Investment from European Union countries

As a result of the entry of Cyprus into the European Union, all restrictions as regards the acquisition of shares in a company registered in Cyprus by investors from the European Union have been abolished.

In the case of banking institutions, the Central Bank of Cyprus (CBC) will need to be notified of any investments in case that the holding exceeds 10% of the banking institution’s share capital. The decision of the CBC to oppose an acquisition must be communicated to the proposed acquirer within certain timelines. If the CBC does not oppose the proposed acquisition within the specific timelines, the acquisition shall be deemed to be approved.

In the case of companies offering investment services (licensed Cypriot Investment Firms), significant changes in shareholdings (i.e. 10% or more of the share capital of the Cypriot Investments Firm) must be notified to Cyprus Securities and Exchange Commission (CySEC). The decision of CySEC to oppose an acquisition must be communicated in writing within certain timelines. If CySEC does not oppose the proposed acquisition within the specific timelines, the acquisition shall be deemed to be approved.