Cyprus Enhances Start-Up Visa Program to Boost Innovation

The Council of Ministers in Cyprus has approved changes to its start-up visa scheme in order to make the program more attractive and effective.

The introduction of the new changes to this program has been confirmed by the Deputy Minister for Research, Innovation and Digital Policy, Nicodemos Damianou, Schengen.News reports. 

The program allows founders and senior executives from non-EU countries to enter, work and reside in Cyprus in order to establish new ventures or relocate existing start-ups.

According to Damianou, the program contributes to creating a critical mass of start-ups and talent, as well as new jobs in cutting-edge industries, which will have positive effects on economic growth and the enrichment of Cyprus’s economic model. 

Main Changes of Start-Up Visa Scheme 
Among the main changes to this scheme is extending the residence permit from two to three years. At the same time, the renewal periods doubled to two years. 

The program also reduces the required equity stake for applicants from 50 per cent to 25 per cent and increases the allowance for foreign workers from 30 per cent to a total of 50 per cent of staff.

In addition, additional foreign personnel can be hired if the start-ups invest €150,000 or more in Cyprus, according to Damianou. 

According to him, the revised program also consists of different evaluation criteria for start-ups with annual sales revenue of €1 million or more and research and development expenditure of at least ten per cent of total operating costs in one of the past three years.

The new changes also include more objective renewal criteria after the initial three-year period. 

In addition, companies must create at least three new jobs in Cyprus, launch at least one product or service or participate in a local innovation support program. 

According to a report from Cyprus, the new provisions will take effect from January 1, 2025. 

Authorities in Cyprus applied new changes to this program as part of efforts to attract a large number of foreigners, thus helping the country’s economic growth. 

Minister Damianou says that the new changes aim to attract, in particular, a wave of dynamic start-ups, diversify the country’s economic model, and drive job creation.

Source: https://schengen.news/cyprus-enhances-start-up-visa-program-to-boost-innovation/