Nicosia, Cyprus. Cyprus will begin screening certain foreign direct investments from April 2, 2026 under a new law aimed at safeguarding national security and public order and aligning with the EU investment control framework.
Law enters into force in 2026
The Finance Ministry said the establishment of a framework for the control of FDI law of 2025, published as Law 194(I)/2025, will come into force on April 2, 2026. The ministry said the law introduces, for the first time in Cyprus, a comprehensive mechanism for the review of foreign direct investment.
Aims and EU alignment
The ministry said the framework is intended to protect national security and public order and to help create a more stable institutional environment that supports investment activity, in line with Regulation (EU) 2019/452.
Notification requirements and scope
Under the law, notification will be required for proposed foreign direct investments based on the level of participation of a third-country investor in an enterprise of strategic importance, in relation to a set investment threshold. It will also apply where an existing holding rises beyond a predetermined percentage.
The framework will also cover transactions that may give an investor significant influence in businesses operating in critical or sensitive sectors.
Procedures, assessment factors, and competent authority
The legislation defines areas of activity linked to national security and public order, sets out the notification procedure and screening timetable, and lists factors to be taken into account during the assessment.
It also specifies the information that must be submitted for the screening process and confirms that the Finance Ministry will act as the competent authority.
Guidance for investors and operators
The ministry called on investors and economic operators to familiarise themselves with the provisions of the law and take the necessary steps to comply.
It clarified that foreign direct investments falling within the scope of the legislation and due to be carried out from April 2, 2026 onwards must be notified to the ministry for screening before the investment is completed.
For further details, the ministry said interested parties can consult the relevant section on its official website.
What steps will you take to ensure any planned investment complies with the new notification and screening requirements?