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Cyprus is set to introduce stricter controls on foreign investments in a new bill aimed at protecting critical sectors while keeping the country attractive to reliable investors.
The Finance Ministry says the legislation will create a clear, predictable system for reviewing foreign investments, without harming Cyprus’ competitiveness. The bill targets investments in strategic sectors like telecommunications, energy, and tourism, and allows authorities to review deals even after they’ve been completed if needed.
Most business groups, including the Cyprus Chamber of Commerce and Industry and the Cyprus Shipping Chamber, support the plan. The legislation aligns Cyprus with European Union rules, with special exemptions for EU, EEA, and Swiss investors, as well as ships—except for floating LNG units. Foreign investors will need to notify authorities of investments over €2 million.
Some tech companies, however, had hoped for broader exemptions for their sector.
Parliamentary debate began Monday in the House Finance Committee, with DIKO MP Christiana Erotokritou calling the bill “very important” for promoting growth and reliable investment. She said it also establishes an advisory committee and a central authority to monitor foreign investments, including a 15-month retrospective review period for critical infrastructure.
AKEL MP Andreas Kafkalias said his party supports tighter oversight but wants to ensure public interests are protected, particularly in banking, healthcare, and real estate, where large foreign acquisitions have raised concerns.
Lawmakers aim to complete committee discussions within September.
