Dorita Yiannakou
Cyprus is maintaining a strong grip on investment interest, primarily due to its strategic geographic location, its well-developed professional services sector, and the attractive business environment it has built. Foreign interest companies continue to choose our country to establish a physical presence and operate across various sectors, with a particular focus on technology and real estate.
More specifically, over 130 foreign companies registered with the Business Facilitation Unit (BFU) in the first half of this year, with their main source markets being Eastern Europe, the United Kingdom, and the Middle East. According to information obtained by Kathimerini, 133 new foreign interest companies registered with the Unit during the first six months of the year, and the upward trend is holding steady. Software development remains the primary sector of activity, followed by holding and investment finance companies, real estate, business and legal consulting, as well as marketing, advertising, and public relations. This breakdown confirms that Cyprus continues to attract high-value-added businesses, placing a heavy emphasis on technology, international investments, and specialized professional services. At the same time, the source markets for the ultimate beneficial owners of companies opening in Cyprus are diversifying further. Specifically, during the first half of 2026, investments came from Ukrainian, Israeli, Russian, British, and Lebanese nationals. This data on international investor interest reflects shifts in the global business landscape and confirms that Cyprus is drawing an increasingly diverse range of investors.
Long-term resilient interest
The resilience and longevity of investor interest is the most important takeaway from analyzing the Unit's data on foreign company registrations from 2022 through 2026. According to the figures, 491 new registrations were recorded for 2025, a slight increase of about 6% compared to 2024 that suggests foreign investor interest is stabilizing. The five core business sectors are technology, software development, investments, real estate, and professional services. In terms of origin markets, investors were primarily Israeli, Russian, Ukrainian, and British.
In 2024, a significant recovery of about 63% was recorded compared to 2023, with new registrations reaching 465. The fields of activity included software development, holding companies, real estate, and business and legal consulting services. The markets fueling those 465 investments in 2024 were Israel, Russia, Ukraine, and Belarus.
In 2023, there was a steep drop in new registrations of foreign companies compared to 2022. Specifically, registrations fell to 286, marking a decrease of about 82% compared to 2022. Despite this decline, the mix of core business activities remained largely stable. Software development and holding companies continued to be the two most prominent sectors, while interest shifted away from general trade and toward real estate, which entered the top five activities. In terms of origin countries, Russia and Israel dominated, though investments were also recorded from the United Kingdom and Lebanon.
A massive boom in foreign company registrations hit the Unit in 2022, when 1,605 new foreign interest companies were recorded. The main sectors of activity were software development, holding and investment finance companies, business and legal consulting services, trade and e-commerce, and video game software development. The most significant countries of origin for the ultimate beneficial owners were Russia, Israel, Ukraine, the United Kingdom, Belarus, and Lebanon.
Modernizing the Unit
As part of the digital transformation of public administration and the ongoing upgrade of business services, a fully digitized registration process for the Register of Foreign Interest Companies has been launched. Maintained by the Business Facilitation Unit, this initiative falls under the national Strategy for Attracting Foreign Investment and Talent. The new electronic service modernizes how applications are submitted and managed, simplifying administrative routines and reducing both processing times and paperwork burdens for businesses and state authorities alike. Interested companies can now submit their applications electronically through a dedicated online platform.
At the same time, the new information system improves how business activity is monitored and analyzed, making it possible to extract reliable statistics and reports. Specifically, the system will track and analyze the number of registered companies, the economic sectors they operate in, and their total employee count. The new system is expected to boost transparency, efficiency, and service quality, ultimately improving the local business environment and making the Register easier to manage.
The Investors' Journeys
Concurrently, the development of a new specialized website for the Business Support Center (BSC) was also completed. The Center opened in May 2025 with the goal of resolving long-standing issues in the business environment caused by slow, bureaucratic procedures. Through the website, users can access comprehensive, up-to-date information on the steps required to establish, operate, and license a business, along with available state and EU funding opportunities and the full range of services offered by the BSC.
Additionally, the website features standardized "Investors' Journeys," which map out all the required licensing stages, competent authorities, and estimated timelines for investing in priority sectors in a clear, practical way. In this first phase, the guides cover educational institutions, data centers, hospitals, and tourism developments, giving investors a comprehensive tool to plan and execute their projects. Notably, since the BSC launched, more than 60 businesses have received specialized guidance on licensing for renewable energy and energy storage projects, registering in the Register of Foreign Interest Companies, fast-tracking licensing procedures, and applying for national and European funding programs. The BSC represents the next step for the Business Facilitation Unit (BFU), featuring significantly expanded responsibilities and upgraded services that improve coordination between authorities and streamline investment plans.
The operation of the BSC brings together the Business Facilitation Unit of the Ministry of Energy, Commerce and Industry, the Strategic Developments Sector of the Department of Town Planning and Housing, Invest Cyprus, and various contact points from the relevant licensing authorities, creating an integrated support network for businesses.
