The Council of Ministers approved revisions to the "Start-Up Visa" program, aiming to make it more effective and appealing, said Deputy Minister of Research, Innovation, and Digital Policy, Nikodimos Damianou. The program has so far facilitated the establishment of 21 start-ups in Cyprus.

According to Damianou, the initiative allows owners and senior executives of start-ups from non-EU countries, either individually or as teams, to enter, reside, and work in Cyprus to create new start-ups or relocate existing ones, including branches, to the country.

"The revised program supports our primary strategic goals of enhancing the innovation and entrepreneurship ecosystem in Cyprus," Damianou said after the Council’s session.

• Extended Residency Permits:

  Residency is extended from two to three years, with the possibility of a two-year renewal, instead of the previous one-year renewal.

• Reduced Equity Requirements:

  The minimum shareholding by applicants is reduced from 50% to 25%.

• Increased Foreign Workforce Capacity:

  Start-ups can now hire up to 50% foreign employees, an increase from the previous limit of 30%. Additional foreign hires are allowed if the business invests at least €150,000 in Cyprus.

• New Revenue-Based Evaluation Criteria:

  Start-ups with annual revenues exceeding €1 million and at least 10% of operating expenses allocated to research and development over the last three years are subject to specialized evaluation criteria.

• Flexibility for Start-Ups at All Development Stages:

  The program accommodates start-ups at any stage, from early ventures to mature enterprises with established revenues or private investments.

Damianou explained that objective evaluation criteria have been introduced for renewing the visa after the initial three-year period.

“It is expected that start-ups seeking renewal will demonstrate at least a 15% increase in revenue or investments of at least €150,000 during their period of operation in Cyprus,” he said.

Damianou noted that businesses should have created at least three new jobs within the company in Cyprus, participated in a local innovation support program, or introduced at least one product or service to the market. Additionally, employees must possess basic digital skills, he added.

The revised Start-Up Visa program will take effect on January 1, 2025.

"These provisions offer flexibility and attract start-ups at various stages of development, creating opportunities for Cyprus to remain competitive in the global innovation landscape," Damianou concluded.