Newsroom
Attracting companies to Cyprus is one thing. Making sure they actually do business here and contribute to the economy is another.
That is the aim of changes approved by the Cabinet on Tuesday to the registration scheme for foreign-interest companies, according to Energy Minister Michalis Damianou.
For people living in Cyprus, the question is straightforward: What does attracting these businesses bring to the country? The government says the revised rules will put more emphasis on companies’ actual economic activity, regardless of where their money comes from.
One practical change starts Jan. 1, 2027, when registered companies must begin submitting annual employment reports. These will help authorities keep track of staffing and check whether businesses are meeting their obligations.
Companies that fail to comply could be removed from the scheme’s register under a clearer procedure. Removal concerns their place in the scheme; it does not, by itself, mean a business will be closed.
Damianou said checks on the scheme’s 70%–30% employment ratio would take place seven years after a company registers. His announcement did not explain which categories of employees the ratio covers.
The register will also be renamed the “Business Support Center Register.” Rules will clarify whether companies can keep their registration when the people who ultimately own or control them acquire Cypriot or another EU citizenship.
The government’s stated goal is to support businesses with real operations, room to grow and a meaningful contribution to Cyprus, while taking action when companies fall short of their obligations.
The changes come as Cyprus reviews its broader strategy for attracting businesses and skilled workers. That review is expected to finish in December 2026, with a second consultation workshop involving businesses and other stakeholders scheduled for Oct. 29.
