Cyprus has introduced major changes to its visa policies for 2025, starting January.
This move is geared towards attracting entrepreneurs, skilled workers, and their families.
The new regulations apply to all new visa applications and affect several visa categories, including startup visas, work visas, residence permits for dependents, and investor and innovation-driven visas.
These adjustments are part of the government’s effort to boost the country’s economic growth and make it a more appealing destination for international talent and investment.
Changes to the startup visa for entrepreneurs
The Startup Visa is a primary focus of the new policies, DAAD Scholarship informs. It is designed to support entrepreneurs planning to establish innovative businesses in Cyprus. Key updates include:
- Reduced equity stake: The minimum equity stake requirement has been lowered from 50% to 25%, making it easier for co-founders and smaller shareholders to qualify.
- Longer residence permits: The duration of the residence permit for startup founders has been extended from two years to three years. Additionally, renewals will now last two years instead of one.
- Clear benchmarks for renewal: Startup visa holders must meet specific requirements for renewal, including achieving at least a 15% revenue increase, securing investments of €150,000 or more, or creating at least three new jobs.
- Increased foreign workforce allowance: Startups can now hire up to 50% of their workforce from abroad, an increase from the previous limit of 30%.
These changes aim to make it easier for entrepreneurs to settle in Cyprus and grow their businesses.
Work visa updates for foreign employees
Cyprus has also updated its policies for foreign workers, allowing businesses to hire skilled employees more easily.
Key changes include:
- Broader access to foreign talent: Companies that invest €150,000 or more in Cyprus can now hire additional foreign employees without restrictions.
- Improved wage protections: Work visa holders will benefit from stronger wage protections that align with EU labour standards, ensuring fair compensation for foreign workers.
These updates provide companies with greater flexibility in hiring and help protect the rights of foreign workers.
Residence permits for dependents now more stable
The updated visa policies also include changes to the residence permits for dependents, making it easier for families to live in Cyprus.
Changes include:
- Extended validity for dependent permits: Dependents of primary visa holders, such as spouses and children, will now receive permits that align with the primary applicant’s visa, offering longer periods of stay.
- Reduced administrative burden: The new regulations aim to reduce the need for frequent renewals, providing greater stability for families moving to Cyprus.
These adjustments are designed to make Cyprus a more attractive destination for families relocating with primary visa holders.
Impact on investor and innovation-driven visas
While there have been no direct changes to Investor and Innovation-Driven Visas, holders of these visas stand to benefit from the overall improvement in the startup ecosystem. The increased foreign workforce allowance and more vibrant business environment are expected to create better opportunities for collaboration between investors and startups.
What to know
The primary changes in Cyprus’s visa system for 2025 affect several key areas.
First, the Startup Visa has seen significant updates. These include reduced equity requirements, longer permit durations, and clear renewal criteria for applicants. These changes make it easier for entrepreneurs to establish and grow their businesses in Cyprus.
Second, the Work Visa policies have been revised to improve access to foreign talent. Companies can now hire more foreign workers, and wage protections have been strengthened to align with EU standards, benefiting both businesses and workers.
Third, the Residence Permits for Dependents have been updated to provide more stability for families. The permits for spouses and children of primary visa holders will now align with the validity of the main applicant’s visa, reducing the need for frequent renewals.
Lastly, while there are no direct changes to the Investor and Innovation-Driven Visas, investors will still benefit indirectly from the improved business environment and increased opportunities for collaboration.
These updates are intended to make Cyprus a more attractive and stable destination for international entrepreneurs, skilled workers, and their families.