The Cyprus Deputy Ministry of Research, Innovation and Digital Policy, announced on 19 December 2024 that a revised star-up visa has been approved. This revision has as its primary strategic goals the enhancement of innovation and the development of the local entrepreneurship ecosystem. The Cyprus star-up scheme is now more effective, flexible and attractive, contributing to further establishing Cyprus as a start-up hub.
The Scheme enables owners and senior executives from third countries, either individually or as a group, to enter, reside, and work in Cyprus for the purpose of establishing a new start-up or transferring an existing one or its branch to Cyprus.
The key changes to the Scheme, which has already facilitated the operation of 21 start-ups in Cyprus, include the following:
- Extension of residence permits in Cyprus from two (2) years to three (3) years.
- Reduction of the share capital requirement held by the applicants from 50% to 25%.
- Increase in the proportion of foreign employees from 30% to 50%.
- Introduction of additional foreign personnel hiring, provided that investments in Cyprus equal to or exceed €150,000.
- Implementation of distinct evaluation criteria for start-ups generating at least €1 million in sales revenue and allocating at least 10% of their operating expenses to research and development in one of the past three (3) years.
Moreover, more objective evaluation criteria have been introduced for the renewal of the startup visa after the initial three-year period.
The new provisions of the Scheme will come into effect on January 1, 2025.
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