Cyprus Enhances Startup Visa Program: More Flexible, More Attractive

Cyprus Enhances Startup Visa Program: More Flexible, More Attractive

The Cyprus Council of Ministers has approved revisions to the country’s Startup Visa program, a move expected to strongly boost the nation’s innovation and entrepreneurship ecosystem. Deputy Minister for Research, Innovation, and Digital Policy, Nicodemos Damianou, stated, “These changes not only enhance the program’s competitiveness but also open up more attractive opportunities for international entrepreneurs.”

Since its launch, the program has facilitated the establishment of 21 startups in Cyprus, laying a foundation for the growth of innovative ideas. With these new improvements, Cyprus aims to attract not only early-stage startup projects but also established companies with a proven track record.

Key Changes to the Program

Cyprus’s Startup Visa program allows entrepreneurs and senior executives from outside the EU, whether working independently or as part of a team, to reside in the country and develop their businesses. The latest revisions bring significant improvements, including:

• Extended residence period: The initial residence period has been extended from 2 years to 3 years. Upon renewal, businesses will receive an additional 2 years, compared to the previous 1-year extension.
• Reduced equity ownership requirement: The minimum equity stake required for entrepreneurs has been lowered from 50% to 25%, making shareholder structuring more flexible.
• Increased international hiring quota: Startups can now hire up to 50% of their workforce from abroad, a notable increase from the previous 30%.
• Incentives for significant investors: Businesses investing at least €150,000 in Cyprus will be allowed to expand their international workforce without restrictions.

Additionally, the program introduces new criteria to attract established companies. Businesses generating revenues of over €1 million or allocating at least 10% of their operating expenses to research and development over the past three years will be prioritized in the program.

Stricter Renewal Criteria

To renew their visas after the initial period, startups must meet stricter requirements to demonstrate their potential for sustainable growth:

• Revenue growth: Businesses must show at least 15% revenue growth.
• Investment attraction: A minimum investment of €150,000 must be secured.
• Job creation: Startups must create at least 3 new jobs.
• Innovation and contribution: Businesses must participate in local innovation programs or introduce new products or services to the market.

Moreover, the workforce in these companies must meet basic digital skills requirements, aligning with Cyprus’s digital transformation goals.

Cyprus – A Leading Regional Startup Hub

According to Damianou, these revisions will officially take effect on January 1, 2025. With these key updates, Cyprus not only strengthens its position as a top destination for international entrepreneurs but also aims to become a leading hub for startups and innovation in the Mediterranean region.

This presents a significant opportunity for global businesses seeking a stable, transparent, and highly potential environment to grow and thrive in the future.