Cyprus Startup Visa 2026: the 2025 reform, 25% equity and the process for Vietnamese founders

The Cyprus Startup Visa is a special residence programme approved by the Council of Ministers of the Republic of Cyprus under the National Policy Statement of 14/12/2015, for third-country founders/entrepreneurs setting up or expanding technology businesses in Cyprus. After a major reform under the Cabinet Decision of 18/12/2024 (in force from 02/01/2025), the programme is now far more attractive: minimum equity reduced from 50% to 25%, the permit extended from 2 to 3 years with a 2-year renewal option, and the foreign workforce cap raised from 30% to 50%.

This article covers in full the Cyprus Startup Visa conditions for 2026 under the new reform, the two options (Individual and Team Startup Visa), capital requirements, the independently assessed business plan, renewal criteria after 3 years, tax incentives for founders and investors, and the key points Vietnamese entrepreneurs need to know when considering basing a startup in the Republic of Cyprus. For highly skilled professionals with an offer from a Cypriot company rather than founding their own, theEU Blue Card Cyprusis a more suitable alternative.

What the Cyprus Startup Visa is

Before going into the specific requirements, it is important to understand the legal nature and strategic goals of the programme.

Legal framework and history

The Cyprus Startup Visa was first introduced in 2017 under the National Policy Statement for Enhancement of Entrepreneurial Ecosystem (adopted on 14/12/2015). It is part of a broader strategy to turn the Republic of Cyprus into a regional innovation hub in the Eastern Mediterranean, competing with Estonia, Portugal and Israel.

The programme has been through several reforms:
– 2017: Initially required 50% equity, €50,000 EUR of capital and a 2-year permit
– 2019: Expanded the scope to team founders
– 2022: Reduced capital to €20,000 EUR for teams
– 2 January 2025: The biggest reform — equity reduced to 25%, capital lowered, the permit extended to 3 years

After the 2025 reform, Cyprus reached 4th place globally among countries with populations under 2 million in the StartupBlink Ecosystem Index 2024 — up 9 places in the global ranking, with the fastest-growing ecosystem in the EU. According to data fromResearch and Innovation Foundation Cyprus, venture capital investment in Cypriot startups tripled between 2020 and 2025, reaching €350 million EUR a year.

Two visa options

The Cyprus Startup Visa offers two options to suit different startup structures:

Individual Startup Visa: Forsolo founder— a single third-country national founding the business. It suits individual entrepreneurs with an independent idea who want to build a startup from scratch.

Team Startup Visa: Fora team of up to 5 people— all third-country nationals. The team can consist of founders only, or at least 1 founder combined with senior executives. It suits startups with a co-founder structure or an experienced team.

In both options, the applicant or team must ownat least 25%of the share capital of the Cypriot company. This is a significant reduction from 50% before the 2025 reform — opening the door to structures where a large investor holds the majority of shares.

Programme quota and duration

The programme has a cap of150 visas a yearand is valid untilDecember 2026. As of early 2025, 21 startups had been approved under the new programme. After December 2026, the government will review it and decide whether to extend or reform it further.

For Vietnamese founders considering applying in 2026, this is a good time: the quota has not run out, the new reform is still fresh, and Cyprus is actively marketing the programme internationally.

Capital and equity requirements

This is the most important condition in deciding who is eligible to apply for the Cyprus Startup Visa.

Minimum capital

After the 2025 reform, the minimum capital for a Cypriot startup company is:

• Solo founder (Individual Startup Visa): at least€10.000 EURO
• Team (≥2 founders): at least€20.000 EURO

Capital can come from several sources:
– The founder’s own funds
– Investment from a Venture Capital firm
– Crowdfunding from individual investors
– Loans from banks or financial institutions
– Grants from the government or EU programmes

Compared with other startup visa programmes in the EU (Estonia €5,000, Portugal €0 but with a revenue requirement, Germany €25,000), Cyprus sits in the middle on the capital barrier — lower than Germany but higher than Estonia.

Equity 25%

The minimum equity requirement of 25% is the biggest reform of 2025 — half the previous level. This means:

• Founders can accept a large investor holding 75% of the shares and still qualify for the visa
• It suits startups that have raised a Series A from international VCs
• It allows convertible note structures instead of a pure equity sale
• It encourages co-founder structures with senior executives granted shares

For the Team Startup Visa,the team’s total equity must be ≥25%— each member does not need to hold 25%. A team of 5 can split it evenly at 5% each (25% in total), or 1 founder at 15% + 4 senior executives at 2.5% each.

Cypriot company requirements

The startup must register a legal entity in the Republic of Cyprus, in the form of aPrivate Limited Company (Ltd)under Companies Law Cap. 113. Some accompanying requirements:

• Physical office— a physical office in Cyprus, not just a virtual office
• No specific floor area is required, but it must be adequate for the team to work in
• Register for a Tax ID and VAT (if revenue >€15,600 EUR a year)
• Open a business bank account in Cyprus
• Register employees in Cyprus for Social Insurance

Company setup costs: €1,500–€3,500 EUR (depending on complexity), taking 2–4 weeks. Some law firms specialise in fast setups within 5–7 business days.

Defining an innovative startup

The “innovative” criterion is the core concept that decides whether an applicant is approved.

EU Startup Definition

As defined by the Ministry of Finance of the Republic of Cyprus, the startup must meet the EU-required startup definition. A business is considered innovative if it:

• Develops new or significantly improved products/services/processesinvolving high technological or industrial risk
• Is assessed as innovativewithin a specific market or sector
• Creates new revenue streamsor platform products capable of scaling internationally

Commonly approved sectors:
– Software-as-a-Service (SaaS)
– Fintech and blockchain
– AI and Machine Learning
– Healthcare technology
– Clean tech and renewable energy
– Cybersecurity
– E-commerce platform

Pre-revenue evaluation

For startups with no revenue or revenue below €1,000,000 EUR:

• Submit a detailed business plan in English
• 2 independent evaluators assess it against government criteria
• If needed, a 3rd evaluator reviews it to resolve disagreements
• Assessment is based on: innovation, market potential, growth trajectory and founder team capability

The business plan must include:
– Executive summary
– Market analysis and competitive landscape
– Product/service description
– Go-to-market strategy
– 5-year financial projections
– Team CVs and roles
– Funding strategy

Post-revenue evaluation

For startups with revenue of ≥€1,000,000 EUR a year, the criteria are different:

• R&D expenditure: ≥10% of total operating expenses in at least 1 of the last 3 years
• Concrete evidence of innovation (patents, proprietary technology, market disruption)
• Audited financial statements for the last 3 years
• Customer base and revenue diversification

For established startups, the route is faster — no independent evaluation is needed, only complete documentation.

Application process

The Cyprus Startup Visa process involves several steps coordinated across multiple agencies.

Step 1: Initial Approval

The initial applicationis submitted to the Ministry of Finance of the Republic of Cyprus or an approved accelerator/incubator, following guidance from theCivil Registry and Migration Department:

• Official application form
• A detailed business plan in English (for pre-revenue startups)
• Financial statements (cho post-revenue startup)
• Founder/team CVs with education and experience
• Proof of available capital (€10,000 or €20,000)
• A concept for the planned office space
• A Letter of Intent from a VC/investor (if applicable)

Notification of Initial Approvalis usually issued within5 weeksof a complete submission. This document confirms that the startup is recognised as innovative under the Cypriot definition.

Step 2: Register the Cypriot company

After receiving Initial Approval:
– Register a Private Limited Company with the Cyprus Companies Registry
– Open a business bank account
– Transfer the capital into the company account
– Rent office space and sign the contract
– Register for a Tax ID, VAT and Social Insurance

Time to complete: 4–6 weeks.

Step 3: Submit the Visa Application

Once the company is fully set up, submit the visa application to the CRMD:

• A visa form for each founder/team member
• A passport valid for ≥6 months
• A No. 2 Criminal Record Certificate from Vietnam (≤6 months old), consularly legalised
• Valid health insurance in Cyprus
• The office lease and a residential rental agreement
• Notification of Initial Approval
• Company registration documentation

The CRMD processes it within 4–8 weeks. On approval, founders and team members receiveTemporary Residence and Employment Permit.

Step 4: Family Reunification

Once the visa is approved, spouses and children under 18 can apply for family reunification:
– Spouses are granted a residence permit for the same period
– Spouses have the right to work in Cyprus under the same conditions
– Children under 18 are granted a residence permit and may attend public schools

This is an important difference from the Digital Nomad Visa (spouses may NOT work in Cyprus) and PR 6.2 (spouses may NOT work).

Renewal after 3 years

The initial permit is valid for 3 years. After that it must be renewed — and this is when the criteria get stricter.

Mandatory renewal criteria

To renew the permit for a further 2 years after the initial 3-year period, the startup must meetat least 1of the following criteria:

• Revenue growth of ≥15%compared with the previous year
• Additional investment of ≥€150,000 EURin the Cypriot business
• Creation of ≥3 new jobsin the Republic of Cyprus
• Join a local accelerator/incubatorthat are officially recognised
• Launch of a new product/service/processwith innovation impact

For most genuinely innovative startups, meeting 1 of these 5 criteria is not too difficult. However, startups that exist only “on paper” or do not genuinely grow will be refused renewal.

Digital skills requirement

The 2025 update added a requirement: all staff (foreign personnel hired through the programme) must holddigital skills certificationssuch as programming, data analytics, digital marketing, AI or cybersecurity. This is how Cyprus ensures the programme genuinely attracts tech talent.

Consequences of not meeting the criteria

If the renewal criteria are not met, there are 3 outcomes:

• The permit is not renewed— the founder and team must leave Cyprus
• Self-employment fallback: if the company is dissolved, the founder may renew as self-employed
• Switch to another permit: PR 6.2, Pink Slip, EU Blue Card or Digital Nomad

For successful startups that meet the criteria, after 5 years in total (3+2) they can apply forLong-Term Residence (LTR) EU level theo Directive 2003/109/EC.

Hire foreign personnel

One of the big advantages of the Cyprus Startup Visa is flexible hiring rights for an international team.

Standard hiring quota

Beyond the core founder/team, the startup can hire5 foreign employeeswithout Department of Labour pre-approval, provided that:
– The minimum salary is €1,500 EUR a month gross
– The position fits the startup’s activities
– Employees have a formal employment contract

This is a “fast-track hire” mechanism that helps startups build their team quickly without delays from the labour market test.

Expanding hiring through investment

Startups that invest ≥€150,000 EUR in the Republic of Cyprus can hire an additional10 foreign employeeson top of the standard 5 — a total of 15 foreign personnel without approval.

Above 15, they can keep hiring foreign staff but need Department of Labour approval, provided that:
– Total foreign personnel ≤50% of the company’s total headcount (updated in 2025, previously 30%)
– The pace of hiring matches the company’s growth
– They do not replace qualified Cypriot workers

What this means for Vietnamese founders

This rule lets Vietnamese startups bring their technical teams from Vietnam to Cyprus. An AI/SaaS startup with 3 Vietnamese founders + 5 Vietnamese developers + 10 Cypriot employees = 18 people in total, with 8 foreign (44% < 50%) — fully compliant and scalable.

Tax incentives for startups

The Cyprus tax system is one of the most attractive factors for international entrepreneurs.

Low corporate tax

Cyprus has one of the lowest corporate tax rates in the EU:
– 12,5%(until 31/12/2025)
– 15%from 01/01/2026 (updated in line with OECD Pillar Two)

Even after rising to 15%, it is still lower than Germany (30%), France (25.8%) and the Netherlands (25.8%). For startups with profits of €100,000–€500,000 EUR a year, saving 10–15% compared with other EU countries is significant.

Non-Dom regime for founders

Once they become Cyprus tax residents, founders and team members benefit fromNon-Dom regimefor 17 years:
– 0% Special Defence Contribution on dividends from Cyprus and abroad
– 0% on capital gains from shares (not Cypriot property)
– 0% on foreign interest

This mechanism is especially useful for founders who draw income as dividends from their Cypriot company.

50% income tax exemption

Founders and senior executives with employment income >€55,000 EUR a year benefit from50% income tax exemptionfor 17 years. It applies to people who have newly become tax residents and have not been Cyprus tax residents for 17 of the last 20 years.

Investor incentives

Individual investors who invest in an innovative startup certified by the Ministry of Finance can receiveup to 50% tax exemptionon their annual taxable income in the Republic of Cyprus. This is a strong incentive to attract angel investors and VCs into the Cypriot ecosystem.

A real comparison with Vietnam

For a Vietnamese founder with a startup generating a profit of €200,000 EUR a year:
– Vietnam: Corporate tax 20% + progressive personal income tax (35% top rate) = an effective total tax of ~30–40%
– Cyprus with Non-Dom: Corporate tax 15% + 0% dividend = effective 15%

A saving of ~€30,000–€50,000 EUR a year — significant for a startup of this size.

The startup ecosystem in Cyprus

Before committing to a move under the Cyprus Startup Visa, founders need to understand the real ecosystem on the island — not just the tax benefits on paper.

Main startup hubs

The Republic of Cyprus has 4 major cities with different startup ecosystems:

• Limassol: The largest fintech and blockchain hub, with 200+ startups operating. Representative offices of Binance, Etoro and Nexo Capital. Suits financial, crypto and fintech startups.
• Nicosia: The capital, with the government and many incubators. IDEA Innovation Centre, Chrysalis LEAP, Hub Nicosia. Suits B2B, govtech and healthtech startups.
• Larnaca: Growing fast, with low costs and close to an international airport. Suits early-stage startups that need a low burn rate.
• Paphos: Lifestyle-focused and less lively, but home to the Paphos Innovation Hub. Suits founders who want work-life balance.

Main accelerators and incubators

Cyprus has several recognised accelerators and incubators:
– IDEA Innovation Centre(Bank of Cyprus + Cyprus University of Technology): a 6-month programme with mentors from Silicon Valley
– Chrysalis LEAP: focused on cleantech and sustainability
– Cyprus Seeds: a deep-tech accelerator
– GrowthSecure: cybersecurity accelerator
– Stelios Philanthropic Foundation: grant funding cho social enterprise

Joining one of these accelerators is not mandatory for the Startup Visa, but it adds significant credibility to the application — especially at the year-3 renewal stage.

Funding ecosystem

Common sources of funding for Cypriot startups:
– Government grants: RPF Pre-Seed, Innovation Voucher, Restart Grant — €5K-€100K
– EU programs: Horizon Europe, EIC Accelerator — up to €2.5 million EUR
– Local VC: 33East Capital, EOS Capital Partners, IBSA Group
– Angel networks: Cyprus Business Angels Network (CBAN), Limassol Angels
– Crowdfunding: Companisto, Seedrs (cross-border EU)

For Vietnamese founders, government grants are usually hard to access in the first year (registered residence is required), but from year 2 onwards they can join many EU funding programmes.

The Vietnamese founder community

The Vietnamese founder community in Cyprus is still small — an estimated 30–50 people in total as of 2026. Most are concentrated in Limassol, in fintech and blockchain startups. A small community is both a challenge (few ready-made connections) and an opportunity (first-mover advantage, easy to stand out).

The Cyprus Startup Visa has its own place within the Cypriot permit ecosystem.

Comparison with the Digital Nomad Visa

• Structure: Startup — founder of a Cypriot company | Digital Nomad — remote worker for a company OUTSIDE Cyprus
• Permit: Startup 3+2 years (5 in total) | Digital Nomad 1+2 years (3 in total)
• Work: Startup may run a Cypriot business and hire staff | Digital Nomad may not work in Cyprus
• Spouse: Startup may work in Cyprus | Digital Nomad may not
• Capital: Startup €10K–€20K | Digital Nomad not required
• Income: Startup no personal requirement | Digital Nomad €3,500 a month net

The Cyprus Startup Visa is more suitable for founders who want to build a company in Cyprus. The Digital Nomad Visa is more suitable for freelancers/remote employees.

Comparison with PR 6.2 Category B

PR 6.2 Category B (investment in shares of a Cypriot company) also allows you to run a business:
– Investment: PR 6.2 Cat B €300K | Startup Visa €10K-€20K
– Permit: PR 6.2 permanent | Startup 3+2 years
– Innovation: PR 6.2 not required | Startup must be innovative
– Hiring: PR 6.2 allows a paid Director role | Startup allows full operations

The Startup Visa suits genuinely innovative entrepreneurs with little capital. PR 6.2 Cat B suits investors who already have €300K and want a permanent permit.

Hybrid strategy

Some Vietnamese founders use this strategy: start with the Cyprus Startup Visa to build the company and their status, then, once the business succeeds and they have capital, switch to PR 6.2 Cat B for a permanent permit. A total investment of €310K–€320K (€10K startup capital + €300K in shares for PR 6.2) — reasonable for a seriously committed founder.

Common mistakes and warnings

After handling many Cyprus Startup Visa cases, Cypriot lawyers have summarised the most common mistakes.

A business plan that is not innovative enough

Most rejections happen at the evaluator review stage. Business plans for a “trading company” or “traditional consulting” do not meet the EU startup definition. There must be real technological or industrial risk — ordinary software products (CRM, ERP) are not enough; there must be a clear element of AI, ML, blockchain, deep tech or disruption.

Not meeting the renewal criteria

Year 3 is the moment of truth. Many Vietnamese founders focus too much on keeping the visa and neglect actually building the company. When renewal comes, there is no revenue, no staff and no additional investment — renewal is refused and they must leave Cyprus.

The wrong equity structure

Spreading equity too thinly across the team: 1 founder at 5% + 4 seniors at 5% = 25% in total. But if an investor later takes 76% (exceeding 75% — breaking the “≥25% held by the team” rule), the visa renewal may be refused. Structure it carefully so the team keeps ≥25% throughout the visa period.

Not hiring enough Cypriot staff

Although 50% foreign staff is allowed, some startups have a 100% foreign team — especially when they bring an entire Vietnamese team over. At renewal, “creating jobs in Cyprus” is understood as creating jobs for Cypriots, not bringing Vietnamese people over. You must hire at least 1–2 Cypriot employees to meet the job creation criterion.

Not using the tax incentives

Founders often focus on the product and neglect tax planning. Not registering Non-Dom status properly, not setting up a sensible dividend payment structure, not using the 50% exemption — missing out on savings of tens of thousands of EUR a year.

Summary and next steps

After the 2025 reform, the Cyprus Startup Visa has become one of the most attractive programmes in the EU for third-country founders/entrepreneurs who want to build an innovative business in Europe. With 25% equity, €10K–€20K of capital, a 5-year permit in total (3+2) and a 50% tax exemption for founders/investors, the programme is wide open to both solo entrepreneurs and co-founder teams.

Core advantages that stand out against Estonia, Portugal or Germany:
– Tax: Corporate tax 12.5%/15% + 17-year Non-Dom with 0% dividend tax
– Hiring: Foreign workforce of up to 50%, up from 30%
– Family: Spouses may work in the Republic of Cyprus
– EU Access: A gateway to a market of 450 million consumers
– English: Widely spoken in Cyprus, with no need to learn Greek

For Vietnamese founders thinking longer term — combining it withCyprus residency by investmentthrough 6.2 Category B once the startup succeeds — the Cyprus Startup Visa offers 5 years of low-cost “bootstrapping” before committing €300K to an investment for permanent PR. Strategic planning from the start — especially on innovation positioning, equity structure and renewal criteria — is what determines long-term success in Cyprus’s startup ecosystem, the fastest-growing in the EU.