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

Industry Standards and Regulation in the Gaming Industry under Cyprus Law

The gaming industry in Cyprus, like in other jurisdictions, has evolved significantly, transitioning from traditional gaming to advanced digital platforms. With this growth it comes the necessity for strict regulatory frameworks, for ensuring security, fairness, and consumer protection. The legislation of the gambling sector in Cyprus is primarily governed by the Betting Law 37(I)/2019 and is regulating gambling activities in Cyprus. It establishes licensing requirements for betting operators and outlines obligations related to financial operations, transparency, and anti-money laundering (AML). The Importance of Industry Standards Industry standards in Cyprus gaming sector are designed to ensure consistency, quality, and security across gaming platforms. These standards serve several critical purposes: Consumer Protection The Cyprus National Betting Authority (NBA) enforces consumer protection measures to prevent fraudulent gaming practices. Regulations mandate that all licensed gaming operators provide fair and transparent gaming environments, particularly in online gambling, where risks of fraud and unfair gameplay are higher. NBA is also responsible to issue the following licenses for land-based and online betting: the provision of carrying out betting services within licensed premises excluding online betting services and horse racing betting (land-based betting); Τhe provision of electronic betting services excluding slot machines, on-line casino games of chance provided with a direct link and electronic horse racing (online betting). Quality Assurance Gaming operators in Cyprus must adhere to strict quality benchmarks. This includes compliance with technical standards to ensure the stability and performance of gaming systems, which is essential for consumer trust and industry credibility. Accessibility Under European Union (EU) regulations, which Cyprus follows, gaming platforms are encouraged to incorporate accessibility features for players with disabilities. This ensures inclusivity in the gaming experience. On the 2nd of May 2024 Cyprus announced the introduction of the Accessibility of Products and Services Law of 2024, upon the ratification of the EU Accessibility Act and the EU 2019/882 directive on the accessibility requirements for products and services. Key Industry Standards in Gaming Several key standards have been established to address various aspects of the gaming industry: Game Rating Systems The Pan-European Game Information age rating system (PEGI) is a voluntary, self-regulatory system. It was introduced following consultations with the industry and civil society in order to replace national age rating systems with a single European system. Most European Union (EU) Member States use PEGI, and some also have specific legislation.  While Cyprus does not have its own game rating authority, it follows the Pan European Game Information (PEGI) system. PEGI is an age rating system for video games which is used throughout the European Union, for age rating. This provides age and content ratings, ensuring that games are appropriately classified based on their content. Data Protection (GDPR Compliance) Gaming operators in Cyprus must comply with the General Data Protection Regulation (GDPR), which governs the collection, storage, and processing of personal data. The Data Protection Law of 2018 (Law 125(I)/2018) enforces GDPR requirements in Cyprus, ensuring that players personal and financial information is safeguarded. The Role of Regulation The Cyprus gaming industry is subject to a robust regulatory framework aimed at maintaining market integrity and protecting players. Regulatory authorities oversee several key areas: Player Protection Regulations impose strict measures to protect vulnerable groups, particularly minors. These measures include: No, entrance to a licensed premise is not allowed to minors that are either unaccompanied or accompanied by an adult. Mandatory Age Verification; Players must verify their age before accessing gambling platforms. Administrative fines The NBA may impose an administrative fine In case it is found that a person has performed an act, or has omitted to do so, either in breach of a condition in a Class A or B bookmaker’s or authorised agent’s licence, or in breach of the present L.37(I)/2019 69 Law, or in breach of the regulations, or in breach of the Directives issued. Data Security With the rise of online gaming, the security of players and financial information is very significant. The primary legislation governing Cybersecurity in Cyprus is the Security of Networks and Information Systems Law of 2020 (Law 89(I)/2020) (referred to as the “NIS Law”), which enforces the NIS Directive, Directive (EU) 2016/1148. The Digital Security Authority (DSA) oversees the enforcement of this law. The DSA is tasked with developing a national strategy for the security of networks, information systems, and cyber security. This strategy will outline strategic goals and relevant policy and regulatory measures to ensure a high level of security for networks and information systems. Companies designated as operators of essential services or as Competent Authorities fall under the regulation of this law. Gaming operators must implement strict security measures, such as encryption and secure payment processing, to protect player’s data. Conclusion A well-regulated gaming industry is essential for ensuring fairness, consumer protection, and market integrity in Cyprus. Implementing industry standards and regulatory supervision fosters sustainable growth while safeguarding the interest of players. As the gaming sector evolves, Cyprus adapts it’s regulatory framework in order to address adapt into new technologies and emerging risks, ensuring a safe and fair gaming environment for all participants. Author: Xenia Kasapi, LL.B., LL.M., MCIArb Senior Advocate Head of Intellectual Property & Data Protection [email protected] https://www.legal500.com/firms/17733-e-g-economides-llc/c-cyprus/lawyers/2159518-xenia-kasapi
E & G Economides LLC - May 30 2025
Press Releases

CYPRUS: SOTERIS PITTAS & CO LLC Legal Team has successfully obtained and executed an Anton Piller Order

Soteris Pittas & Co LLC is pleased to share the successful outcome in a high-stake legal matter handled before the District Court of Limassol. Our litigation team has successfully secured, inter alia, the ex parte issuance of an Anton Piller Order and extensive Freezing Orders in civil proceedings for the infringement of rights pertaining to intellectual property. Our clients, copyrights’ owners of a sophisticated AI software’s source code, had their source code repositories accessed, stolen, copied and used in, as it later appeared, other AI startup companies in the same field. Since copyright protections in the source codes underlying Artificial Intelligence (AI) systems require extensive evidence to be adduced by a plaintiff, the preservation of any evidence that establish the nature and extent of conduct constituting infringement, is critical. The Anton Piller Order, constituting a powerful and draconian legal remedy, was granted ex parte by the District Court of Limassol to protect our clients’ rights by permitting the Applicants to conduct a search of the Respondents’ premises for the purposes of seizing any incriminating evidence in the Respondents’ procession. In order to ensure that any evidence of vital importance to our clients’ case would not have otherwise been destroyed, nor tampered with, prior to being brought before the Court to be examined, a designated team of independent IT Forensic Experts, accompanied by independent supervising lawyers, authorised by the Court, managed to effectively identify, collect and secure any evidence of digital/ electronic nature. Once the evidence was preserved, the IT Forensic Experts carried out an in-depth analysis of the gathered documents, data and materials, which, involved the review and examination of, inter alia, a large volume of electronic files, system logs, emails and messages to extract valuable information that would assist in determining the extent of the infringement and in identifying any additional parties that may be also involved in the wrongdoings. This outcome highlights the meticulous preparation of our litigation team and underscores our commitment in delivering top-tier legal services to our clients while navigating the complexities that modern litigation entails.
Soteris Pittas & Co L.L.C - May 14 2025
Press Releases

SOTERIS PITTAS & CO LLC ANNOUNCES PROMOTION OF THREE NEW PARTNERS

SOTERIS PITTAS & CO LLC is pleased to announce that as of the 1st of January 2024, Mr. Christodoulos Neophytou, Mr. Alexandros Mavrommatis and Mr. Kyriakos Pittas have been promoted as partners in our Firm! Mr. Christodoulos Neophytou joined our firm for his legal training in September 2017 and he mainly specializes in Corporate and Commercial Litigation, Tort Law and Administrative Law, while he is also dealing with cases of the banking and financial sector. He has many years of court experience in related cases, representing clients on corporate and commercial disputes before the Cypriot courts, as well as companies and individuals in cases involving, inter alia, shareholders’ disputes, conspiracy matters, fraud and breach of fiduciaries duties, as well as cases concerning petitions for the appointment of Interim Receivers, Winding Up Petitions and applications for the issuance of discovery and gagging orders. Mr. Christodoulos Neophytou has obtained an LLB from Frederick University of Cyprus. Mr. Alexandros Mavrommatis has been a member of our Law Firm since 2015, joining the litigation team in 2019. He mainly deals with dispute resolution proceedings, the handling of court cases on corporate and commercial disputes and international proceedings for the recovery of debts and the enforcement of foreign judgments and arbitral awards, as well as the handling of court cases for the issuance of discovery orders and other interim measures. He has many years of court experience in cases pertaining to the aforementioned issues, representing domestic and international clients with a range of disputes before the Cypriot Courts. Mr. Alexandros Mavrommatis has obtained a Bachelor’s Degree in Classical Philology from University of Ioannina, Greece and an LLB Degree from Neapolis University of Cyprus. Mr. Kyriakos Pittas joined our litigation team in 2019 and specializes in cross-border commercial disputes and corporate law matters. He has court experience in representing clients in complex commercial disputes with an international element, as well as in representing clients in proceedings for the issuance of interim orders in aid of inter alia foreign proceedings. Mr. Kyriakos Pittas also frequently advises clients in matters pertaining to shareholders’ disputes and insolvency matters. He is a graduate of the University of Newcastle and holds a Master’s Degree in Corporate and Commercial Law from Queen Mary University of London, with First Honours. We would like to congratulate our three colleagues on their admission, and wish them continuous success.
Soteris Pittas & Co L.L.C - May 14 2025
Press Releases

LONDON INTERNATIONAL DISPUTES WEEK 2024

Our Firm, had the pleasure to attend the London International Disputes Week 2024 (LIDW24) which over the course of the week saw the participation of approximately 7,000 people from around the globe. This year’s LIDW was extremely successful, and was comprised of numerous seminars organized by leading London firms, including a one-day Conference at Westminster consisting of a number of discussion panels comprised of leading legal practitioners and judges, as well as keynote speeches by inter alia the Rt Hon. the Baroness Carr of Walton-on-the-Hill - Lady Chief Justice of England and Wales, Meg Kinnear - Secretary-General of ICSID and Vice President of the World Bank, and by the Hon. Julia Gillard AC - Former Prime Minister of Australia. Our Partners Mr. Kyriakos Pittas and Mr. Alexandros Mavrommatis who attended this year’s LIDW, had the chance to attend various seminars and discussion panels relating to a variety of important and interesting topics, including inter alia on Artificial Intelligence (AI), ESG claims and on arbitration matters, as well as to meet and catch up with friends and colleagues from across the world.  
Soteris Pittas & Co L.L.C - May 14 2025