Any person investing at least €25 million in Cyprus will be considered an “investment of strategic development” and will be included in the fast-track licensing process to avoid the bureaucracy that has always existed in issuing town planning and building permits.
For this purpose, the state will provide them with a state official who will serve them in exchange for a fee.
According to related regulations submitted by the government to the Parliament, among other things, it is stated that from the investment amount of €25 million, at least 75% must come from:
Primary capital, such as new, liquid, available capital directly related to the project, from the undistributed profits of the company, from loan capital, or from issuing shares of the project or external capital, which comes into the Republic from abroad as a capital inflow.
Moreover, a prerequisite is the creation of 80 new permanent jobs or fifty 50 new permanent positions with an annual salary in the Republic above €2.0 million.
Alternatively, the following must be met:
-Minimum investment of €15 million capital, from which at least 75% must come from primary capital, such as new, liquid, available capital directly related to the project, from the undistributed profits of the company, from loan capital, or from issuing shares of the project or external capital, which comes into the Republic from abroad as a capital inflow, and the creation of thirty 30 new permanent jobs.
Projects of “strategic development” will be exempt from those related to the following activities:
(a) trading in financial instruments
(b) research in human cloning, use of live animals for experimental and scientific purposes, from the moment compliance with the Convention for the Protection of Vertebrate Animals Used for Experimental and Other Scientific Purposes is not guaranteed
(c) production of weapons and ammunition, military and police equipment, and infrastructure and equipment that result in restricting individual freedoms and rights or violate human rights.
The Law related to the above regulations was implemented on 01/12/2023 by a Council of Ministers Decree (C.D.P. 377/2023), however, for its full and substantial implementation, the determination of the said criteria is required.
For the management of licensing applications, aiming at the implementation and operation of the strategic development project, depending on the type of development, the investor will pay €23,000 or €26,000 or €30,500.
In case the development is mixed, in addition to the above amount related to the strategic development project, an additional fee of €5,000 is paid.
In case the submission of an application for an exemption from the provisions of the current Development Plan is required, an additional management fee of €8,500 is paid.
In case the opinion of the Environmental Authority is required, an additional management fee of €7,500 is paid.
