Cyprus Enhances Start-Up Visa Program to Boost Innovation

Cyprus’ Council of Ministers has approved revisions to its start-up visa scheme to enhance the program’s effectiveness and appeal. The updates to the scheme were confirmed by Nicodemos Damianou, the Deputy Minister for Research, Innovation, and Digital Policy, according to Schengen.News.

The program allows non-EU founders and senior executives to come to Cyprus to launch new businesses or relocate existing start-ups. Damianou emphasized that the initiative is intended to help build a robust start-up ecosystem, foster innovation, and create jobs, all of which will contribute to economic growth and strengthen Cyprus’s economic model.

Key Changes to the Start-Up Visa Scheme

Among the major changes is the extension of the residence permit from two years to three years, with renewal periods now set at two years. The required equity stake for applicants has been reduced from 50% to 25%, while the allowance for foreign workers has been increased from 30% to 50% of the workforce. Additionally, if a start-up invests €150,000 or more in Cyprus, it can hire more foreign workers.

The revised program also includes new criteria for start-ups with annual revenues of €1 million or more and research and development spending of at least 10% of total operating costs in any of the past three years. Furthermore, after the initial three-year period, the renewal criteria will be more objective.

Companies participating in the program must create at least three new jobs in Cyprus, launch a product or service, or join a local innovation support initiative.

The new provisions are set to take effect on January 1, 2025.

The changes to the scheme are part of Cyprus’ broader efforts to attract foreign entrepreneurs and contribute to the country’s economic development. Minister Damianou stated that the goal is to attract dynamic start-ups, diversify the economy, and create job opportunities.