Startup Visa scheme in Cyprus

The Cyprus Startup Visa scheme allows talented entrepreneurs from outside EU to come to Cyprus and establish startups with a minimum investment capital of 50,000 euros. Upto five persons as a team can form a company and receive residence permit to live in Cyprus.

The Startup scheme’s goal 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 introduction of the “Cyprus Startup Visa” is part of the Policy Statement on Strengthening the Entrepreneurial Ecosystem in Cyprus.

The startup visa scheme will operate on a pilot basis for two  years from February 2017 to February 2019. During this two year period 150 visas will be issued. Cyprus offers dynamic incubator and accelerator programs, aiming to facilitate the creation of innovative startups.

Eligibility conditions

The founder meets the requirements of the enterprise below.

•  Has access to €50.000, which may include venture capital funding, crowdfunding or other sources of funding.
•  Holds an undergraduate degree or an equivalent professional qualification.
•  Has very good knowledge of the Greek and / or English language.
• The enterprise must be innovative. The enterprise will be considered as innovative if its research and development costs represent at least 10% of its operating costs, in at least one of the three years preceding the submission of the application, as certified by an external auditor, on the basis of international accounting standards. In the case of a new enterprise without any financial history, the evaluation will be based on the Business Plan submitted by the applicant.
•  The Business Plan must provide that the enterprise’s head offices and tax domicile be established in Cyprus. The head offices may be common co-working spaces (eg business accelerators, incubators, digital hubs etc) or co-location with other enterprises.

Benefits of startup

• Over three million tourists, three times the country’s population, visit Cyprus each year.
• Cyprus has the standard corporate tax rate 12.5%, one of the lowest in the European Union.
• Cyprus has the youngest  workforce in the European Union with over 54% having third degrees.
•  Around 80% of Cypriots speak English, used by businesses and government services.
• Innovative small businesses can apply for grants of up to 2.5 million Euros for research and development projects through the European Union’s Horizon 2020 program.
• Office rental rates are among the lowest in Europe.
• Average hourly rate of €15.8 significantly lower than the UK (€26.7)
• Corporate tax rate is 12.5%, one of the lowest in the European Union
• Establishing a business is simple and fast.
• Cyprus has more than 700 registered accounting firms, 2,700 registered lawyers and 160 lawfirms, providing a competitive market for legal services.
• European Single Market, Cyprus enjoys free movement of goods, services and capital with other European Union member states

Taxes Benefits

• Technology companies producing Intellectual Property can apply for an 80% tax exemption, reducing the corporate tax rate to an effective 2.5%.
• Tax rates for individuals are among the lowest in the European Union. No income tax is payable
  on the first €19,500 of personal income.
• High rankings to quality of life, considering factors such as infrastructure, education, healthcare, and the environment.
• Investments in innovative companies  and startups can be deducted from taxable income, up to an annual limit of €150,000.
• Dividend and interest payments are exempt from taxation, enabling most technology entrepreneurs to minimize their overall tax burden.
• Cyprus has signed more 60 tax treaties to help ensure that individuals and companies avoid double taxation.

Entrepreneurs can receive residence permit to live in Cyprus for one year which then can be prolonged further.

How to apply

Application for a Startup Visa can be launched at  the Civil Registry and Migration which could take upto 3 weeks.

The application fees for founder Issue of an Entry Permit, Registration and Issue of a Temporary Residence and Employment Permit  is 170 euros. The fee for founder, manager and staff is 270 euros.

Popular startups from Cyprus

• Wargaming Group (www.wargaming.net) for World of Tanks popular multiplayer
• Whipper (www.whipper.live)
• Viber (www.viber.com)
• Proto.io (www.proto.io)
• NIPD Genetics (www.nipd.com)
• MindGeek (www.mindgeek.com)

Read more about the start up visa  here