The legal and professional/administrative services sectors will continue to be under pressure in 2026, underlines the Founding / Managing Partner of Constantinou Panayiotou & Co LLC - GCPLAW, Georgia Constantinou-Panayiotou, explaining that trends shaping the industry show a clear shift towards deeper specialisation and a substantive advisory approach, where the regulatory and strategic aspects are gaining increasing weight.
Speaking to InBusinessNews as part of the 'IN Business Forecasting 2026' series, she identifies the human factor as the biggest challenge, noting that law firms are being called upon to develop and retain young lawyers who combine high-level legal thinking with risk analysis skills, technological familiarity and the ability to manage complex cases. “The challenge is to cultivate professionals who can operate strategically, without losing the depth and intellectual discipline that characterises the essence of law, a characteristic that is becoming increasingly rare,” she says.
Analysing the tax reform, Constantinou-Panayiotou explains that if it is accompanied by a substantial improvement in the administration of justice, simplification of procedures and complete digitalisation of state administration, then it can act as a strong positive message for attracting foreign investment and strengthen the credibility of the country, clarifying that if it is limited to a simple change in tax rates without real reform in the functioning of the state and justice, then its benefits for attracting investment will be mitigated.
Regarding the trend of acquisitions and mergers, Georgia Constantinou-Panayiotou points out that in the legal sector in particular, pressure from stricter regulation, the increasing cost of technological adaptation and the need for international reach are driving firms into larger, more structured formations, either through comprehensive mergers or through targeted strategic partnerships.
The real issue, however, according to her, is not enlargement "on paper", but the creation of structures that substantially improve quality, specialisation and the ability to handle complex, cross-border cases.
How do you think the Cypriot economy will perform in the new year and what are its prospects? What do you consider to be the biggest risks and how can they be addressed?
The Cypriot economy is entering 2026 with stable fundamentals and growth rates that continue to exceed the EU average. The dynamics of services and the resilience of domestic demand continue to support economic activity. Nevertheless, I maintain a cautious optimism, as the international and geopolitical environment remains volatile and requires a careful reading of developments.
The main risks I see are three: the ongoing geopolitical instability in the region, which affects critical sectors of the economy, the pressure created by high interest rates on households and small and medium-sized businesses, and institutional risk, i.e. a justice system that is delayed and a public administration that often has difficulty effectively supporting business activity.
Unless the reform of the judiciary, the digitalisation of the state and the effective implementation of the tax reform are implemented, the current macroeconomic picture will hardly translate into real prosperity for citizens and businesses. A positive macroeconomic picture without an institutional infrastructure does not translate into sustainable prosperity for citizens.
The human factor is the biggest challenge
How do you anticipate that your company's sector of activity will develop in 2026, what are the biggest trends/changes you expect to occur and what are the most significant challenges?
Our sector (legal and professional/administrative services) will continue to be pressured.
The trends shaping our industry show a clear shift towards deeper specialisation and a substantive advisory approach, where the regulatory and strategic aspects are gaining increasing weight. At the same time, artificial intelligence is now entering the legal practice more maturely and is reshaping the way we organise and manage our work. At the same time, there is a natural convergence of legal, tax and compliance services, as clients are now turning to holistic, highly specialised solutions that address issues as a whole and not in isolation.
The biggest challenge is clearly the human factor: to develop and retain young lawyers who combine high-level legal thinking with risk analysis skills, technological familiarity and the ability to manage complex cases. The aim is to cultivate professionals who can operate strategically, without losing the depth and intellectual discipline that characterises the essence of the law, a trait that is becoming increasingly rare.
What we are asking for is not enlargement "on paper"
A strong trend that seems to be taking hold in Cypriot business is that of acquisitions and mergers. Will we see it strongly in your sector as well?
The trend of mergers and acquisitions has now become established in the Cypriot business environment. In the legal sector in particular, the pressure of stricter regulation, the increasing cost of technological adaptation and the need for international reach are leading firms to larger, more structured structures, either through integrated mergers or through targeted strategic partnerships. This development is already visible and is expected to continue.
The real issue, however, is not enlargement "on paper", but the creation of schemes that substantially improve quality, specialisation and the ability to handle complex, cross-border cases. This will reveal which schemes will effectively capitalise on this transition and which will need to reassess their operating model in order to meet the demands of the new era.
What can we expect in terms of your organisation's plans and growth and expansion strategy in 2026? What moves do you intend to make in this direction?
2026 is a year of focused and disciplined growth for GCPLAW, with an emphasis on substance rather than uncontrolled expansion. Our strategy revolves around three main axes:
First, in strengthening the areas of contract law, corporate law, mergers and acquisitions, as well as regulatory compliance, areas that are increasingly complex and in demand, especially abroad.
Second, in our deeper connection with selected international law firms, so that we can continue to offer cross-border support in highly specialised cases.
Thirdly, in the systematic investment in technology, legaltech tools and responsible use of artificial intelligence, at all stages of case management.
At the same time, we are continuing to invest in human capital: educational programmes, scholarships and the careful cultivation of the next generation of lawyers, because without this foundation there is no sustainable development.
Our goal remains constant: a modern, highly specialised law firm with a reliable and strong Cypriot and international footprint, which emphasises quality and the qualitative value of its services.
Predictability and stability are crucial for serious investors
The new year will see the implementation of the tax reform, which is taking place 22 years after the previous tax reform. How do you anticipate that it will affect the Cypriot economy, businesses, and the attraction of foreign investments?
The tax reform is one of the most significant changes in recent decades and is expected to decisively shape the country's business environment. The challenge is to align Cyprus with international standards without eroding its competitiveness.
For serious investors, predictability and stability of the system are crucial criteria, in addition to a friendly tax regime.
If the reform is accompanied by substantial improvement in the administration of justice, simplification of procedures and complete digitalisation of state administration, it can act as a strong positive message for attracting foreign investment and strengthen the country's credibility.
If, however, we limit ourselves to a simple change in tax rates without real reform in the functioning of the state and justice, then its benefits for attracting investment will be mitigated.
For Cypriot businesses, the reduction of certain tax burdens may provide a limited but significant breathing space, especially in terms of liquidity and enhanced competitiveness. Of course, the actual impact will depend on how the changes are implemented in practice and on the overall operating environment.
(Source: InBusinessNews)
