Foreign Investment Companies (FIC) and High-Tech Companies in Cyprus 

Cyprus has become a prominent hub for foreign investment companies, particularly in the high-tech sector. With its favorable business environment, robust legal framework, and attractive tax incentives, the island is an appealing destination for international companies.   

This combination of factors has fostered a thriving ecosystem of innovation and technology. 

A. Eligibility Criteria

1. Foreign Investment Companies (FIC)

To qualify as a Foreign Investment Company in Cyprus, the following criteria must be met:  

1.1 Ownership Structure: The majority of the company’s shares must be owned by third-country nationals. For the sake of clarity is noted that, this requirement may not apply for all UK citizens and hence legal advice is required. 

OR 

1.2 Foreign Participation: If third-country nationals own 50% or less of the company’s shares, the company is eligible provided the foreign participation is valued at a minimum of €200,000.  

It should be noted that in both scenarios, the ultimate beneficial owner (UBO) must deposit €200,000 in a company-held account with a credit institution licensed by the Central Bank of Cyprus (payment institutions are excluded). Alternatively, the company can present evidence of an investment totaling €200,000 for business operations in Cyprus. 

2. Cypriot High-Tech/Innovation Companies

The investment criterion mentioned above also applies to high-tech/innovation companies.  

Additional requirements include: 

2.1 Market Presence: The company must already be established and have a market presence. 

2.2 R&D Intensity: The company must engage in high-level or experimental research and development (R&D). 

2.3 Product Categories: The developed products must fall into one of the following categories: 

• Aviation and space industry 
• Computers 
• Information and telecommunication technology (ICT) 
• Pharmaceuticals 
• Biomedical 
• Research and development equipment 
• Electrical machinery 
• Chemicals 
• Non-electrical machinery 

These guidelines ensure that foreign investment and high-tech companies can effectively navigate the regulatory landscape in Cyprus, capitalizing on the island’s strategic advantages for growth and innovation. 

B. Benefits for Companies Securing a High-Technology Enterprise Certificate under the Revised Policy for Temporary Residence and Employment Permits for Third-Country Nationals 

Companies that obtain a High-Technology Enterprise certificate and comply with the provisions of the Revised Policy for Temporary Residence and Employment Permits for third-country nationals employed in companies of foreign interests operating in Cyprus enjoy the following benefits: 

1. Unlimited Duration of Stay: There are no restrictions on the maximum duration of stay for third-country nationals in this category within the Republic of Cyprus. This applies to Directors, Key Personnel, and Specialists.

2. Exemption from Labor Department Contracts: Third-country nationals employed at the Senior Management and Inter-managerial levels, as well as Specialized Personnel, do not need to secure a contract from the Department of Labor.

3. Family Reunification: Employees under this category have direct access to family reunification, allowing their families (spouse and minor children) to join them, provided that the relevant conditions of the Law on Foreigners and Immigration, Chapter 105, as amended, are met.

4. Permits for Tourists: It is permissible to issue temporary residence and employment permits to Senior Managerial, Inter-managerial, and Specialized personnel who entered the Republic with a tourist visa. This practice is not part of the existing Ministerial policy but is an administrative practice followed for the convenience of companies.

These benefits significantly enhance the ability of high-tech companies to attract and retain top talent from third countries, facilitating their operations and growth within Cyprus. 

C. Renewal Process for the High-Technology Enterprise Certificate 

The High-Technology Enterprise Certificate is valid for a period of three years. To renew the certificate, companies must re-submit an application at the end of the three-year period. The renewal application is to be submitted to the Deputy Ministry of Research, Innovation, and Digital Policy. 

Additionally, the Deputy Ministry will maintain a registry of all enterprises holding the High-Technology Enterprise Certificate to ensure proper documentation and oversight.