At a meeting of the Cyprus Parliamentary Finance Committee on Monday 1 September, a bill was presented that introduces mandatory screening of all foreign investments worth €2 million or more. This new control system is being created in accordance with European regulations on the screening of foreign direct investments. It will enable Cyprus to enhance financial transparency and protect strategic industries.
Speaking before MPs, a representative of the Ministry of Finance noted that the bill defines the circumstances in which investors must notify the authorities of planned transactions, the criteria and factors that will be considered during the screening process, and the documents that must be provided. The Ministry of Finance will be the competent authority for screening.
Transactions over the past 15 months will be screened.
According to the draft, control will cover investments made over the past year and a half. If questionable sources of capital or violations are identified during the verification process, the investment may be cancelled. This practice has already been in place in the EU for five years, and Cyprus intends to fully align its legislation with European standards.
Which industries will be subject to special attention?
The new rules will apply to significant investments in the banking sector, healthcare, real estate, tourism and other strategic sectors of the economy. This will enable Cyprus to quickly exchange information on foreign investments with other EU countries, thereby increasing financial security.
AKEL MP Andros Kafkalas stressed that the main goal of the new initiative is to protect public interests and prevent strategic assets from falling under the control of dubious entities.
When will the new rules come into effect?
The Cypriot government plans to approve the bill by the end of September 2025 to ensure full compliance with EU requirements. Experts note that such a measure may deter unscrupulous investors, but at the same time boost the confidence of reputable international companies in Cyprus.