The House of Representatives of Cyprus recently passed a new legislation to regulate and encourage certain strategic investments in Cyprus.
What is a Strategic Investment
The legislation introduces a mechanism for classifying an investment as ‘strategic’. In particular, an investment may be classified as strategic if:
- It amounts to €20 million, of which at least 75% comes from primary capital such as new, liquid, available funds directly linked to the project,
- It makes available at least 80 new permanent jobs in Cyprus, of any type, or 50 new permanent jobs with an annual salary expenditure in Cyprus of more than €1.5 million,
- It amounts to €15 million of which at least 75% comes from primary capital and the creation of 30 new permanent jobs, and
- It is an investment by a landmark or anchor company, being a well-known multinational of international reputation, which will develop business activity in Cyprus and is registered in relevant international lists such as FORBES 2000, NASDAQ500, FTSE 350.
Other provisions of the legislation include the establishment of a Department of Strategic Investments within the Department of Town Planning and Housing, the development of a mechanism which will evaluate whether the development is strategic, based on objective criteria, and the creation of a position of Project Manager.
Benefits for Strategic Investors
A strategic investment contributes in the growth and success of a business in Cyprus and the classification confirms that the business has the strength to compete in the local market.
It should be noted that for investments classified as ‘strategic’, priority will be given in the examination and issuance of Town Planning and Building Permits.
The legislation aims to facilitate and encourage large-scale investments in Cyprus.
Next Steps
We are awaiting publication of the final draft of this new legislation and further guidance on its implementation.
Should you wish to find out more, contact our team at info@paraschou.com.cy.
