Cabinet revises 'start-up visa' scheme for third country nationals

The Cabinet has approved the revision of the "start-up visa" scheme, aiming to make it more substantive and more attractive, Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou has said.

Speaking after the 18 December meeting, he also said that, to date, 21 start-ups have been active in Cyprus through the scheme.

According to Damianou, the scheme allows owners and senior executives of start-ups from third countries, individually or as a group, to enter, reside and work in Cyprus with the aim of creating a new or transferring an existing start-up or branch to Cyprus.

"The revised scheme supports our main strategic objectives, in terms of strengthening the innovation and entrepreneurship ecosystem in the country," Damianou said.

It contributes, he continued, to the creation of many start-ups, new jobs in cutting-edge sectors with positive effects on economic growth and the enrichment of our economic model.

The main changes in the plan, he added, include three years (from two) residence permit in the Republic of Cyprus while the renewal will be another two years instead of one year.

In addition, the percentage of share capital by one or more members of the applicant group is reduced from 50% to 25%, the possibility of hiring foreign workers is increased from 30% to 50%, and the possibility of hiring additional foreign staff is introduced, provided that the start-up shows investments in Cyprus equal to or greater than €150,000, he said.

“The revised plan allows for more flexibility and provides the opportunity to attract start-ups at all stages of their development from start-ups in their very early stages to more mature ones, which have revenue from sales or have raised private investments,” he added.

Moreover, he said that more objective evaluation criteria are being introduced for the renewal of the start-up visa upon the expiry of the first three-year period.

“It is expected that start-ups wishing to renew, will show at least a 15% increase in their revenue or investments of at least €150,000, during the period of operation in Cyprus,” he said.

Damianou noted that businesses should have created at least three new jobs in the company in Cyprus or participated in a local innovation support structure program or have placed at least one product or service on the market. Its employees should have basic digital skills, he added.

The provisions of the plan come into effect from 1 January, 2025.

(Source: CNA)