Cyprus Eases Startup Visa Rules: Changes in 2025

Cyprus has implemented significant changes to its startup visa program, effective January 2, 2025, following Cabinet approval on December 18, 2024. The modifications aim to attract startups at various stages of development and provide a more flexible and accommodating environment for foreign entrepreneurs.

Key Updates on Cyprus Startup Visa Program

One of the most notable changes is the reduction of share capital requirements from 50% to 25%, making it easier for startups to establish themselves in Cyprus. Additionally, the government has extended the initial residence permit validity from two to three years, providing entrepreneurs with more time to develop their businesses. Renewal periods have also been increased from one to two years, offering further stability for startup founders.

Increased Workforce Flexibility

To support the growth of these ventures, the government has raised the allowance for the foreign workforce from 30% to 50%. Companies investing €150,000 or more will be permitted to hire additional foreign staff, enabling them to tap into a broader talent pool.

Benchmarks for Visa Renewal

Entrepreneurs wishing to renew their visas after the initial three-year period must now meet at least one of the following benchmarks to demonstrate their startup’s growth and contribution to the Cypriot economy:

• Financial Growth: Show that the company has generated a specific level of revenue or attracted new investment.
• Job Creation: Provide evidence of new employment opportunities created for local or foreign workers.
• Technological Advancement: Demonstrate the development or successful implementation of innovative technology or services.
• Economic Impact: Highlight the overall contribution of the startup to Cyprus’s economy, such as exports or collaboration with local businesses.

These benchmarks include achieving 15% revenue growth, attracting €150,000 in investments, creating three new jobs in Cyprus, joining local innovation support programs, or launching at least one product or service.

Enhanced Entry for Non-EU Founders

The updated program continues to encourage non-EU startup owners and senior executives to enter, live, and work in Cyprus. Entrepreneurs can build new ventures or relocate existing operations to take advantage of the island’s growing reputation as a hub for innovation. The program also mandates that all employees possess basic digital skills, ensuring startups maintain a competitive edge in a tech-driven world.

Insight For Economic Growth

Nicodemos Damianou, Deputy Minister of Research, Innovation, and Digital Policy, highlighted the program’s new flexibility, emphasizing its appeal to startups at all stages of development. With 21 startups already approved under the program, the revised rules signal a promising future for Cyprus as a destination for global entrepreneurs.

To ensure a skilled workforce, the program mandates that all employees maintain basic digital skills. Non-EU startup owners and senior executives can enter, live, and work in Cyprus while building new ventures or relocating existing operations.