In April 2026, Cyprus enacted a new law on the verification of foreign direct investments. Non-European Union citizens must now obtain prior approval from the Ministry of Finance before acquiring assets of strategic importance in Cyprus.
Key changes introduced by the law include:
Foreign investors must notify the Ministry of Finance of Cyprus through a designated online portal before making a direct investment, provided the investment meets all three of the following criteria:
– The investment amount is at least 2 million euros (both for a single transaction and for a combination of transactions between the same parties over a 12-month period);
– The object of investment is assets of strategic importance;
– The investment leads to the occurrence of a "qualified participation" of a foreign investor (at least 25% of the authorized capital or voting rights, or the opportunity to exert a decisive influence on the company's activities).
Any subsequent increase in qualified participation, such as moving from below 25% to 25% or more, or from below 50% to 50% or more, requires mandatory notification to the Ministry of Finance, regardless of investment size. The Ministry of Finance may also review any foreign investment, even if it does not meet the mandatory notification criteria, if there are concerns about its impact on Cyprus’s security or public order. These changes do not apply to the purchase of residential real estate valued up to 2 million euros in residential areas. Such transactions remain subject to the standard procedure, requiring permission from the Council of Ministers.
