Navigating the regulatory landscape in Cyprus just became more complex for international investors. As of April 2, 2026, the Establishment of a Framework for the Screening of Foreign Direct Investments Law of 2025 (Law 194(I)/2025) is officially in effect.

This new legal framework introduces mandatory screening for specific foreign investments to protect the security and public order of the Republic of Cyprus. If you are planning an investment in Cyprus, understanding whether your transaction requires prior approval from the Ministry of Finance is now a critical step in your due diligence.

Does Your Investment Require Mandatory Notification?

Under the new Law, an investment is subject to mandatory screening only if it cumulatively meets four key criteria:

  1. Foreign Investor: The investor is a non-EU/EEA/Swiss national or entity, or an EU entity controlled by third-country persons.
  2. Qualifying Holding: The investment results in the acquisition of at least 25% or 50% of the share capital or voting rights.
  3. Minimum Value: The total value of the investment is at least €2,000,000.
  4. Strategic Sector: The target company operates in sensitive sectors such as energy, transport, health, artificial intelligence, or data processing.

The “Suspensory” Nature of the Law

One of the most vital takeaways for deal teams is that the Cypriot FDI regime is suspensory. This means an investment cannot be lawfully completed until explicit approval is granted by the Ministry of Finance. While parties can sign agreements, they must include a “suspensive condition”—the legal effects of the deal only trigger after regulatory clearance.

Timeline and Procedures

Once a fully completed application is submitted, the competent authority typically issues a decision within 20 working days. However, this clock pauses if the Ministry requests additional information or clarification.

Download the Full Q&A Guide

To help investors and legal professionals navigate these changes, we have prepared a comprehensive guide detailing the nuances of the law, including:

  • Detailed lists of “Strategic and Sensitive” sectors.
  • How the €2M threshold is calculated for multiple transactions.
  • The Ministry’s power to examine investments ex officio for up to 5 years.
  • Confidentiality and trade secret protections for submitted data.

 

Click here to download the complete FDI Screening Q&A Guide (PDF)