Relocate your business to Cyprus via the Business Facilitation Unit.

Relocate your business to Cyprus via the Business Facilitation Unit.

Headquartering to Cyprus made easy.

A company owned by Non EU nationals can relocate to Cyprus with a minimum investment of €200,000 euro.

Cyprus has established a  “Business Facilitation Unit (BFU)”. The Unit will be the single point of contact for foreign companies.

The purpose of the new unit will be the fast and efficient processing of requests received from foreign companies for the establishment of a company in Cyprus or the expansion of activities of existing companies.

The new policy is applicable as from December 2022.

Eligibility Criteria

Eligible businesses must meet the following criteria:

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 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.

A New policy for the Employment of third Country nationals

The Government proposed also a new policy for the Employment of third country nationals who will be employed under the following eligible companies:

• Foreign companies/undertakings operating in the Republic of Cyprus or foreign companies/undertakings intending to operate in the Republic of Cyprus, that operate independent offices in Cyprus, housed in appropriate independent offices, separate from residences or other offices
• Cypriot shipping companies
• Cypriot high-tech/ innovative companies
• Cypriot pharmaceutical companies or companies active in the sectors of biogenetics and biotechnology.

According to this new policy, the employment permit will be issued to third country nationals with minimum gross monthly salary of €2.500, provided that they fulfill that they fulfill certain criteria.

Some of the most important criteria are:

• Having in their Possession a university diploma or title or equivalent qualification or certificates of relevant experience in an employment position lasting at least 2 years.
• Having an employment contract of not less than two years.
• Have a Clean criminal record
• The duration of the Residence and Employment permit has been increased from (2) two years’ maximum to (3) three years.

The issue of such Residence and Employment Permit remains 30 days from the date of submission of the relevant application and documents.

The maximum number of third country nationals that can be allowed to be employed under this new policy is 70% of the total number of employees employed within a period of 5 years, from the date the company joined the Business Facilitation Unit.

Employment of third-country nationals as supporting staff is permitted, provided that it does not exceed 30% of all support staff and provided that the third-country national and the employer have entered into an employment contract duly ratified by the competent authority in accordance with the existing applicable law.

The salary level is determined on the basis of the existing applicable legislation.

3. The Right to family reunification of third-country nationals included in third-country employment policy Ministry of Finance

The new policy allows Immediate and free access to the Labour market for spouses whose financial supporter has obtained a residence and work permit in the Republic, and who receive a minimum gross monthly salary of € 2,500 (excluding supporting staff).

4. A Simplify and speed up process of Granting Category E work permit (Long Term Resident Status)

The new policy provides a more accelerating procedure of granting immigration permit under CATEGORY E – Long-Term Resident Status to persons who have been offered permanent employment by their company in Cyprus.