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ARTICLE · 09 FEBRUARY 2026

Foreign (Non-EU) Direct Investment Screening In Cyprus

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The new law gives effect to Regulation (EU) 2019/452, introducing a formal review process for certain investments by non-EU investors into Cyprus businesses.

CyprusGovernment, Public Sector

Cyprus has enacted its first dedicated legislation governing the review of foreign direct investments that may affect matters of security or public order. The Law on the Establishment of a Framework for Screening Foreign Direct Investments of 2025 (Law 194(I)/2025) will apply as from 2 April 2026.

The new law gives effect to Regulation (EU) 2019/452, introducing a formal review process for certain investments by non-EU investors into Cyprus businesses.

What is a Foreign Direct Investment

The Law adopts a wide understanding of foreign direct investment. It covers any form of investment by a foreign investor that is intended to create or preserve a stable and direct relationship with a Cyprus undertaking, where the investor is able to participate effectively in the management or control of that undertaking.

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