The Cyprus Start Up Visa
The goal of the scheme is the creation of new jobs, the promotion of innovation and research, the development of the business ecosystem and consequently the economic development of the country.
The Cyprus start visa shall be valid until December 2026 and up to 150 visas can be issued.
For the purposes of this Scheme, Innovative Startups are defined as unlisted small enterprises having a five-year existence, which have not yet distributed profits and have not been formed through a merger. The enterprise should have and/or should be developing new products, services, processes that create new or disrupt existing markets. Such products, services, processes must be based on new technologies or are adapting existing technologies and/or are employing new business models.
1. Who is eligible for the Cyprus Start up Visa
A non-EU national who will act as the sole founder of an innovative Startup is eligible to apply for a start-up visa. Eligibility is also applicable to a team of maximum 5 individuals consisting of non-EU nationals who are the founders of an innovative Startup or of at least one founder and other senior executives of the startup.
It is to be noted that the Individual and the Team Startup Visa Scheme is open to individuals who are the owners of more than 25% of the startup’s share capital.
2. Benefits for Successful Applicants
The founder of a startup acquires the right to exercise economic activity and residence in the Republic of Cyprus for three years, with the possibility of renewal.
The senior executives obtain the right to paid employment in the company that will operate from Cyprus
3. Process for Obtaining Initial Approval
All applications should be in English and must be submitted to the Deputy Ministry of Research Innovation and Digital Policy, ("DMRID"),at: cyprustartupvisa@dmrid.gov.cy.
The application may be submitted prior to the applicants arriving into Cyprus.
4. Categories of Applications
4.1 Category A: Startups at Pre-Revenue Stage or Post-Revenue under €1M
A Pre-Revenue Stage Startup is a startup that has not yet generated any revenues from the sale of products/services/processes.
The Applicant/s must submit an application which will includes a business plan
Demonstrating that:
i. the proposed Startup falls within the definition of EU Regulation number 651/2014 of 17th June 2014,
ii. the ability of the Startup to develop new or clearly improved products, services or processes with high technological or industrial risk, which are characterized as innovative in their field. Startups that introduce disruptive business models creating new revenue streams or creating platform products scaling internationally are also eligible.
4.2 Category B: Startups at Post-Certain-Revenue-Threshold
The company/ applicants must submit an application accompanied by the following:
i. proof that the Startup falls within the definition of EU Regulation no. 651/2014 of 17th June 2014,
ii. a certificate from an external auditor certifying that its revenue from the sales of
products, services, processes are at least €1million according to the most recent audited financial accounts
iii. proof that its research and development costs represent at least 10% of its total operating costs in at least one (1) of the three (3) previous tax years.
iv. its most recent audited Financial Accounts and the Financial Accounts for the specific year that its research and development costs represent at least 10% of its operation costs.
5. Approval or Rejection of an Application
Upon submission of the application the Deputy Ministry of Research, Innovation and Digital Policy, (“DMRID”) shall provide a response within five weeks. It is to be noted that during the process of examination of the application the DMRID will request additional documents
demonstrating that the individuals who are associated with the startup, such as the founder / co-founder or senior executives, own above 25% of the share capital of the start-up.
The DMRID reserves the right to obtain the services of subject matter experts to assess an application.
Upon approval of the application by the DMRID, the applicants will receive a Notification of Initial Approval, which grants them the right to economic activity in the Republic of Cyprus for three years, with the possibility of renewal for at least another two years, from the date of issue.
6. Process for obtaining Approval from the Migration Department
6.1 Submission of an Application of Entry in the Republic of Cyprus
The application’s initial approval does not automatically guarantee a right of entry, residence or employment in the Republic. The Migration Department and the Ministry of Foreign Affairs is notified by the DMRID of the approval of the Application.
When the applicant/s obtains the Notification of Initial Approval while abroad, they must submit an application within six months for a visa to the Consular Authorities of the Republic or to the Migration Department in order to secure entry/registration/residence permit.
6.2. Submission of an Application of Entry and Work / Residence permit in the Republic of Cyprus
If the applicants receive the Notification of Initial Approval while legally residing in Cyprus, they must submit an application to the DMRID within one month in order that they may obtain a residence permit for the establishment/operation/and development of a Startup.
If the applicant is in the Republic with a visitor status, before submitting the application, he/she should submit a written request to the Migration Department in order to change their residence status.
7. Transfer between Individual and Team Visa Scheme
If an application was submitted under the Individual Startup Visa Scheme, it is possible to transfer to the Team Scheme, provided that the requirements of the scheme are met. If an application was submitted in the Team Startup visa scheme, at any time within the three years of the Notification of Initial Approval, there is a possibility to complete the maximum number of five team members such as founders and senior executives, provided that the requirements of the Scheme are met.
8. Possibility for Additional Recruitment of Foreign Personnel under the Startup Visa Scheme
In addition to the Team that consists solely of the founders or at least one founder and other senior executives, the startup, shall be able to recruit additional foreign personnel as follows:
Up to five (5) individuals without prior approval of the Department of Labour, provided that their gross monthly salary of at least €1.500, who shall be eligible to reside and work in Cyprus for up two-years and subject to fulfilling the requirements of law, exercise the right to family reunification.
9. Family Members
As regards the family of the Founders and Senior Executives, they also acquire the immediate right to reside in Cyprus with the right to the labour market in the same terms.