Cyprus continues to attract global business through its forward-looking policies aimed at foreign investors and skilled professionals. Central to this strategy is the Foreign Interest Company (FIC) framework, which allows eligible companies to employ high skilled third-country nationals (TCNs) through a streamlined and investor-friendly process. The system is coordinated by the Business Facilitation Unit (BFU) and has been strengthened by recent legislative and procedural reforms.
What Is a Foreign Interest Company?
A FIC is a company registered in Cyprus (e.g. registered local companies (HE) and registered branches of overseas companies (AE)) that is either:
- Owned by third-country nationals (i.e. non-EU citizens) holding more than 50% (50%+) of the company’s share capital, or
- Has a foreign minority shareholder whose shareholding value amounts to at least €200,000.
Initial Investment and Eligibility Criteria for Foreign Interest Companies in Cyprus:
To register as a FIC in Cyprus, an initial investment of at least €200,000 is required. This can be fulfilled in one of the following ways:
- A deposit of €200,000 into the FIC’s bank account held with a credit institution licensed by the Central Bank of Cyprus (excluding payment institutions), or
- Evidence of business-related expenditures totaling €200,000—such as invoices for office rent, equipment, or machinery—dated within six months prior to the application;or
- Purchase shares in a Cyprus company (more than 50%) for an amount equal or more than EUR 200,000.
The funds are not restricted and may be freely used as working capital.
Who Can Qualify as a Foreign Interest Company?
Eligible businesses must meet one of the following criteria:
- Majority Ownership: Over 50% of the company’s shares are held by non-EU (third-country) nationals.
- Minority Ownership with Investment: If less than 50% of the shares are held by a non-EU national, the value of their share must be at least €200,000—in addition to the company’s overall €200,000 investment.
- Public Companies: Listed on a recognized stock exchange.
- Legacy Offshore Companies: Companies active before the change in regime, with records held by the Central Bank.
- Cypriot Shipping Companies
- High-Tech or Innovation Companies: Businesses engaged in advanced research and development in sectors like ICT, aerospace, biomedical, or advanced machinery.
- Pharmaceutical, Biogenetics, or Biotechnology Companies
- Companies Owned by Naturalized Cypriot Citizens: Where the shareholders obtained citizenship through investment, and continue to meet the conditions of their naturalization.
- Licensed Private Higher Education Institutes: Registered and approved by the Ministry of Education.
Application Procedure
Companies seeking registration must:
- Complete the BFU application e-form, including a Letter of Intent detailing the company’s profile, activities, staff numbers, and expansion plans.
- Provide necessary supporting documents, such as incorporation certificates, shareholder information, and evidence of the €200,000 investment.
Processing Time:
- Upon submission, the BFU aims to process applications within 10 business days.
- Successful applicants receive a confirmation letter, enabling them to proceed with employment and immigration processes.
Employment of Third-Country Nationals
FICs approved by BFU are permitted to employ third-country nationals under the high-skilled employment category, provided the following conditions are met:
- A minimum gross monthly salary of €2,500;
- A university degree, diploma, or equivalent qualification relevant to the role;
- An employment contract with a minimum duration of two years; and
- Clean criminal record and medical certificates.
There is a transitional five-year period during which up to 70% of the total staff in these positions can be third-country nationals. During this time, companies are expected to work toward balancing their workforce with local or EU employees.
Spouses of eligible TCN employees are granted immediate and unrestricted access to the Cypriot labour market under the family reunification procedure—an important and progressive measure that promotes family integration and enhances employee retention.
Employment at the supportive level
For support staff earning a gross monthly salary of less than €2,500, a labour market test must be conducted, and the employment contract must be sealed by the Department of Labour.
Naturalization Pathways for Skilled Employees
Under the amended Civil Registry Law, highly skilled TCNs employed by FICs may pursue fast-track naturalization:
An adult foreigner who, on the day of application submission and on the day of examination of application, is employed in a company that meets the following conditions and whose employment was high-skilled according to the following criteria can apply for Cypriot citizenship by naturalization if they cumulatively meet the following qualifications:
(a) Legal and continuous residence for 12 months immediately before the date of application submission. Periods of absence not exceeding a total of 90 days do not interrupt the mentioned time period.
(b) During the immediately preceding 10 years from the 12-month period, the applicant must have legal residence for cumulative periods not less than 4 years or 3 years depending on their level of Greek language proficiency, i.e., A2 or B1 respectively. Periods of absence not exceeding a total of 90 days annually are not considered absences.
(c) Good character.
(d) Sufficient knowledge of the Greek language at level A2 or B1, as applicable.
(e) Sufficient knowledge of basic elements of the contemporary political and social reality of Cyprus
(f) Suitable accommodation and stable and regular financial resources sufficient for the maintenance of themselves and their family members.
(g) Intention to reside in the Republic.
Conclusion
The Foreign Interest Company regime reflects Cyprus’s dual priorities: to attract foreign capital and talent, while upholding transparency and regulatory integrity. With the support of the Business Facilitation Unit, Cyprus remains a compelling destination for international businesses seeking a strategic, well-regulated EU base with access to a skilled and mobile workforce.
How We Can Help
At PERFECT CIRCLE TRUST LTD, we specialize in corporate structuring, immigration, and investment advisory services related to the Foreign Interest Company regime in Cyprus. With deep expertise in both regulatory compliance and international business strategy, we are well-positioned to guide clients through every stage of the FIC registration, employment, and immigration process. Whether you’re establishing operations, managing compliance, or planning long-term residence for your team, our professionals are here to assist you.
For more information or to schedule a consultation, please contact us at Kyriaki@pctrust.eu.