Undoubtedly, Cyprus through the years implemented many attractive packages for Companies incorporating or establishing their business activities in its region. On the 01^st day of January 2022, and by following a series of actions, the Government of the Republic of Cyprus implemented a new plan and simplified version of the “Fast Track Business Activation Mechanism”, which aims to attract foreign businesses, international investments and talents whom will expand their activities on the island via the “Strategy for Attracting Businesses for Activities or/and Expansion of their Activities in Cyprus / Business Facilitation Unit” (hereinafter referred to as the “BFU”).

Primary goal of the BFU is to accelerate procedures via a single point of contact.

Eligible Companies falling under the below categories:

1. Foreign Companies already operating or wish to operate in Cyprus – provided that they have / move their physical presence. Important note: the definition of Foreign Companies includes those whose shareholding majority owners are third-country nationals. If the share capital is equal or less than 50%, then the foreign participation should represent an amount equal or greater of €200,000 as nominal capital;
2. Public Companies which are registered in any recognized stock exchange;
3. Former offshore companies that were operating in Cyprus by approval of the Cyprus Central Bank, before the change of their offshore status;
4. Cypriot shipping Companies;
5. Cypriot Companies of high technology / innovation;
6. Cypriot pharmaceutical Companies or Companies operating in the fields of biogenetics and biotechnology;
7. Companies which their shareholding majority belongs to individuals who obtained Cypriot citizenship based on economic criteria and they still met those.

As from the date above stated, the obligation regarding foreign Companies creating a bank account in Cyprus and transferring at least the amount of €200.000 from a foreign account, has been waived.

Through the current provisions of BFU of the Ministry of Energy, Commerce and Industry (hereinafter referred to as the “Ministry” or “Competent Authority”), the Competent Authority will provide the Companies with its approval, if there are certain criteria met regarding the Employer Company and the third country national employees.

Criteria:

1. Minimum gross monthly salary of at least €2,500;
2. University diploma or degree or equivalent qualification or confirmation of relevant experience in a corresponding job, of at least 2 years duration;
3. Employment contract of not less than two years duration;
4. Maximum number of third-country nationals is set at 70% of all employees over a period of 5 years, from the date of joining the Business Facilitation Unit. Re-assessment after 5 years, on a case-by-case basis, if criterion of 30% Cypriot employees is not met.

Once the relevant application is filed, the BFU within one week period will update the Applicant with its response and / or other requested documents via email.

For any further information / clarifications you may need, do not hesitate to contact us at: [email protected]