TechIsland has welcomed the Council of Ministers’ decision to revise the registration framework for foreign companies in Cyprus, saying the changes will support businesses already operating on the island while encouraging further investment.
In a statement, the technology association described the decision as a positive development that addresses important business needs and creates more favourable conditions for companies to maintain a long-term presence and expand in Cyprus.
It also said the revised framework could strengthen prospects for additional investment and the development of local talent.
Cyprus strengthens its position as a technology hub
TechIsland pointed to the country’s growing success in attracting international companies, investment and expertise over recent years.
According to recent data from FT Locations, presented at an event marking Invest Cyprus’ 20th anniversary, the share of software and IT services in new foreign direct investment projects in Cyprus increased from 6% in the 2004–2011 period to 43% between 2018 and 2025.
Cyprus also ranks first globally in ICT services exports as a share of total national exports.
The figures highlight the growing importance of technology to the Cypriot economy, with the sector contributing approximately 16% of the country’s GDP, according to TechIsland.
The association stressed that the priority is no longer simply to attract new investment, but also to retain existing businesses and ensure they can continue operating, expanding and investing in Cyprus over the long term.
This would help create jobs, transfer expertise and strengthen the local technology ecosystem.
What changes under the revised registration framework?
The Council of Ministers approved the revised framework on 27 October 2026, following a proposal by the Ministry of Energy, Commerce and Industry.
The changes concern the registration of Companies with Foreign Interests and strengthen compliance controls and accountability. The aim is to attract businesses with a substantial presence and a genuine contribution to the Cypriot economy.
Under the revised framework, the register is renamed the Business Service Center Register.
The main changes include:
- Stronger compliance checks: A mechanism will allow the removal of companies that fail to meet the required criteria or fulfil their obligations.
- Employment ratio monitoring: Compliance with the 70%–30% employment ratio criterion will be checked seven years after each company’s registration. This also applies to companies already registered.
- Annual employment reports: Companies will be required to submit an annual employment report from 1 January 2027.
- Retention of registration benefits: Existing and additional staff can retain their registration and related benefits if the ultimate beneficiaries acquire Cypriot or another EU citizenship, provided the company operates in eligible sectors and continues to meet the required conditions.
Applications submitted from 1 December 2026 onwards will be assessed under the revised framework.
The changes form part of a broader revision of the Strategy for Attracting Businesses and Talent, which is expected to be completed by December 2026.
TechIsland pledges continued cooperation
TechIsland said it would continue working with the government and supporting policies aimed at creating a stable and competitive business environment.
The association said maintaining favourable conditions for businesses already established in Cyprus would be essential for the sustainable development of the technology sector and the wider economy.
Also read: Cyprus to tighten checks on foreign-owned companies from 2027
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