Economy

New foreign direct investment screening regime takes effect in Cyprus on 2 April

cyprus fdi screening law starts april 2 featured word2 New foreign direct investment screening regime takes effect in Cyprus on 2 April

Cyprus’ Ministry of Finance announced that a new law on foreign direct investment screening will come into force on 2 April 2026. It is the country’s first fully structured framework of this kind.

The regime aligns Cyprus with EU Regulation 2019/452 and is designed to serve two objectives at once: safeguarding national security and public order while preserving a stable environment for investment activity.

The law defines when planned third-country investments must be notified before completion, which critical sectors are covered, and which information must be submitted for assessment. It also sets review timelines and authority responsibilities.

The ministry called on investors and economic operators to prepare in advance. For transactions that fall within scope and are carried out from 2 April onward, prior notification will be mandatory before the investment is completed.