We are pleased to announce our contribution to Lexology Panoramic Foreign Investment Review 2026. This chapter provides an in-depth look at the newly established legislative framework for foreign direct investment (FDI) in Cyprus.
Key highlights of the Cyprus FDI regime
The most significant development in Cyprus is the enactment of the Foreign Direct Investment Screening Law, which officially comes into force on 2 April 2026.
Our chapter covers essential aspects for investors and legal practitioners, including:
- Screening authority: The Ministry of Finance is designated as the competent screening authority, supported by a cross-ministerial advisory committee.
- Mandatory notification: Filing is required for “special participations” (25% or more share capital or voting rights) in strategically important undertakings. Generally, the regime applies to investments with a cumulative value of at least €2 million over 12 months, though this threshold does not apply to transactions crossing the 25% or 50% ownership marks.
- Critical sectors: The law identifies sensitive sectors such as energy, transport, health, water, defense, and critical technologies like AI, biotechnology and cybersecurity.
- Suspensory nature: The regime is suspensory, meaning transactions cannot close until clearance is granted. Failure to notify can result in administrative fines and orders to unwind the transaction.
- Review phases: The process includes an initial 20-working-day assessment followed by a possible 65-working-day full screening for transactions posing potential risks to security or public order.
As Cyprus shifts toward a more structured screening environment in line with EU standards, understanding these new obligations is vital for navigating the local investment landscape.
Download or access on Lexology the full chapter for a comprehensive analysis of the procedural and substantive tests under the Cypriot FDI screening law.