Cyprus as an opportunity for Medical Cannabis Business
Cyprus is in the process of initially issuing 3 (three) licenses, via its Ministry of Health, to successful applicants under a framework legalizing and regulating medical cannabis imports, exports, cultivation, production, sale, supply, possession and use (strictly for medical and medicinal purposes), as well as relevant research and development activities. It is believed that this is a starting point for potentially more licenses to follow these initial ones.
Internationally experienced and financially sound medical cannabis businesses have the opportunity to benefit from establishing business and installation in Cyprus, as part of their group, or otherwise, for reasons that include, but are not limited to, the following:
- Expand and diversify one’s Medical Cannabis Business portfolio with addition of a Cyprus Medical Cannabis license and installation;
- Full EU membership and direct access to the EU Single Market;
- Favourable tax regime, wide network of double tax treaties;
- The geographically central position linking continents and accessing surrounding markets;
- Superb weather conditions of a warm and humid climate and long periods of sunshine;
- Opportunities in relation to agricultural land;
- Wealth of engineering and business services availability;
- Highly educated workforce;
- Where applicable, to add a Cyprus Medical Cannabis license to your existing licenses provides key regulatory safeguard to your international medical cannabis business.
Relevant Legal Framework
On 6th March 2019, the Drugs and Psychotropic Substances (Medical Cannabis) Regulations of 2019 were published in the Official Journal of the Republic of Cyprus (Regulatory Administrative Act 73/2019). These Regulations regulate the cultivation, production, import and export of medical cannabis, as well as its use for carrying out scientific research for medical purposes, for the preparation of galenic products from pharmacies or for the production of medical products, and the process of providing medical cannabis to patients. The legal framework also provides for administrative penalties for offenders.
It also concerns an amendment to the Drugs and Psychotropic Substances Law of 1977 (Law 29/1977), in order to introduce provisions enabling it to regulate the import into the Republic of cannabis seeds and cannabis plants, as well as the imposition of authorization fees and administrative penalties in the event of a breach of the provisions of the regulations adopted thereunder.
Application for Medical Cannabis License in Cyprus
Both natural and legal persons, can apply for the Medical Cannabis License. In the case of a legal person applicant, such Cyprus company can be part of a broader group of the founding establishment.
Overall, the applicant’s relevant and adequate experience, well-defined business plan and security plan, and sufficient funding strength are some of the key ingredients to seeking the license. An applicant must have been active for at least five years in the field of cultivation and production of medical cannabis on the world market.
The current application requires in summary:
· Disclosure / Due diligence on ownership and on key persons of the proposed local establishment;
· Specific information on:
the proposed establishment/installation
the security measures
the record keeping and other matters of compliance with regulations;
· It is to be noted, that an applicant does not necessarily need to be an owner or tenant of the proposed establishment at the time of application.
Main Authority Fees
The main such current fees are as follows in EUR:
· a) 9.000 for the processing and examination of the application.
· b) 500.000 for the issue of the producer’s license.
· c) 30.000 each year, during the period of validity of this license.
· d) for any modification, completion or extension of the license, a fee of €1,000.
Consult and Apply for Medical Cannabis License in Cyprus with N. Pirilides & Associates LLC
Our dedicated team of lawyers is always on hand to provide specialist support and legal expertise in order to assist any prospective clients.
N. Pirilides & Associates LLC can undertake the preparation and submission of the license application, and the managing of the relevant process to completion. As part of such project and its required setup, we stand ready to assist in all relevant needs of the applicant by leveraging our establishment’s expertise and range of services as well as our network.