New Startup Visa Rules in Cyprus

Starting January 1, 2025, Cyprus will implement updated regulations for its Startup Visa program, opening new horizons for foreign entrepreneurs and investors. These changes are aimed at attracting talented professionals and supporting innovative companies, thereby fostering job creation and economic growth in the country.

Key Changes in the Startup Visa Program

1. Extended Visa Duration
   One of the most significant changes is the extension of the Startup Visa duration to three years. This gives entrepreneurs more time to develop their projects, adapt to the local market, and strengthen their positions within the business environment of Cyprus. Previously, the visa was valid for only two years, which limited long-term planning opportunities.
2. Reduced Minimum Ownership Requirement
   The new regulations lower the minimum ownership stake from 50% to 25%. This change significantly simplifies conditions for foreign investors, allowing them more flexibility in managing their assets and attracting co-investors. Now even smaller startups can secure funding from various sources without losing control over their businesses.
3. Increased Quota for Foreign Employees
   Companies that obtain a Startup Visa can now hire up to 50% foreign personnel. This enables the formation of more diverse and qualified teams, which is particularly important for startups in high-tech sectors. The ability to attract foreign specialists fosters knowledge exchange and enhances companies’ competitiveness on the international stage.
4. Additional Incentives for Major Investors
   Startups investing over €150,000 in Cyprus will have the opportunity to hire even more foreign employees. This creates further incentives for attracting capital and contributes to job creation within the country. Cyprus aims to become an attractive destination for large international companies and startups by offering favorable business conditions.
5. Criteria for Visa Renewal
   To renew their Startup Visa, companies must create at least three new jobs in Cyprus and launch at least one product or service. These requirements are designed to stimulate business growth and establish a sustainable economic model.
6. Support for Families
   An important aspect of the new regulations is the provision of visas for spouses of startup founders. This allows families to stay together and grants spouses the right to work in Cyprus, making the country more appealing to foreign entrepreneurs.

Impact on the Cypriot Economy

The updated Startup Visa program has the potential to significantly alter the economic landscape of Cyprus. Deputy Minister of Research, Innovation, and Digital Policy Nikodimos Damianou noted that these reforms will strengthen the innovation ecosystem and diversify the country’s economic model.Cyprus is striving to become an international hub for startups and technology companies by offering robust incentives for attracting quality investments. Simplifying visa acquisition processes and expanding opportunities for foreign workers create a favorable environment for business development.

The revised Startup Visa program presents unique opportunities for entrepreneurs worldwide. If you are considering starting a business in Cyprus or want to learn more about the Startup Visa application process, our team at Hadjivangeli & Partners LLC is ready to assist you with consultations and support every step of the way.Don’t miss out on the chance to take advantage of this new program and grow your business in one of Europe’s most attractive jurisdictions! Each year, Cyprus becomes increasingly appealing to entrepreneurs eager to realize their ideas and build successful companies under the Mediterranean sun.