Cyprus to implement foreign direct investment screening from April 2026

Effective April 2, 2026, Cyprus will introduce a new foreign direct investment (FDI) screening mechanism under Law 194(I)/2025. The legislation aligns national policy with EU Regulation 2019/452 and aims to safeguard national security and public order. The Ministry of Finance is designated as the competent authority, supported by an advisory committee composed of representatives from seven government ministries. The screening process applies to investors from outside the EU, EEA, and Switzerland, including entities controlled by third-country nationals holding 25% or more in a company. Covered sectors include energy, tourism, transport, health, communications, defense, financial services, dual-use technologies, and real estate. Authorities gain the power to approve, impose conditions on, prohibit, or reverse investments that pose risks to strategic interests. This framework represents the first comprehensive review mechanism for FDI in the Republic of Cyprus.