Cyprus Business Now: weekly wrap-up
Here are the top business stories in Cyprus from the week starting October 20:
The proposed framework would have introduced the first-ever global carbon pricing mechanism for any industrial sector, setting a clear path for international shipping’s transition to net zero.
“We are disappointed that member states have not been able to agree a way forward at this meeting,” said Thomas A. Kazakos, ICS Secretary General.
He added that the industry needs clarity to make the investments required to decarbonise the maritime sector, “in line with the goals set out in the IMO GHG strategy.”
The first, the Cyprus Private Client Offering Gathering 2025, will take place in London on December 5, at the London Stock Exchange, bringing together more than 260 professionals.
The specialised conference will present the full range of services and advantages Cyprus offers to HNWIs, their families, companies and employees.
Cyprus is one of the few EU countries offering a complete package of quality services tailored to private clients, combining tax and asset management advantages with an attractive lifestyle, solid infrastructure and a transparent business framework.
The association, which represents around 80 per cent of the market through its 50 members, said the regulation would enhance transparency, protect buyers’ interests, and strengthen the credibility of the sector.
It would also create, for the first time, a structured and controlled operating framework for Cyprus’ real estate market.
The proposal was prepared following consultations with the Cyprus scientific and technical chamber (Etek) and legal experts.
According to the association, the institutionalisation of the profession is essential to promote transparency, credibility and professional accountability in real estate development.
Based in Limassol, the initiative is transforming the island into a key player in monitoring climate change, natural disasters and environmental sustainability across Europe and beyond.
Run by the Cyprus University of Technology (Tepak), the project has established a state-of-the-art centre for Earth observation and geospatial information to support EU and United Nations sustainable-development goals.
The scientific site is named after Eratosthenes, an ancient Greek mathematician and geographer, and represents a major upgrade of a remote-sensing and geoenvironmental laboratory that the university began operating in 2007 under the same name.
At current prices, Gross Domestic Product (GDP) increased by 7.2 per cent, reaching €34.77 billion.
President Nikos Christodoulides welcomed the latest figures, attributing them to sound financial management.
“Responsible fiscal policies, far from populism and cheap promises, bring results,” Christodoulides said in a post on social media platform X.
“The GDP revision confirms that the economy remains strong and is expected to record growth of 3.5 per cent to 3.9 per cent in 2025, with public debt below 60 per cent of GDP,” he added.
The initiative follows one and a half years of coordinated efforts by the Cyprus Aviation Association (CAA) and the Cyprus Chamber of Commerce and Industry (Keve) and is being hailed as a landmark achievement for the country’s aviation training framework.
The new “Visitor” immigration programme introduces a legal pathway, under strict conditions, for aviation trainees to obtain student visas for the purpose of training in Cyprus.
Until recently, Cyprus had been the only EU member state without a system allowing aviation trainees to enter under student status, a gap that had long placed local aviation academies at a competitive disadvantage.
This development, stakeholders said, positions Cyprus as a growing aviation education hub, fully aligned with European standards.
According to a report released on Tuesday by the state statistical service (Cystat), public debt stood at €21.82 bn, corresponding to 62.8 per cent of GDP, marking continued improvement in Cyprus’ fiscal position.
Cystat said total revenue increased by €1.01 bn or 7.4 per cent year-on-year, reaching €14.75 bn compared with €13.74 bn in 2023.
Revenue growth was mainly driven by higher taxes on production and imports, which rose by €227.8 million or 5.1 per cent to €4.68 bn.
In its assessment, which was also shared by Cypriot daily Politis, the agency said that the deal, which values Eurolife at 1.45 times its book value, strengthens Eurobank’s position in the Greek insurance market, enhances its profitability, and diversifies its revenue base.
Moody’s noted that although the acquisition carries a moderate short-term capital cost, its long-term strategic and financial benefits are significant, reinforcing the bank’s credit profile as it continues to expand its presence in Greece and the wider region.
The government deficit-to-GDP ratio for the euro area decreased from 3.5 per cent in 2023 to 3.1 per cent in 2024, the statistical office reported.
A similar trend was observed in the EU, where the ratio dropped from 3.4 per cent to 3.1 per cent over the same period.
However, the government debt-to-GDP ratio in the euro area slightly increased from 87.0 per cent at the end of 2023 to 87.1 per cent at the end of 2024.
For the EU, the debt ratio also nudged up from 80.5 per cent to 80.7 per cent.
According to George Theocharides, chairman of the Cyprus Securities and Exchange Commission (CySEC), financial education must become a national priority across Europe to safeguard investors and prevent the failure of wider regulatory efforts.
In an article released on Tuesday, the head of Cyprus’ financial regulator stressed that while the European Union (EU) is working to make capital markets more accessible, the measures will fail unless policymakers urgently address the public’s low financial literacy.
Theocharides warned that “against the current backdrop of pressures on the public’s finances, the EU is understandably keen to introduce regulation to make it easier for retail investors to benefit from capital markets.”
The report, which was shared by Greek outlet Oikonomikos Taxydromos, showed that the island stands alongside major global destinations such as Bali, Hawaii, and Tenerife, reflecting its growing international appeal.
The ranking is led by Mallorca, which maintains a comfortable lead over Phuket in second place, followed by Hawaii.
The list continues with Bali, Tenerife, Crete, Sicily, Ibiza, the Canary Islands, and Cyprus completing the top ten.
The second half includes Rhodes, Corfu, Kos, and the Bahamas, which closes the list in 20th place.
According to the Paphos regional tourism board (Etap), the distinction celebrates the town’s innovative project titled “Fostering green and sustainable growth through slow tourism by preserving natural and rural heritage with the enhancement of local environmental education centres.”
The project was selected in the Culture and Tradition category and showcases how Paphos has transformed its rural heartlands into a model for sustainable cultural tourism.
This recognition follows an evaluation process involving 180 good practice submissions from 33 countries, assessed by international experts under the coordination of Green Destinations.
The collaboration was announced under the framework of The Start-up Launchpad, an initiative launched by Totalserve to expand the support available to early-stage companies.
The joint effort seeks to address one of the most persistent challenges faced by new businesses – access to capital – by bringing together professional guidance and alternative investment channels.
Through the agreement, startups supported by the Totalserve Start-up Launchpad will be able to explore new financing opportunities through Crowdbase, complementing the legal, tax, accounting, corporate, and advisory services already provided by Totalserve.
According to a report by Philenews, this grant represents a significant increase of €45 million compared to the funding they received prior to the implementation of the Local Government Reform, which took effect on July 1, 2024.
The amount of the state grant allocated to each municipality is determined based on criteria including population, area, and residential density.
The €117 million is set to be distributed among the municipalities, with Nicosia receiving the largest share at €22.55 million, followed by Limassol at €17.03 million.
Speaking to state broadcaster CyBC on Wednesday, Ioannou added that permits have also been issued for about 217 apartment buildings.
“This means these apartment buildings will enter the market one to two years earlier, thus increasing the housing stock and contributing to the alleviation of the housing problem,” the minister said.
Ioannou explained that the aim of the fast-track licensing system is to reduce bureaucracy and increase productivity, in order to make procedures easier for citizens and speed up access to housing.
Speaking through a joint letter submitted to the parliamentary committee on interior ahead of today’s discussion of the bill, the EOAs stressed that the registration and supervision of management committees fall outside their legal responsibilities and therefore should not be transferred to them.
The EOAs made clear that they are currently unprepared to take over such a demanding service and have requested an extension from the committee to allow further consultation with all stakeholders.
This cooperation, the minister explained, is needed to achieve Cyprus’ shared goals of green and digital transformation, stronger competitiveness, and an upgraded international image.
In the presence of Justice Minister Marios Hartsiotis, Deputy Minister of migration Nikolas Ioannidis, MPs, local officials and business representatives, Papanastasiou praised Limassol’s active business community and its decisive role in the country’s economic progress.
He said that Limassol is moving dynamically towards a new era of growth and extroversion, supported by modern infrastructure and strategic planning that strengthen its role as a key economic, maritime and tourism hub.
The investment bank maintained its overweight recommendation with a target price of €4.1 for Eurobank shares, citing the deal to reacquire 80 per cent of Eurolife Life Insurance from Fairfax.
The deal, valued at €813 million in cash, grants Eurobank full control of Eurolife’s Life Insurance operations, while Fairfax will keep 80 per cent of the general insurance business.
The transaction also involves Eurobank transferring 45 per cent of ERB Asfalistiki in Cyprus to Fairfax for €59 million, with a future option to sell the remaining stake.
The brokerage issued a buy recommendation on the stock with a target price of €10, implying a price-to-tangible book value (P/TBV) ratio of 1.47 times for 2027, and one of the highest dividend yields in Europe.
According to the report, whose contents were shared by Greek business outlet Newmoney, the bank’s non-performing loan (NPL) ratio, which had peaked at 63 per cent in 2015, has now dropped to 1.7 per cent in the first half of 2025, one of the lowest levels in Europe, with coverage at 124 per cent.
The data showed that Cyprus reported a subjective poverty rate of 20.8 per cent for 2024.
Crucially, this figure reflects a significant improvement, continuing a strong downward trend from 24.1 per cent in 2023, 29.6 per cent in 2022, and a high of 58.8 per cent in 2015.
The latest 2024 figure means that the rate of people considered to be subjectively poor in Cyprus is now closer to the EU average, although it remains slightly higher.
According to an announcement released on Friday, Koumis held successive meetings with Magda Kopczynska, Director-General of the Directorate-General for Mobility and Transport (DG MOVE), and Isabelle Rialano, Director-General of the Directorate-General for Competition (DG COMP).
He also met with Anna Panagopoulou, Director of the Office of European Commissioner for Sustainable Transport and Tourism, Apostolos Tzitzikostas.
On Tuesday, Koumis presented the key priorities of the Cypriot Presidency in the tourism sector.
The agreement was signed, on behalf of the Republic of Cyprus, by Deputy Research Minister Nicodemos Damianou, and on behalf of ESA by Director General Josef Aschbacher, during an official ceremony at the Agency’s headquarters in Paris.
Delegations from all ESA Member States attended the event, which follows the unanimous approval of Cyprus’ accession by all ESA members, a move that reflects the trust and recognition of the country’s growing role in the European space sector.
The new status is expected to further strengthen Cyprus’ national space ecosystem, offering access to ESA mechanisms and programmes.
According to Politis, the findings emerged after checks carried out by the department’s social media monitoring, which identified both Cypriots and foreigners earning from subscriptions and digital sales.
The vast majority of those flagged had not included the revenue in their tax filings.
The platform, based in the United Kingdom, allows creators to monetise content, mainly of an adult-themed nature, through paid subscriptions.
The department said the investigation targets undeclared digital income, not only from OnlyFans but also from other online activities that have become increasingly common in Cyprus.
Checks revealed cases of individuals earning up to €500,000, none of which was declared.
Between September 2024 and September 2025, 962 homes were sold to foreign buyers, 385 to Europeans and 577 to non-Europeans, most of them in Paphos, where international demand continues to drive prices up.
Sales of plots reached 350, including 218 to EU citizens and 132 to non-Europeans, while fields accounted for another 357 transactions, mainly to European nationals.
Europeans tended to focus on Limassol, while non-EU buyers favoured Larnaca, where demand has climbed steadily in recent months.
The nationality data paint a familiar picture. In Nicosia, Greeks led among foreign buyers with 403 properties, followed by Romanians (112), Russians (80) and Lebanese (79).
One of the core messages of the event was that resilience, reform, and leadership are essential for both Cyprus and Europe to thrive in an increasingly unstable world.
Yousef Gamal El-Din, host of You’re in Business and former Bloomberg Television anchor, opened the forum by observing that Cyprus continues to punch above its weight, referencing recent upgrades by global rating agencies.
He added that geopolitical variables would be decisive in shaping the global economy this year, setting the stage for discussions on uncertainty and adaptation.