Cyprus FDI Law

Cyprus recently established a framework for screening foreign direct investment. The relevant law was published in the Official Gazette on 14 November 2025, and will be enacted on 2 April 2026, titled “Law on the Establishment of a Framework for Screening Foreign Direct Investments of 2025” (Law 194(I)/2025).

The law introduces a screening process in line with the Regulation (EU) 2019/452 for foreign direct investments that may raise concerns for security and public order.

A foreign direct investment (“FDI”) is defined as an investment of any kind by a foreign investor aiming to establish or to maintain lasting and direct links between the foreign investor and the entrepreneur to whom, or the undertaking to which, the capital is made available in order to carry on an economic activity in a Member State, including investments which enable effective participation in the management or control of a company carrying out an economic activity.