Cyprus will introduce significant changes to its start-up visa program, aiming to make the scheme more effective and attractive. These amendments, approved by the Council of Ministers in Cyprus, are set to take effect from January 1, 2025. The revised program permits founders and senior executives from non-EU countries to enter, work, and reside in Cyprus to establish new ventures or relocate existing start-ups.
Deputy Minister for Research, Innovation, and Digital Policy, Nicodemos Damianou, stated that the amendments aim to stimulate a wave of dynamic start-ups in Cyprus. One of the key changes to the scheme is extending the residence permit from two to three years, with renewal periods doubled to two years. The required equity stake for applicants will be reduced from 50 percent to 25 percent.
Additionally, the allowance for foreign workers will increase from 30 percent to 50 percent of the staff.
Cyprus enhances start-up visa features
Start-ups that invest €150,000 or more in Cyprus will be able to hire additional foreign personnel.
Other significant changes include different evaluation criteria for start-ups with annual sales revenue of €1 million or more and research and development expenditure of at least ten percent of total operating costs in one of the past three years. The updated scheme allows greater flexibility, attracting start-ups at various stages of development, from early-stage ventures to more mature companies with substantial sales revenue or private investment. The new amendments also introduce more objective renewal criteria after the initial three-year period.
Companies must create at least three new jobs in Cyprus, launch at least one product or service, or participate in a local innovation support program. Authorities in Cyprus implemented these new changes to attract a large number of foreign entrepreneurs, diversifying the economic model and driving job creation. Damianou emphasized that these changes aim to bring in a wave of dynamic start-ups, fostering innovation and economic growth in Cyprus.
