The policy governing the registration of companies of foreign interest has been in force since the relevant Decision came into effect on 12 December 2022.
Procedure for the Registration of Foreign Interest Companies
The Business Facilitation Unit (BFU) is responsible for examining applications and determining whether private companies meet the criteria to be classified as “companies of foreign interest”. Upon confirmation by the BFU, the registration is submitted to the Migration Department for the purposes of issuing the relevant permits and completing the registration of the foreign interest company.
Eligible Companies
Eligible entities include businesses currently operating in the Republic of Cyprus or intending to establish operations in Cyprus. Such companies must maintain independent offices within suitable commercial premises, clearly separated from any private residence or other office.
Companies typically falling within the definition of “companies of foreign interest” include, among others:
Key Eligibility Criteria
To qualify, foreign interest companies must satisfy the following requirements:
Shareholding Structure
The majority of the company’s shares (more than 50%) must be owned by third-country nationals.
Initial Investment Requirement
Where the majority ownership (over 50%) is ultimately held by third-country nationals, the company must make an initial investment in Cyprus of at least €200,000. The funds must be transferred legally from abroad by the beneficial owner.
A bank SWIFT confirmation must be submitted to the authorities evidencing the deposit of the funds into the company’s Cyprus bank account.
Minimum Salary for Third-Country Nationals
Third-country nationals employed by the company must receive a minimum gross monthly salary of €2,500. Exception: Third-country nationals already holding residence and employment permits at the BCS Key Personnel level with a gross monthly salary of €2,000 or more may continue to renew their permits with the same employer, without salary adjustment, until 31 December 2026.
Local Employment Ratio (70:30 Rule)
Companies must commit to employing at least 30% Cypriot or EU staff within five years. After 2 January 2027, compliance with the 70:30 ratio will be assessed for new hires.
Where a company does not meet the ratio, the case will be evaluated on its individual merits and may be referred for administrative decision.
Criteria for Third-Country Nationals
For the employment of a third-country national in a company of foreign interest, the conditions set out in the legislation governing the Single Permit, as well as the requirements of the applicable Strategy, must be satisfied. Under the Strategy, employees in companies of foreign interest are classified into the following categories:
(a) Highly Paid Employment
Minimum gross monthly salary of €2,500. Third-country nationals who already hold residence and employment permits at the BCS Key Personnel level with a gross monthly salary of €2,000 or more may continue, for the next five years (until 31 December 2026), to renew their residence permit with the same employer without any salary increase.
Possession of relevant academic qualifications or at least two years of experience relevant to the position.
Possession of an employment contract with a minimum duration of two years. Even where the permit application is submitted for one year, the contract must cover two years and bear the corresponding stamp duties.
(b) Employment at the Support Level
A labour market test is required.
Strategic Importance
This Decision constitutes a significant initiative aimed at attracting foreign investment into Cyprus. It forms part of a broader package of reforms designed to enhance Cyprus’s attractiveness as a destination for investment and for the development of high value-added business activities.
Cyprus’s strong economic recovery, favourable business environment, and positive economic outlook continue to position the country as a leading destination for foreign investors.
For tailored guidance or document preparation, reach out to us at info@pirilides.com and we would be happy to help you every step of the way.
