Cyprus has been among EU member states that introduced a new foreign investment screening framework, a statement by the European Commission’s Directorate-General for Trade and Economic Security published on Wednesday and the Commission’s sixth annual report on the screening of foreign direct investment have said.
As it is noted, Cyprus’ framework for the screening of foreign direct investment has been in force since 2 April 2026, while at EU level investments notified under the European cooperation mechanism increased by 40% in 2025.
According to the report, Cyprus established its screening framework with the publication of Law 194(I)/2025 on 14 November 2025, which entered into force on 2 April 2026. The Ministry of Finance is designated as the competent screening authority, while foreign investors are required to submit a written application for approval in advance, before completing an investment.
The Cypriot framework takes into account, among other things, investments in sensitive sectors such as critical infrastructure, financial services and real estate, as well as access to sensitive information, media pluralism, critical technologies and the supply of critical inputs.
Cyprus, together with Croatia and Greece, was among the member states that adopted national legislation on the screening of foreign direct investment in 2025. According to the report, by the end of that year all Member States had a relevant national framework in place.
At EU level, member states notified 667 investments to the Commission in 2025, compared with 477 in 2024. The 40% increase was the largest annual rise since the European cooperation mechanism became operational. Since 2021, the first full year of operation of the mechanism, notifications increased by 61%, from 414 to 667, while the number of Member States submitting notifications rose from 13 to 21.
