Cyprus startup visa: requirements & tax benefits

The Cyprus Startup Visa Scheme allows qualifying non-EU/EEA entrepreneurs to establish, operate or develop an innovative startup in Cyprus. The renewed scheme is valid until December 2026 and the current practical guide states a scheme capacity of up to 150 visas. A positive innovation evaluation produces a Notification of Initial Approval for economic activity for two years, renewable for at least one further year; it does not by itself grant entry, residence or employment. Those permissions require the separate Migration Department procedure. The five-week target concerns the completed innovation application, not the complete immigration process, and the published cap does not guarantee that capacity remains available when an application is filed.

This guide covers both the individual and team startup visa schemes, including eligibility, the application process, and the tax benefits available to startups in Cyprus.

What is the Cyprus startup visa

The Cyprus startup visa is a government scheme designed to attract non-EU entrepreneurs to the island. It allows founders to:

• Obtain initial innovation approval for economic activity for two years, with the possibility of renewal for at least one further year
• Apply separately for entry and work/residence permission through the Migration Department; initial approval alone is insufficient
• Access the EU single market for trade, talent, and funding

The scheme has an individual-founder category and a team category. The renewed scheme is valid until December 2026, so its availability, forms and any successor policy must be checked before filing.

Individual startup visa requirements

A non-EU national can apply for the individual startup visa if they meet all of the following:

• Sole founder of the startup
• Credible funding and runway evidence in the application and business plan. The current guide does not state the former standalone €20,000/€50,000 minimum-capital shorthand as a general eligibility test
• Excellent knowledge of English or Greek (demonstrated through certification or interview)
• Undergraduate degree or equivalent professional qualification
• The enterprise meets the innovative startup requirements (see below)

Team startup visa requirements

Teams of up to 5 people can apply under the team startup visa scheme. The team must:

• Consist of a maximum of 5 founders, or at least 1 founder plus senior executives (total maximum of 5 individuals)
• One or more applicant founders must together hold at least 25% of the company's shares under the revised scheme
• Meet the funding and evidence criteria for the startup's pre-revenue or revenue category under the current practical guide
• All team members must prove excellent knowledge of English or Greek
• At least 1 team member must hold an undergraduate degree or equivalent professional qualification

What qualifies as an innovative startup

The startup visa applies only to innovative startups, but the current guide does not impose one universal 10% R&D-spend test on every applicant. It separates pre-revenue or post-revenue startups below EUR 1 million from the higher-revenue category:

• Pre-revenue and post-revenue startups below EUR 1 million are evaluated on the innovation, technological or industrial risk and market impact shown in the business plan
• Startups with sales revenue of at least EUR 1 million must meet the category-specific criteria in the current guide, including the stated R&D expenditure test and external evidence

The business plan must show that the enterprise will:

• Have its head offices in Cyprus (co-working spaces are acceptable)
• Be tax domiciled in Cyprus

Benefits of the Cyprus startup visa

1. A route to residence and work permission for the approved startup, after the separate entry and work/residence application is approved
2. Economic activity in the approved startup within the scope and duration of the issued approvals and permits
3. An EU operating base, from which the company may trade and recruit subject to the rules that apply to its activity, employees and any funding programme. A Cyprus permit does not itself grant the founder residence or work rights in another EU state
4. A 15% standard corporate-tax rate, with an effective rate of around 3% possible only for qualifying IP profits that satisfy the IP Box regime and nexus conditions
5. Potentially favourable dividend treatment, but not a universal tax exemption. Dividend receipts are not subject to Cyprus personal income tax; Special Defence Contribution depends on domicile and the applicable profit-period rules, GHS may apply, and foreign-source or withholding tax must be checked separately
6. Non-dom SDC relief, generally for the first 17 tax years in which a qualifying individual is Cyprus tax resident. It concerns SDC on dividends and passive interest; it does not exempt rental profit from income tax, and it does not remove GHS or source-country liabilities
7. Prospect of longer-term residence, if the startup is assessed as successful and the applicant satisfies the relevant immigration procedure. Success does not produce automatic permanent residence or citizenship
8. Family reunification where eligible, through the applicable family procedure; it should not be described as immediate or unconditional
9. Potential to hire third-country nationals, only within the limits, categories and approval procedure applying to the successful startup

Application process and timeline

The application process has five stages:

Initial Approval grants the approved applicant the right to economic activity for two years, renewable for at least another year, but does not automatically grant entry, residence or employment. An applicant abroad must use the approval within six months to apply for the required entry/registration/residence permission. An applicant already lawfully in Cyprus generally applies within one month. The current Migration Department page states that an approved in-country residence permit is valid for one year from the Notification of Initial Approval.

Renewal and any success assessment follow the live scheme, the particular approval and the permit held. Do not rely on the dates of an older pilot version: the current Notification, permit expiry and official instructions control the filing window.

What happens at the renewal assessment

At renewal, the authorities assess whether the startup has developed sufficiently under the current success criteria. The outcome determines continuation under the scheme; it is not an automatic grant of permanent residence.

Outcome 1: Sufficient development (scaling up)

The authorities may issue the approval applicable to a successful startup, giving the applicants a prospect of longer-term residence and continued work rights under the relevant immigration procedure. The success finding should not be described as automatically conferring permanent residence on every team member.

Outcome 2: Positive outlook but insufficient development

Where the startup has a positive outlook but has not yet met the success criteria, any further permit or reassessment follows the current practical guide and the decision issued in the individual case.

Outcome 3: The startup is not approved for continuation

The applicant must follow the decision and the expiry or revocation terms of the immigration permit, and either qualify for another lawful status or depart within the period specified by the authorities.

Tax benefits for startups in Cyprus

Cyprus applies the following headline rules from 2026. Each depends on the taxpayer, source, transaction and any transitional or anti-avoidance provisions:

For tech companies that develop software, patents, or other intellectual property, the IP Box regime can allow an 80% deduction from qualifying profits after applying the nexus fraction. At the 15% corporate-tax rate this produces an effective rate of approximately 3% on the qualifying amount, before other adjustments; it is not a 3% rate on all company profit.

A person who is both Cyprus tax resident and qualifying non-domiciled is generally exempt from SDC on dividends and passive interest for the first 17 tax years of Cyprus tax residence. Dividend receipts are not subject to personal income tax, but GHS and foreign-source tax may still apply. Interest arising in the ordinary course of a business may instead fall within income tax. Rental profit remains within the income-tax rules and is not made tax-free by non-dom status; GHS may also apply to an individual landlord.

For a full overview of the tax system, see our guide on taxes in Cyprus.