The Cyprus Ministry of Finance announced the completion of the Parliamentary Committee on Finance’s review of the bill concerning the screening of foreign direct investments. The Ministry expressed confidence that the new framework will operate with efficiency and transparency, aiming to protect national security and public order while fostering a stable institutional environment that supports productive investments rather than hinders them.

According to the announcement, the purpose of the bill is to implement Regulation (EU) 2019/452 of the European Parliament and the Council of 19 March 2019, which establishes a framework for the screening of FDI within the European Union for reasons of national security or public order.

The Ministry underlined that the creation of a national screening mechanism seeks to protect critical sectors of the economy from direct foreign investments originating from third countries that could potentially threaten Cyprus’ security or public order.

The Ministry clarified that foreign direct investments in land and real estate will only fall under the scope of the law when such assets are of strategic importance for the functioning of critical infrastructure — for example, in the energy, defense, water supply, or communications sectors, as specified in the annex of the bill.

The announcement concluded by reaffirming that maintaining Cyprus as a friendly and attractive investment destination remains a long-standing strategic priority of the government’s economic policy.