The Cypriot government has announced plans to grant 150 visas under the «Startup Visa» program to talented entrepreneurs from non-EU and non-EEA countries. A set of amendments was developed to support this decision, and as of January 1, 2025, changes have come into effect that expand the program, lower the required ownership share in a business, and increase quotas for foreign employees.

Cyprus is already among the countries with the most favorable conditions for business development, ranking 43rd globally. Now, the authorities aim to attract more investment and improve their position in the rankings.

Moreover, these are just the first steps toward further easing of conditions. Currently, tax incentives for program participants are actively being discussed. Under the proposed measures, for 17 years after obtaining the visa, individuals earning more than €55,000 per year would only need to pay half of the standard tax amount.

Prerequisites

This generous initiative is not accidental and is directly driven by Cyprus’s economic stagnation. Until 2022, the economy showed steady growth, reaching a 10% GDP increase. However, in the following years, growth slowed down, averaging 3.5% throughout 2024.

According to the European Commission’s forecasts on the state of the Cypriot economy, this decline will continue in 2025–2026, bringing GDP growth down to 2.5%. The primary factor behind this slowdown is the decreasing tourist flow. In 2022, tourism peaked after the lifting of pandemic-related restrictions but has since been on the decline.

European tourists traditionally made up the majority of visitors to Cyprus—up to 60%. However, their share has now dropped to 40% due to a decrease in purchasing power among Western European citizens, particularly in Germany, France, Italy, and Spain. This decline is largely attributed to the rising costs of energy resources, which have impacted the Cypriot economy, albeit to a lesser extent.

As a result, local authorities are seeking to accelerate economic growth through foreign investments and tax revenues from international companies.

What Is the “Startup Visa” Program in Cyprus?

The program grants visas to founders and key employees of startups that the Cypriot authorities consider innovative and beneficial to the country. It also applies to investors willing to invest at least €150,000 in technology projects.

Key features of the program:

  • Open to non-EU and non-EEA citizens.
  • Participants can own as little as 25% of the company’s shares to qualify.
  • Startups must create at least three jobs and can hire up to 50% foreign employees. If a company generates over €150,000 in net profit for the local economy, the employment limit may be increased on a case-by-case basis.

A 3-year visa with the possibility of a 2-year extension for business founders and their employees (up to five members). Extension conditions: the company must increase its revenue by at least 15% within the first three years; the company must attract at least €150,000 in investments.