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Cyprus’ position as an international high-growth business centre. Te ‘fast track’ Companies of Foreign Interests system enables Cyprus-registered companies to employ third-country (non- EU) nationals to work and live in Cyprus if certain requirements are met. Tere have been 1,229 overseas companies entering Cyprus between 2021 and May 2025. Cyprus’ appeal as a strategic operations base for headquarters
THE BUSINESS HUB Cyprus relies on its service industry, tourism, and manufacturing, and more recently has become an important financial hub. It is also known for its love of stray cats, halloumi cheese, and clean golden beaches. Tourism has impacted Cyprus’ development hugely over the years and the country welcomed around four million visitors in 2024. Back in 2006, the tourism industry was responsible for just over 10 per cent of the country’s GDP and saw 2.4 million visitors. In the late 2000s, there was a drop in the number of British
tourist arrivals due to the downturn in the British economy, so huge efforts were put in place to stimulate tourism from other countries, and Russian tourists became the second biggest group in terms of arrivals. Te war in Ukraine disrupted this growth and last year the
top five visitor numbers came from Britain (34 per cent of visitors), Israel (10.5 per cent), Poland (8.3 per cent), Germany (5.7 per cent), and Greece (4.5 per cent). In 2024, the number of tourists increased by just over five per
cent from 2023 figures (3.85 million) and reached 4.04 million – rebounding beyond 2019 figures (3.97 million) after a slump during the pandemic. Te country saw a tourism revenue stream of €3.21bn – a 7.3 per cent increase on 2023 (€2.99bn) and an increase from 2019 revenue of €2.68bn. Total expenditure per person, per day was €92 on average or €794 per trip. Of these tourists, more than 31 per cent stayed in Pafos, followed by 16 per cent in Ayia Napa, 14 per cent in Larnaca, 12 per cent in Limassol, and 11 per cent in Paralimni. During the first half of 2025 tourist arrivals reached 2.43 million compared to 2.20 million for the same period in 2024 – an increase of 10.4 per cent. Meanwhile, Cyprus’ economic growth rate is strong and is mostly driven by domestic consumption as household purchasing power increases alongside wage increases and lower inflation rates. Export of services is a key element, particularly in the tourism and ICT sectors. GDP per capita was €29,190 in 2024 with a growth rate of 3.3
per cent, whilst the picture for 2026 is forecast to stay pretty much the same. Tis is said to be partly down to the so-called ‘headquartering policies’, which are designed to attract international companies to relocate their HQs to Cyprus. Tis policy came into force in 2022 and aims to enhance
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is growing and becoming a magnet for businesses and tech in- novators. Te country boasts cutting-edge infrastructure and telecommunications, a solid financial and professional services sector, and a transparent regulatory and legal framework. Set up costs and operational expenses are said to be lower
compared to many European markets, and its location serves as an easy gateway to Europe, Asia, and Africa. Two primary in- ternational airports link Cyprus to most major destinations – Larnaca and Paphos. Cyprus has also rapidly become a hub for the Information
Communications Technologies sector (ICT), which rose on average by more than 17 per cent over the last 10 years. It is re- sponsible for around 16 per cent of the country’s GDP. Companies such as NCR, Wargaming, Bolt, Melsoft Games, and Logicom have established operational or corporate offices on the island. Amazon also launched a data service arm in Cyprus, whilst companies such as Microsoft and IBM have had a presence here for years. One big draw for tech companies is the EU-approved tax
regime that offers great incentives for companies and employees. Tere is a competitive tax rate of 2.5 per cent for Intellectual
Property, plus a low corporation tax rate of 12.5 per cent, whilst the tax regime is simple, following a ‘straight line’ method of 12.5 per cent on taxable profits. Te island has a long-standing reputation as a tax haven, particularly for Russian oligarchs who have filtered their money through this island. As such there are many questions regarding money laundering and corruption. According to the 2025 US International Narcotics Control Strategy Report, the Republic of Cyprus continues to upgrade its anti- money laundering legal framework.
Cyprus has rapidly become a hub for the Information Communications
Technologies sector (ICT), which rose on
average by more than 17 per cent over the last 10 years. It is responsible for around 16 per cent of the country’s GDP.
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