Stricter Controls on Foreign Investments in Cyprus

The Parliamentary Committee on Financial Affairs has begun discussing the revised bill regarding the National Mechanism for Controlling Direct Foreign Investments. The bill aims to align Cyprus with European practices by imposing stricter controls on investments of strategic importance.

The Ministry of Finance announced amendments, including the definition of strategically important enterprises, the exclusion of investors from the EU, EEA, and Switzerland, the obligation for investors to provide timely information, and the establishment of a minimum investment notification threshold of €2,000,000. Ships are also excluded, except for floating natural gas units.

Organizations such as KEBE, OEB, and the Pancyprian Bar Association agreed with the legislation. However, TechIsland expressed a desire for the technology sector to be excluded.

Christiana Erotokritou, Chair of the Committee on Financial Affairs, emphasized that the bill strengthens development and shields Cyprus. Andreas Kavkalas of AKEL stated that they would study the provisions of the bill, expressing concerns about investments in sectors such as banks, healthcare, and real estate.