Commission Report: Cyprus Still Lacks Foreign Investment Screening

The European Commission published its fifth annual report on the screening of foreign direct investments (FDI) in the EU. According to the report, notifications to the EU cooperation mechanism increased by 15% since 2021.

In 2024, EU member states notified 477 investments, with approximately 10% of these cases being questioned by other member states. The majority of cases (92%) were completed within two weeks.

By the end of 2024, 24 member states had national legislation in place to screen FDIs. However, Cyprus does not yet have a national mechanism in place for screening foreign direct investments.

The draft law to create a national FDI screening framework was submitted to the House of Representatives in March 2024 and is currently under legal review. The Commission confirms that Cyprus does not yet publish a national report on FDI screening.

In January 2024, the Commission presented a legislative proposal to strengthen the EU's FDI screening framework, making the implementation of a national screening mechanism mandatory for all member states.

Source: ΚΥΠΕ