The Cabinet of Ministers approved on the 15th of February, 2017 a scheme aiming to attract foreign investment to Cyprus through the granting of incentives to third-country (non-European Union) innovative start-ups.
The scheme operates on a pilot basis for a duration of two years, starting from February 2017 to February 2019. During the two-year period, 150 start-up visas will be granted.
Article by Maria Evangelou, Business Development Manager
What is the Cyprus Start-up Visa?
The Cyprus Start-up Visa scheme is applicable to third-country (non-EU and non-European Economic Area (EEA)) talented investors, either individuals or groups, who wish to enter, reside and work in Cyprus through establishing/operating/developing a start-up with a high growth potential.
The intention of the scheme is to increase the employability through creating new jobs, the promotion of innovation and research, the development of business ecosystem and consequently the economic development of the country.
Who are eligible for the Cyprus Start-up visa scheme?
- Non-EU country nationals who:
- Are the only founders and meet the requirements of the enterprise as listed below. In case of group there is a maximum number of five (5) individuals;
- Have access to €50.000 if sole individual or to €25.000 if a founder of a group scheme. If the founders of a group scheme are more than two (2) the total capital must be €50.000. The amount may include venture capital funding, crowdfunding or other sources of funding;
- Founder must hold an undergraduate degree or other equivalent professional qualification. In the case of a group scheme, at least one of the team members must meet the requirement; and
- Individuals as well as all team members in the case of a group scheme must fluent in Greek and/or English language.
Requirements of the enterprise:
- Only innovative enterprises are acceptable. An innovative enterprise is an enterprise which:
– which can demonstrate through a detailed study carried out by a special external expert that it may in the near future develop new or substantially improved products, services or processes in relation to highly improved products, services or market operations, and which are at risk of technological or industrial failure; or;
– whose research and development expenditure represents at least 10% of its total operating expenditure, in at least one of the preceding three years before the granting of any aid and such expenditure will be the subject of an audit of the current tax year, as certified by an external auditor. In the case of a business which is in its initial phase and does not yet have any economic history, the evaluation will be based on the Business Plan submitted by the applicant.
– The Business Plan must provide that the enterprise’s head offices and tax domicile be established in Cyprus. The head offices may be common co-working spaces (e.g. business accelerators, incubators, digital hubs etc.) or co-location with other enterprises.
What are the benefits for the founder?
- Right to economic activity and residence in the Republic of Cyrus for the duration of one year, and with the possibility of renewal for at least another year.
- Right for self-employment or right to paid employment in his/her registered company within the Republic.
- Prospective residence in the Republic without any maximum time restrictions and enjoyment of family reunification, if the enterprise succeeds*.
- Prospective recruitment of specific number of personnel from non-EU countries without prior approval of the Department of Labor, if the enterprise succeeds*.
*The success or failure of the enterprise will be assessed at the end of the second (2) year.