"The legal and professional services sector is expected to operate in an environment of increased complexity and substantial opportunity in 2026. Geopolitical upheavals and changing capital flows are reshaping the profile of the clientele, creating new needs for structured, timeless and internationally aligned legal solutions. In this context, adaptability is not an option, but a prerequisite for sustainability," Elias Neocleous, Managing Partner, Elias Neocleous & Co LLC suggests.
Speaking to InBusinessNews as part of the 'IN Business Forecasting 2026' series of interviews, he continues, "In 2026, our organisation's growth strategy will continue to combine innovation, consistency and investment in the human factor. Our core is to strengthen specialisation and technological infrastructure, so as to provide services that meet the highest international standards, but are also adapted to the needs of the Cypriot market."
"We hope that by adopting advanced digital tools, such as our internal Artificial Intelligence system Neolaw.ai, combined with continuous training and specialisation, we will be able to respond to an international and changing clientele with speed, accuracy and a high level of professional judgment," Neocleous further notes.
Regarding the legal and professional services sector, the expert anticipates that 2026 will move into an environment of increased complexity but also substantial opportunities.
In terms of trends, Elias Neocleous explains that there is an increased focus on the areas of inheritance law and succession planning, as wealth is transferred to younger generations who approach businesses with a different mindset and greater familiarity with the dynamics of technology.
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 enters 2026 with a rare set of positive conditions. Having demonstrated remarkable resilience in recent years, despite international geopolitical and economic turmoil, it now has the necessary foundation to capitalise on the existing momentum and move steadily towards a more mature and qualitative development phase.
The assumption of the Presidency of the Council of the European Union by the Republic of Cyprus in 2026 is not just an institutional milestone, but a strategic opportunity. It can act as a confidence booster, strengthening the country's international image as a reliable, predictable and institutionally stable investment destination, provided that there is continuity and consistency in reforms.
The greatest risks to the Cypriot economy stem from both exogenous factors, such as geopolitical tensions that make the overall economic environment unpredictable, and endogenous factors, such as a complacent approach and the slow, bureaucratic administration of our country. Addressing them requires decisive simplification of procedures, acceleration of the administration of justice and a public administration that functions as an ally to entrepreneurship - and not as an obstacle. Only in this way can Cyprus transform the circumstances into long-term sustainable momentum.
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?
The legal and professional services sector is expected to operate in an environment of increased complexity and substantial opportunity in 2026. Geopolitical upheavals and changing capital flows are reshaping the profile of the clientele, creating new needs for structured, timeless and internationally aligned legal solutions. In this context, adaptability is not an option, but a prerequisite for sustainability.
For us, the strategic direction remains clear: continuous and substantial investment in both our people and technology. We hope that by adopting advanced digital tools, such as our in-house Artificial Intelligence system Neolaw.ai, combined with continuous training and specialisation, we will be able to respond to an international and changing clientele with speed, accuracy and a high level of professional judgment.
In terms of trends, there is an increased focus on the areas of inheritance law and succession planning, as wealth is transferred to younger generations who approach businesses with a different mindset and greater familiarity with the dynamics of technology. We are at a critical juncture, with technology and artificial intelligence acting as active disruptors, reshaping processes and requirements in real time. We are responding to these changes and want to play an active role in these trends to continuously improve the quality of our services, thereby helping society and the economy.
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 is indeed an established phenomenon internationally, particularly in the large law firm space, where scale, specialisation and geographic reach act as catalysts for further concentration. In mature markets, these strategic moves reflect the need to adapt to an increasingly competitive and regulatorily demanding environment.
In Cyprus, however, the legal sector still retains strong family and personal structure characteristics, which historically act as a deterrent to the adoption of acquisition or merger models. The relationship of trust between lawyer and client, as well as the strong identification of the firms with the individuals who created them, compose a different business culture.
Nevertheless, the reality remains dynamic. Changes in the composition of the clientele, increasing investments in technology and human capital, as well as international pressures for economies of scale, complexity and specialisation, may gradually reshape the landscape. Although acquisitions and mergers are not yet a dominant trend in the Cypriot legal sector, no one can rule out that in the near future we will see new, more complex forms of cooperation or mergers, adapted to the specific characteristics of the local market.
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?
In 2026, our organisation’s growth strategy will continue to combine innovation, consistency and investment in the human factor. Our core is to strengthen our expertise and technological infrastructure, in order to provide services that meet the highest international standards, but are also adapted to the needs of the Cypriot market. We will continue to invest in digital tools, artificial intelligence applications and knowledge management systems, while, at the same time, strengthening the continuous training and development of our people. At the same time, we closely monitor international trends and adapt our offering to meet new needs.
Our goal is to remain an internationally connected, dynamic and progressive organisation, capable of meeting the challenges of 2026 and leading the market in high-value-added services.
The new year is seeing the implementation of the tax reform, which takes 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 implementation of the new tax reform in 2026 constitutes a substantial breakthrough with multi-level impacts on the Cypriot economy, businesses and the investment environment. On a practical level, the simplification of significant administrative burdens and in particular the abolition of the Stamp Laws directly enhances market competitiveness, reducing costs, time and legal uncertainty in transactions.
The increase in the corporate tax rate from 12.5% to 15% is fully aligned with OECD Pillar 2, sending a clear message of international compliance and institutional maturity. This alignment strengthens investor confidence, without negating the attractiveness of Cyprus as a business center. At the same time, the new legislative framework is clearer and more coherent, offering greater predictability. Key advantages that make the country attractive - such as the non-dom status and the IP Box - remain intact, ensuring continuity and stability. Overall, the reform supports clearer and more structured investment frameworks, strengthening Cyprus' position in an international environment of increased requirements.
(Source: InBusinessNews)
