On 18 December 2024, the Council of Ministers approved a number of significant changes to the Cyprus Start-Up Visa Scheme aimed at fostering innovation and attracting entrepreneurial talent from non-EU countries.
The key changes to the Cyprus Start-Up Visa Scheme are part of the broader Policy Statement on Strengthening the Entrepreneurial Ecosystem in Cyprus, which aims to foster innovation, create new jobs, and drive economic development by expanding eligibility criteria, simplifying application procedures, providing additional support services, offering incentives, and enhancing networking opportunities for entrepreneurs. By easing the entry and operational requirements, Cyprus positions itself as a prime destination for start-ups looking to establish, operate, and grow in a supportive and dynamic environment.
The updated Start-Up Visa Scheme came into effect on 1 January 2025.
Beneficiaries
Individual Start-Up Visa: Eligible for non-EU nationals who will act as the sole founders of an innovative Start-Up.
Team Start-Up Visa: Eligible for teams of up to five individuals, consisting of non-EU nationals, either solely of the founders or a combination of at least 1 (one) founder and senior executives of an innovative Start-Up.
Key Changes to the Start-Up Visa Scheme
• Extension on the duration of the Residence & Employment Permits
Extended Permit Duration: Temporary Residence & Employment Permits’ term has been extended from two to three years, with renewals now granting an additional two years instead of the previous one-year extension.
• Equity Ownership Requirement Relaxation
Reduced Ownership Threshold: The equity ownership requirement has been lowered to a minimum of 25% of the share capital, reduced from the earlier 50% threshold.
• Increased Foreign Workforce Quota and Additional Recruitment
In addition to the founder or team of founders, the Start-Up can recruit additional personnel, without the prior approval from the Department of Labour, as follows:
I. Up to five (5) individuals, provided that the individuals receive a monthly gross salary of €1,500.
II. Companies showing investment in Cyprus equal to, or greater than €150,000 can recruit up to ten (10) additional foreign personnel, in excess to the five (5) individuals mentioned in point I.
Additional foreign personnel can be recruited by obtaining the prior approval from the Department of Labour, provided that the total number of foreign personnel does not exceed 50% of the total personnel of the Company, an increase from the previous limit of 30%.
• Validity period
The Start-Up Visa Scheme will be valid until December 2026.
• Quota
Up to 150 visas.
Family reunification process
In addition to the policy’s key changes, as outlined above, it is important to highlight the family members of third country nationals who are holders of a Temporary Residence and Employment Permit, under the Start-Up Visa Scheme, can also apply for residence permits in Cyprus through the Family Reunification process. More specifically, spouses of holders of a Temporary Residence and Employment Permit, under the Start-Up Visa Scheme, have the right to free access of Cyprus’s labour market for remunerated employment.
For any further details on the above, please contact our GES Mobility – Immigration Services team through the button below.