Companies of Foreign Interests

The Council of Ministers, approved the New Strategy for attracting companies to operate and/or expand their activities in Cyprus. The new Strategy, which came into force in 2022, abolishes and replaces the previous policy on the employment of personnel from third countries employed by companies of foreign interests.

According to the provisions of the New Strategy:

• The previous maximum quotas for foreign staff are cancelled.

• Companies can freely employ any number of highly paid third-country nationals without going through a labour market check.

• Specialists are not limited to specific professions or skills.

• Companies commit to invest 30% of their total staff in Cypriots/EU citizens over a period of five years. In five years, 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, the case will be evaluated on its own merits and put before the management for an administrative decision.

• The examination time of applications for residence and employment is set at one month.

Registration to the Business Facilitation Unit

Companies that are not already registered at the Register of Foreign Interest Companies of the Civil Registry and Migration Department (“Department”), should first register at the Business Facilitation Unit (“BFU”) operated by the Ministry of Energy, Commerce and Industry. The BFU will check whether companies are eligible and will grant them a written confirmation of their registration at the new Register of Foreign Interest Companies. The registration will be submitted to the Department for the purpose of issuing residence and employment permits.

Companies already registered at the Register of Foreign Interest Companies of the Civil Registry and Migration Department continue to benefit from the new Strategy, without further formalities.

Eligibility criteria

1. The majority of the company's shares (50% plus 1 share) are owned by thirdcountry nationals (Non-EU);

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, 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.

2. Public companies listed on any recognised stock exchange.

3. Companies of international activities (formerly offshore), which operated before the change of the offshore regime (2004), whose data are held by the Central Bank.

4. Cypriot shipping companies.

5. Cypriot high-tech/innovation companies.

6. Cypriot pharmaceutical companies or Cypriot companies active in the fields of biogenetics and biotechnology.

7. 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.

8. Cypriot private institutes of Tertiary (Higher) education licensed by the Ministry of Education, Sport and Youth.

Documents required

1. Certificate of Incorporation;

2. Certificate of Registered Office;

3. Certificate of Directors;

4. Certificate of Shareholders, evidencing that the percentage of foreign participation in the company's share capital is over 50% of the total share capital. If legal entities (e.g. local or foreign companies, trusts) are the shareholders, a shareholders' structure diagram presenting the whole chain of ownership up to the final owners (natural persons who are the UBOs) should be declared and documented;

5. Memorandum and Articles of Association;

6. Director's Affidavit on the company's ownership (from one of the directors if many);

7. Ultimate Beneficial Owners' valid passport(s);

8. Rental agreement document or title deed or a sale document for the offices of the new business (it must be duly stamped if its value equals the annual amount of €5,000 or more);

9. Audited Financial Statements (for companies already operating in Cyprus);

10.Tax Clearance Certificate for the company (for companies already operating in Cyprus);

11. Deposited amount of at least €200.000, supported by a Bank SWIFT or other similar document, which proves a foreign direct investment by the UBO, legally admitted to Cyprus from abroad. The investment must be made by the UBO himself/herself.

Employment criteria for a third-country national

For the employment of a third-country national in a company of foreign interests, the conditions set out in the Legislation for the single permit as well as the requirements of the Strategy must be met. According to the Strategy, employees in companies of foreign interests are divided into the following categories:

I. Highly-skilled employees (directors, key personnel and highly skilled workers)

• Receiving a minimum gross monthly salary of €2.500 (below this limit, employment is considered to be at support level);

• Possession of relevant academic qualifications or at least two years of relevant experience to the position to be filled;

II. Employment at the supportive level - A labour market test and a sealed contract by the Department of Labour are necessary.

In addition to the above, the following are needed for both categories:

• Possession of an employment contract of at least two years' duration. Even if the application is submitted for a one-year permit, the contract must have a duration and corresponding stamp duties for 2 years. The maximum duration of an employment permit is 3 years, irrespective of the number of years of employment referred to in the employment contract.

• Original Certificate of Criminal Record from the country of origin (if the applicant/employee resides in a country other than the country of origin, the certificate should be issued from the country of residence).

• Title deed or Rental Agreement of a house/apartment dully stamped if valued over €5.000.

• Medical checks duly certified by a specialist doctor registered under GESY.

• Personal insurance cover (in & out of hospital – Plan A) or registration with GESY plus private health insurance for inpatient health care and transportation of corpse.

Family members

Dependent family members (spouse, children, parent) can of course exercise their right to family reunification and submit the relevant application to obtain their permits based on the permit of the main applicant/employee of foreign interests. The spouses of the highly paid employees can have direct and free access to the labour market (not applicable for supportive staff).

Relaxation of requirements for highly-skilled employees to obtain the Cyprus Nationality

The Law reduces the minimum years of residency requirement for naturalization in the Republic for highly-skilled foreign nationals working for foreign-interest companies. This is aimed at attracting international talent and promoting innovation.

Specifically, highly-skilled foreign nationals working for foreign-interest companies may apply for naturalization provided that the following requirements are met:

• Legal and continuous residency in the Republic for a period of 1-year prior to the application, with permissible absences not exceeding a total of 90 days within that year.

• During the 10 years immediately preceding the 1-year period referred to above, legally resided in the Republic for a cumulative period of 4 years. The 4 years rule applies to applicants that have a Greek language proficiency equivalent to level A2. The said period can be reduced to 3 years for applicants that have a Greek language proficiency equivalent to level B1. Absence periods not exceeding a total of 90 days annually are not counted as absence.

• Sufficient knowledge of the Republic’s modern political and social landscape.

• Clean criminal record and no pending legal proceedings.

• Suitable accommodation in the Republic.

• Spouses and civil partners of the applicants can apply for naturalization under the same conditions.

• Minor children who reach the age of 18 during the evaluation of their parents’ application, can still apply as minors and obtain the Republic’s citizenship.