Cyprus’ House of Representatives is racing to introduce mandatory security screening of companies that have Turkish shareholders or directors after MPs learned that dozens of such entities are already active in the government-controlled south. The draft law, debated on 19 February, would require the Registrar of Companies to consult the intelligence service and the interior ministry before granting registration or approving real-estate purchases.(in-cyprus.philenews.com)
Proponents say the measure is a response to rising geopolitical tension and fears that shell companies could be used to funnel profits to the Turkish-occupied north or to acquire strategic land around sensitive infrastructure. “We cannot ignore the possibility that certain firms act as espionage fronts,” warned MP Marinos Sizopoulos, who tabled the bill. The legislation mirrors investment-screening regimes already in force in 23 EU member states but goes further by targeting a specific nationality linked to an ongoing territorial dispute.
Business groups are concerned about unintended fallout. The Cyprus Investment Promotion Agency cautions that overly broad definitions could ensnare legitimate joint ventures in shipping, tourism and ICT—sectors where Turkish capital occasionally partners with EU investors. Law firms that advise multinationals on redomiciliation say they expect a surge in due-diligence requests as clients assess whether minority Turkish shareholdings could jeopardise incorporation plans.
![Parliament fast-tracks bill to vet Turkish-linked companies on security and land-ownership grounds]()
Amid these uncertainties, global mobility teams may find value in working with specialists such as VisaHQ, which monitors Cyprus entry rules and provides end-to-end visa and residence-permit processing for assignees of all nationalities. Their Cyprus portal (https://www.visahq.com/cyprus/) offers real-time updates on documentation requirements, turnaround times and security-clearance procedures, helping employers navigate the tighter screening environment that the bill is expected to create.
For mobility managers, the proposed rules could complicate corporate relocations that use Cyprus as an Eastern Mediterranean base. Any assignee seconded to a Cyprus entity with Turkish participation may face delays obtaining work permits until security clearances are in place. Employers are being advised to build a 6-to-8-week buffer into onboarding timelines and to document ultimate beneficial ownership in detail.
The government insists the bill complies with EU free-movement principles, arguing that national-security exemptions allow targeted scrutiny. A committee vote is expected by early March, with full-plenary passage likely before Easter. Companies incorporated before the law takes effect will have six months to submit ownership data for retroactive review.
Proponents say the measure is a response to rising geopolitical tension and fears that shell companies could be used to funnel profits to the Turkish-occupied north or to acquire strategic land around sensitive infrastructure. “We cannot ignore the possibility that certain firms act as espionage fronts,” warned MP Marinos Sizopoulos, who tabled the bill. The legislation mirrors investment-screening regimes already in force in 23 EU member states but goes further by targeting a specific nationality linked to an ongoing territorial dispute.
Business groups are concerned about unintended fallout. The Cyprus Investment Promotion Agency cautions that overly broad definitions could ensnare legitimate joint ventures in shipping, tourism and ICT—sectors where Turkish capital occasionally partners with EU investors. Law firms that advise multinationals on redomiciliation say they expect a surge in due-diligence requests as clients assess whether minority Turkish shareholdings could jeopardise incorporation plans.
Amid these uncertainties, global mobility teams may find value in working with specialists such as VisaHQ, which monitors Cyprus entry rules and provides end-to-end visa and residence-permit processing for assignees of all nationalities. Their Cyprus portal (https://www.visahq.com/cyprus/) offers real-time updates on documentation requirements, turnaround times and security-clearance procedures, helping employers navigate the tighter screening environment that the bill is expected to create.
For mobility managers, the proposed rules could complicate corporate relocations that use Cyprus as an Eastern Mediterranean base. Any assignee seconded to a Cyprus entity with Turkish participation may face delays obtaining work permits until security clearances are in place. Employers are being advised to build a 6-to-8-week buffer into onboarding timelines and to document ultimate beneficial ownership in detail.
The government insists the bill complies with EU free-movement principles, arguing that national-security exemptions allow targeted scrutiny. A committee vote is expected by early March, with full-plenary passage likely before Easter. Companies incorporated before the law takes effect will have six months to submit ownership data for retroactive review.
