Cyprus

Market Overview
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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.

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Shipping

Redomiciliation and Talent empowers Cyprus’ Shipping Sector

Cyprus is one of Europe’s most attractive maritime centres, a jurisdiction that offers not only a reputable flag, but a complete package for shipowners, ship managers, and maritime investors. Through targeted initiatives, the Government has developed a framework that combines competitiveness, certainty, and a commitment to sustainable shipping. The Green Incentives Scheme, approved by the Council of Ministers in 2024, grants up to a 30% reduction in annual tonnage tax for vessels achieving measurable emission reductions or meeting recognised efficiency standards. This complements the EU-approved Tonnage Tax System, extended to December 2029, which taxes shipowners, charterers and managers on fleet tonnage rather than profits, effectively exempting qualifying income and related dividends from corporate tax. In addition, employees earning over €55,000 from first employment in Cyprus enjoy a 50% income tax exemption. Further incentives strengthen Cyprus’ position as a shipping hub. There is no capital gains tax on shares in shipowning companies, and no withholding tax on dividend distributions to non-residents. The Shipping Deputy Ministry’s digital transformation, under its long-term “SEA Change 2030 strategy”, alongside to “CYSh1P” one-stop-shop portal, is digitalizing ship registration, tonnage tax management and crew certification through online platforms, aiming for full digitalisation of services by 2030. Equally important is the immigration and naturalisation framework introduced under the Council of Ministers Decision No. 92.018 of 15 October 2021, which forms part of the national Strategy for Attracting Companies to Cyprus. Under this framework, employees of Cypriot shipping companies engaged in high-skilled employment may qualify for Cypriot citizenship, enabling international shipping groups to attract and retain talent in Cyprus. Limassol is serving as the island’s maritime capital, home to a strong network of ship management companies, classification societies, and professional service providers. In his address at the opening of the Maritime Cyprus 2025 Conference in Limassol, Cyprus President, Mr. Nikos Christodoulides noted that over the past two years, Cypriot shipping has recorded “impressive growth”, with the Cyprus ship registry increasing by 20%, the greatest rise in two decades, while the number of companies registered under the tonnage-tax system rose by 15%. This growth reflects the success of ongoing reforms and the trust gained by the global maritime community in Cyprus as a reliable EU maritime hub. It is therefore no surprise that an increasing number of international shipping companies are choosing to redomicile to Cyprus by transferring their seat of incorporation to the island. Redomiciliation of Shipping Companies to Cyprus Redomiciliation offers foreign shipping companies a practical and strategic route to establish a long-term presence in Cyprus without interrupting their legal or commercial continuity. It allows a company to retain its corporate identity, assets, and contractual relationships, while benefiting from Cyprus’ incentives regime. In practice, the redomiciliation procedure before the Cyprus Registrar of Companies involves the following stages (as per Companies Law, Cap. 113 - continuation provisions): Step 1 (approx. 3–4 weeks): The foreign company ensures that its Memorandum and Articles of Association permit continuation in another jurisdiction and prepares the required supporting documents, including apostilled certificates of incumbency, good standing, and shareholder resolutions authorising the transfer to Cyprus. Step 2 (approx. 2 months): After the examination of the relevant application and the supporting documents, the Cypriot Registrar verifies compliance with all legal requirements and a Temporary Certificate of Continuation (TCC) is issued. From this point, the company is deemed to be a legal entity governed by Cyprus law, enjoying all corresponding rights and obligations. Step 3 (approx. 2–3 weeks): The TCC is submitted to the competent authority in the company’s original jurisdiction to obtain a Certificate of Discontinuation (CD), confirming that it is no longer registered there. Step 4 (approx. 2 weeks): The CD and relevant application are filed with the Cyprus Registrar, who then issues the Certificate of Continuation, formally completing the company’s permanent registration under Cypriot law. All documents originating from abroad must be apostilled or notarised, as appropriate, to be accepted by the Cypriot authorities. High-Skilled Employment and Naturalisation Incentives Once a company is registered in Cyprus, one of its key advantages is access to the naturalisation framework for high-skilled employees under Article 111B(2) of the Civil Registry Law and Council of Ministers Decision No. 92.018 of 15 October 2021. This regime forms part of Cyprus’ Strategy for Attracting Companies, and it expressly includes Cypriot shipping companies among eligible employers. Under this scheme, foreign employees working in Cypriot shipping companies may apply for Cypriot citizenship by naturalisation, provided they meet certain requirements, including: Continuous legal residence in Cyprus for at least 12 months prior to applying, with total absences not exceeding 90 days. Additional residence in Cyprus for a cumulative period of four or three years in the preceding decade, depending on the applicant’s Greek language proficiency (A2 or B1). Good character, adequate knowledge of Greek and Cypriot society, stable income, and an intention to permanently reside in the Republic. The category of high-skilled employees covers individuals employed in senior or specialised positions, such as Directors, Managers, or Key Personnel, as well as professionals earning at least €2,500 per month and holding a university degree or at least two years of relevant professional experience. Applicants employed by the company for at least two years may request accelerated examination of their application. Spouses, partners, and dependent family members can also apply if they meet the relevant residence and language criteria. The scheme allows Cypriot shipping companies retain and attract skilled professionals, since many employees choose to relocate or remain in Cyprus to take advantage of the opportunity to obtain Cypriot citizenship through long-term and high-skilled employment. Conclusion Cyprus has built a clear advantage as a maritime centre. For shipping companies, it offers a place where business can grow with confidence, supported by skilled personnel. As the industry moves toward greener and more transparent practices, Cyprus stands out as a stable and forward-looking base for global shipping. Michalis Nikolaou, LL.B., LL.M. Advocate www.economideslegal.com [email protected]
E & G Economides LLC - October 21 2025
Dispute Resolution

The New Civil Procedure Rules in Cyprus: Into a Brighter Litigation Landscape

Two years have passed since the introduction of the new Civil Procedure Rules (CPRs) on 1st of September 2023. All proceedings initiated after that date now fall under the scope of the new CPRs, while ongoing cases prior to that date remain subject to the old CPRs. By mirroring the English CPRs content and spirit, the Cyprus new CPRs introduce an ambitious procedural framework, and it remains to be seen what the actual impact of the recent reforms in the Cyprus legal order will be. With this context, this article highlights key changes and judicial interpretations since the implementation of the new CPRs. Primary Purpose At the heart of the new CPRs lies their so-called primary purpose. According to the CPRs, their primary purpose is to enable the court to manage cases fairly and proportionate in costs.[1] Essentially, this means ensuring that the parties are placed on an equal footing and handling the case in ways that is proportionate and practical in terms of costs, timeframe, and complexity of each case. Through active case management, the court promotes the primary purpose, which includes, inter alia, encouraging the parties to cooperate, setting timetables, making use of technology, and giving orders and directions to ensure that the case is dealt with promptly and efficiently.[2] As stated in Kandounas v. Iliadis,[3] an attempt is made to bring a shift in legal culture and philosophy that will allow the Court to manage cases with flexibility and practicality, to move away from dysfunctional and unnecessary procedures which contributed to delays and caused expenses to escalate uncontrollably. This avoids frivolous and vexatious actions and achieves a more structured civil procedure. As per the Supreme Court’s decision in Kouzalis v. Gordian Holdings Limited:[4] “More important, however, in relation to the purpose of the Regulations, is the provision in R.3. According to this, the Court, in the exercise of its powers in relation to any proceedings before it, takes into account that 'The primary purpose of the Regulations is to ensure the right of access to the Court and that the Court will operate fairly and efficiently.' It also takes into account that, in every case, 'it must interpret and apply the Regulations with the aim of ensuring access to it in a fair and effective manner … the spirit of Part 1 (Primary Purpose) of the new Civil Procedure Rules, guides the Court away from formalistic approaches … bypassing deliberate procedural complexities and delaying tactics." Old CPR cases Yet, this shift in philosophy is not only present with cases under the new CPRs. In Lucy Rebecca Williams,[5] a case governed by the old CPRs, an American woman was hit by a jet ski while on vacation at Nissi Beach. Her expert witness, a doctor, found it difficult to travel from the United States, so it was requested that he provide testimony via video conference. The court, accepting the application, expressed that the primary purpose of the regulations, old or new, must aim at an effective and modern administration of justice. Even in cases governed by the old rules, courts may have regard to the purpose of the new CPRs such as modernisation of justice, as stipulated in rule 60. Therefore, parties should not be concerned that their case will be handled in an outdated manner merely because it falls under the old procedural framework. Pre-action Protocols The new CPRs also introduced the Pre-Action Protocols, templates for letters to be exchanged between parties prior to the commencement of litigation.[6] Their primary aim is to encourage early cooperation, facilitate exchange of information, and promote settlement where possible. Where settlement cannot be reached, compliance with these protocols ensures a smoother transition into formal proceedings, although in practice it is seen mostly as a procedural step for trial, rather than a settlement effort. The courts highlighted that failure to comply with the pre-action protocols may lead to the issuance of orders as to costs against the non-complying party or order a stay of proceedings for the proper observance of pre-action protocols.[7] Nonetheless, in Georgios Roditis v. Grand Masonic Lodge of Cyprus Ltd et al, the defendants sought to dismiss the claim over alleged non-compliance with the pre-action protocol, but the court held that such failure does not, in principle, justify striking out a claim. The timetable Active case management includes setting timetables.[8] The key stage is the case management hearing, where the Court issues a timetable outlining steps up to trial. The dates for the presentation of evidence, witness list, expert witnesses, exchange of documents, inspection and disclosure, and submissions are predetermined in the timetable. In LAKON A.T.E. v. Municipality of Paphos,[9] where one party sought to submit supplementary written evidence on the timetable, the court allowed the inclusion of filing supplementary written evidence within the timetable, even if in the end it is not used. This ensures the court is not caught off guard by unexpected filings, thereby changing the timetable itself. The ruling reaffirmed that courts may reject pleadings or evidence not submitted in line with the set timetable. However, this does not mean that leniency will not be shown. In Neofytos Polyviou v. Georgia Kyprianou,[10] the claimant failed to file the statement of claim within the timeframe and sought an extension. The court granted the extension acknowledging the claimant’s difficulty in arranging a meeting with his lawyers. While noting that the claimant could have acted with more diligence the court concluded that this should not lead to the dismissal of the application and the deprivation of the claimant’s right to pursue his claim. Conclusion In conclusion, it could be argued that there is a clear shift in approach that is evident under the new CPRs. A more organized and just system is now in place. Given the significant change brought by this new legal framework courts are showing leniency while all parties and lawyers become familiar with the new CPRs. Nevertheless, it is still the beginning and Cypriot courts must adopt a bold stance in interpreting the new CPRs, and, at the same time, a culture of compliance with the vision of the new CPRs is also expected from all people involved. [1] Civil Procedure Rules of 2023, Rule 1.2. [2] Civil Procedure Rules of 2023, Rule 1.5. [3] Konstantis Kantounas v. Christos Iliadis et al., Civil Appeal No. 54/2024, 18/10/2024. [4] Markos Kouzalis (deceased, through the administrator of his estate, Giovanni Kouzalis) v. Gordian Holdings Limited, application no. 5/2023. [5] Lucy Rebecca Williams v. Nissi Boat Water Sports limited, Action No. 534/2016, dated 9/4/2024. [6] Civil Procedure Rules of 2023, Rule 3.9. [7] Georgios Roditis v. Grand Masonic Lodge of Cyprus Ltd et al., Claim No. 3416/2023, dated 13/2/2025, and see under English case law, Olatawura v. Abilove [2002] 4 All ER 903, CA; Cundall-Johnson & Partners v. Whipps Cross University Hospital NHS Trust [2007] EWHC 2178. [8] Civil Procedure Rules of 2023, Rule 23. [9] LAKON A.T.E. v. Municipality of Paphos, Action No. 1186/23, 2/11/2023. [10] Neofytos Polyviou v. Georgia Kyprianou otherwise Georgia Klimi et al., Claim No: 143/2024, 11/12/2024.
Elias Neocleous & Co LLC - October 21 2025
Press Releases

Elias Neocleous & Co LLC advises on Cyprus law aspects of MHA’s strategic expansion into Southeast Europe

Elias Neocleous & Co LLC (“ENC”) is pleased to have acted as Cyprus legal counsel to Macintyre Hudson Ireland Limited, a subsidiary of MHA plc, in connection with its €24 million acquisition of Baker Tilly South East Europe. The transaction brings together over 800 professionals across Cyprus, Greece, Bulgaria, Moldova, and Romania, further strengthening MHA’s regional presence and marking a key milestone in its post-listing growth strategy. Working alongside the client’s UK counsel Freeths LLP, ENC advised on all Cyprus law matters relating to the acquisition, including review and negotiation of the corporate and transactional documents, preparation of Cyprus legal due diligence, regulatory and merger control advice, employment matters, and coordination of all jurisdictions to support the transaction through to completion. The firm also secured merger control clearance in Cyprus for the acquisition. Notably, ENC collaborated with all regional counsel in the relevant jurisdictions of the operations of the target, Dinova Rusev & Partners for Bulgaria, Kyriakides Georgopoulos (KG) Law Firm for Greece, Cerha Hempel for Romania, and Schoenherr for Moldova, to coordinate the multi-jurisdictional due diligence exercise and regulatory aspects of the transaction. The Elias Neocleous & Co LLC team comprised Andrea Kallis Parparinou, Xenia Kalogirou, Ramona Livera, Katia Papadopoulou, Demetris Gregoriou, and George Tsardellis (litigation matters). #Elias Neocleous #Mergersandacquisitions #Cyprus #EmploymentLawAlliance
Elias Neocleous & Co LLC - October 21 2025
Press Releases

Limassol District Court confirms discretion on service in contempt proceedings

On 15 September 2025, the District Court of Limassol delivered an important ruling on contempt procedure, holding that personal service is not invariably required and that, depending on the circumstances, the Court may order substituted service on a party’s lawyers. Background Facing an application for contempt, the defendants argued that such an application must be served personally and sought to set aside service made on their legal representatives. Decision The Court held it retains discretion to permit alternative (substituted) service of a contempt application on a party’s lawyers. It further clarified that, depending on the circumstances of each case, an unsuccessful prior attempt at personal service is not always a precondition to ordering substituted service. Why this matters (Cyprus context) The ruling reinforces judicial discretion and prevents contempt proceedings from being frustrated by procedural technicalities. As Pikis J. has observed, “Disobedience to a court order strikes at the foundation of the legal order; its continuation tends to overturn it.” (Loizou v. Police (1996) 2 A.A.D. 227). Where there is continuing disobedience, the need to address it immediately and appropriately to safeguard the administration of justice becomes even more urgent and imperative. Practical takeaways for litigants in Cyprus Do not assume personal service is a strict prerequisite in contempt matters. Seek directions for alternative service early where justified. Keep a clear record of efforts and context; lack of a failed personal-service attempt will not invariably bar substituted service. The successful Claimant was represented by Economou & Co LLC.
ECONOMOU & CO LLC - October 20 2025