Investment Immigration

Having the intention and the ultimate goal of attracting international investment and talent in Cyprus, the Council of Ministers approved the “Strategy for Attracting Businesses for Activities or/and Expansion of their Activities in Cyprus”, on the 15th of October 2021. As part of this program, the Business Facilitation Unit (BFU) came into force on the 1st of January 2022. In essence, this unit is a reviewed and simplified version of the Fast Track Business Activation Mechanism. The main aim of the BFU is to provide a faster and more effective process of applying for foreign interest company establishment in Cyprus or the development of existing companies.

SERVICES PROVIDED BY THE BFU

1. The unit is the single point of contact and gives the ability to new entities to complete all registrations for their establishment. Prior to the BFU application for registration, the below actions are required:
   • Approval of company name and registration (in collaboration with the Department of
   • Registrar of Companies and Intellectual Property)
     Registration in the Employers’ Register (Social Insurance Services)
   • Entry in the Tax Register for Indirect Taxation (VAT) and Direct Taxation (Tax Department)
2. Part of the services included in the BFU is also the provision of guidance regarding the necessary licensing or permits for the activation and establishment of any type of businesses in the Republic. The unit will also provide instructions such as the development of a business plan, the registration of the trademark of the business, and many other related issues.

3. Furthermore, the unit provides support regarding the review and application for new or existing foreign interest companies wishing to employ third country nationals. Submissions and issuance of residence and employment permits will take place at a new separate area of the Civil Registry and Migration Department (CRMD), aiming at the establishment of a faster and direct procedure. Once the company is registered with the BFU, a written confirmation will be given. Using the written confirmation, companies can contact the CRMD for the residence and employment of their third-country personnel.

ELIGIBLE COMPANIES

Eligible businesses must meet one of the following criteria:

1. The majority of the company’s shares are owned by third-country nationals.
2. In case that, the percentage, of the company’s shares, owned by a third-country national is equal or less than 50%, the company is eligible if that foreign participation has a value of at least €200.000.In both cases above (1&2), the ultimate beneficial owner (UBO) must deposit an amount of €200,000 in an account held by the company in a credit institution licensed by the Central Bank (payment institutions are not included). Alternatively, the company can submit evidence of an investment amounting to €200,000, for the purposes of operating its business in Cyprus (e.g. office purchase, office equipment purchase, etc.).If more UBOs exist, then this amount can be deposited or invested by a single UBO or collectively.
3. Public companies registered on any recognised stock exchange.
4. Companies of international activities (formerly off-shore), which operated before the change of regime, whose data are held by the Central Bank.
5. Cypriot shipping companies.
6. Cypriot high-tech/innovation companies*
7. Cypriot pharmaceutical companies or Cypriot companies active in the fields of biogenetics and biotechnology.
8. Companies of whom the majority of the total share capital is owned by persons who have acquired Cypriot citizenship by naturalization based on economic criteria, provided that they prove that the conditions under which they were naturalized continue to be met.

For cases 3-8, the investment criterion is also applicable and the company’s initial investment in the Republic of at least €200,000, must be proven by presenting the appropriate certificates (e.g. bank statement at the time of deposit of the amount or proof of investment (purchase of office space and/or office equipment)).

* An enterprise qualifies as ‘High Technology Company’ if:
(a) it is already established and has a presence in the market, and
(b) it has a high level or experimental R&D intensity, and
(c) it developed product/s that fall into one of the following categories: products related to aviation and space industry, computers, information and telecommunication technology (ICT), pharmaceuticals, biomedical, research and development equipment, electrical machinery, chemicals, non-electrical machinery.

WORK PERMITS FOR THIRD-COUNTRY NATIONALS

The new program also introduced new criteria regarding the employees of foreign interest companies. As of January 2022, there will be no categorization of the personnel of the company. Employees of foreign interest companies are now titled “high skilled employees” and they can apply for residence permit for up to 3 years given that:

• They will be paid a minimum gross monthly salary of at least €2.500
• They hold a university diploma or degree or equivalent qualification or confirmation of relevant experience in a corresponding job of at least 2 years duration
• They have an employment contract of not less than two years duration

During the period of 5 years, from the date of joining the BFU, the maximum number of third country nationals that can be employed in a foreign interest company is set at 70% of all employees. When the said period comes to an end, in cases where it is impractical to employ 30% of EU workers the matter will be examined on a case-by-case basis.

In addition to the above, the current legislation for family reunification is still in force and will apply to any third country national who has obtained a residence permit in accordance with the above criteria. This will provide immediate and free access to the labour market, with remunerated employment for the spouse of a high skilled third country national.