Cyprus implements new foreign direct investment control framework

On April 2, 2026, the Law on Establishing a Framework for the Control of Foreign Direct Investment (Law 194(I)/2025) officially enters into force in the Republic of Cyprus. This legislation introduces a comprehensive screening mechanism for foreign direct investments to safeguard national security and public order. The new legal framework aligns Cyprus with European Union Regulation 2019/452 and aims to create a stable institutional environment for investors. The law mandates that foreign investors from third countries must notify authorities if their planned investment in strategic sectors meets specific thresholds or if it involves a significant increase in existing holdings. Furthermore, the legislation defines sensitive business sectors subject to oversight and establishes mandatory notification procedures. It outlines the specific factors authorities will consider during the evaluation process and clarifies the executive powers granted to regulators to monitor these investments. The Ministry of Finance expects this mechanism to balance security concerns with the promotion of healthy investment activity.