Nicosia:Cyprus has introduced a new framework for screening foreign investments, according to a statement by the European Commission's Directorate-General for Trade and Economic Security. This development aligns with the Commission's sixth annual report on the screening of foreign direct investment.

According to Cyprus News Agency, the framework has been in effect since April 2, 2026. It was established with the enactment of Law 194(I)/2025 on November 14, 2025, designating the Ministry of Finance as the competent authority. Foreign investors are required to submit an application for approval before completing any investment.

The framework considers investments in sectors such as critical infrastructure, financial services, and real estate, while also addressing access to sensitive information, media pluralism, critical technologies, and the supply of critical inputs. Cyprus, along with Croatia and Greece, adopted national legislation on foreign investment screening in 2025, and by the end of that year, all EU member states had relevant frameworks in place.

At the EU level, notifications of investments under the European cooperation mechanism rose by 40% in 2025, totaling 667, compared to 477 in 2024. This marked the largest annual increase since the mechanism became operational in 2021. The number of member states participating in notifications grew from 13 to 21 during this period.