Cyprus has approved significant changes to its start-up visa program to attract more foreign tech companies. Deputy Minister for Research, Innovation, and Digital Policy Nicodemos Damianou announced the updates on Wednesday. The scheme has already brought 21 start-ups to Cyprus.
It permits founders and senior executives from non-EU countries to enter, reside, and work in Cyprus. They can establish new ventures or relocate existing start-ups individually or as teams. Damianou said the revised scheme reinforces key strategic objectives regarding strengthening the country’s innovation and entrepreneurship ecosystem.
It contributes to creating a critical mass of start-ups and talent, as well as new jobs in cutting-edge sectors with positive effects on economic growth and the enrichment of Cyprus’s economic model. Key changes to the program include extending the residence permit from two to three years, with renewal periods doubled to two years.
Cyprus enhances tech start-up benefits
The scheme also reduces the required equity stake for applicants from 50 percent to 25 percent and raises the allowance for foreign workers from 30 percent to 50 percent of staff. Additional foreign personnel can be hired if the start-up invests 150,000 euros or more in Cyprus, Damianou said. The revised program introduces different evaluation criteria for start-ups with annual sales revenue of at least 1 million euros and research and development expenditure of at least 10 percent of total operating costs in one of the past three years.
Damianou said the updated scheme allows greater flexibility and can attract start-ups at all development stages, from very early-stage ventures to more mature companies with sales revenue or private investment. The new framework also establishes more objective renewal criteria after the initial three-year period. Start-ups seeking renewal must demonstrate either 15 percent revenue growth or investments of at least 150,000 euros during their operation in Cyprus.
Companies must also create at least three new jobs in Cyprus, participate in a local innovation support program, or launch at least one product or service. Employees must possess basic digital skills. The new provisions will take effect from 1 January 2025.
