Company with foreign interest status (BFU/BSC) and hassle-free employment of third-country nationals in Cyprus

Cyprus offers a unique path for international businesses looking to access the European market while employing skilled professionals from outside the EU. This is made possible through the special status of a company with foreign interest, also known within the local framework as BFU (Business Facilitation Unit) or, more recently, BSC (Business Support Centre) companies. This tailored regime has become increasingly popular due to its fast-track processes and attractive regulatory benefits, especially when it comes to hiring non-EU (third-country) nationals.

Let’s look at how the process works, what the key criteria are, and why more businesses are using this route to set up and scale their operations in Cyprus.

What is a company with foreign interest status in Cyprus

A company of foreign interest in Cyprus is an entity that is either majority-owned by non-EU nationals or meets specific capital investment requirements. This status, granted through registration with the Business Facilitation Unit (BFU) or as part of the updated Business Support Centre (BSC), gives companies access to simplified processes for employing non-EU citizens—including executives, directors, or specialist staff.

A few key facts:

To qualify, the company must either be majority-owned by third-country nationals or show qualifying foreign investment of at least €200,000.
A physical presence is required: the business must operate from a dedicated office in Cyprus (not just a registered address or virtual office).
Registration with the BFU/BSC is mandatory before applying to hire non-EU staff.

Main eligibility criteria for BFU/BSC registration

Not every Cyprus company qualifies for foreign interest status. The eligibility criteria are clear and transparent:

Ownership structure: Third-country (non-EU/EEA/Swiss) nationals must own at least 50% of the company’s shares. In cases where their share is 50% or less, they still qualify if the value of their investment is at least €200,000.
Initial capital investment: The ultimate beneficial owner (UBO) must deposit at least €200,000 into the company’s account with a financial institution approved by the Central Bank of Cyprus, or provide evidence the same amount has been invested directly in the Cypriot business (e.g., buying office space, equipment).
Physical office: The business must lease or purchase a real, independent office for conducting daily operations (not just a PO box or registered address).
Business activities: The company should demonstrate genuine intention to carry out commercial activities in Cyprus, supported by a business plan or active recruitment.

Additional categories eligible for registration include listed companies, shipping companies, high-tech/innovation, pharmaceutical and biotechnology companies, and those owned by persons who acquired Cypriot citizenship on economic grounds—provided the original investment criteria remain valid.

For a detailed, step-by-step overview of setting up a company in Cyprus, you can explore our guide.

Benefits for companies and investors

Achieving BFU/BSC foreign interest status unlocks several substantial advantages:

Fast-tracked employment for third-country nationals: Once registered, companies can employ an unlimited number of non-EU highly skilled workers (salary €2,500+/month), without the need for a labour market check or restrictive quotas.
Quick processing: Residence and work permits for eligible employees are typically processed within a month.
No sector restrictions: High-skilled roles are not limited to certain professions or sectors. Specialists can work in any role relevant to the company’s activities.
Attractive tax regime: Companies benefit from Cyprus’s low corporate tax rate (12.5%) and access to double-tax treaty benefits, tax incentives for innovative businesses, and personal tax advantages for new, non-domiciled high earners.
Clear path to family reunification: Employees can bring immediate family members, whose spouses/partners are even allowed to work in Cyprus (once single permit conditions are met).
Favourable residency and potential for fast-track citizenship: Eligible employees enjoy multi-year residence/work permits and, under certain conditions (such as language proficiency), can apply for naturalisation (EU citizenship) after 3–5 years.

Hassle-free employment of third-country nationals

A standout feature of the foreign interest company regime is the ability to recruit overseas talent without excessive bureaucracy. Here’s how it works in practice:

No maximum quotas: Companies can hire as many skilled non-EU nationals as operationally needed, provided they meet minimum salary and qualification requirements.
No labour market test for highly skilled staff: Unlike standard procedures, there is no requirement to prove a lack of local/EU candidates if hiring for highly skilled positions (gross monthly salary €2,500+).
Simple family relocation: Immediate family members can move to Cyprus with the principal permit holder. Spouses/civil partners can work legally in Cyprus, subject to simple single-permit procedures.
Long-term options: Residence and work permits are issued for up to three years, renewable with no restriction (provided eligibility is maintained).
Employer obligations: Over five years from registration, the company must ensure that at least 30% of its workforce consists of Cypriots or other EU citizens. This is assessed five years after initial registration.

A typical process flow:

The company completes its BFU/BSC registration and demonstrates substance and investment.
The business applies for residence and work permits for chosen non-EU employees.
Employees (and their families) relocate and are eligible for multi-year residency in Cyprus.
If the company fails to reach the required workforce ratio by year five, the case is reviewed by the authorities (on a case-by-case basis).