The Cabinet on Wednesday approved a revised start-up visa, according to Deputy Minister of Research, Innovation, and Digital Policy Nicodemos Damianou.

Damianou said that the revisions aim to make the scheme “more effective and attractive”.

Since its inception, the scheme has resulted in the establishment of 21 start-up companies in Cyprus.

“The revised scheme enhances our strategic objectives of bolstering the innovation and entrepreneurship ecosystem in Cyprus,” Damianou said following the Cabinet meeting.

The scheme allows start-up owners and senior executives from third countries, either individually or as a group, to enter, reside, and work in Cyprus.

This can be for establishing a new start-up, relocating an existing one, or setting up a branch in Cyprus.

The revised plan brings several significant changes to the start-up visa scheme.

Residence permits have been extended from two to three years, with renewals now granting an additional two years instead of the previous one-year extension.

The equity ownership requirement has been lowered to a minimum of 25 per cent of the share capital, reduced from the earlier 50 per cent threshold.

Additionally, start-ups are now permitted to employ up to 50 per cent of their workforce from abroad, an increase from the previous limit of 30 per cent.

Moreover, start-ups that invest at least €150,000 in Cyprus are eligible to hire additional foreign personnel.

What is more, Damianou highlighted new evaluation criteria for start-ups with revenues exceeding €1 million or those spending at least 10 per cent of their operational costs on research and development in one of the past three years.

“The revised scheme offers greater flexibility and attracts start-ups at all stages of development, from early-stage ventures to more mature businesses generating revenue or securing private investment,” Damianou said.

Furthermore, start-ups renewing their visa after the initial three years must meet stricter criteria.

These include demonstrating at least a 15 per cent revenue increase or securing €150,000 in investments.

Companies must also create a minimum of three new jobs, participate in local innovation support programmes, or introduce at least one product or service to the market.

Employees of these start-ups are also expected to have basic digital skills.

The updated start-up visa scheme will come into effect on January 1, 2025.