Cyprus: Corporate/Commercial Law

A Cyprus share sale changes who owns the company; it does not give the company a clean slate. The contracts, employees, licences, assets and liabilities stay with the same legal entity. So do its tax exposures, defective records, disputes and compliance failures. The buyer acquires the shares and, through them, the economic consequences of the company’s past.

Cyprus has become an increasingly attractive jurisdiction for entrepreneurs, international investors and companies seeking to establish or expand their operations within the European Union.

The European Union has adopted a new regulation on foreign direct investment screening that will take effect in 2028, establishing mandatory minimum standards across all Member States. This marks a significant shift from the previous cooperation-based framework toward harmonized requirements for reviewing foreign investments in sensitive sectors. While the regulation introduces common procedures and expanded scope, national variations in implementation are expected to persist, creating new considerations fo

In July 2026, the Cyprus Business Development Organisation Law 2026 (Law 124(I)/2026) was enacted, providing for the establishment and operation of the Cyprus Business Development Organisation (the “Organisation”).

The EU Pay Transparency Directive required Member States to transpose its provisions into national law by 7 June 2026, yet the picture across the EU remains mixed with only a handful of countries having completed transposition. This update examines where each Member State stands in the implementation process and provides specific guidance on Cyprus's current position and timeline for employers operating in the region.

Cyprus has introduced an accelerated citizenship pathway for highly skilled foreign employees working for qualifying companies in the Republic. This framework, sometimes called the "Golden Knowledge" route, allows eligible professionals to obtain citizenship after four or five years of qualifying residence, depending on their Greek language proficiency. The regime represents a significant development for international professionals who have established their careers and lives in Cyprus.

During 2025, the Cyprus Government undertook a comprehensive review of the country's tax framework, with reforms approved on 22 December 2025 and effective from 1 January 2026.

The recognition of Cyprus with the Best Global Climb Award Among EU Countries in the 3rd Edition of the StartupBlink Startup Ecosystem Awards, marking the largest improvement among all EU member states isn't just a symbolic win; it reflects genuine transformation.

Alternative Investment Funds (AIFs) are emerging in the rapidly evolving world of global finance.

Directors of Cyprus companies are not automatically liable for company debts simply by virtue of holding office, as the company exists as a separate legal person. However, personal liability can arise through guarantees, personal undertakings, fraudulent conduct, misapplication of company assets, or specific statutory provisions relating to tax, VAT and social insurance.

In July 2026, the Cyprus Business Development Organisation Law 2026 (Law 124(I)/2026) was enacted, providing for the establishment and operation of the Cyprus Business Development Organisation (the “Organisation”).

They are trying to tax the provident funds, the hedge funds and the pension funds. This is something we are against.