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United Kingdom

Cyprus FDI screening regime (Law 194(I)/2025): scope, thresholds, procedure, penalties, timelines, EU co-operation and merger control interface; entry into force 2 April 2026

Practice notes
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1. What is the applicable legislation?

The governing law is Law 194(I)/2025 on the Establishment of a Framework for the Screening of Foreign Direct Investments 2025 (FDI Law 2025). It gives domestic effect to the obligations under Regulation (EU) 2019/452 on foreign direct investment screening (Regulation (EU) 2019/452)...

2. Which government or other body (or bodies) reviews foreign investments?

The Ministry of Finance acts as the competent authority to accept FDI notifications, carry out assessments and liaise with other departments or the EU. The review process is assisted by an inter‑ministerial Advisory Committee, with participation from the relevant ministries...

3. What is the scope of the foreign investment regime in Cyprus? Does it only apply to specific sectors or types of investors (eg foreign or non-EU / non-WTO)? Are there specific rules for certain types of investors (eg state-owned enterprises)?

The regime covers foreign investors, meaning natural persons or legal entities from outside the EU, EEA or Switzerland. It applies where the investor undertakes or intends a ‘foreign direct investment’—that is, a lasting stake conferring effective involvement in management or control. The screening mechanism concentrates on ‘strategic’ / ‘sensitive’ sectors (areas of ‘strategic importance’ or involving ‘strategic undertakings’), such as...

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Web page updated on 21/05/2026

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