The House Finance Committee in Cyprus has recently concluded its thorough review of the new foreign direct investment (FDI) screening legislation. This crucial step sets the stage for the bill’s upcoming debate in the parliamentary plenary session, expected within the next three weeks.
Gaining widespread support across political parties, the bill underscores Cyprus’ dual goal: to remain an open, attractive destination for foreign capital while reinforcing safeguards that protect the nation’s security and public interest.
Christiana Erotokritou, chair of the committee and MP for the Democratic Party (DIKO), emphasized that the legislation — submitted in July and scrutinized since early September — provides a “modern framework” that balances economic openness with robust security checks.
“Cyprus continues to welcome foreign investment, maintaining an outward-focused economy, but always ensuring that investments comply with strict rules designed to protect security and the public good,” Erotokritou affirmed after the committee session.
The law primarily targets investors from non-European Union countries aiming to invest in sensitive and strategic sectors including energy, defence, healthcare, telecommunications, and real estate. These sectors are vital to national infrastructure and public welfare, making comprehensive oversight essential to mitigate risks from foreign ownership or control.
While some differences arose during committee discussions, a consensus was ultimately reached, reflecting a unified political commitment to the country’s security and economic attractiveness.
“With this bipartisan agreement, the bill moves forward with strong momentum, enhancing Cyprus’ reputation as a transparent and secure investment hub,” noted Erotokritou.
This legislation harmonizes national protocols with the European Union’s investment screening mechanisms, which member states have been required to establish since 2019. The EU framework aims to ensure that investments potentially affecting public order or security — especially in crucial sectors — are carefully reviewed.
As a longstanding international business centre and financial gateway, Cyprus draws significant FDI across diverse industries. The new rules will require thorough examination of investments from third countries to identify and address any security concerns prior to approval.
Moreover, Cyprus will join other EU member states in information sharing with the European Commission and neighboring countries to address cross-border investment issues effectively.
This development strikes a necessary balance between preserving Cyprus’ welcoming investment climate and prioritizing the protection of strategic assets — a balance that has become increasingly important throughout the European Union.
For those interested in opportunities under the new regulatory landscape, whether in Cheap Houses and Villas for Sale Cyprus or exploring Plots of Land for Sale, understanding these changes will be key to making informed investments.
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