Republic of Cyprus’ New FDIS Bill unveiled: further details

By Pantelis Christofides and Dr. Thomas Papadopoulos, CELIS Fellows and Country Reporters for the Republic of Cyprus

Following yesterday’s blogpost, and as reported by Politis newspaper today, the new FDIS Bill approved by the Republic of Cyprus’ Council of Ministers on 2^nd July 2025, will include, amongst others, the following provisions:

1. a minimum mandatory FDIS notification threshold of €2.000.000 is introduced;
2. in addition, notification of a concentration will be mandatory in the event of that the said participation of a third country investor exceeds certain participation percentage related thresholds, irrespective of the investment’s value;
3. natural persons that are EU Member States’ Nationals, EEA Member States‘ Nationals and Swiss Nationals are exempted from the notification obligation;
4. the National Foreign Direct Investment Screening Mechanism will have the jurisdiction to commence ex proprio motu screening of any foreign direct investment, even if the said investment is not subject to the notification requirement, in cases where issues are raised concerning national security or public order;
5. the decisions of the National Foreign Direct Investment Screening Mechanism will be subject to Judicial Review before the Administrative Court;
6. the National Foreign Direct Investment Screening Mechanism will have the authority to initiate ex officio screening of any foreign direct investment – even if such investment is not subject to the notification requirement – when concerns arise regarding national security or public order; and
7. the FDI screening will cover investments in critical sectors such as energy, credit institutions’ related services, defence and education.

Further, the above article noted that the Explanatory Report accompanying the new FDIS Bill stipulates:

a) that the said Bill substitutes the Bill previously submitted before the House of Representatives during September 2022, following the approval thereof by then Council of Ministers, i.e. by the previous Administration; and

b) after a relevant request by the Parliamentary Committee on Finance and Budget, the Ministry of Finance proceeded with further consultation and specific amendments in the FDIS Bill’s text.