Overview
On 17 February 2017 the House of Parliament approved the Start-Up Visa scheme for third-country nationals. The scheme aims to attract entrepreneurs who wish to reside and work in Cyprus in order to establish, develop and operate an innovative business in the Republic with high growth potential.
The application period was extended for 2019–2021 and further extended for 2021–2023. The scheme allows for two types of investor: individuals and groups (or teams) of investors.
Eligibility Criteria
The following requirements apply to businesses, founders and employees, whether applying under the Individual Scheme or the Team Scheme:
- The business must be innovative — at least 10% of its operating costs, certified by an external auditor, in at least one of the three years preceding the application must be spent on research and development. For newly founded businesses with no financial history, the evaluation is based on the submitted business plan
- The business must be domiciled in Cyprus with genuine legal substance (office space, employees and so on)
- Applicants must be non-EU nationals
- Investors, whether individuals or a group, must have start-up capital of at least EUR 20,000, which may include venture capital funding, crowdfunding or other funding
- Applicants must hold an undergraduate degree or an equivalent professional qualification
- Applicants must be fluent in either Greek or English
- Under the team scheme, a maximum of five persons (at least one founder plus senior executives with the right to stock options) may apply
- Successful applicants establishing innovative businesses in the Republic may be eligible for up to EUR 500,000 in state funding
Advantages of the Cyprus Startup Visa
Approved investors benefit from a range of rights and opportunities:
- A residence and work permit in Cyprus for one year, renewable for at least another year
- The right to be employed by their own company in Cyprus
- The possibility of obtaining a permanent residence permit should the business succeed
- The ability to hire a specified number of non-EU staff without prior approval of the Department of Labour, where the business succeeds
- Family reunification, where the business succeeds
- Access to the EU market from the 5th safest country in the world, an excellent base for talented entrepreneurs and their executives
Assessment of Success
The success or failure of the business is assessed by the Ministry of Finance or the relevant authorities at the end of the second year, taking into account the number of employees, taxes paid in Cyprus, exports and the extent to which the company promotes research and innovation.
Tax Advantages
Beyond immigration benefits, Cyprus offers substantial tax optimisation for innovative businesses, most notably through the Cyprus IP Box regime, under which the effective corporate tax rate on qualifying intellectual property income can be reduced significantly. Combined with a broad double tax treaty network and a low corporation tax rate, this makes Cyprus a highly efficient base for technology and IP-driven start-ups.
How ASC Can Help
ASC brings a strong technological understanding, extensive experience with start-ups and innovative businesses, and a substantial portfolio of Cyprus IP holding companies, together with links to local start-up support and R&D centres. We advise founders and teams through eligibility assessment, company formation and the Startup Visa application. Contact us to discuss your venture.