Cyprus

Market Overview
By

Nestled in the eastern Mediterranean, Cyprus has long been a sought-after destination for investors seeking a strategic business foothold in Europe and beyond. With its rich history, favorable business infrastructure, strong economy, and appealing opportunities, Cyprus remains an attractive jurisdiction for both domestic and foreign entrepreneurs, organizations, and corporations.

Business environment

Changes in 2025 versus 2024 - What has changed in the last year that has impacted the way business is conducted?

Over the past year, Cyprus has experienced several significant developments that have impacted the business environment:

Economic Indicators and Fiscal Policy
  • Credit Rating Upgrades: In November 2024, Moody's upgraded Cyprus' credit rating from Baa2 to A3, reflecting improved investment appeal. com
  • Inflation and Fiscal Surplus: Inflation stabilized at approximately 2.2% in 2024, down from 3.9% in 2023. The country also maintained a strong fiscal surplus, contributing to economic stability. cyprus-mail.com
Tourism Sector
  • Record-Breaking Tourism Figures: In 2024, Cyprus welcomed over 4 million visitors, generating revenues exceeding €3 billion. This surge underscores the sector's robust recovery and its significance to the national economy. com.cy
Energy Sector
  • Natural Gas Exploration: ExxonMobil commenced gas drilling off the Cypriot coast in January 2025, aiming to enhance energy diversification and security. Reuters
  • Gulf Energy Collaborations: Cyprus entered discussions with energy companies from Persian Gulf states regarding natural gas exploration licenses, indicating a strategic move to bolster the energy sector. com

What are the advantages of your country as a business location?

Cyprus boasts a strategic geographical position, situated at the crossroads of Europe, Asia, and Africa, making it a prime location for businesses seeking entry into these lucrative markets. This unique positioning presents a wealth of opportunities for international enterprises. Additionally, Cyprus offers an appealing tax system with one of Europe's lowest corporate tax rates at 12.5% and an extensive network of double tax treaties. Further, the country has introduced a favorable Intellectual Property (IP) regime that provides tax incentives for companies holding IP rights, reducing their effective tax rate as low as 2.5% on IP-related profits. Such tax advantages make Cyprus an enticing choice for foreign investors seeking to optimize their financial profiles. Additionally, the country is included on the OECD’s whitelist of jurisdictions and has also received positive credit rankings in 2023 from Fitch (BBB), Moody’s (Baa2) and S&P (BBB). Cyprus also finds its long-term credit rating 3 grades above the minimum investment threshold, specifically at BBB High and BBB+ by DBRS Morningstar and the Germany-based agency Scope Ratings.

The island further stands out due to its well-developed infrastructure, including modern telecommunications, global ports, and international connectivity. A skilled and educated workforce, proficient in English, strengthens Cyprus's appeal for companies seeking to establish their operations. The nation's economy has displayed resilience, exhibiting consistent growth and recovery following the economic challenges spurred by the Covid-19 pandemic. Beyond this, Cyprus diversifies its business sectors, extending well beyond traditional domains like tourism and real estate. Thriving in sectors such as ICT, fintech, shipping, renewable energy, entrepreneurship & innovation, investment funds, filming, and higher education, Cyprus's economic prospects remain robust. Moreover, its straightforward legal system simplifies business establishment and operation. Furthermore, Cyprus offers accessible residency programs for foreign investors, allowing them to secure residency through varied investment opportunities. Lastly, Cyprus's European Union (EU) membership opens doors to the EU's market and free trade with other member states, enhancing its business attractiveness on a global scale.

What are the business structures in your country?

Private limited liability company by shares

Such a company has share capital, and the liability of its members is limited by its memorandum of association to any unpaid amount, for the shares they hold. A private limited liability company by shares must have at least one (1) shareholder but no more than fifty (50), exclusive of any persons who are or have formerly been in the employment of the company and are or still continue to be members of the company. A private limited liability company cannot offer its shares for subscription to the public. This is the most common type of company.

Public limited liability company by shares

This company has share capital and the liability of its members is limited by its memorandum of association, to any unpaid amount, for the shares they hold respectively. A public limited liability company may invite the public to subscribe for its shares and may be listed on the stock exchange. The number of members of a public company must be at least seven (7). The minimum authorized and issued capital of a public company, which is offered for subscription, must be twenty-five thousand, six hundred and twenty-nine euros (€25,629).

Limited liability company by guarantee without share capital

This type of company does not have share capital and its members act as guarantors rather than shareholders. The liability of its members is limited by its memorandum of association, up to the amount that the members have undertaken to contribute respectively to the assets of the company in case of dissolution.

Limited liability company by guarantee with a share capital

This company has share capital and the liability of its members is limited by its memorandum of association, on the one hand, up to any unpaid amount for the shares they hold, and on the other, up to the amount that its members have respectively undertaken to contribute to the assets of the company in case of dissolution. This type of company can be either private or public company. If it is a public company, it can invite the public to subscribe for its shares.

Variable capital investment company

This company is a limited liability company by shares. The main characteristic of this type is that, according to its memorandum of association and the rules governing its operation, its shares do not have a nominal value but rather a variable value. The company can be incorporated after it receives a relevant license from the Cyprus Securities and Exchange Commission (CySec) to operate as Collective Investment Funds (CIF).

A variable capital investment company (VCIC) can take the form of either a private or a public company, depending on the type of collective investment fund (CIF) that such variable investment company will take (UCITS, AIF, AIFLNP, RAIF). The number of members of a private company can range from one (1) to fifty (50) members while the number of members of a public company must be at least one (1).

General Partnership

In a general partnership, all partners are general partners and therefore every partner is jointly and severally liable with all the other partners for the debts and obligations of the partnership that arise while he/she is a partner. A general partnership must have at least two (2) partners.

Limited Partnership

A limited partnership must comprise of one (1) or more persons who will be the general partners and shall be responsible for all the debts and obligations of the partnership, as well as one (1) or more persons who shall be the limited partners who will contribute a certain amount or property, valued at a specific amount to the partnership and to which persons a specified number of shares may be assigned. Limited partners are not liable for the debts and obligations of the partnership beyond the amount they have contributed. A limited partnership may have a share capital and be limited by shares. Regardless of whether it has share capital or not, a limited partnership is not considered as a legal entity with an independent legal personality.

Economy

Currency strength

Cyprus adopted the Euro as its official currency on 1 January 2008. The Euro is one of the top 10 strongest currencies in the world and is the official currency of 20 out of the 27 countries that form the European Union. Euro coins and banknotes entered circulation in 2002, and the currency is free-floating.

Inflation rates

Inflation (HICP) in September 2023 is estimated to have increased by 4.3% compared with an increase of 3.1% in August 2023. For the period January-September 2023 the HICP is estimated to have increased by 4.4% compared to the corresponding period of the previous year.

Main trade sectors

Tourism remains a cornerstone of Cyprus' economy, with 2024 marking a record-breaking year for visitor arrivals and revenue. The sector has fully rebounded from the impacts of the COVID-19 pandemic, with over 4 million tourists generating more than €3 billion in revenue. The government continues to promote Cyprus as a premier travel destination, leveraging its rich history, picturesque landscapes, and strategic Mediterranean location.

Real estate remains a strong driver of economic activity, attracting both domestic and foreign investment. Cyprus' property market saw continued resilience, with 19,155 property transfers worth €4.3 billion in 2024 [In-Cyprus]. Limassol, in particular, remains a hotspot for commercial and residential property development, with high-end projects catering to international buyers. The government has introduced new incentives for foreign investors, further stimulating demand.

The financial services sector continues to thrive, with banks, insurance companies, and investment firms benefiting from Cyprus' favourable regulatory and tax environment. The funds industry has seen exponential growth, attracting a diverse range of international investors. The ship management industry also remains robust, contributing significantly to the economy. Shipping revenues reached €1.26 billion in 2023, accounting for 4.23% of the country’s annual GDP [Kathimerini].

The energy sector has witnessed notable advancements, particularly in natural gas exploration and renewable energy. ExxonMobil commenced gas drilling off the Cypriot coast in early 2025, reinforcing Cyprus' role as an emerging energy hub. Investments in solar power and green energy initiatives continue to grow, aligning with the country's sustainability goals and EU directives.

Technology and innovation have become major economic drivers, with Cyprus emerging as a regional leader in fintech, ICT services, and start-ups. The tech sector contributed significantly to GDP growth in 2024, with fintech firms attracting substantial foreign investment. In fact, according to the Cyprus Mail, the ICT sector contributed up to 15 per cent of the country’s GDP and generated approximately €4 billion in revenue in 2024, positioning the country for further growth. . The government remains committed to fostering innovation through tax incentives, funding programs, and business-friendly policies.

As Cyprus moves forward in 2025, these key sectors—tourism, real estate, financial services, shipping, energy, and technology—will continue to shape the nation’s economic landscape, reinforcing its status as a dynamic and attractive destination for business and investment.

Legal system

How does the legal system operate? What should clients be mindful of when doing business in your jurisdiction?

Cyprus is primarily a common law jurisdiction with a justice system which is based on the adversarial model. This is a legacy from its period as a British colony.  Much of Cypriot legislation is based on the UK laws in force at the time Cyprus ceased to be a colony.  It is updated and amended regularly to ensure alignment with all relevant EU Guidelines and Directives.  Where there is no applicable Cypriot legislation, English common law and equity are applicable, and English authorities have persuasive force.  The courts are bound by the doctrine of precedent according to which where the common law has been interpreted by the Supreme Court of Cyprus in a particular way, the subordinate courts will be bound by that interpretation. This offers the parties to a commercial action the advantages of consistency, predictability, and efficiency.

Foreign investment restrictions

Regulatory environment

Cyprus, as an EU member state, operates within a regulatory framework that encompasses various sectors, each designed to promote economic growth, protect the rights of consumers and investors, and ensure compliance with international standards. In the financial realm, the Cyprus Securities and Exchange Commission (CySEC) oversees banking, insurance, and investment services, aligning the country with EU directives to maintain financial stability. The nation's competitive tax environment, with a low corporate tax rate and extensive double taxation treaties, positions Cyprus as an attractive hub for international businesses, and the government actively combats tax evasion and money laundering. Moreover, Cyprus upholds robust labor regulations and fosters fair working conditions, while consumer protection measures are in place to safeguard consumers' rights. The regulatory landscape here extends to environmental protections, legal systems, and data privacy, with an overarching commitment to EU standards.

Cyprus also ensures a conducive environment for business operations and investment. The Department of Registrar of Companies and Official Receiver facilitates the registration of various business entities, welcoming foreign investment. In the real estate and construction sectors, regulations maintain construction quality and safeguard buyer rights, while in the telecommunications and IT domains, regulatory bodies ensure competition, service quality, and data protection. These efforts are complemented by a robust legal system based on English common law principles, providing the legal foundation for contracts, property rights, and dispute resolution.

In response to global concerns, Cyprus has implemented comprehensive measures in areas such as anti-money laundering and counter-terrorism financing, aligning its regulations with international standards and EU directives. Additionally, the country complies with the General Data Protection Regulation (GDPR), ensuring the privacy and security of personal data. In healthcare and pharmaceuticals, Cyprus adheres to EU standards in the delivery of healthcare services and the regulation of pharmaceutical products. Overall, Cyprus' regulatory environment reflects its commitment to maintaining a thriving economy, protecting individual rights, and adhering to international norms in various sectors of governance.

Direct investment

The Cyprus government has an established record of seeking to encourage foreign direct investment into the country in order to diversify its economy. The tax system has played an important role in these efforts and consequently the  Cyprus tax regime has evolved into being one of the most attractive in Europe for individuals, investors and businesses.

Restrictions on foreign capital

There are currently no restrictions on ownership and investment in Cyprus.

Foreign exchange controls

Cyprus imposes no capital restrictions but as with other EU countries, travelers to the island must declare cash sums exceeding EUR10,000 upon arrival.

Firms in the Spotlight
Interviews
ViewView
Comparative Guides
ViewView
News & Developments
ViewView
Intellectual Property

Co-Ownership of Intellectual Property – What Can Go Wrong?

When two or more parties collaborate on a creative or innovative project, establishing clear ownership arrangements of the resulting intellectual property (IP) is crucial. Given that IP rights often represent the most valuable asset generated from such collaborations, how these rights are negotiated can significantly impact the project's success and its future opportunities for licensing, sale or enforcement. Joint ownership of IP can arise by explicit written agreements. For instance, a patent may list multiple inventors and in the absence of specific ownership arrangements or employment agreements addressing ownership, each named investor is automatically considered a co-owner of the entire patent unless an agreement states otherwise. Similarly, a team of programmers developing a new application might share copyright rights as co-authors. In another scenario, two companies collaborating on a project may agree to split costs equally and jointly own trademarks or other related IP rights as a matter of fairness. Intellectual property grants its owners exclusive rights and can be a major component of a company's assets. These rights can be sold, licensed to third parties, enforced through legal action against infringers, or used as collateral for loans, thereby enhancing a company's value. While joint ownership might seem like a straightforward and cost-effective solution, it can also lead to complex challenges down the line. Proper planning and agreements are crucial to avoiding future disputes and maximising the value of the intellectual property. Why Co-ownership can Cause Problems? A patent grants its owner the exclusive right to prevent others from commercially using the invention. When multiple parties own a patent together, that exclusivity becomes weaker. Without everyone's approval, no one can give a license to a third party, which limits the rights of all owners. Consequently, co-owners may have different ideas about how to use, license, or exploit the IP, disagreements can arise, which might lead to costly disputes. Additionally, sharing income or royalties can become a source of conflict if the parties have different expectations about how profits should be divided. Copyright protects creators by letting them prevent others from copying their work. Who owns the copyright depends on how the work was created. Typically, an employer owns the copyright if the work was produced by employees within the scope of their employment. If no ownership provisions apply and no other agreement exists, the work is owned by its creator. When multiple people create a work together, like a book or a song, all of them must agree before giving someone exclusive rights to publish it. Many publishers prefer exclusive rights, therefore sharing ownership can make it harder to find a publisher. Each co-owner also is required to account for any profits made from the work with the others. This can become complex, especially when derivative works are based on the original. Unlike patents, a co-owner of a copyright can enforce it against third parties without needing consent from other owners. Notable case A notable case is the copyright dispute among members of the band Pink Floyd. Waters left Pink Floyd in 1985 and began a legal battle with the band regarding their continued use of the name and material. As joint copyright holders of their music, conflicts arose, once Roger Waters left the group, particularly concerning the use and performance of shared works. The dispute revealed how joint ownership can create problems especially to the licensing, enforcement and future exploitation of the work. Therefore, enforcing rights against third parties (e.g., patent infringement) can be difficult when ownership is shared. All co-owners must act together, which isn't always feasible. Moreover, a trademark's primary purpose is to identify the specific source of goods or services. Joint ownership of a trademark is less common than joint ownership of patents or copyrights. Similar to patents and copyrights, an exclusive license cannot be granted without the consent of all owners. Additionally, in enforcement actions, one owner might license activities that the other views as infringement, potentially complicating the protection of the mark. Conclusion While co-ownership of intellectual property may seem a straightforward solution, it can lead to various issues that are best addressed through carefully drafted agreements at the beginning of a project. To minimise risks, alternative arrangements such as assigning sole ownership to one party with licensing rights granted to others or establishing clear joint ownership agreements are advisable. These agreements should explicitly specify IP ownership, detail how rights are shared among the involved parties, and outline procedures for potential scenarios such as enforcement, licensing, or sale of the IP rights. Xenia Kasapi, LL.B., LL.M., MCIArb Senior Advocate Head of the Intellectual Property & Data Protection E & G Economides LLC [email protected] www.economideslegal.com
E & G Economides LLC - September 2 2025
Banking and Finance

The Future of Banking Compliance Lawyers: Embracing Innovation and AI to Better Serve Banks and Customers in Cyprus and Beyond.

What does it mean to run a business in a financial world that never stands still? The world of banking and finance is undergoing rapid transformation. From the rise of digital platforms and alternative payment systems to the expanding scope of regulatory oversight, today’s financial environment is more complex and fast-paced than ever. At the center of this change lies a crucial relationship between financial institutions, their clients, and the legal professionals who support them. At Elias Neocleous & Co LLC, we are seeing that the old-school way of doing legal work doesn’t always work anymore. It is not just about knowing the rules. It is about helping clients apply them in a way that fits how their business actually operates. Whether we are supporting a bank with its compliance framework or assisting a company with cross-border financing, our focus is on making legal processes practical and effective. As regulations grow stricter in areas such as anti-money laundering, data protection, and international financial conduct, financial institutions are under increasing pressure. These measures are vital for maintaining trust in the financial system, but they can also lead to delays, friction, and added stress for organisations and their clients. When compliance is handled poorly, the consequences go beyond fines or delays. It can result in another frustrated client and sometimes even a broken relationship with a bank, not because of wrongdoing but because of misinterpretation, rigid processes, or a failure to truly understand the client. In the past, ‘Know Your Customer’ was treated as more like a box-ticking exercise and, if we are honest, in some places it still is. Yet there is a growing recognition that today it must mean something deeper. Effective KYC is not exclusively about suspicion or endless investigation; it is about understanding. It is about knowing not only a client’s immediate needs, but also their ambitions for the future, and aligning those ambitions with the realities and opportunities of the financial system. When approached this way, KYC becomes far more than compliance, it becomes a foundation for trust, a guide for better decision-making, and a bridge to stronger, lasting partnership. This is where the right legal advice proves its true value. We work closely with clients to develop compliance policies that are not only legally sound but also realistic and efficient. This might involve advising on onboarding and know-your-customer procedures, helping a business restructure or reorganise, or even addressing GDPR and cybersecurity through the Tech Law Department of our Law Firm. Our Tech Law Department assists clients to comply with technology-related laws such as GDPR, DORA, NIS2, the Cyber Resilience Act (CRA), the AI Act, and the Cybersecurity Act. For us, every policy, every procedure, is ultimately about people, understanding their goals, easing their burdens, and creating space for them to grow. Too often, good businesses suffer not because they lack substance, but because they fail to present themselves in the way banks expect. It is a little like a CV: not everyone with great talent knows how to showcase it on paper. Beneath the surface, a company may have a strong record and a compelling story, but if that story is not expressed clearly, opportunities can be lost. Banks, for their part, excel at enforcing rules and ensuring that every regulation is observed. But sometimes, in focusing on the checklist, they miss the deeper picture, the essence of the client, the reasons behind a missing document, or the real strengths that lie just out of view. This is where we see our role: to connect the unseen dots, to help clients present their reality in its best light, and to ensure that valuable relationships are built on understanding rather than misunderstanding. We also support clients in their dealings with banks by ensuring that all the necessary paperwork is completed correctly. This includes forms such as UBO (Ultimate Beneficial Owner) declarations and providing clear explanations of the source of funds. By guiding clients through these steps, we aim to minimise errors or delays and keep the process moving smoothly. Supporting clients goes beyond compliance checklists, it means standing with them when questions, conflicts, or cross-border complexities arise. That is why we provide legal opinions on regulatory interpretation, assist in resolving disputes, and advise on structuring transactions across multiple jurisdictions. Our approach is designed to simplify complex processes and manage legal risks, helping clients move forward with greater clarity and confidence. We are also closely following developments in technology, particularly artificial intelligence, and how they are beginning to influence the legal and compliance landscape. In the financial sector, AI is increasingly used to assist with tasks such as document review and regulatory tracking. While we do not currently use AI tools for client-facing work, we are actively exploring how such technologies might be introduced safely and responsibly in the future. Confidentiality, accuracy, and compliance with regulatory standards remain key considerations, especially in a highly regulated environment like Cyprus. Internally, we are developing NeoLaw.ai, a platform designed to support our legal teams with research, document analysis, and the study of Cyprus case law. Although not a client-facing tool, NeoLaw.ai reflects our commitment to innovation and efficiency. By reducing time spent on repetitive tasks, it allows our lawyers to focus more on complex legal matters where expert judgement is essential. Whether you are a business expanding into new markets, an investor navigating regulatory risk, or an individual applying for finance, the way legal and compliance issues are handled can significantly affect your experience and may even define the entire journey of a business.  Clear and responsive legal support helps to avoid delays and uncertainty, and we believe this is key to getting things done properly. The legal profession continues to evolve, and in banking and finance the role of the lawyer is no longer confined to citing regulations or drafting documents. That world is gone. Our role has become something more human and more essential: protecting trust, uncovering what lies beneath the paperwork, and giving clients a voice in a system that often has little patience for nuance. Yet its core purpose remains unchanged: to serve people and support the systems that enable business and finance to operate fairly and transparently. What is changing is how we deliver that service, through smarter tools, stronger collaboration, and a clearer understanding of our clients’ real-world challenges. The financial world will only grow faster, more digital, and more demanding. That is a fact. What matters is how we respond to it. At Elias Neocleous & Co LLC we are proud to be part of this transformation. We choose to meet that future head-on, with sharper tools, broader vision, and the determination to make law serve people, not slow them down. As a Cyprus based firm, advising clients both locally and internationally, we are committed to providing legal support that is technically strong, commercially aware, and designed to help our clients move forward with clarity and confidence in an increasingly digital financial world. It means a legal partner who keeps pace with change and helps them stay one step ahead of it. Because in the end, true clarity is born where strict rules meet human understanding, and that is the space we choose to work in.    
Elias Neocleous & Co LLC - August 29 2025
Civil Procedure Law

Injunctive relief and the Audi Alteram Partem principle

The Latin maxim audi alteram partem, meaning “listen to the other side,” is a fundamental principle of natural justice. It safeguards access to justice and ensures a fair hearing for all parties—not only those formally joined in legal proceedings but also third parties whose rights may be affected. Its origins can arguably be traced back to ancient Greece. The renowned orator Demosthenes noted that the Athenian judicial oath—attributed by some, albeit uncertainly, to Solon—required judges to listen equally to both the prosecutor and the defendant (καὶ ἀκροάσομαι τε καὶ τοῦ κατηγόρου καὶ τοῦ ἀπολογουμένου ὁμοίως ἀμφοῖν). Although the audi alteram partem principle is widely applied in judicial systems worldwide, limited exceptions exist. These usually involve circumstances of urgency, public safety, or national security. Such exceptions must, however, be reasonable, proportionate, and justified in context. Natural justice and procedural fairness demand that parties directly or indirectly affected by legal proceedings are given the opportunity to be heard and to challenge decisions or procedures taken in their absence. The Audi Alteram Partem Principle in Cyprus under the Old Civil Procedure Rules Under the former Civil Procedure Rules (CPR), specifically Order 48, Rule 8(4), it was stated: “Any person (other than the applicant) affected by an order made ex parte may apply by summons to have it set aside or varied and the Court or Judge may set aside or vary such order on such terms as may seem just.” In Ktoridis Giannakis v. Alpha Bank Cyprus Ltd (2014) 1 C.L.R. 1173, the Supreme Court of Cyprus affirmed: “It is a well-established principle in our legal system, expressed by the Latin maxim audi alteram partem, that the court does not issue an order without first hearing the other party. However, by way of exception, the legislator, in certain cases, allows the granting of ex parte relief… Order 48(8)(4), which follows O.48(8)(1), concerns every order that is issued ex parte. Its objective is evidently to provide the possibility of reconsidering a matter that was decided ex parte, when the person affected wishes to exercise their fundamental right to be heard…” Although this rule affirmed the principle of audi alteram partem, the interpretation of “any person” under Rule 8(4) was restrictive. In Heli-Air v. Drescher (1988) 1 AAΔ 234, the Court held that this phrase did not extend to third parties unless they had applied to be formally joined in the proceedings: “We agree with the learned trial Judge that paragraph 4 of rule 8 of Order 48 does not in general give the right to a third person to apply by summons for the discharge or variation of an interim order issued in proceedings in which such a person is not a party. We do not accept the argument that a reference to ‘any person’ covers a person in the circumstances of this case where no application to be joined as a party was made and where the very ownership and right of possession of the subject property were in issue and were sought to be determined by the Court in the course of determining an application for the discharge or variation of an interim order”. Similarly, in Koui v. Christodoulou (2010) 1 Α.Α.Δ. 401, citing Heli Air,  the Supreme Court reaffirmed: “The words ‘any person’ in O.48, r.8(4) do not extend to persons in respect of whom no application for joinder has been filed, in proceedings where the substantive issues remain open”. These aforementioned rulings were received by legal practitioners with skepticism as they created confusion and also complicated the procedure unnecessarily.[1] This is because, in practice, third parties affected by an ex parte injunction often had no real connection to the main dispute or were not directly (or even indirectly) targeted by any claims. To remedy this, several judges in the interests of natural justice and fairness did not follow the strict letter of Heli Air and permitted such third parties to intervene for the limited purpose of challenging the ex parte order, without needing to be joined to the main action.[2] For example, In Gerd Jakob v. Ivan Ivanovich Mazur (2015), the Court held: “Since the interlocutory injunction may directly affect the applicants’ property interests… it would be unfair not to allow them to intervene… solely for the purposes of the interlocutory injunction.” The Approach under the New Civil Procedure Rules of 2023 The new Civil Procedure Rules  which came into force in September 2023 have provided much-needed clarity in this respect and remedied what could be described as unsatisfactory situation. Today, a third party individual or corporate entity affected by an ex parte order can challenge it without first being joined as a party to the main action. The Court of Appeal recently confirmed this position whilst reviewing a decision where the first instance court had (falsely) rejected an application by an affected party to intervene in the proceedings. On appeal, the Court addressed both the old and new CPR regimes. It particularly referred to New Rule 23.14, which reads: “23.14. Application to set aside or vary an order issued without notice (1) Any party or person affected by an order issued on an application which was not served on them before the order was issued may apply to set aside or vary the order. (2) A person who is not already a party to the action does not need to become a party solely for the purpose of submitting an application under Rule 23.14(1)…” The Appeal Court emphasized that neither the law nor the new rules require a person affected by an order to become a party to the action in order to challenge it. This interpretation is consistent with the decision in the English case of Cretanor Maritime Co. Ltd v. Irish Marine Ltd [1978] 1 WLR 966 and also aligns with New Rule 23.1, which allows such persons to be appointed by the court as “respondents” to the application rather than formal parties.   Conclusion The new Civil Procedure Rules represent a major advancement in ensuring access to justice and correcting procedural ambiguities. By affirming that those affected by court orders—regardless of party status—have the right to be heard, the Rules reinforce the fundamental value of audi alteram partem principle. This development replaces a previously rigid and overly formalistic approach with one grounded in fairness, clarity, practicality and, of course, natural justice.   By Chrysanthos Christoforou (Partner) and Maria Keliri (Associate) Elias Neocleous & Co LLC   [1] It is the opinion of the authors that reading between the lines of Harazim Richard (2016) 1 AAΔ 2850 one could argue that the judgments of Heli Air and Koui (above) received also judicial criticism. [2] See 1. Chivas Holdings (IP) Ltd v. Γενικού Εισαγγελέα κ.ά  (2011), 2. Nikolas Koumenidis a.o. v. Gerrard Culbert a.o. (2009,) 3. Gerd Jakob v. Ivan Ivanovich Mazur  (2015),
Elias Neocleous & Co LLC - August 29 2025
Press Releases

Chrysses Demetriades & Co LLC joins the Cyprus International Business Association

We are pleased to share that our firm has recently joined the Cyprus International Business Association (CIBA), an organization that plays a significant role in representing and supporting the interests of international businesses operating in Cyprus. Through this membership, we aim to contribute to CIBA’s ongoing efforts to promote a stable and business-friendly environment, while also remaining closely engaged with developments that affect the broader international business landscape. This step reflects our continued commitment to maintaining strong ties within the professional community and to supporting initiatives that encourage sustainable growth and collaboration.
Chrysses Demetriades & Co Law Office - July 7 2025