Cyprus Startup Visa 2026: Launch Your Business In the EU

Cyprus is quickly becoming the so-called Tech Island of the Mediterranean. The government of Cyprus has revamped their Startup Visa (SUV) initiative in 2026 as part of its aspiring Vision 2035. This new initiative will give non-EU entrepreneurs a low-barrier, high-speed, and entry-point to the European single market, and Cyprus will be a stiff competitor to more traditional tech capitals such as Berlin or Lisbon.

The program has a capped number of 150 visas, but the limit starts on December 2026, and thus the program has a quality over quantity strategy. It directly aims at high growth, innovative startups, which are willing to destroy international markets with a strategic Mediterranean location.

The 2026 Eligibility and Innovation Test

In 2026, your business will be subjected to a strict Innovation Test, which will grant you eligibility to be included in the Cyprus Startup Visa.

Innovation Requirements: Your startup should be “Innovative” i.e. R&D expenditures should constitute at least 10 percent of total operating expenses in at least one of the past 3 years (in case of already existing businesses) or approved through a 15 page business plan (in case of new ventures).
Equity Requirement (Major Update): In an innovational 2026 update, the minimum amount of required equity in founders has been reduced by 50 to only 25 percent of the total share capital of the company.
Minimum Capital: The founders should have access to liquid funds in the amount of not less than €20,000. This may be through personal saving, venture capital or even a crowdfunding.
The Scoring System: Evaluators rate your business plan on 20 points. To get the Notification of initial approval you need to pass at least 15/20 points (or 11/15 with some levels of evaluation).

Cyprus Startup Visa 2026: Launch Your Business in the EU

The Visa Pathways: Personal and Team

The 2026 plan is possessively versatile and accommodates both lone visionaries and existing top management.

Individual Startup Visa

Developed to suit a non-EU citizen who is a sole founder. You become a full-fledged resident and can conduct your business instantly.

Team Startup Visa

This provides a staff of 5 people (founders and senior executives).
One of them must be a founder.
At least 25 percent of shares should be held by a collective of the team.
The top managers are granted direct work privileges in the Cyprus-registered company without the necessary labor market examinations.

Financial & Tax Incentives: The 2026 Tech Island Edge

Cyprus has one of the most appealing fiscal environments globally which is specifically made to enable start ups to scale.

Corporate Tax 12.5% One of the lowest flat rate in European Union.
IP Box Regime An effective tax rate of 2.5 can be achieved on the qualifying income of Intellectual Property (IP).
Income Tax Exemption 50% Founders and employees with an annual income of more than 55,000/year are entitled to a 50% tax deduction on their personal income within a maximum of 17 years.
Tax-free on Dividends: Non-domicile residents (Non-Doms) are normally exempt of Special Defence Contribution (SDC) on the income of dividend and interest over 17 years.

Recruitment and Benefits of Operations

Cyprus provides an opportunity to run a startup in 2026 by supporting it with new and flexible labor laws that focus on acquiring global talent.

Foreign Workforce Quota: The limit has been increased so that now startups can hire up to 50 percent foreign staff (previously it was limited to 30 percent).
Fast-Track Recruitment: You are allowed to employ up to 5 non-EU employees without the Department of Labour permission, as long as they have a gross monthly income of at least 1,500 euros.
Access to EU Market: Cyprus offers a tariff free entry point to a market of 450 million people.
Family Reunification: Visa holders are entitled to invite spouses and dependents. Importantly, there is free access of spouses to the Cypriot labor market to work.

2026 Application Process- Step by Step

Application:Send your application and 15 page business plan to the Deputy Ministry (startupvisa@dmrid.gov.cy).
Assessment: The Ministry normally assesses and grades the plan in 5 weeks.
Preliminary Registration: Obtain a certificate (lasting 6 months) of your startup being innovative.
Entry Visa: Get an entry permit (M70) to go to Cyprus.
Residence Permit: Within one month, obtain the 3-year residence and work permit (which was recently renewed to 3 years).

FAQs

Does the visa cover other countries in the EU?

It provides the Cyprus residency. Although Cyprus is a non-member Schengen, being an EU resident makes the process of acquiring Schengen visas much easier and gives an avenue to the EU Blue Card.

What will follow the first 3 years?

You are eligible to renew to 2 more years. To be eligible, your startup should demonstrate growth (15% increase in revenues), restricted investments (observed 150,000) or at least 3 new positions.

Should I have a physical office in Cyprus?

Yes. To enjoy the economic substantiality needed to achieve the tax benefits and visa eligibility, you need to be able to show physical presence of an office in the Republic.

Is it possible to revise my business model once it is approved?

Small pivots are fine provided that the fundamental “Innovation” requirements are not compromised. The major changes can be followed by the necessity to re-evaluate to make sure that the business is eligible.

What is the time to be able to apply to be a citizen?

With recent reforms, the most skilled tech workers might get the right to apply in 3 or 4 years in case they have the basic requirements to the Greek language (A2 or B1 level).

Final Thought

Cyprus Startup Visa in 2026 is not a residency permit, but a launchpad. Cyprus is clearly bidding the most innovative founders of the world with its offer of a 2.5% IP tax rate and immediate family work right. Considering that you already have a scalable idea and the motivation to enter the European market, 150 slots available in 2026 are one of the strongest opportunities in the global startup ecosystem.

Disclaimer

This is purely the informative and educative article. It is recommended that before decisions, readers should check information on reliable sources.