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12° Nicosia,
26 February, 2026
 
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Cyprus vs. bureaucracy: Can the red tape finally be cut?

A new government plan aims to fast-track investments, but will it succeed where past promises have failed?

Dorita Yiannakou

Dorita Yiannakou

For years, bureaucracy has been a major roadblock for businesses in Cyprus. Slow, complex procedures have frustrated both local and foreign investors, with permit approvals often taking an unreasonably long time—sometimes long enough to deter investment altogether. Business associations and industry bodies have repeatedly called for reforms to streamline these processes, arguing that while Cyprus offers an attractive investment environment, its sluggish bureaucracy makes project implementation unnecessarily difficult. The problem stems from the involvement of multiple government departments, agencies, and ministries, leading to inefficient communication, excessive paperwork, and endless phone calls just to secure a single approval.

Even now, despite Cyprus gaining a solid reputation as a business hub, frustration lingers. The country remains a stable and tax-friendly destination, but its slow-moving system continues to test investors' patience. Many potential investors express cautious optimism, hesitating before committing to projects due to the red tape that still dominates the landscape. The concern is that temporary fixes won’t be enough—real, long-term solutions are needed.

The government claims it is finally addressing the issue with a comprehensive strategy to attract investment. The plan? A centralized authority to fast-track approvals and cut through the bureaucratic maze. In theory, this would bring all relevant agencies under one roof, ensuring faster processing for investment applications. But here’s the catch—we’ve heard this before. "Fast-track" reforms have been proposed numerous times by business groups to different administrations, yet they have never materialized. As a result, Cyprus continues to lose out to more efficient investment destinations.

Still, there's hope. If the government truly delivers on its promise, it could mark a turning point, making Cyprus a more competitive and business-friendly destination. However, if this initiative turns out to be just another empty promise, it will have been nothing more than political theater—impressive on paper but ultimately meaningless.

At the end of the day, modernizing Cyprus’s investment framework isn’t optional; it’s a necessity. If the country is serious about attracting business, it must prove—step by step—that real change is happening.

*This op-ed was translated from its Greek original

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