Company of Foreign Interest in Cyprus in 2024: A Complete Guide

Table of Contents

  • What is a Company of Foreign Interest in Cyprus
  • How to Register a Company of Foreign Interest in Cyprus
  • What are the Benefits of Registering a Company of Foreign Interest in Cyprus
  • Cyprus Residency by Registering a Foreign Interest in Cyprus

What is a Company of Foreign Interest in Cyprus

A company of foreign interest in Cyprus refers to a business owned in whole or in part by non-Cypriot investors, particularly third-country nationals.

This type of company plays a pivotal role in attracting foreign investment and boosting international trade in Cyprus. To be classified as a company of foreign interest, at least 50% of the company's shares must be held by foreign shareholders. In some cases, even if the foreign ownership is less than 50%, the company may still qualify if the foreign participation is worth at least €200,000.

These companies can engage in various industries, such as real estate, technology, and professional services, and are eligible for certain benefits, including Cyprus’ favorable tax regime and access to EU markets.


How to Register a Company of Foreign Interest in Cyprus

Establishing a company of foreign interest in Cyprus involves several steps, including company formation and registration with the Business Facilitation Unit (BFU). Here’s a breakdown of the process:

Step 1: Company Formation
Forming a company in Cyprus generally takes 7-10 days. The process starts by reserving a unique company name with the Registrar of Companies, followed by the submission of the Memorandum and Articles of Association, and other necessary documentation. Once the company is incorporated, it must obtain a tax identification number and, if applicable, register for VAT.

Step 2: Registration with the Business Facilitation Unit (BFU)
To be recognized as a company of foreign interest in Cyprus, the business must register with the BFU under the Ministry of Energy, Commerce, and Industry. A key requirement for registration is that the ultimate beneficial owner (UBO) must deposit at least €200,000 in a company-held account in a licensed financial institution, or provide evidence of business-related investments totaling the same amount (such as office space or equipment).

Additionally, the company must maintain a physical office in Cyprus, where its actual business activities are conducted.Once registered, the company will be eligible to employ non-EU citizens and apply for residence and employment permits for its staff.


What are the Benefits of Registering a Company of Foreign Interest in Cyprus

Registering a company of foreign interest in Cyprus offers several compelling benefits for investors:

  • Favorable Tax Environment: Cyprus offers a corporate tax rate of 12.5%, one of the lowest in the European Union. Additionally, companies can benefit from Cyprus' extensive network of double tax treaties.
  • Simplified Residency for Non-EU Citizens: Foreign nationals employed by a company of foreign interest can qualify for residency and work permits, allowing them and their families to live and work in Cyprus.
  • No Restrictions on Repatriation of Profits: Companies registered in Cyprus are allowed to repatriate profits without restrictions, making it an attractive base for international operations.
  • Strategic Access to Markets: Positioned at the crossroads of Europe, Asia, and Africa, Cyprus provides access to a wide range of markets, with the added advantage of being part of the European Union.
  • Highly Skilled Workforce: Cyprus offers a highly educated and multilingual workforce, with English widely spoken across all sectors of the economy.


Cyprus Residency by Registering a Foreign Interest in Cyprus

One of the main advantages of establishing a company of foreign interest in Cyprus is the ability to secure residency for company executives, highly skilled employees, and their families. This residency is granted under favorable conditions, particularly for highly paid employees earning more than €2,500 per month.

There are two main categories of employees eligible for residence permits under this scheme:

  • Highly paid and highly skilled employees: These employees are not subject to the labor market test, meaning they do not need approval from the Ministry of Labour, and they can enter Cyprus with a visa.
  • Support level staff: These employees must obtain permission from the Ministry of Labour before receiving a work permit, and they can only enter Cyprus with an entry permit issued by the Migration Department.

For highly paid employees, residency can be renewed without a time limit, and the application process typically takes about a month to complete. This pathway offers a stable residency solution, along with the benefits of living in an EU country with excellent healthcare, education, and quality of life.