The investment climate in Cyprus is thriving in 2025, as foreign companies increasingly choose the island for business expansion. Recent data indicates a surge in company registrations, reinforcing Cyprus’ position as a strategic gateway to European markets.

Corporate Tax Hike Unlikely to Deter Investors

Despite a planned corporate tax increase from 12.5% to 15% in early 2026, experts believe this will not dampen investor enthusiasm. Instead, the adjustment is viewed as a step toward bolstering Cyprus’ international standing and shedding its former reputation as a tax haven. Key industries attracting investment include technology, real estate, investment funds, and consulting.

Foreign Company Registrations on the Rise

From January to March 11, 2025, Cyprus recorded 93 new foreign company registrations—a 20% increase from the same period in 2024. Last year saw 77 registrations in Q1, with 200 new businesses launching by mid-year, generating approximately 1,200 jobs. If this momentum continues, 2025 is on track to surpass previous records.

The Company Facilitation Unit (CU), which assists foreign businesses, highlights that 2022 was the strongest year for foreign company registrations, with 1,605 firms established. In contrast, 2023 experienced a slowdown with only 286 new registrations. However, 2024 marked a recovery, with 465 foreign businesses launching by year’s end.

Key Investor Nations

Investors from Israel, Ukraine, Russia, Lebanon, Belarus, and the UK remain highly active in Cyprus. Meanwhile, efforts to attract Brazilian businesses followed a landmark Memorandum of Understanding (MoU) with the Brazilian state of Paraná. Authorities are now shifting their focus to India and the USA, targeting sectors such as energy, renewable energy, and software development.

Additionally, there is growing investment interest from Saudi Arabia and Jordan, while Latin American nations were approached in 2024 to consider Cyprus as a viable business hub.

Booming Sectors

Technology and software development lead the influx of foreign investment. Increased interest has been observed from video game software firms, investment funds, consulting companies, e-commerce ventures, and real estate developers. The hospitality industry is also attracting new entrants, further strengthening the Cypriot economy.

Rebranding Cyprus as a Business Destination

To enhance its global business appeal, Cyprus has enlisted international communications firm KREAB for a rebranding campaign. This initiative aims to reposition the island as a credible and attractive investment hub, moving beyond past controversies.

The campaign is designed to attract investments in high-tech industries, innovation, research and development, energy, healthcare, education, shipping, finance, insurance, and fund management.

Conclusion

Cyprus is witnessing a foreign investment boom, with increasing company registrations and job creation. Despite an impending corporate tax increase, investor confidence remains robust. With ongoing rebranding efforts, strengthened international ties, and a commitment to business growth, 2025 could be a record-breaking year for foreign investment in Cyprus.