The Council of Ministers adopted the "Strategy for Attracting Businesses for Activities or/and Expansion of Their Activities in Cyprus" on October 15, 2021.
The Strategy is a vital project for drawing in talent and investment from around the globe. The objective of the revamped, expanded, and streamlined investment plan is to enhance Cyprus' standing as a global hub for high-growth company by implementing a range of activities and modifications in several areas of intervention.
The careful planning guarantees that the advantages resulting from the Strategy's efficient implementation will play a significant role in redefining Cyprus's growth model.
It is important to note that, for a period of five years, all companies registered as international business companies are required to hire thirty percent of their workforce, or, at the very least, be citizens of the EU or Cyprus. After 2.1.2027, or five years from now, the ratio for new hires will be examined. A company's case will be assessed according to its own standards and presented to management if it does not adhere to the 70:30 ratio.
A range of services are offered by the Business Facilitation Unit (BFU) to assist businesses in establishing themselves in Cyprus. Among the services include completing all registrations at the One-Stop Shop Section, approving the company name and registration, registering the business in the Employers' Register and Tax Register, and helping with necessary licences and permissions.
1. The majority of the company’s shares are owned by third-country nationals.
2. If the majority of the company’s shares are not owned by third-country nationals (i.e. equal to or less than 50%) then the company is eligible if the foreign participation represents an amount 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 with international activities (formerly offshore companies), which operated before the change of regime, the data of which are held by the Central Bank.
5. Cyprus shipping companies.
6. Cyprus high-tech/innovation companies
7. Cyprus pharmaceutical companies or Cypriot companies active in the fields of biogenetics and biotechnology.
8. Companies, the majority of the overall share capital of which is owned by persons who have acquired Cypriot citizenship by naturalisation based on economic criteria, provided that they prove that the conditions under which they were naturalised continue to be met.