BSC companies in Cyprus: simpler hiring of skilled non-EU staff
BSC companies in Cyprus: eligibility, registration and employment under the revised rules
BSC companies in Cyprus, formerly known as Companies of Foreign Interest, can use a simplified procedure to recruit skilled employees from outside the EU. Under the revised registration rules, a wholly Cypriot-owned company can also qualify. Eligibility depends on what the business actually does in Cyprus, whether it operates in an eligible sector and how it meets the €200,000 investment requirement.
A Cyprus software company owned entirely by Cypriot founders wants to hire engineers from outside the European Union. A foreign investor wants to do the same through a Cyprus company that holds shares in the group’s software businesses. Under the revised rules, the locally owned software developer may qualify for BSC registration. A company whose own activity consists solely of holding the subsidiaries falls outside the relevant sector. What matters is the work the applicant itself carries out in Cyprus.
For many years, businesses knew this route as registration as a Company of Foreign Interest. The expressions BSC company and company with BSC status describe it more accurately today. BSC status means that a business has been admitted to the register maintained by the Business Support Centre. A Cyprus limited company or a registered Cyprus branch of an overseas company can apply. The principal benefit is access to a facilitated procedure for employing skilled people from outside the EU.
Two dates matter. The BSC will assess applications submitted from 1 December 2026 under the revised framework. Annual employment reporting becomes compulsory from 1 January 2027. Businesses planning to file in December therefore need to prepare under the new criteria. Existing registered employers need to prepare for reporting even if their workforce ratio will only be reviewed several years later. Official BSC announcement and registration guide.
What changes for Companies of Foreign Interest?
The Council of Ministers approved the revised registration framework on 27 October 2026. The registration guide is dated 4 November, and the BSC announced the change on 5 November. The Business Facilitation Unit (BFU), established in January 2022, has operated within the Business Support Centre since May 2025. The November decision changes the rules for admission to the register and continued eligibility. Ministry of Energy, Commerce and Industry.
| Issue | Framework before the revision | Revised framework |
|---|---|---|
| Ownership and activity | Majority third-country ownership was one route. Where third-country ownership was 50% or less, the qualifying minority shareholding had to be worth at least €200,000, in addition to the initial investment requirement. Certain categories, including Cypriot shipping, high-tech and pharmaceutical companies, already had their own routes. | Companies qualify through genuine activity in one of nine sectors, irrespective of shareholding. Wholly Cypriot-owned businesses can apply on that basis. Foreign majority ownership alone no longer establishes eligibility. |
| Investment | An initial investment of €200,000 applied across the eligible categories. The published criteria identified shareholder funds, business premises and equipment among the ways of proving investment. | The €200,000 threshold continues. The revised guide also sets out how paid operating expenses or an existing company's audited balance sheet may support an application. |
| Processing time | The BFU published a period of up to 10 business days for a duly submitted, qualifying application. | The stated review period is 25 working days for a complete and correct application. Allow additional time if the BSC needs clarification. |
| Employment mix | The strategy provided a five-year period for meeting the 70/30 employment ratio. | The BSC will check the ratio after seven years from registration. The extension also applies to registered employers. |
| Changes after registration | Ownership was central for many businesses. Some older registrations were already subject to annual updates with the Migration Department. | The revised framework expressly addresses changes of citizenship, changes of ownership, material changes of activity, annual employment reporting and removal from the register. |
Previous BSC registration criteria · Government guidance on the earlier employment strategy · Summary of the revised guide by EY Cyprus
Which businesses can register as BSC companies in Cyprus?
A business can qualify whether its shareholders are Cypriot citizens, citizens of another EU Member State or third-country nationals. Its shareholders may live in Cyprus or abroad. Citizenship and residence are distinct, however. A foreign shareholder who moves to Cyprus remains a foreign shareholder for any evidence requirement that distinguishes between foreign-owned and wholly Cypriot-owned companies.
The starting point is the applicant’s actual business. A group should identify which entity employs the team, delivers the service or develops the product. The BSC expects a business plan and a director’s signed explanation of the company’s activities. A broad objects clause in the articles of association gives the BSC little indication of what the company actually does.
| Eligible sector | Scope or point to check |
|---|---|
| 1. Research and innovation | Covers experimental development and bringing technology to market. Explain what the Cyprus team develops and how the company intends to use or sell it. |
| 2. Technology and ICT | Includes software, digital applications, financial technology, gaming, cybersecurity and artificial intelligence. |
| 3. Green development and renewable energy | Identify the project and the activity the applicant will undertake in Cyprus. |
| 4. Shipping and ports | Includes related services. Explain the company's role in the shipping or port operation. |
| 5. Healthcare and life sciences | Includes pharmaceuticals and biotechnology. Supply any operating licence required for the activity. |
| 6. Education, training and knowledge-based services | Employment facilitation for this sector covers senior and middle management only. An education provider should distinguish management positions from teaching posts when planning recruitment. |
| 7. Export-oriented manufacturing | Describe what the company manufactures and the markets it supplies. An export trader that buys finished goods should examine its own activities before relying on this category. |
| 8. Air transport, aeronautics and aerospace | Includes related services. Identify the specific operations or technical services provided by the applicant. |
| 9. Finance and international professional services | Covers financial services, investment funds and internationally oriented professional services. The exclusions cover holding companies, property development or exploitation businesses, and entities principally engaged in direct or indirect real estate investment. |
A professional services firm should explain which international clients it serves and what its Cyprus staff do for them. An investment business should examine its actual strategy. For example, an investment fund principally investing in property cannot rely on the general reference to investment funds while disregarding the real estate exclusion. Revised sector criteria and exclusions.
How to demonstrate the €200,000 investment of BSC companies in Cyprus
For a business already operating in Cyprus, the first question is what it can demonstrate from its own records. For a new business, the question is how to fund the Cyprus operation and document that funding before it applies. The revised guide sets out several ways to satisfy the threshold. The company should identify one route that it can substantiate in full.
| Route | Evidence to prepare |
|---|---|
| Shareholder funds | For a foreign-owned company, document the transfer of at least €200,000 from abroad by one or more shareholders to the company's Cyprus bank account. Keep the transfer evidence and the statement showing the deposit and available balance. A wholly Cypriot-owned company may evidence a corporate bank balance of at least €200,000. |
| Business premises or equipment | Document qualifying purchases totalling at least €200,000. The purchase documents, invoices and receipts should identify the applicant as the purchaser. |
| Increase in nominal share capital | Evidence an increase of €200,000 with the Registrar's documentation and the corresponding movement of funds. Both parts matter. |
| Paid operating expenses | Evidence at least €200,000 of expenses incurred and paid by the applicant during the six months preceding the application. Reconcile the underlying records to the payments. A budget for future expenditure or a file of unpaid invoices will not demonstrate payment. |
| Existing company with audited accounts | The accounts may establish either at least €200,000 cash at bank or at least €200,000 in fixed assets. Either figure can satisfy this route without a fresh deposit. The two figures are tested separately. |
Consider a Cyprus company whose audited accounts show €230,000 in fixed assets and €40,000 at bank. The fixed assets alone can meet the financial threshold. A second company with €120,000 at bank and €90,000 in fixed assets cannot reach the threshold under this route by adding the figures together. It may, however, have another route available, such as qualifying operating expenses incurred and paid within the preceding six months.
This distinction matters when choosing the ownership structure. A non-EU founder living in Nicosia should check the foreign-owned company requirements before relying on the simpler balance evidence available to a wholly Cypriot-owned business. Investment evidence under the revised guide.
Premises, documents and the application process
The company needs operational business premises independent of a residence. Evidence may take the form of a title deed, a purchase agreement or a lease of at least 12 months. A sublease or serviced-office agreement can work if the company has a specific office for its exclusive use. The agreement should identify the room, floor and full address. Before signing a lease, a founder should check that the rights granted match the space the team will actually occupy. A registered-office address or access to an occasional hot desk will not, on its own, demonstrate this.
The application is electronic. A Cyprus company registered as an HE entity, or an overseas company registered with a Cyprus branch as an AE entity, accesses the BSC system using its own verified CY Login profile. The file should include:
- The business plan and the director’s signed description of the company’s activity, including the work undertaken in Cyprus and the skilled positions it intends to fill.
- A current electronic beneficial owner search certificate from GOV.CY and the memorandum and articles bearing the Registrar’s signature and stamp, as applicable to the entity.
- The premises documents, evidence for the selected €200,000 investment route and any operating licence required for the sector.
- The latest audited financial statements for an existing Cyprus operation, where applicable. Shareholders should also have valid passports available if requested after the initial review.
The BSC issues a confirmation letter following successful registration. A missing or incorrect supporting document can lead to automatic rejection. The 25-working-day timetable concerns the company’s registration. Employers planning a start date should allow separately for the employee’s residence and employment application. Government application service · Revised application requirements
What BSC status offers employers and employees
Once registered, an employer can use the facilitated procedure to recruit eligible skilled third-country nationals. The Migration Department decides each individual’s residence and employment application. Under its published policy, the standard highly paid employment category requires a gross monthly salary of at least €2,500, relevant academic qualifications or at least two years of relevant experience, and a contract lasting at least two years. Qualifying skilled hires benefit from an exemption from the ordinary labour-market test. Support staff fall under different employment rules.
The distinction also matters for a founder who intends to relocate to Cyprus and work as a director. The company first needs to qualify for registration. The founder then needs to meet the conditions for the proposed role and the appropriate immigration permission. Company ownership alone gives no entitlement to take up employment. Migration Department employment policy.
Eligible family members may apply under the family reunification rules. A spouse with the relevant family reunification status may have access to paid employment. The residence category held by the spouse matters when assessing the right to work. Government guidance on family members and employment.
Certain highly skilled employees may also qualify for an accelerated route to Cypriot citizenship under the separate naturalisation rules. The residence calculation is often misunderstood. In addition to the final qualifying 12-month period immediately before the application, the applicant needs cumulative lawful residence during the preceding ten-year period of at least four years with A2 Greek or three years with B1 Greek. The authorities also assess the qualifying employer and employment, character, knowledge of Cyprus, accommodation, resources and the other statutory conditions. A potential recruit should assess personal eligibility before relying on a particular citizenship timetable. Ministry of Interior guidance on naturalisation.
The 70/30 employment ratio and the annual report
The workforce rule aims for a maximum of 70% third-country nationals and at least 30% Cypriot or other EU citizens under the highly skilled employment framework. For example, in a relevant workforce of ten, seven third-country nationals and three Cypriot or other EU citizens meet the ratio. For this purpose nationality matters. A non-EU employee who lives and pays tax in Cyprus is still counted as a third-country national.
The revised framework extends the review period from five to seven years from registration, including for employers already on the register. A company registered in 2022 reaches that point in 2029. For a company admitted in 2024, the corresponding year is 2031. For companies registered before the 2022 strategy began, Tanya Romanyukha of TechIsland reports that checks will also start in 2029. The BSC’s public announcement gives the general seven-year rule without specifying that older cohort separately. An employer relying on the transition should confirm its review date with the BSC against its original registration record.
The annual report starts earlier. From 1 January 2027, registered companies must report their employment figures annually, even if their seven-year review is still several years away. The start of the obligation should be distinguished from the first filing deadline. As at 6 November 2026, the BSC is expected to announce the reporting period, submission deadline and filing procedure during January 2027. BSC announcement · Annual reporting details
The report identifies the company, its BSC registration number, premises, contact person and reporting period. It records the total workforce and the numbers and percentages of third-country nationals, Cypriot citizens and other EU citizens, including the combined Cyprus/EU figure. An authorised representative signs, dates and stamps the declaration of accuracy.
A company can prepare by reconciling its employee records with payroll, recording nationality separately from residence and checking recruitment and departure dates. It should be able to explain both the total headcount reported and the figures used for its skilled workforce. These records also show directors how many local or EU hires they need to plan for as the business grows.
What happens when a founder becomes Cypriot or the business changes?
A founder who acquires Cypriot or another EU citizenship can retain the benefit of the company’s registration, provided the company continues its eligible activity and meets the other requirements. This protection covers renewals for existing personnel and applications for additional positions. It gives a growing company a practical answer to a question that previously caused uncertainty for founders considering naturalisation.
A change of shareholders or beneficial ownership can be assessed within the existing registration where the conditions applicable at initial registration continue to be met. A material change in business activity, by contrast, requires a fresh application and full reassessment. Directors planning a restructuring should examine the effect on the registered entity itself. For example, if a software company moves its development team and contracts into a subsidiary and becomes a holding company, its old registration cannot simply be treated as covering the subsidiary’s operations. BSC announcement on citizenship changes · Changes after registration
The BSC may remove a company that ceases to satisfy its conditions, provides false or misleading information, breaches employment or immigration law, or fails to demonstrate genuine economic activity. It may examine financial and operational evidence and inspect the premises, taking account of the nature and stage of the business. An early-stage developer and an established exporter may have quite different records. Both should be able to show what work is taking place, who performs it and where it is carried out.
How Shanda Consult can assist
Shanda Consult assists Cyprus businesses and international groups with BSC registration and continuing compliance. Before an application, we assess the activity of the proposed employer (= the BSC registration candidate company), the positions to be filled and the most suitable way to evidence the €200,000 investment. We review the premises arrangements, prepare the registration file and assist with the application and follow-up.
For companies already registered, we assist with annual employment reporting, workforce-ratio reviews and changes affecting continued eligibility. Where a company plans to relocate staff, hire a non-EU specialist or appoint a working founder, we can coordinate the company registration and the relevant residence and employment applications.
If you are considering BSC registration, or already employ people under the former Companies of Foreign Interest framework, contact Shanda Consult in Nicosia. Let us know what your company does in Cyprus, whom you employ or intend to hire, and, for an existing registration, when it was granted. Those details allow us to assess the route and timetable relevant to your business.
Information current as at 6 November 2026.