Government Action Plan

Cyprus has a raft of incentives to attract foreign investment and non-EU businesses to establish or expand their activities on the island.

Cyprus has a robust action plan to attract foreign businesses to establish or expand their activities on the island. Cyprus already provides many competitive advantages, but this set of incentives aims to ramp up the number of companies establishing headquarters on the island. The plan has considered the best practices from other European countries, with emphasis on domains related to technology, shipping, innovation, research and development, pharmaceuticals, biogenetics and biotechnology and tertiary education, without excluding any other companies that choose Cyprus as their place of business. The new strategy which aims to promote foreign investment and stimulate economic activity was implemented in January 2022.

THE BUSINESS SUPPORT CENTER

The Business Support Center (BSC) commenced its operation in May 2025 and is the first point of contact for investors wishing to do business or expand their business activities in Cyprus.

The operation of the BSC was approved by the Council of Ministers in March 2025 and comes to meet an essential need of the business community, enhancing the competitiveness and growth of the economy. It is the continuation of the successful Business Facilitation Unit which, itself, took the reigns from the Fast Track Business Activation Mechanism in 2021.

The BSC, is a partnership of key services, with the aim of providing a more direct, efficient and coordinated service to Cypriot and foreign investors, as the new Centre will operate as a common service provider and will consist of:

the Strategic Development Sector (SDS) of the Department of Town Planning and Housing (DTP&H)
the Business Facilitation Unit (BFU) of the Ministry of Energy, Commerce and Industry
Invest Cyprus
contact points with the departments involved in the licensing sector

Business Support Center Services

Information and Personalised Guidance

Point of contact regarding the establishment and licensing of businesses, tailored to the type and needs of each investment
Guidance and information on required permits as well as the possibility of inclusion in the fast-track licensing mechanism, based on the provisions of the Law on the Facilitation of Strategic Development Projects
Assistance with registration in the Registrar of Companies and Intellectual Property, Employers’ Register of the Social Insurance Services, and Tax Department Registers

Registration in the Register of Companies with Foreign Interests

Processing of electronic applications for registration in the Register of Companies with Foreign Interests
Upon registration, companies are eligible to take advantage of incentives for employing third-country nationals

Single Point for Energy Projects

Provision of information and facilitation of the licensing procedures for projects related to renewable energy sources, energy storage, zero-emission technologies, critical electricity transmission infrastructure, and projects funded by European or state programmes
Information on funding opportunities
Operation of the Digital One-Stop Shop online platform
Information point for Energy Communities

One-Stop Service Center [Point of Single Contact (PSC) Cyprus]

Support and guidance for the establishment and operation of businesses in the services sector
Guidance for the creation of businesses in the services sector
Cross-border provision of services on a temporary basis

Licensing of Strategic Development Projects, in accordance with the provisions of the Law on the Facilitation of Strategic Development Projects (Law No. 84(I)/2023).

RESIDENCE AND EMPLOYMENT PERMITS TO HIGHLY PAID THIRD-COUNTRY NATIONALS AND SUPPORTING STAFF

The government has revised the policy for the employment of highly paid personnel from third countries employed by companies of foreign interests, as well as for those employed by Cypriot companies which give added value to the economy and the local workforce.

Eligible companies:

companies operating in Cyprus and are of foreign interest/shareholding and maintain fully-fledged offices
public companies registered on any recognised stock exchange
Cyprus shipping companies
Cyprus companies involved in innovation and technology
Cyprus pharmaceutical companies or companies that operate in the fields of biogenetics or biotechnology
Cyprus Private Institutions of Tertiary (Higher) Education

Eligible companies can employ highly paid third-country nationals in key positions if the following criteria is met:

a minimum monthly gross salary of €2,500
candidate must hold a university degree or equivalent, or have a minimum 2 years’ relevant experience
minimum two-year contract

All companies under the Strategy commit to invest 30% of their total staff in Cypriots/EU citizens over a period of five years. In five years from the date of the enforcement of the Strategy, that is after 2.1.2027, the ratio for new hires will be checked. If a company does not adhere to the 70:30 ratio, cases will be evaluated on their own merits.

Eligible companies will also be allowed to employ third-country nationals as support staff with a gross monthly salary of less than €2,500. The employment of third-country nationals as support staff is allowed, provided that it does not exceed 30% of the total support staff and provided that the third-country nationals and the employers have entered into an employment contract approved by the relevant authority, the Department of Labour, in accordance with the applicable law. The amount of their salary is to be determined by the current legislation.

Benefits for third country nationals:

work permits will be issued within a one-month period and will be valid for up to three years
a work permit can also be granted to the spouse of the eligible individual that obtains a visa with this scheme, under a family reunification permit.

CASE STUDY: THREE-STEP PROCEDURE TO REGISTER AN ENTITY, ENTER THE FOREIGN INTERESTSCOMPANIES REGISTER AND EMPLOY THIRD-COUNTRY HIGH SKILLED PERSONNEL

Company registration in Cyprus is simple and efficient. This is an example of the required steps for a simple and straightforward set up in Cyprus for a small or medium sized company.

Three Easy Steps:

REGISTRATION OF THE COMPANY
Registration must be done at the Department of Registrar of Companies and Intellectual Property. It is advised to seek professional advice and once your lawyer has filed for registration, it can be expedited and completed in one (1) business day. The administrative cost is €465, lawyer’s or administrative service provider’s fees not included. Breakdown of registration fees, typical example for a Private Limited Liability Company: €165 registration fee + €100 accelerated procedure + €200 company’s full set of certificates by accelerated procedure.
SUBMIT AN E-APPLICATION
An online application form must be submitted supported by a ‘Letter of Intent’ and other relevant documents required to register the company as a Company with Foreign Interests. This takes no more than ten (10) business days.
VISIT THE MIGRATION DEPARTMENT FOR OBTAINING PERMITS FOR THE EMPLOYEES
Finally, you must prepare the documentation and go through the application procedure to register the company’s employees with the Migration Department (MD). For registration of the first employees of new companies registered as Companies with Foreign Interests by the Business Facilitation Unit, service at the MD will be on a first come, first served basis, without an appointment. For the rest of the applications, predetermined fixed weekly appointments for specific providers have been set, based on volume and frequency of applications submitted. In such appointments, it is expected that approximately 3-5 applications may be submitted. Smaller offices and individuals will be served daily on a first come-, first served basis, without an appointment. In such cases, it is expected that no more than 3 applications are submitted. Applicable fees per case can be found on the website of the MD and do not exceed €150 per employee, lawyer’s or administrative service provider’s fees not included. The residence permit of the employee for temporary residence and employment takes approximately 40 days to be issued, in the case of a positive review.

FAMILY REUNIFICATION RIGHTS

Family reunification rights are granted to third-country nationals employed by this revised policy. Direct and free access to paid employment (excluding self employment) is granted to spouses of the third-country nationals who have obtained a residence and employment permit in Cyprus, through this revised policy and who receive a minimum gross monthly salary of €2,500. This right does not extend to supporting staff who receive a monthly salary of less than €2,500.

DIGITAL NOMAD VISA

Significantly, the new Action Plan provides for the introduction and the issuing of Digital Nomad Visas with a maximum initial limit of 500 beneficiaries.

Who is eligible:

Third-country nationals who are either self-employed or employees who work remotely using information and communication technologies to communicate with their clients or employers who must be outside Cyprus.

What rights do you get:

right to stay in the country for up to one year, with the right to renew their visas for another two years
can be accompanied by family members, to whom a residence permit is granted upon request, which will expire at the same time as that of the main applicant
during their stay in Cyprus, the spouse or partner and the minor members of the main applicant’s family are not allowed to engage in any kind of economic activity in the country

What are the conditions:

must show evidence of sufficient resources at a fixed income level of a minimum €3,500/month to cover living expenses during their stay without burdening the national welfare system (the amount is increased by 20% in case they have a spouse/partner and another 15% per child)
must have a clean criminal record and healthcare insurance coverage
the aforementioned prerequisites are indicative and additional requirements are applicable

In the event that the holders of Digital Nomad Visas reside in the Republic for one or more periods that cumulatively exceed 183 days, within the same tax year, they are considered tax residents of Cyprus provided that they are not tax residents in any other state.

TAX INCENTIVES

The incentives also include the introduction of new tax benefits and tax breaks.

Broadening tax incentives:

a 50% tax exemption to be granted to new and existing employees relocating/relocated to Cyprus with employment remuneration of €55,000 and above (with the requirement that they were not Cyprus residents during the previous 10 years)
beneficiaries of this tax benefit should be entitled to this benefit for a period of 17 years from the year of employment

Tax exemption extension for investments in innovative companies:

extension of the 50% tax exemption for equity investment in certified innovative companies to corporate investors

Increased (compared to the real) tax deduction for research and development expenditure:

granting an increased discount on research and development expenditure (e.g., by 20%). Eligible research and development expenses will be deducted from taxable income at 120% of actual expenses

NATURALISATION

As of 19 December 2023, the Civil Registry (Amendment) Law of 2023 has come into force, according to the provisions of which adult individuals intending to apply for Cypriot citizenship by naturalisation must cumulatively meet a set of qualifications. For comprehensive information please view the Application for Obtaining Cypriot Citizenship by Naturalisation.

November 2025