Foreign Interest Company
Foreign Ownership
The company must be owned by non-EU nationals, either
- With non-EU shareholders holding more than 50% of the shares, or
- With non-EU shareholders holding 50% or less, provided their shareholding has a value of at least €200,000
Capital Investment
A total investment of €200,000 into the Cypriot economy is required.
This requirement can be met through one or a combination of the following:
- Bank transfer from abroad into a Cyprus company bank account
- Purchase or rental of office space in Cyprus
- Office equipment and business infrastructure
- Recruitment and relocation of staff
- Other operational expenses directly related to establishing and operating the business in Cyprus
All investments and expenses must be incurred in the name of the Cyprus company.
Physical Presence
- The company must maintain a real office address in Cyprus
- Residential addresses of shareholders or personnel are not accepted
- The office confirms that the business genuinely operates from Cyprus
Incorporation in Cyprus
Establishment of a Cyprus-registered legal entity is required, including company incorporation with the Registrar of Companies, appointment of a registered office in Cyprus, registration with the Tax Department for issuance of a Cyprus Tax Identification Code (TIC).
BFU Application
Submit an application to the Business Facilitation Unit (BFU), including the following:
Corporate documentation
Certificates of directors, shareholders, and registered office.UBO & investment evidence
Ultimate Beneficial Owner (UBO) documentation and proof of the minimum €200,000 investment.Business premises
Office lease agreement or title deed evidencing ownership.Business rationale
Business plan and letter of intent outlining the company’s activities in Cyprus.
BFU Approval & Register Entry
Once reviewed, the company is entered into the official Register of Foreign Interest Companies and receives confirmation.
Immigration & Personnel Relocation
Highly Skilled Personnel
Third-country nationals employed by a Foreign Interest Company (BCS) may qualify as highly skilled / highly paid personnel provided that:
The gross monthly salary is at least €2,500.
The employee holds a university degree or equivalent qualification, or can demonstrate a minimum of two years’ relevant professional experience.
The employment contract has a minimum duration of two years, regardless of the residence permit period initially granted.
The labour market test is waived, meaning there is no requirement to demonstrate the unavailability of Cypriot or EU candidates for these roles.
Support Staff
- Employees earning less than €2,500 gross per month are classified as support staff.
Family Reunification
- Spouses and minor children of highly paid permit holders may apply for residence permits under family reunification rules.
- Spouses may live and work freely in Cyprus, with no work permit or labour market test required.
Note:
To employ staff and proceed with residence and work permits, the Cyprus company must first be registered with the Cyprus Social Insurance Department and obtain a Social Insurance Number as an employer.
Ongoing Corporate and Immigration Compliance
- Maintain normal corporate operations in Cyprus by keeping an active office and completing all annual corporate, tax, and regulatory filings.
- Ongoing compliance with the renewal of personnel residence and employment permits is required to retain Foreign Interest Company status.
- Cyprus companies are subject to a 15% corporate income tax rate on net taxable profits
- Companies developing and exploiting qualifying intellectual property, such as a proprietary software platform with R&D performed in Cyprus, may benefit from the Cyprus IP Box regime, resulting in an effective tax rate of approximately 3% on qualifying profits
Cyprus companies can register for VAT, recover VAT on eligible business costs, and trade smoothly with EU clients under the EU VAT system
- Companies funded through equity may benefit from the Notional Interest Deduction, which allows a notional interest expense on new equity, potentially reducing taxable profits by up to 80%
- No withholding tax applies on outbound dividends, except where payments are made to jurisdictions with significantly lower corporate tax rates, in which case a 5% withholding tax may apply
- Under EU Parent Subsidiary rules, dividends paid between qualifying EU parent and subsidiary companies may be exempt from withholding tax
- Dividends received by a Cyprus company from another company are generally not subject to additional tax in Cyprus
Note:
A Cyprus company may also benefit from the ability to apply for EU funding and grant programmes and participate in public and private tenders in Cyprus and across the EU, subject to the applicable eligibility criteria.
- Relocated employees earning more than €55,000 per year may benefit from a 50% income tax exemption on their employment income
- This exemption applies to individuals who were not Cyprus tax residents before relocating and can apply for up to 17 years
The first €22,000 of annual income is tax-exempt under the Cyprus personal income tax bands, further reducing the overall tax burden
- Dividend income received by non domiciled individuals is not subject to income tax, with only a 2.65% contribution payable towards the national health system
- Part of the employee’s salary contributes to the Cyprus national health system, providing access to both public and private doctors, clinics, and hospitals, often with no cost for visits or surgeries
- Spouses and children under 18 can relocate to Cyprus quickly under family reunification
- Spouses are allowed to live and work in Cyprus freely, without requiring a separate work permit or labour market test
- Family members benefit from access to healthcare, education, and long-term residence rights
Note:
Family members are usually granted an initial residence permit with a one-year validity, or a permit with a duration aligned to the validity of the sponsor’s residence permit and passport, whichever is shorter.
- Employment through a Foreign Interest Company offers one of the fastest routes to Cypriot citizenship
- Eligibility is based on legal residence, employment, language knowledge, and integration
- Highly skilled employees may qualify after 4 or 5 years of residence, depending on their level of Greek language proficiency:
4 years of lawful residence – B1 Certificate
5 years of lawful residence – A2 Certificate
- Note: Foreign workers do not have to have language certificates if they hold a school leaving certificate or a University degree taught in Greek.
Applicants must demonstrate good character, stable income, suitable accommodation, and intention to reside in Cyprus
- An accelerated examination procedure is available for eligible highly skilled employees and their family members, with a target processing time of up to eight (8) months and a government fee of €5,000 per application
- Foreign Interest Companies allow fast-track relocation and residence permits for non-EU personnel without the usual labour market delays
- Entry permits are typically issued within 7 to 10 working days
- Residence and employment applications are examined within approximately one month
- Temporary residence and employment permits are usually issued within one month from submission
- Permits may be granted for a duration of up to three years, with the right of renewal
- Residence permits require the individual to remain in Cyprus and not be absent for more than 90 consecutive days
- In cases of emergency or exceptional circumstances, such as medical treatment, the Immigration Department must be informed in advance and supporting evidence provided
Hospitality Groups
Relocating key management teams from MENA, CIS, and the USA to establish EU regional headquarters and management hubs in Cyprus.
Real Estate Developers
Assisting developers from Israel, MENA, CIS, and the USA in transferring senior executives to Cyprus to oversee commercial and residential projects.
Logistics, Procurement & Regional Supply Teams
Supporting companies relocating regional coordination teams to Cyprus to manage procurement, supply chains, and vendor oversight across Europe and neighbouring regions.
UK Digital Agencies
Facilitating relocation to Cyprus to maintain an EU presence, mitigate rising UK tax pressures, and benefit from a safer, high-quality living environment.
Family Offices
Guiding Non-EU HNWIs setting up a Cyprus-based family office as a hub for cross-border investment, tax optimisation, and regional structuring into/out of Europe.
High-Growth & IP-Centric Companies
Supporting IP-heavy businesses, including software, gaming, AI, fintech, and R&D-led groups in setting up or relocating intellectual property to Cyprus to benefit from the IP Box regime
Eligibility & Structuring Advisory: Assessing shareholder composition, investment requirements, and preparing documentation to meet criteria.
Company Registration & Licensing: Handling incorporation and fast-track registration through the Business Facilitation Unit (BFU)
Personnel Relocation & Immigration: Securing work permits and residence permits for highly skilled non-EU employees, family reunification, and relocation planning.
Office Setup & Compliance: Assistance with leasing or acquiring office premises, opening bank accounts, and ensuring compliance with corporate regulations.
Bookkeeping, Audit, VAT & Payroll : Managing statutory bookkeeping, payroll administration, VAT return submissions, and coordination of annual audits in line with Cyprus tax obligations.
Staffing & Recruitment Support: Advising on workforce planning and assisting with recruitment processes.
Ongoing Administration: Handling renewals, permit extensions, and continuous compliance monitoring with the Cyprus authorities.
Citizenship preparation & application: Supporting eligible Foreign Interest Company applicants with citizenship preparation, document collation, eligibility confirmation, and procedural coordination with the relevant authorities.
Frequently Asked Questions
What is a Foreign Interest Company (FIC) and who is it designed for?
A Foreign Interest Company is a Cyprus-registered entity designed for non-EU owned and managed businesses that wish to relocate operations, key Non-EU personnel, or regional headquarters to Cyprus. It is particularly suited for international groups, founders, and investors seeking an EU base with streamlined immigration, operational flexibility, and access to skilled talent.
How does the FIC framework fast-track the relocation of non-EU staff to Cyprus?
The FIC framework provides priority processing and simplified procedures for relocating non-EU executives, specialists, and operational staff. Once the company is approved, residence and work permits for eligible employees are processed significantly faster than standard routes, allowing businesses to mobilise teams and become operational without prolonged delays.
How does KIKLON Partners support businesses beyond company registration?
We operate as a single point of coordination throughout the entire relocation journey. Our support extends beyond incorporation to include immigration, licensing, employee onboarding, family relocation, local hiring coordination, office and accommodation scouting, and ongoing operational guidance. Clients work with one advisor who ensures execution, consistency, and accountability from setup to full operation.
Can FIC employees relocate with their families?
Yes. Senior and highly skilled employees relocating under an FIC can bring their immediate family members, including spouses and dependent children. Family members are granted residence rights, access to education and healthcare, and employment rights, making Cyprus a practical long-term relocation destination rather than a short-term assignment.
Do I need to spend €200,000 to qualify as a Foreign Interest Company?
No. The €200,000 requirement is not a spending obligation and it is not paid to the government.
The amount can be met either by simply depositing these funds into the company’s Cyprus bank account from abroad or by directly spending it on business-related expenses. Eligible expenses include:
- Renting or purchasing office premises
- Office equipment and IT infrastructure
- Recruitment and relocation costs for staff
- Professional services (legal, accounting, advisory)
- Other operational costs directly linked to setting up the Cyprus entity
This ensures that the investment is practical and tied to your actual business needs.