Cyprus Business Facilitation Unit (BFU)
The Cyprus Business Facilitation Unit (BFU) serves as a centralized government service designed to attract foreign businesses to Cyprus. It facilitates and speeds up company incorporation and licensing procedures, while also fast-tracking residence and work permits for key non-EU staff, who may qualify for certain tax advantages.
The BFU was established within the framework of Cyprus’ “Strategy for Attracting Businesses for Activities and/or Expansion of their Activities in Cyprus,” approved by the Council of Ministers on 15 October 2021 and implemented on 1 January 2022. As noted by the Civil Registry and Migration Department (CRMD), it replaced the former regime applicable to companies of foreign interests.
On 26 May 2025, the BFU became part of the Business Support Centre (BSC).
Business Support Center (BSC)
The BSC serves as Cyprus’ main point of contact for investors. Acting as an integrated service hub, it simplifies and coordinates company formation, licensing and registration procedures for both domestic and international businesses. Building on the role previously carried out by the BFU, the BSC also supports strategic development projects and the registration of foreign-interest companies.
The BSC is composed of:
· The Strategic Development Sector (SDS) of the Department of Town Planning and Housing (DTP&H);
· The Business Facilitation Unit (BFU) of the Ministry of Energy, Commerce and Industry;
· Invest Cyprus;
· Designated liaison points within government departments responsible for licensing.
The services provided through the BSC include:
· Tailored advice and support regarding business establishment, licensing, and registration procedures;
· Registration of foreign-interest companies to facilitate the employment of non-EU nationals;
· Guidance and coordination for projects in the energy sector;
· Targeted assistance for companies operating within the services industry;
· Licensing procedures for approved strategic development projects.
Application process The application to the BFU is submitted online at businessincyprus.gov.cy. To register a Foreign Interests Company in Cyprus, the application must include the following details:
· A brief description of the company’s business activities.
· The total number of employees.
· Information regarding the company’s plans to establish or expand its operations in Cyprus, along with any other relevant particulars.
· The specific services requested through the BFU.
· All supporting documentation required to assess the application.
Provided that the applicant satisfies the eligibility criteria and the submission is complete, registration in the Register of Companies with Foreign Interests will be finalized within ten (10) working days from the proper submission of the electronic form. A confirmation letter will subsequently be issued via email.
Services available under the BFU
A range of services is available to support businesses operating through the BFU.
In summary, the BFU:
· Assists with company incorporation by coordinating all required registrations, which are completed within seven (7) working days.
· Supports and streamlines the licensing process for the establishment and operation of companies in Cyprus, providing guidance on the permits required to commence business activities.
· Facilitates the issuance of residence and employment permits in Cyprus, particularly for third-country nationals, through an accelerated (fast-track) procedure.
The required registrations include:
· Approval of the company name and registration of the company;
· Registration with the Social Insurance Services and the Employers’ Registry;
· Registration with the VAT Registry and the Income Tax Department.
Eligible companies
In Cyprus, the following categories of companies are eligible to benefit from the facilities offered through the BFU:
1. Companies in which the majority of shares are held by third-country nationals.
2. Companies where foreign participation amounts to 50% or less of the share capital, provided that the foreign investment equals at least €200,000.
[The company must demonstrate an investment of at least €200,000 in Cyprus, or alternatively, the ultimate beneficial owner (UBO) must deposit €200,000 into an account held in the company’s name with a credit institution licensed by the Central Bank of Cyprus].
3. Public companies listed on a recognised stock exchange.
4. Former offshore companies previously approved by the Central Bank of Cyprus that have since changed their offshore status.
5. Cypriot shipping companies.
6. Cypriot high-technology or innovation companies.
7. Cypriot companies operating in the fields of pharmaceuticals, biogenetics, or biotechnology.
8. Companies whose majority share capital is held by individuals who obtained Cypriot citizenship through naturalisation based on economic criteria, provided it can be demonstrated that the relevant criteria continue to be met.
[The €200,000 investment requirement also applies, and the company must provide appropriate certification as evidence of the investment. The number of foreign employees may not exceed 70% of the company’s total workforce. The remuneration of support staff is subject to applicable national legislation and regulations].
A high-technology company is defined as a company that:
· Has an established market presence;
· Demonstrates a high level of research and development (R&D) intensity;
· Develops products in sectors such as aviation, space, computers, or electrical machinery.
The Deputy Ministry of Research, Innovation and Digital Policy has issued a practical guide regarding the High-Tech Enterprise Certificate.
Criteria for third-country nationals
To obtain a work and residence permit under the BFU framework, third-country nationals must meet the following requirements:
· They must qualify as key personnel of the company.
· They must hold a university degree, diploma, or equivalent qualification, and demonstrate at least two (2) years of relevant professional experience in a related position.
· They must receive a minimum gross monthly salary of €2,500.
· They must have an employment contract with a duration of up to two (2) years.
Family reunification
A family reunification process is available for the family members of third-country national key personnel. The sponsoring employee (“Sponsor”) must initiate the process by submitting an application to the Civil Registry and Migration Department.
Eligible family members include:
· The spouse (married for at least one year prior to the application)
· Children of the sponsor
· Other children under the sponsor’s custody
If a family member does not meet the criteria for family reunification—for example, a spouse married for less than one year—they may apply instead for a temporary residence permit as a dependent visitor.
Rules for support staff
For employees earning a gross salary below €2,500, support staff may be employed under the following conditions:
· There must be a duly signed, stamped, and validated employment agreement in place.
· Third-country national support personnel must not exceed 30% of the total support staff.
Work permits for support staff are issued for a maximum duration of three (3) years
Facilities and benefits for third-country nationals
Key benefits for high-skilled, third-country nationals under the Business Facilitation Unit (BFU) include:
· Exemption from the Labour Department’s market test requirement. High-skilled employees do not need to submit a stamped employment contract demonstrating that no Cypriot could fill the position.
· Right to family reunification. Spouses of key personnel (earning a minimum gross monthly salary of €2,500) can access paid employment immediately, without the market test requirement.
· Faster and simplified work permit process. Applications for work permits are processed more efficiently.
· Eligibility for naturalisation. Third-country national employees under the BFU may apply for Cypriot citizenship after 4 or 5 years, provided they successfully pass the Greek language examinations.
*The market test requirement normally involves submitting a stamped employment contract from the Labour Department. The employer must show that a local employee could not be found by advertising the vacancy in local media and submitting proof of no successful applicants. This requirement does not apply to key personnel or their spouses.
Tax incentives
The tax incentive scheme was updated on 20 July 2022. The updates are part of the Cyprus Long Term Vision 2035.
Key tax incentives for employees and investors in Cyprus include:
· 50% tax exemption for new resident employees earning over €55,000 annually, applicable for a period of 17 years.
· Extension for existing employees earning less than €100,000 annually, allowing the tax exemption period to increase from 10 to 17 years.
· Potential extension of the 50% tax exemption for investments in innovative companies to corporate investors. Currently, this benefit applies only to natural persons, but the Ministry of Finance is considering expanding it to eligible companies investing in certified innovative enterprises.
· Additional deduction for research and development (R&D) costs, for example by 20%, enabling eligible R&D expenses to be deducted from taxable income up to 12% of the actual taxable income.
Our services
At Chr. Larcou & Associates LLC, we assist international clients in navigating the Business Support Center (BSC) framework. Our legal services for foreign companies and their employees include:
· Comprehensive support with the application and registration of Foreign Interests Companies through the BFU and BSC.
· Advising on company and employee eligibility to ensure compliance with all BSC and immigration requirements.
· Facilitating fast-track residence and work permits for key non-EU personnel.
· Managing family reunification applications for employees and their dependents.
· Providing guidance on available tax incentives and the process for obtaining Cypriot citizenship.