the same group as the company in the third country. The fact that no additional permit is issued by Cyprus does not imply that the transferee may enter and work in Cyprus at any time. The company of the first Member State must notify in writing the Civil Registry and Migration Department for the transferee’s intention to work in a company of the same group, located in Cyprus.
In the case of long-term mobility, the transferee must apply and obtain a long-term mobility permit from Cyprus provided that the legislative requirements are met. The application for a long-term mobility permit can be submitted when the transferee is overseas or while in Cyprus for short-term mobility.
If the application is submitted while the transferee is overseas, the transferee may enter the Republic, without an entry permit or a visa by presenting a valid intra-corporate transferee permit issued by the first Member State. The transferee has the right to commence employment with the same permit until the decision on the long-term mobility is made.
In many circumstances, intra-corporate transfer can be much more cost efficient and effective for companies than hiring a local worker as they can use their current employees experience and avoid training new staff, resulting in significant cost savings. Transferees can also share their knowledge, skills and experience with others which is a powerful strategy for talent retention as it allows the employees to develop and grow within the existing company. Under intra-corporate transfer companies can relocate employees with the proper knowledge and skills to various locations while expanding or establishing new business in other countries.
Y. Vasiliou & Co LLC provides professional support, and can guide you through the entire process, explaining the necessary steps, paperwork and timeline to prepare you for a successful corporate relocation.
(The content of the above information is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.)
