Cyprus Work Visa and Residence Permit Policies Effective January 2025

Starting January 2025, Cyprus has implemented significant changes to its visa policies. These updates introduce new opportunities and requirements for various visa types. The aim is to enhance the country’s appeal to entrepreneurs, skilled workers, and their families. This article outlines four major changes to Cyprus visas that took effect in January 2025.

1. Startup Visa (Revised for 2025)

The Startup Visa targets entrepreneurs who wish to launch innovative businesses in Cyprus. This visa allows individuals or teams to relocate and benefit from the growing startup ecosystem. The revised policies simplify the application process for co-founders with smaller equity stakes.

Key Changes to the Startup Visa:

• Lower Equity Stake Requirement: The minimum equity stake needed has decreased from 50% to 25%. This change makes it easier for co-founders and smaller shareholders to apply.
• Extended Residence Permits: Startup visa holders now receive permits valid for three years instead of two. Renewal durations have increased from one to two years.
• Objective Renewal Criteria: Clear benchmarks have been established for renewing visas. Applicants must achieve at least 15% revenue growth, secure investments of €150,000 or more, create a minimum of three new jobs, or introduce a product to the market.
• Increased Foreign Workforce Allowance: Startups can now hire up to 50% of their workforce from abroad, up from the previous limit of 30%.

2. Cyprus Work Visas for Foreign Employees

This visa allows non-Cypriot nationals to work for companies in Cyprus. The updated policies expand opportunities for startups and businesses to hire skilled workers globally.

Key Changes to Work Visas:

• Enhanced Access to Foreign Talent: Companies investing €150,000 or more can now hire additional foreign personnel without prior limitations.
• Alignment with EU Wage Standards: Work visa holders will benefit from improved wage protections, aligning with recent updates to EU labor directives.

3. Residence Permits for Dependents

Dependents of primary visa holders, such as spouses and children, can live in Cyprus under this permit. The updated policies promote greater family stability for those relocating.

Key Changes to Residence Permits for Dependents:

• Extended Validity Periods: Dependents’ permits now align with the validity period of the primary applicant’s visa, offering longer durations of residence.
• Improved Family Stability: These changes make Cyprus more attractive for families by reducing the need for frequent permit renewals.

4. Investor and Innovation-Driven Visas

This visa type is for individuals investing in Cypriot businesses or driving innovation in the country. While there are no direct changes, holders benefit indirectly from the improved startup ecosystem.

Indirect Benefits for Investor and Innovation-Driven Visas:

• Improved Collaboration Opportunities: Increased foreign workforce allowance fosters collaboration with startups.
• A More Vibrant Innovation Ecosystem: The updated startup visa policies enhance the overall entrepreneurial environment.

Summary: Key Visa Types Affected in 2025

The recent changes primarily impact the following visa categories:

• Startup Visa: Simplified ownership requirements and longer durations make this visa type the most affected.
• Work Visas for Foreign Employees: Increased workforce flexibility and wage protections enhance opportunities for global talent.
• Residence Permits for Dependents: Extended validity periods align with the primary visa holder’s permits, making Cyprus more family-friendly.
• Investor and Innovation-Driven Visas: Holders benefit from a more dynamic entrepreneurial climate.

These updates represent Cyprus’s commitment to attracting talent and fostering innovation. As the landscape evolves, potential applicants should familiarize themselves with these significant changes.