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Immediate Foreign Investments: When the New Law Applies in Cyprus

Published March 27, 2026, 09:16
Immediate Foreign Investments: When the New Law Applies in Cyprus

The law on the Control of Direct Foreign Investments in Cyprus will come into force on April 2, 2026. The law, titled “The Law Establishing a Framework for the Control of Direct Foreign Investments Law of 2025” [N. 194(I)/2025], introduces for the first time a comprehensive framework for controlling direct foreign investments, aiming to ensure national security and public order, aligning Cyprus with the European regulatory framework. The law defines the conditions under which notification is required for a planned direct foreign investment, taking into account the percentage of participation of an investor from a third country in a company of strategic importance, in relation to a specified minimum investment threshold, or the increase of existing participation beyond a predetermined percentage. It also covers transactions that may have a material influence on businesses operating in critical or sensitive sectors. The law identifies the areas of activity related to national security and public order, as well as the notification process, the timelines for investment review, the factors considered for evaluation, the required information, and the executive powers of the Ministry of Finance, which is the competent authority. The Ministry of Finance calls on interested investors and economic operators to familiarize themselves with the provisions of the law and to take the necessary steps to comply. Direct foreign investments that fall within the scope of the legislation and will be made from April 2, 2026, onwards, must be notified to the Ministry of Finance for review before completion.