More foreign companies set up shop in Cyprus

According to Cyprus’ Interior Minister Nicos Nouris, the adoption of the New Strategy for Attracting Business and Talent has resulted in a notable rise in the number of foreign businesses interested in setting up shop in Cyprus. In 2021, 5,475 applications were submitted, whereas by August 2022, this number had increased to 7,883.

The government’s actions, according to Nouris, who was speaking at the VIII Business Conference in Limassol, ” create new opportunities for both current and new businesses who plan to relocate to Cyprus.”

Nouris explained the laws and regulations that make it simpler for foreign companies to establish businesses in Cyprus, and, hire employees from third countries who are accompanied by their families. The goal is to help businesses to better deal “with this new reality created by the pandemic and the recent effects of the economic crisis.” Nouris said.

He noted that the incentives offered by the Ministry of Interior fall under the New Strategy for Attracting Business and Talent, the New Development Licensing Policy and the New Licensing and Local Plans Policy. “The government’s efforts to improve the business and economic climate are systematic and ongoing” he assured.

Nouris made reference to a system for the rapid establishment of firms in Cyprus that came into force in 2020 and was transformed into the Business Facilitation Unit under the Ministry of Energy, Trade, and Industry in 2022. The contribution of the amended policy on foreigners entering the country for doing business activities, facilitating the relocation of third-country nationals and their families, as well as permits their spouses to work in Cyprus.

Current foreign interest companies will be able to employ workers from third countries without any restrictions on numbers, by the end of 2026. However, from 2027, the maximum number of such employees will be 70% of the company’s total number of workforces, he added.

According to Nouris, “the adoption of the New Strategy has led to a dramatic increase in interest from foreign companies to establish themselves in Cyprus.” He also noted that from January to August, 4,524 applications from families connected to foreign companies were submitted, compared to 4,242 for the whole of 2021.