The Government of Cyprus has introduced significant updates to its Startup Visa Scheme, effective 1st January 2025, aimed at making Cyprus a prime destination for innovative entrepreneurs from non-EU countries. This initiative underscores Cyprus’ commitment to fostering innovation, entrepreneurship, and economic growth while creating new opportunities for startups to thrive.
The revised scheme facilitates the establishment of new innovative startups or the relocation of existing ones to Cyprus, offering a platform for entrepreneurs to scale and innovate within a dynamic ecosystem.
Cyprus has emerged as a hub for startups due to its strategic location, favorable tax regime, and access to the European Union market. The island offers:
– A robust business ecosystem fostering innovation.
– Competitive operational costs compared to major European countries.
– High quality of life and business-friendly policies.
These factors make Cyprus an ideal destination for entrepreneurs seeking to expand their ventures and access the EU market.
1) Extended Residence Permits
– Residence permits now last three years (up from two), with the option to renew for an additional two years.
2) Reduced Equity Requirements
– Startup founders now need a minimum 25% equity ownership of the share capital, lowering barriers for diverse entrepreneurial teams.
3) Increased Foreign Workforce Capabilities
– Startups can employ up to 50% of their workforce from abroad (previously 30%), encouraging international collaboration.
4) Incentives for Significant Investments
– Startups investing at least €150,000 in Cyprus can recruit additional foreign personnel beyond the standard quota.
5) New Evaluation Criteria for Renewals
– Startups must meet one of the following for visa renewal after three years:
a) Achieve a 15% revenue increase.
b) Secure €150,000 in investments.
c) Demonstrate innovation milestones, such as introducing new products or services.
These updates aim to attract startups at various stages of their development, from early ventures to more established businesses, positioning Cyprus as a global startup hub.
Entrepreneurs and startups relocating to Cyprus under the enhanced scheme can enjoy numerous benefits:
• Employment Rights
– Founders can engage in self-employment or paid employment within their registered startup in Cyprus
• Access to the EU Market
– Startups benefit from the EU common market, access to EU grants, and a skilled labor force from across the union.
• Favorable Tax Regime
– Cyprus offers an attractive tax system, including competitive corporate tax rates.
• Lower Operational Costs
– The costs of setting up and operating a startup in Cyprus, such as labor, office rentals, and professional services (legal, accounting), are significantly lower than in other European countries.
• Supportive Ecosystem
– Entrepreneurs become part of a flourishing ecosystem that supports innovation, networking, and growth.
The Cyprus Startup Visa Scheme 2025 is not just a visa program—it’s a gateway to opportunity. The scheme enables entrepreneurs to integrate into a vibrant ecosystem while enjoying a high quality of life and access to world-class infrastructure.
Are you ready to take your startup to the next level? Discover how the Cyprus Startup Visa Scheme 2025 can empower your entrepreneurial journey. Contact us today to learn more and get started.
