The Council of Ministers has approved a revamped “start-up visa” scheme aimed at making Cyprus a more attractive and effective destination for innovative businesses. The changes, announced by Deputy Minister of Research, Innovation, and Digital Policy Nikodemos Damianou, are designed to strengthen the country’s position as a regional innovation hub.
Damianou highlighted that, to date, the scheme has facilitated the establishment of 21 start-ups in Cyprus, underscoring its role in fostering the country’s entrepreneurial environment. “The revised scheme aligns with our strategic goals of enhancing the innovation and entrepreneurship ecosystem in Cyprus,” Damianou stated following the Council of Ministers meeting.
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He noted that the scheme’s updated structure is expected to stimulate the creation of more start-ups, generate employment in advanced sectors, and foster economic growth. “It’s a vital step towards modernising our economic model,” Damianou added.
Key Enhancements Of The Start-up Visa Scheme
The updated scheme allows founders and senior executives of start-ups from non-EU countries to enter, reside, and work in Cyprus, either individually or as part of a team. This opportunity extends to creating new start-ups or transferring existing ones to Cyprus. The most notable changes include:
- Longer Residence Permits: Initial residence permits will now be valid for three years, up from two, with the possibility of a two-year renewal instead of the previous one-year extension.
- Reduced Shareholding Requirement: The required shareholding percentage for applicants has been lowered from 50% to 25%, making it more accessible to a broader range of start-ups.
- Increased Flexibility in Hiring: Start-ups can now hire foreign employees for up to 50% of their workforce, compared to 30% previously. Additionally, start-ups that demonstrate an investment of €150,000 or more in Cyprus can employ additional foreign staff.
These changes provide greater flexibility and allow start-ups at various development stages to benefit from the scheme — from early-stage ventures to more established businesses with revenue or private investment backing.
Objective Evaluation Criteria For Renewals
New criteria have also been introduced for the renewal of the start-up visa after the initial three-year period. To qualify for a renewal, start-ups must demonstrate one or more of the following achievements:
- Revenue Growth or Investment: A 15% increase in revenue or investment of at least €150,000 during their time operating in Cyprus.
- Job Creation: Creation of at least three new jobs in Cyprus.
- Innovation Engagement: Participation in a local innovation support program or the successful launch of at least one product or service in the market.
Additionally, it is required that employees possess basic digital skills, further supporting the government’s push for a technologically advanced workforce.
Effective Date And Broader Impact
The new provisions will come into effect on January 1, 2025. By introducing more accessible conditions, Cyprus aims to become a prime destination for start-ups, boosting the island’s reputation as a regional innovation hub.
Damianou concluded that the revamped scheme provides a structured pathway for start-ups at all stages of growth to establish and expand in Cyprus. The changes are expected to attract a wave of dynamic start-ups, drive job creation, and diversify the country’s economic model.
