Cyprus implements new foreign investment screening framework

Cyprus has joined the list of European Union member states to implement a national foreign direct investment (FDI) screening framework, according to the sixth annual report published by the European Commission. The new regulations in Cyprus follow the enactment of Law 194(I)/2025 on November 14, 2025, which officially entered into force on April 2, 2026. This move aligns Cyprus with the broader EU effort, where every member state now maintains such a national monitoring mechanism.

The Cypriot Ministry of Finance has been designated as the competent authority for the screening process. Under the new requirements, foreign investors must submit a written application for approval before finalizing any investment. The scope of this framework covers sensitive sectors, including critical infrastructure, financial services, real estate, critical technologies, and media pluralism, as well as access to sensitive data and critical supply chains.

This development occurs alongside a significant trend across the EU, where notifications within the union's cooperation mechanism for FDI increased by 40% in 2025. This rise marks the largest annual surge since the mechanism's inception, reflecting the growing importance of collective oversight regarding the security of strategic assets across member states.