Marios Tannousis: Cyprus a gateway for global investment

Over the past decade, Cyprus has evolved from a promising regional player into an established and sophisticated international business centre. This transformation reflects the collective efforts of the Government, regulatory authorities, Invest Cyprus and the private sector, working in concert to cultivate a highly attractive, credible and resilient economic environment.

Today, Cyprus stands as a recognised jurisdiction of choice for international businesses, investors and entrepreneurs seeking stability, efficiency and global connectivity.

A Thriving Economy & a Positive Investment Climate

The strength of the Cypriot economy is reflected in its macroeconomic indicators and international recognition. Cyprus has consistently achieved sovereign credit rating upgrades by all four major international agencies – S&P, Fitch, Moody’s and DBRS – elevating the country to ‘A’ status. Foreign Direct Investment (FDI) has been identified as a key contributor to these upgrades, highlighting sustained international confidence in Cyprus’ long-term economic fundamentals and governance framework. At the heart of the country’s growth model lies a diversified and dynamic sectoral base.

The structural shift towards a knowledge-based economy is now visibly anchored in Cyprus’ economic performance. The Information and Communication Technology (ICT) sector, contributing up to 15% of national GDP and generating approximately €4 billion in revenue as of 2024, exemplifies this transformation. Cyprus has successfully attracted leading multinational tech companies, fostered a thriving innovation ecosystem and nearly doubled its pool of ICT professionals to 30,000 specialists over the past decade – an achievement that consolidates the country’s position as a rising European tech hub. Furthermore, the recent interest of Silicon Valley companies in entering the Cypriot market, following a US roadshow to promote Cyprus as an international business hub, is a testament to the growing appeal of the island’s dynamic, knowledge-driven economy and its position on the global tech map.

Complementing this success, Cyprus has also emerged as a credible and growing asset management jurisdiction. At the end of 2024, the country hosted 321 Management Companies and Undertakings of Collective Investments (UCIs), with assets under management reaching €10.1 billion. The country’s robust regulatory framework, built on best practices and aligned with EU standards, offers transparency, efficiency and strong investor protection – key factors that continue to attract capital flows from across Europe and beyond.

The shipping and maritime sector is yet another key pillar of the Cypriot economy. Home to one of the largest merchant fleets in Europe and worldwide, with its open registry and strong regulatory framework, Cyprus is a favoured jurisdiction for ship ownership and management. This sector significantly boosts the national GDP, ensuring economic stability and international visibility. Additionally, the Government’s efforts to modernise maritime services and promote green shipping practices enhance Cyprus’ reputation as a leading shipping centre in the Mediterranean and beyond.

In parallel, the energy sector is increasingly recognised as a key component of Cyprus’ economic landscape. Significant offshore natural gas discoveries have positioned the country as an important energy player in the Eastern Mediterranean, creating new opportunities for investment and regional collaboration. Concurrently, the real estate and construction sectors are strong drivers of growth, with a focus on high-end, sustainable projects attracting substantial foreign and domestic investment. The trend of international companies establishing regional headquarters in Cyprus has also enhanced the demand for quality office space. Together, these sectors contribute to urban regeneration, infrastructure development and the modernisation of the Cypriot economy.

Finally, Cyprus has strengthened its position as a regional hub for high-quality education and healthcare services. The country offers a growing range of internationally accredited universities and specialist institutions, supporting academic research, professional training and innovation. In close collaboration with Invest Cyprus and other relevant stakeholders, there is a coordinated effort to align educational offerings with the evolving needs of the economy, helping to equip students with the skills required in key sectors. At the same time, substantial investments in healthcare infrastructure, medical research and wellness services are enhancing Cyprus’ reputation as a destination for advanced medical care and health-related services.

Cyprus’ economic model is shaped by a deliberate strategy of diversification, resilience and sustainable growth – all key factors in creating a stable, attractive investment environment. Its macroeconomic stability, sectoral diversity, strong institutional governance and highly skilled, multilingual workforce underpin its credibility with international investors. FDI continues to play a central role in driving economic expansion, reflecting growing confidence in Cyprus as a competitive, transparent and business-friendly jurisdiction.

The Unique Advantages of Cyprus as an International Business Centre

At a time when the country’s economy and investment climate are experiencing unprecedented growth, Cyprus also has unique advantages and a range of incentives for investors. Located at the strategic intersection of Europe, Asia and Africa, Cyprus offers a unique opportunity for businesses to expand their operations across international markets. As a full member of the European Union (EU), Cyprus provides seamless access to the EU Single Market, along with valuable passporting rights and harmonised legislation, providing legal certainty to businesses and access to the new market opportunities and talent. Furthermore, the country is characterised by a business-friendly environment, enhanced by a highly educated English-speaking workforce, as well as a robust regulatory framework. Additionally, Cyprus boasts one of the most efficient tax regimes in the EU, complemented by a range of incentives to attract investors. These include the Intellectual Property (IP) Box regime, which provides preferential tax treatment on IP income, and over 65 double taxation treaties. The absence of capital gains tax on securities further enhances Cyprus’ attractiveness as an investment destination. The country’s political stability ensures a secure and predictable business environment, while its legal system, rooted in English law, offers familiarity to international investors.

To support this growth, Invest Cyprus serves as a one-stop shop, promoting the country, facilitating investments and advocating for reforms that further enhance the business environment. With expert guidance and comprehensive resources, Invest Cyprus ensures that international businesses thrive, making Cyprus a reliable, forward-thinking partner for global investors seeking opportunities in Europe and beyond.

• By Marios Tannousis, CEO of Invest Cyprus

This article was first published in the special publication Doing Business in Cyprus. To view it, click here. To read the entire publication, click here.