Cyprus Business Facilitation Unit (BFU)

The Cyprus Business Facilitation Unit (BFU) is a government one-stop shop that attracts foreign companies. It streamlines business setup by providing fast-track registration and licensing. The BFU also accelerates residence and employment permits for key non-EU personnel, who can access tax benefits.

The 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.

On 26 May 2025, the Business Facilitation Unit joined the Business Support Centre (BSC).

Briefly about the BFU

According to the Ministry of Finance, the aim of the BFU is to attract international investments and talent and strengthen the position of Cyprus as a business center.

On 2 January 2022, the Fast-track business activation mechanism became a Business Facilitation Unit. The new strategy offered facilities for foreign companies that wish to employ high-skilled non-EU nationals.

On 26 May 2025, the Business Facilitation Unit was reorganised as part of the Business Support Center (BSC).

Business Support Center (BSC)

The Business Support Center (BSC) is Cyprus's primary contact for investors. As a comprehensive service, it streamlines business setup, licensing, and registration for local and foreign companies. An evolution of the BFU, it also facilitates strategic projects and foreign company registrations.

The BCS consists of:

• the Strategic Development Sector (SDS) of the Department of Town Planning and Housing (DTP&H);
• the Business Facilitation Unit (BFU) of the Ministry of Energy, Commerce and Industry;
• Invest Cyprus;
• contact points with the departments involved in the licensing sector.

Services under the Business Support Center include the following:

• Personalised guidance on business setup, licensing, and registration.
• Registration of foreign-interest companies to enable hiring of non-EU nationals.
• Facilitation and information for energy sector projects.
• Specialised support for businesses operating in the services sector.
• Licensing for designated strategic development projects.

How to apply as a Foreign Interests Company

The application to the BFU is submitted online at businessincyprus.gov.cy. To register a Foreign Interests Company in Cyprus, the application should contain the following information:

• A description of the nature of the business.
• The number of employees.
• Business expansion to Cyprus plans and other details.
• Services the company wishes to obtain through the BFU.
• Any relevant documents must accompany the application.

If the applicant is eligible and the application meets the requirements, registration with the Register of Companies with Foreign Interests will be completed within ten business days from the date the e-form is duly submitted. A confirmation letter of the registration will be sent by email.

Services available under the BFU

Several services facilitate the operation of a business under the BFU.

Briefly, the BFU:

• Helps establish a company by assisting with the necessary registrations*. All the necessary registrations will be completed within 7 working days.
• Facilitates the licensing for the establishment and operation of companies in Cyprus. It provides all the information needed to obtain the company's permits to begin work.
• Facilitates issuing Cyprus residence and employment permits, especially for third-country nationals. Residence and employment become a fast-track process.

*The necessary registrations are:

• Name approval and company registration.
• Registration at the Social insurance registry and the Employers’ registry.
• Registration at the VAT registry and Income Tax.

Eligible companies

In Cyprus, companies eligible for the BFU facilities are:

• 1. Companies where third-country shareholders own the majority of the shares;
• 2. If a foreigner holds only 50% (or lower) of the shares, then the foreign participation must equal at least €200,000 in the capital;

  For categories 1 and 2, the company must show an investment of €200,000 in the Republic, or the ultimate beneficial owner (UBO) must deposit €200,000 in an account held by the company in a credit institution licensed by the Central Bank of Cyprus.

• 3. Public companies registered in any recognised stock exchange;
• 4. Former offshore companies approved by the Cyprus Central Bank, which have now changed their offshore status;
• 5. Cypriot shipping companies;
• 6. Cypriot high technology* / innovation companies; or,
• 7. Cypriot companies that operate in pharmaceuticals, biogenetics, and biotechnology.
• 8. Companies in which the majority of the total share capital is owned by persons who have acquired Cypriot citizenship by naturalisation based on economic criteria, provided they can show that the criteria continue to apply.

For categories 3-8, the €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 the company employs must be 70%.

Current national legislation (laws and rules) may determine the support staff's salary.

* A high technology company is a company that:

• has an established presence in the market,
• has a high level of experimental research and development intensity,
• develops products that fall into categories such as aviation, space, computers, and electrical machinery.

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).

Other companies

Criteria for third-country nationals

To get the working visa/ permit under the BFU, third-country nationals must satisfy the following criteria:

• They must belong to the key personnel.
• Hold a university degree, diploma or equivalent qualification or credentials, and confirmed relevant experience in an employment position of at least 2 years.
• Have a minimum gross monthly salary of €2,500.
• Have an employment contract of 2 years or less.

FAQ

Family reunification

There is a family reunification process for third-country national key personnel's 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 (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.

Rules for support staff

Employees with a gross salary of less than €2,500.

Support staff is allowed if there is a duly stamped and validated employment agreement, and third-country national support personnel do not exceed 30% of the total support personnel. Work permits are granted for up to 3 years.

Facilities and benefits for third-country nationals

Some important benefits for high-skilled, third-country nationals are:

• Exemption from the requirement to submit a sealed employment contract to the Labour Department (the market test requirement* means that this is a position in which no Cypriot could have been employed).
• Right of family reunification. Spouses of key personnel (that is, personnel with a minimum gross monthly salary of €2,500) will have free and immediate access to paid employment without the market test requirement.
• A simplified and faster process to receive the work permit.
• Under the BFU, third-country national employees can apply for naturalisation. They can apply for and receive Cypriot nationality after 5 or 4 years with success in Greek language examinations.

* 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.

Tax incentives

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.

The tax incentives include

• For personnel with salaries over €100,000 per year, there is a 50% exemption for 10 years, provided they did not reside in the Republic for 3 out of the 5 years before the year they started employment in the Republic.
• For salaries between €55,000 and €100,000 a year, there is a 50% exemption for 17 years, provided they did not reside in the Republic for 15 years.
• For salaries of less than €55,000 a year, 20% for 5 years, provided they did not reside in the Republic before employment.
• Individuals who invest in an approved innovative company receive a 50% exemption for their investment. This regime initially applied until 31 December 2023 and was extended to the end of 2026.
• Expenditure for scientific research and research and development expenses will be deducted from taxable income.

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). Article 9A ITL defines the SMEs. 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 (PDF) - gov.cy

How to get in touch with the BSC?

As of August 2025, the contact information of the Business Support Center (BSC), which includes the BFU, is:

• Address: 5-6 Kinira str., 1102 Nicosia
• Email: bfu@meci.gov.cy.
• Website: www.businessincyprus.gov.cy

Our services

George K. Konstantinou Law Firm assists international clients with navigating the Business Support Center (BSC) framework. We provide the following legal services for foreign companies and their employees:

• Full assistance with the Foreign Interests Company application and registration process through the BFU and BSC.
• Advising on company and employee eligibility to meet all BSC and immigration criteria.
• Securing fast-track residence and employment permits for key non-EU personnel.
• Handling family reunification applications for employees and their dependents.
• Guidance on accessing available tax incentives and pathways to Cypriot naturalisation.

Frequently asked questions