Cyprus has announced significant revisions to its Startup Visa program, aiming to enhance its appeal to non-EU entrepreneurs and strengthen the country’s innovation ecosystem. These changes, approved by the Council of Ministers, will take effect on January 1, 2025.
Key Updates to the Startup Visa Program:
• Extended Residence Permits: The duration of residence permits for startup founders and senior executives will increase from two to three years, with renewal periods extended from one to two years.
• Reduced Equity Requirements: The minimum equity stake required for applicants will be lowered from 50% to 25%, facilitating more diverse ownership structures.
• Increased Foreign Workforce Allowance: Startups will be permitted to employ up to 50% of their workforce from abroad, an increase from the previous 30% limit. Additionally, companies investing at least €150,000 in Cyprus can hire additional foreign personnel beyond this quota.
• New Evaluation Criteria for Renewals: To renew their visas after the initial three-year period, startups must demonstrate at least a 15% increase in revenue or secure investments of €150,000 during their operation in Cyprus. Alternatively, they can create at least three new jobs, participate in local innovation support programs, or introduce at least one product or service to the market.
Deputy Minister for Research, Innovation, and Digital Policy, Nicodemos Damianou, stated that these revisions aim to make the scheme “more effective and attractive,” contributing to the creation of a critical mass of startups and talent, as well as new jobs in cutting-edge sectors.
Since its inception, the Startup Visa program has facilitated the establishment of 21 startups in Cyprus. The updated scheme is expected to attract ventures at various development stages, from early-stage startups to more mature companies, thereby enriching Cyprus’s economic model and fostering economic growth.
These strategic adjustments reflect Cyprus’s commitment to positioning itself as a competitive hub for innovation and entrepreneurship on the global stage.
