Cyprus Startup Visa

The “Cyprus Startup Visa” Scheme enables talented entrepreneurs from third countries, either individually or as part of a team, to enter, reside, and work in Cyprus to establish, operate by relocating an establish innovative startup to Cyprus, or develop a new startup with high growth potential.

Innovative startups are defined as

• unlisted small enterprises
• no more than five years old from their registration
• not yet distributed profits
• have not been formed through mergers

• be developing or have already developed new products, services, or processes that either create new markets or disrupt existing ones
• the products, services, or processes should be based on new technologies, adapt existing technologies, or utilize new business models.

In order for the company to be considered as Innovative startup must fits the definition according to the EU Regulation no. 651/2014 of 17th June 2014.

The Scheme will be valid until December 2026, and a total of up to 150 visas can be issued.

Two Visa Schemes:

1. Individual Startup Visa Scheme:
   • non-EU national sole founder of an innovative startup.

1. Team Startup Visa Scheme:

• team of up to five non-EU nationals
• all of whom must be founders of an innovative startup, or at least one founder and other senior executives.

In both visa schemes, at least 25% of the company’s shares must be owned by one or more members of the applicant or the applicant team.

Two Categories:

1. Category A: Startups at Pre-Revenue Stage or Post-Revenue under €1M
   A Pre-Revenue Stage Startup is one that has not yet generated revenue from the sale of products, services, or processes. Applicants must submit a business plan to the Deputy Ministry demonstrating:

• How the proposed startup fits the definition under EU Regulation No. 651/2014 (17th June 2014).

2. The startup’s potential to develop new or significantly improved products, services, or processes with high technological or industrial risks, which are innovative in their field or market.
3. Startups introducing disruptive business models or creating platform products with potential for international scaling are also eligible.

2.Category B: Startups with Revenue of €1M or More

• The company must submit:
• an application showing how the proposed startup meets the criteria under EU Regulation No. 651/2014.
• Additionally, a Certificate from an External Auditor must confirm that the startup’s revenue from the sale of products, services, or processes is at least €1 million, according to the most recent audited financial accounts, and
• that R&D costs account for at least 10% of the total operating costs for at least one of the past three tax years.
• The company must also submit the most recent audited financial accounts, including the year in which R&D costs represented at least 10% of its operating costs.
• The financial statements should clearly define the categories of R&D expenditure.

1.In Case of Approval:

• The Migration Department and the Ministry of Foreign Affairs will be notified of the application’s approval by the Deputy Ministry.

2.Visa Application:

• If applicants receive initial approval while abroad, they must submit a visa application to the Republic’s Consular Authorities or the Migration Department within six months to secure entry/registration/residence permits.
• If applicants are already legally residing in Cyprus when they receive initial approval, they must submit an application to the Migration Department within one month to ensure registration/residence permits for the establishment, operation, and development of the startup.

3.Staff recruitment

• In addition to the team consisting solely of the founders or at least one founder and other senior executives, the company may, if desired, recruit additional foreign personnel in accordance with the relevant guidelines.

Benefits:

1.Right to live and work in Cyprus:

• Right to live and work in Cyprus for 3 years (possibility for renewal for 2 years- previous rule -1 year)

2.Family Support

• Right of residency and paid employment for spouses (right to family reunification)

3.Recognition

• Eligible for Certificate of Innovative Company

4.Recruitment Flexibility

• Allow to hire 50% of non-EU nationals employees under certain criteria

Remark : The content of this article was accurate at the time of the first publication. It provides general information on the subject matter and is not intended as legal advice. For specific advice on your situation, we recommend seeking professional counsel. If you have any questions or need further information, please contact our experts at contact@mainpartner.com

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