Cyprus has announced significant improvements to its start-up visa program, making it easier for international entrepreneurs to establish and grow their businesses on the Mediterranean island. The revised scheme offers enhanced benefits and more flexible conditions for third-country nationals seeking to launch innovative ventures.
Under the new framework, successful applicants will receive a three-year residence permit, extended from the previous two-year duration. The permit can now be renewed for additional two-year periods, offering greater stability for entrepreneurs.
The government has also reduced the required equity stake for foreign founders from 50% to 25%, allowing for more collaborative ventures. Start-up groups can include up to five founders or one founder with additional executive members, with a minimum capital requirement of €20,000, or €10,000 for single or dual founder teams.
In a significant boost for employment flexibility, companies can now hire foreign nationals for up to 50% of their workforce, up from the previous 30% cap. This quota can be exceeded if the start-up invests €150,000 or more in Cyprus.
The scheme introduces new evaluation metrics for established start-ups, particularly those achieving annual sales of €1,000,000 or dedicating at least 10% of operating expenses to research and development within the past three years.
For visa renewals, companies must demonstrate either 15% revenue growth or investments of €150,000 during their operation in Cyprus. Additionally, they need to create three new local jobs or participate in innovation support programs.
Cyprus continues to offer attractive tax incentives, including a 12.5% corporate tax rate and various exemptions for qualifying intellectual property. The country’s extensive network of double tax treaties, covering approximately 70 nations, provides significant advantages for international business operations.
The revised program aims to strengthen Cyprus’s position as a competitive start-up destination, offering entrepreneurs a cost-effective environment with strong business support infrastructure and access to European markets.
