Updated: April 19, 2025
The Cyprus Business Facilitation Unit (BFU) is part of the Cyprus “Strategy for Attracting Businesses for Activities or/and Expansion of their Activities in Cyprus”. The Council approved the Strategy of Ministers on 15 October 2021, and the BFU took effect on 1 January 2022. As explained by the Civil Registry and Migration Department (CRMD), the BFU replaced the existing policy on employees in companies of foreign interest.
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The aim of the BFU, according to the Ministry of Finance, is to gather international investments and talent and strengthen the position of Cyprus as a business center.
On January 2, 2022, the Fast-track business activation mechanism became a Business Facilitation Unit.
The new strategy offers facilities for foreign companies that wish to employ high-skilled non-EU nationals.
Application is made by email and a letter of expression of interest to the BFU.
The letter should contain the following information:
Several services facilitate the working of a business under the BFU.
Briefly, the BFU:
*The necessary registrations are:
The licenses are issued within 1 month for a period of up to 3 years.
In Cyprus, companies eligible for the BFU facilities are:
For categories 1 and 2, the company must show an investment of EUR 200,000 in the Republic, or the ultimate beneficial owner (UBO) must deposit EUR 200,000 in an account held by the company in a credit institution licensed by the Central Bank of Cyprus.
For categories 3-8, the EUR 200,000 investment criterion applies. The company must be able to prove the investment by showing an appropriate certificate(s).
The maximum number of foreign nationals employed by the company must be 70%.
Current national legislation (laws and rules) may determine the support staff's salary.
* A high technology company is a company that:
The Deputy Ministry of Research, Innovation and Digital Policy has published a practical guide on such companies at High Tech Enterprise Certificate - Practical guide (PDF).
Are companies already registered in the Civil Registry and migration department eligible?
Yes. They do not have to register with the BFU. The BFU policy applies automatically to all companies registered as foreign participation companies.
Are small companies, family offices and sole proprietorships eligible?
Yes.
To get the working visa/ permit under the BFU, third-country nationals must satisfy the following criteria:
I have current key personnel whose salaries satisfy the previous threshold of EUR 2,000. Is it necessary to raise it to EUR 2,500 immediately to renew their licenses?
No. You have a 5-year grace period (until 31 December 2026) to raise the salaries of current key personnel.
What else gets covered by this 5-year grace period?
Existing companies have until December 31st, 2026, to secure at least 30% of key personnel from EU countries.
There is a family reunification process for third-country national key personnel family members.
The third-country national employee (the “Sponsor”) must follow the procedure for family reunification and apply to the Civil Registry and Migration Department.
Eligible family members (that is, family members who can join the sponsor) are spouses, children, and other children in the sponsor's custody. The marriage must have occurred at least one year before the application submission.
If a family member does not qualify for family reunification (for example, a spouse who has been married for less than a year), they can apply for the temporary residence permit of a dependent visitor.
Employees with a gross salary of less than EUR 2,500.
The support staff is allowed provided, first, there is a duly stamped and validated employment agreement and, second, third-country national support personnel do not exceed 30% of the total support personnel. Work permits are granted for up to 3 years.
Some important benefits for high-skilled, third-country nationals are:
* The market test requirement is the stamped employment contract from the Department of Labour. The department “stamps” a contract when the employer shows that they are hiring a third-country national because they have not found a local employee. The employer must publish the vacant posts in the local press and receive no positive response (copies of the announcement must be handed in with the application). This requirement will no longer apply to key personnel and their spouses.
The tax incentive scheme was updated on 20 July 2022. The updates are part of the Cyprus Long Term Vision 2035, as outlined by Minister of Finance Constantinos Petrides in Dubai on 24 February 2022.
This last exemption was introduced in July 2022 and incorporated into the Cyprus Income Tax Law (ITL) Article 9(1)(d). It applies to:
Persons carrying on any business.
The R&D exemption for small and medium-sized enterprises (SMEs). The SMEs are defined by Article 9A ITL. They must not be SMEs of foreign interest.
Research and development must be within the types recognised by international accounting standards. ACCA (the Association of Chartered Certified Accountants) defines research as an original and planned investigation undertaken to gain new scientific/ technical knowledge and understanding. Development is the application of research findings/ knowledge to a plan or design to produce new or improved materials, products, systems, and so on.
See all the tax incentives in detail here:
Strategy for attracting business and talent - Business In Cyprus (PDF)
Under the BFU, third-country national employees can apply for naturalisation. They can apply for and receive Cypriot nationality after 5 years or 4 with success in Greek language examinations.
The BFU is the point of contact for interested companies. It also acts as a single point of contact for foreign companies.
The point of single contact will process requests from foreign companies to establish a company in Cyprus or expand existing companies' activities.
The application is made by letter or email to the BFU (see above).
The applicant receives written approval confirmation and is told what documents to submit to the BFU. Within 7 working days of submitting the documents, the company is registered with the Registrar of Companies.
Using the confirmation, the company must contact the CRMD about the residence and employment of third-country national personnel.
To see all the easements and facilities available, go to BFU - Business In Cyprus
Postal address:
Business Facilitation Unit (BFU)
Ministry of Energy, Commerce and Industry
Trade Service Building (3rd floor), 10 Andrea Araouzou street, 1421 Nicosia
Email: bfu@meci.gov.cy.
What is a company of foreign interests in Cyprus?
A company of foreign interests in Cyprus means one of two things. The first is a company where third-country nationals hold more than 50% of the shares. The second is where third-country nationals hold 50% or less of the shares, but those shares are valued at least 200,000 euros.
This is on top of the 200,000 euros, which either form of a company must deposit to a credit institution to qualify for registration and the benefits of the Business Facilitation Unit (BFU). The credit institution must be licensed by the Central Bank of Cyprus.
Is it easy to start a company in Cyprus?
Starting a company in Cyprus is easy. One person can be the sole director and shareholder; the share capital is usually 1,000 euros. Nevertheless, you are advised to plan before you form a company and ensure that the limited company is the best form for your type of business.
How do I register a limited company in Cyprus?
You will first need to contact a lawyer. Only lawyers licensed by the Cyprus Bar Association can register companies. The lawyer will need information about your company, such as directors, secretary, shareholders, amount and types of shares and the company's registered office, which must be in Cyprus.
They will first get permission to register the proposed name and then continue with the remaining documentation (articles of incorporation, memorandum of association and other forms). Once the Registrar of Companies registers the company and issues the registration certificate, the company can start work.
Can a non-resident register and start a company in Cyprus?
Yes, a non-resident can start and register a company in Cyprus. However, they must appoint a resident as one of the directors. This person can be a lawyer.
What is the Cyprus Business Facilitation Unit?
The Cyprus Business Facilitation Unit (BFU) is part of Cyprus's “Strategy for Attracting Businesses for Activities or/and Expansion of their Activities in Cyprus”. The Council approved the Strategy of Ministers on 15 October 2021, and the BFU took effect on 1 January 2022. As the Civil Registry and Migration Department (CRMD) explained, it replaced the existing policy on employees in companies of foreign interest.
The BFU provides services for companies by facilitating registration, operation, and the issuance of employment permits, especially for third-country nationals who wish to work and reside in a company of foreign interests in Cyprus. Moreover, it contains tax and other incentives to make business and the way of life smoother for foreign companies, their managers and personnel.
George K. Konstantinou
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