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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Resolving Domain Name Disputes under the UDRP

A domain name is far more than just a web address. It is a business asset, a reflection of brand identity, and often a first point of contact with clients. As online presence influences reputation and revenue, safeguarding a domain name is as essential as protecting a trademark. Understanding Domain Names A domain name functions as an electronic address, making websites accessible in a user-friendly way. While the internet operates on technical frameworks such as TCP/IP, domain names translate numeric IP addresses into recognisable words, such as example.com, that are easier for people to remember. It is an easily recognisable form of Internet address, such as “wipo.int” or “google.com”. The domain name system is organised hierarchically. Top-level domains are grouped into generic top-level domains (gTLDs) and country code top-level domains (ccTLDs). gTLDs, including .com, .net, .org, and others such as .aero, .biz, .coop, .info, .museum, .name, and .pro, are managed by registry operators overseen by ICANN. ccTLDs are managed by national registration authorities. Due to the growing commercial use of the Internet, domain names have become important identifiers for businesses. Registering their brands, trademarks and names as domain names, such as “sony.com”, helps businesses ‘connect’ with and attract visitors to their websites. Premium domain names can have significant value, and disputes over ownership or misuse are increasingly common. Cybersquatting Cybersquatting refers to the pre-emptive, bad-faith registration of trademarks as domain names by parties who have no rights to those names. Cybersquatters take advantage of the first-come-first-served nature of domain registrations by registering trademarks, business names, names of well-known individuals, or variations of them. Often, cybersquatters aim to sell these domain names back to the trademark owners or attract traffic for unrelated commercial purposes. These actions lead to disputes that traditional judicial systems may not handle efficiently, as courts are territorial and litigation can be slow and costly. As a result, some trademark holders choose to buy back their domain names instead of pursuing lengthy litigation. This highlighted the need for an effective alternative mechanism. The Uniform Domain Name Dispute Resolution Policy (UDRP): A Fast and Effective Way to Resolve Domain Name Disputes When a company discovers that a domain name corresponding to its corporate name, product name, or trademark has been registered by someone else, it may adopt a different name, pursue court proceedings, or utilise the Uniform Domain Name Dispute Resolution Policy (UDRP) developed by ICANN. When a domain name identical or confusingly similar to a registered trademark is registered in bad faith, the UDRP provides a swift and cost-effective remedy. The procedure is administered by the World Intellectual Property Organization (WIPO), which acts as a neutral forum. The complainant must demonstrate three elements: The disputed domain name is identical or confusingly similar to a trademark or service mark in which the complainant has rights. The domain name holder has no rights or legitimate interests in respect of the domain name. The domain name was registered and is being used in bad faith. Please note that ALL three elements must be proven. Time and Cost-Effective Compared with litigation, the UDRP procedure is highly time- and cost-effective, especially in international contexts. A domain name case filed with the WIPO Center is usually concluded within two months, involving one round of limited pleadings and primarily online procedures. WIPO fees are fixed and moderate. Enforceable Decisions A major advantage of the UDRP is the mandatory implementation of its decisions. Since registrars must comply with UDRP transfer decisions, there are no cross-border enforcement issues. However, the losing party may still initiate court proceedings and suspend enforcement. What Constitutes Bad Faith? The UDRP operates through the UDRP Rules and supplemental rules issued by service providers. The WIPO Supplemental Rules complement the UDRP on several procedural matters. Paragraph 4(b) of the UDRP Policy outlines examples of bad-faith registration and use, including: registering a domain name primarily to sell or rent it to a trademark owner or competitor • registering multiple domains to block trademark owners from using their marks • registering a domain name to disrupt a competitor’s business • using a domain name to attract users for financial gain by creating confusion with an existing brand. These examples are not exhaustive. Stages of a UDRP Proceeding Stage 1: Filing of Complaint → WIPO Center acknowledges receipt Stage 2: Compliance Review → WIPO checks administrative compliance Stage 3: Commencement → WIPO notifies the respondent and formally begins the proceeding Stage 4: Filing of Response → The respondent has 20 days to file a response Stage 5: Appointment of Panel → WIPO appoints a panel after receiving declarations of impartiality Stage 6: Panel Decision → The panel issues its decision within 14 days of appointment Stage 7: Notification → WIPO notifies the parties, the registrar, and ICANN Stage 8: Implementation → The registrar implements the decision under paragraph 4(k) of the UDRP The Registrar The registrar is the entity with which the respondent registered the disputed domain name. All gTLD registrars must be accredited by ICANN, and accreditation requires including the UDRP in the registration agreement. The registrar does not participate in the dispute process or influence the outcome, but it must lock the domain during the case and execute the final decision. Under paragraph 4(k) of the UDRP, the registrar must enforce the panel's decision within ten business days unless the respondent initiates court proceedings. Final Note Protecting a domain name is an essential part of safeguarding a company’s identity and intellectual property. The UDRP offers a practical and internationally recognised mechanism to address misuse, providing businesses with a structured and efficient way to respond when their online presence is compromised. An article by Xenia Kasapi Kyriacou, Head of IP & GDPR. E&G Economides LLC https://www.economideslegal.com/
E & G Economides LLC - November 20 2025
Dispute Resolution

Cyprus Steps Up Sanctions Enforcement: From Compliance Obligations to Criminal Consequences

On the 25th of July, 2025, the Republic of Cyprus (“Cyprus”) enacted Law 149(I)/2025, formally titled The Criminalization of the Violation of the Restrictive Measures of the European Union Law of 2025 (the “Law”). The Law transposes EU Directive 2024/1226 of the European Parliament and Council of the 24th of April, 2024, which harmonises the definition of criminal offences and penalties for the violation of EU restrictive measures. In effect, the Law replaces earlier legislation on the implementation of international and European sanctions, carving a uniform framework for criminal enforcement in line with European standards. Purpose and scope The Law aims to ensure that breaches of restrictive measures of the European Union (“EU”), established pursuant to Article 29 of the Treaty on European Union and Article 215 of the Treaty on the Functioning of the European Union (collectively referred to as “EU Sanctions”), constitute clearly defined criminal offences under national law, punishable by proportionate and dissuasive penalties. The Law applies to both natural and legal persons, and covers a wide range of conduct related to the breach or circumvention of the EU Sanctions, among which are the transfer, disposal, and/or concealment of economic resources, capital and/or assets belonging to a natural or legal person, entity or body subject to EU Sanctions (a “Designated Person”). Among the definitions set out in Article 2 of the Law, those of “capital” and “economic resources” are particularly noteworthy. “capital” covers financial assets and economic benefits of any kind, and is drafted broadly to include, inter alia, cash, cheques, monetary claims, deposits, negotiable instruments and other payment means; securities, both publicly and privately traded (including shares, bonds, notes, warrants and derivatives); credits, guarantees, letters of credit and other financial commitments; income or gains derived from such assets; documents evidencing participation in funds or financial resources; and crypto-assets as defined in Article 3(1)(5) of Regulation (EU) 2023/1114. “economic resources” covers assets, whether tangible or intangible, movable or immovable, which are not funds but may be used to obtain funds, goods or services. Article 4 of the Law defines its territorial scope of application, extending the reach of the offences under Article 5 beyond the territory of Cyprus. Specifically, the Law applies to conduct committed wholly or partly within Cyprus, on ships or aircraft registered in Cyprus or flying the Cypriot flag, and to offences committed by Cypriot nationals or by legal persons incorporated in Cyprus. It also extends to acts or omissions occurring outside Cyprus where the offender is habitually resident in Cyprus, is an officer or employee of the Republic of Cyprus acting in an official capacity, or where the offence is committed for the benefit of a legal person established in Cyprus or in connection with business activities conducted wholly or partly within Cyprus. Where the commission of an offence falls within the jurisdiction of more than one EU Member State, Cyprus is required to cooperate with the other Member States to determine which will undertake the prosecution, with the matter being referred to Eurojust where appropriate, in line with Framework Decision 2009/948/JHA. Notably, prosecution of offences committed by Cypriot nationals or by legal persons incorporated in Cyprus may be brought irrespective of whether the state in whose territory the offence occurred has submitted a complaint. Criminal offences Article 5 of the Law sets out the core offences criminalised under Cypriot law in alignment with the EU Sanctions framework. It provides that any intentional act or omission resulting in a breach of an EU Sanction constitutes a criminal offence. In particular, the Law criminalises: the direct or indirect provision of funds or economic resources to, or for the benefit of, a Designated Person; the failure to freeze funds or economic resources owned, held or controlled by such Designated Person; the facilitation of the entry into or transit through the territory of an EU Member State by a Designated Person in breach of a travel ban; the execution or continuation of transactions with a third country, its entities, or entities owned or controlled (directly or indirectly) by it, including the award or continuation of public contracts or concessions, where such conduct is prohibited or restricted under EU Sanctions; the execution of commercial transactions involving the import, export, sale, purchase, transfer, transit or brokering of goods, or the provision of intermediary, technical assistance or related services, contrary to EU Sanctions; the provision of financial services or financial activities, or any other type of service prohibited or restricted under EU Sanctions; the circumvention of EU Sanctions, including through: – the use or transfer of funds or resources to conceal ownership or control; – the provision of false or misleading information to obscure the involvement of Designated Persons; or – the failure to report or disclose to the competent authorities frozen or controlled assets as required by law; and – the violation or non-compliance with licence conditions granted by the competent authorities where the underlying activity would otherwise be prohibited by EU Sanctions. Importantly, an offence involving the trade, export or provision of technical assistance in relation to items on the EU Common Military List or dual-use items (as listed in Annexes I and IV to Regulation (EU) 2021/821) may be committed even through gross negligence, thereby extending criminal liability beyond intentional conduct. The Law further clarifies that its provisions do not criminalise humanitarian aid to persons in need or activities supporting basic human needs, provided such actions are carried out in accordance with the principles of impartiality, humanity, neutrality and independence, and, where applicable, with international humanitarian law. It also reaffirms that persons providing legal services in accordance with the Advocates Law, Cap. 2, are not required to report information obtained from or about their clients which is protected by legal professional privilege. Article 6 extends criminal liability to persons who incite, conspire or attempt to commit the offences under Article 5. Anyone who induces another to participate in such conduct is guilty of the same offence, subject to the same penalties, and may be prosecuted as if they had committed the act themselves. Where two or more persons act with a common intention to pursue an unlawful purpose and, in doing so, commit any of the offences under Article 5, each is likewise deemed guilty and liable to the same penalty. The Law also provides that a person who attempts to commit any of the specified offences in Article 5 is guilty of an offence and may be prosecuted and punished as if the act had been completed. A person is regarded as having attempted an offence where they begin to carry out their intention by suitable means and clearly manifest that intention, even if the act ultimately remains incomplete. Penalties and liability Articles 7 and 8 of the Law introduce a framework of differentiated penalties depending on the gravity of the offence and whether it is committed by a natural or legal person. For natural persons, penalties range from imprisonment of up to five years and/or fines of up to EUR 100,000, depending on the type and value of the offence. Lesser breaches may attract shorter terms or lower fines, while offences involving dual-use or military goods incur the maximum penalties irrespective of monetary value. In addition, the Courts may impose supplementary measures, such as the revocation of licences, exclusion from holding managerial positions, temporary disqualification from public office, or, where public interest so requires, the publication of the judgment in accordance with data-protection rules. For legal persons, the Law establishes corporate criminal liability where an offence is committed for the benefit of the entity by a person in a leading position, or as a result of insufficient supervision or control. Fines may reach up to 5% of the entity’s total worldwide turnover for the preceding financial year, or, where such turnover cannot be determined, up to EUR 40 million. Additional sanctions may include exclusion from public funding or procurement, suspension or withdrawal of authorisations, temporary or permanent business restrictions, or even judicial dissolution. Courts may also order the publication of their decisions in cases of public interest. The liability of a legal person does not preclude the prosecution of natural persons involved in the same conduct. Article 9 further defines the basis of corporate liability, providing that a legal person incurs responsibility for offences committed for its benefit by individuals exercising representational, decision-making, or control powers within it. Liability also arises where a lack of supervision or control by such persons enables the commission of an offence by subordinates. The corporate liability provisions do not preclude the criminal prosecution of natural persons who act as perpetrators, instigators, or accomplices. Finally, Article 10 introduces aggravating and mitigating circumstances relevant to sentencing. Aggravating factors include, among others, the commission of an offence within a criminal organisation, the use of forged or falsified documents, violations by professional service providers acting contrary to their duties, the involvement of public officials, the derivation of significant financial benefits, obstruction of justice, or prior convictions for similar offences. Mitigating factors include situations where the offender cooperates with authorities, providing information or assistance that would not otherwise be obtainable, and which facilitates the identification or prosecution of other offenders or the gathering of evidence. Enforcement and cooperation Part III of the Law strengthens enforcement by providing for the freezing and confiscation of assets linked to EU Sanctions breaches, the investigative powers of the police, customs, and other authorities, and cooperation with EU bodies such as Europol, Eurojust, and the European Public Prosecutor’s Office, particularly in cross-border cases. It also requires the collection of anonymised enforcement data and its reporting to the European Commission through the Unit for the Implementation of EU Restrictive Measures (EMEK). Complementary legislative measures have also been introduced to ensure consistency and effective implementation. Law 150(I)/2025 establishes the National Sanctions Implementation Unit within the Ministry of Finance, responsible for coordinating national enforcement of both EU and UN sanctions, issuing guidance, managing licensing procedures, and imposing administrative fines. In parallel, Law 148(I)/2025 amends the existing whistleblowing framework to extend protection to persons reporting breaches of EU Sanctions, including acts of incitement, aiding and abetting, or attempted violations. Significance The Law positions Cyprus firmly within the EU’s collective effort to strengthen the enforcement of restrictive measures amid a shifting geopolitical environment. At the national level, it signifies that compliance with EU Sanctions is no longer merely a matter of regulatory diligence but now carries potential criminal liability for both individuals and corporate entities; not only those who commit breach, but also those attempt, facilitate, or conspire to do so. Its adoption marks an important step in reinforcing Cyprus’ commitment to transparency, accountability, and effective alignment with the EU Sanctions regime. Authors Kyriaki Stinga, Adonis Zachariou, Maria Vyronos Elias Neoleous & Co LLC
Elias Neocleous & Co LLC - November 17 2025

Retainer Partnerships: Turning Law Firms into In-House Allies

Modern business operates in an environment of constant legal exposure. Regulatory frameworks evolve rapidly, commercial risks are increasingly complex and decisions often carry legal implications that may not be immediately apparent. Traditionally, companies have turned to external lawyers only when problems arise; an approach that often results in reactive, costly, and fragmented legal advice. But what if law firms could work differently? What if they could act as a true extension of a company’s team offering the same level of care, familiarity, and responsiveness as in-house counsel? This is where the concept of a monthly retainer legal partnership comes in. A Modern Approach to Legal Service A monthly retainer arrangement allows a law firm to work with its clients on an ongoing basis, providing day-to-day legal advice and oversight for a fixed monthly fee. Rather than engaging lawyers only for isolated matters or transactions, the client enjoys continuous access to experienced counsel, essentially having an “in-house lawyer” without the payroll, costs, logistics and management obligations of full-time employment. In practice, this model transforms the relationship between law firm and client. The lawyer becomes an integral part of the business, not an outsider called in for emergencies. Over time, the firm develops a deep understanding of the client’s operations, culture and strategic goals. This closeness enables proactive and practical legal support preventing issues before they escalate, aligning advice with business realities and adding genuine long-term value. Advantages of a Retainer Relationship Predictable Costs and Financial Efficiency One of the strongest appeals of a monthly retainer is cost certainty. Instead of unpredictable hourly billing or case-based fees, the client knows in advance what its legal expenditure will be each month. This predictability simplifies budgeting and financial planning. Moreover, companies save substantially over time. A retainer arrangement eliminates the inefficiencies of starting from scratch on every new case and reduces the risk of costly disputes arising from preventable legal oversights. In short, it is a model that encourages prevention rather than cure. Consistency and Continuity of Advice When a law firm works continuously with a client, it gains deep institutional knowledge and understanding, not just the company’s contracts or policies, but its risk appetite, commercial dynamics and decision-making style. This allows for advice that is not only legally correct but contextually relevant. Continuity also means consistency. The same team of lawyers advises on multiple aspects of the business, ensuring alignment across contracts, compliance, employment issues, and strategic decisions. This reduces fragmentation and enhances efficiency, as the firm no longer needs to be “briefed from zero” every time a new issue arises. Immediate Access to Counsel Under a retainer, the client can pick up the phone or send an email to its legal team at any moment, without worrying about clocking billable hours. This encourages open communication and timely consultation, ensuring that legal issues are addressed early and often before they become problems. Such accessibility gives business leaders confidence. Decisions can be taken swiftly, with legal input already factored in. The firm acts not just as a service provider, but as a trusted advisor who is always available and always engaged. Proactive Risk Management Reactive legal work is often more expensive and disruptive than proactive prevention. A retainer allows the law firm to continuously monitor the client’s legal environment, update contracts, review policies, and identify risks before they crystallize. In effect, the firm becomes a watchful guardian of the client’s legal health, the equivalent of having an in-house general counsel, overseeing every important step. This continuous oversight helps companies stay compliant, manage risk intelligently, and build resilience against unforeseen challenges. No Employment Burden or Long-Term Commitment A retainer arrangement provides the continuity of an in-house lawyer without the obligations of employment. The client avoids the administrative and financial burdens that come with hiring staff such as salaries, social insurance, benefits or employer contributions. Moreover, a retainer agreement can be terminated or adjusted at any time, offering full flexibility without legal repercussions or redundancy costs. This allows businesses to enjoy dedicated legal support while maintaining complete control over their expenses and commitments. Flexibility and Scalability A retainer can be tailored to each client’s needs. Some may require regular contract reviews and compliance checks; others may need ongoing corporate governance advice or employment law support. As the business evolves, so too can the scope of the retainer offering flexibility without the rigidity of long-term employment contracts. For smaller or growing companies, this flexibility is particularly advantageous: they gain access to a full-service legal team without the overheads of building an in-house department. The Future of Legal Service Ultimately, a retainer-based relationship is built on trust and mutual commitment. The law firm commits to being present, responsive and deeply engaged in the client’s affairs. The client, in turn, views its legal advisors not as distant consultants but as part of its leadership ecosystem. This partnership model creates alignment of interests; the law firm’s success is directly linked to the client’s stability and growth. The firm has every incentive to deliver efficient, high-quality work that prevents problems rather than profits from them. As businesses demand more value, predictability, and integration from their advisors, the traditional hourly billing model increasingly feels outdated. The monthly retainer approach reflects a more modern, relationship-driven ethos. It is, in many ways, the best of both worlds: the dedication of an in-house lawyer combined with the breadth and expertise of an external firm. By offering monthly retainers, a law firm signals that it is ready to go beyond transactional advice; a law firm is prepared to stand beside its clients every day, not just when things go wrong. Yes, law firms can (and should) act for their clients on a monthly retainer, functioning as in-house counsel in all but name. The benefits are clear: predictable costs, consistency of advice, proactive risk management, and a relationship built on trust. Given the need for continuous and strategic legal oversight, the retainer model represents not just an alternative, but an evolution in the way legal services are delivered. George Economides Partner E&G Economides LLC www.economideslegal.com
E & G Economides LLC - October 30 2025
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