Cyprus Business Now: weekly wrap-up
Here are the top business stories in Cyprus from the week starting January 12:
In an article first published by Stockwatch, Vakkou argued that the Cypriot capital market is entering a critical transition phase shaped by European and international developments, rapid technological advances and persistent geopolitical and macroeconomic uncertainty.
He explained that these forces “are increasing both the demands placed on market participants and the complexity of supervision for regulators across Europe”.
Reflecting on the sense of unease that dominated markets in April last year, when tariff war rhetoric was pervasive and prices were sliding daily, Inios notes that for many, the urge to exit the market felt almost unavoidable.
“If you caught yourself thinking, ‘Maybe I should just sell for now until things settle’, you were not alone,” Inios says, adding that numerous anxious investors contacted the society during that period.
However, he argues that 2025 offered a stark reminder that “the greatest risk to our capital is not always the economy, but our own reaction to it.”
Walking through the sequence of events, Inios explains that during the first quarter of 2025, markets followed a steady downward path as trade war fears intensified.
Addressing stakeholders, Koumis described 2025 as the best tourism year in Cyprus’ history, stressing that the Deputy Ministry’s primary objective is to safeguard the continuity of this success.
A key prerequisite, he said, remains the delivery of an excellent tourism experience for all visitors.
Against this backdrop, Koumis presented the Ministry’s plans and new initiatives for the year ahead, while also inviting proposals aimed at tackling long-standing issues.
As he noted, ensuring smooth operation across individual destinations is critical, explaining that quality services depend on close and ongoing cooperation throughout the tourism ecosystem.
The issue was discussed on Monday during a meeting between Greece’s Minister of Shipping and Insular Policy, Vasilis Kikilias, and Cyprus’ Minister of Justice and Public Order, Costas Fitiris.
According to the discussion, and mentioned on newmoney, the two sides agreed on the need for immediate and tangible steps to strengthen collaboration between the Hellenic Coast Guard and the relevant Cypriot authorities across the full spectrum of maritime security activities.
These include efforts to combat irregular migration flows, enhance joint training initiatives and improve coordination in search-and-rescue operations.
The manual is tied to the 2025 law regulating remote work in the public service, which was approved by the House and published in the official gazette on December 12, 2025.
Its commencement was set through a council of ministers decision on December 16, 2025, followed by a gazette notice on December 19, 2025.
While the framework was shaped by the rapid shift to remote work during the pandemic, the manual frames off-site work as part of a wider reform agenda to modernise public administration and expand flexible work arrangements, alongside reduced employment and flexible hours.
The scheme introduces additional deductions for mortgage interest or rent on a main residence, as well as for energy upgrades and the purchase of an electric vehicle, provided taxpayers meet the income thresholds set out in the legislation.
Eligibility is based on total annual family income. Families without children, or with one or two children, qualify with income of up to €100,000.
The threshold rises to €150,000 for families with three or four children and to €200,000 for families with five or more children. The deductions apply to married couples, civil partners or cohabiting parents with a common child, as well as to single taxpayers.
Cypriots made a total of 3.3 million trips during the year, generating 18 million overnight stays and expenditure of €2.4 billion. Just over half of those trips, 51.9 per cent, were taken abroad.
Even so, they accounted for a far larger share of activity, representing 73.4 per cent of overnight stays and 87.3 per cent of total travel spending.
When broken down by destination, Greece emerged as the clear favourite. It attracted 34.7 per cent of all trips made by Cypriots, while accounting for 26.2 per cent of overnight stays and 26 per cent of total expenditure.
Amendments to the capital gains law extend existing exemptions beyond traditional property exchanges to cases where real estate is transferred as consideration. In such cases, capital gains tax will no longer be payable at the time of transfer.
Instead, taxation will arise when the property received in return becomes available, placing these transactions on the same tax footing as property exchanges.
At the same time, the reform expands the tax-free thresholds applicable to property sales.
The general exemption on profits from the sale of property and shares has been increased to €30,000, up from £10,000 under the previous, pre-euro framework.
Herodotou, the former governor of the Central Bank of Cyprus (CBC) and current chairman of the board of Greek CrediaBank, is one of two candidates still in the race after progressing through four rounds of selection, as mentioned in Politis.
The EBA, which is headquartered in Paris, is an independent EU authority responsible for banking regulation across the bloc and is best known for conducting Europe-wide stress tests.
The selection process began in November, following the resignation of Spaniard Jose Manuel Campa in September, and has now entered its final phase with the involvement of EU political institutions.
PwC Cyprus hosted the event ‘Driving Innovation and Growth’ on Wednesday January 14, at the PwC Experience Center, as part of the Cyprus–India AI Impact Pre-Summit.
Held under the auspices of the High Commission of India in Nicosia, the event brought together over 100 leaders from the public sector, business and academia to explore how Artificial Intelligence (AI) can transform industries, stimulate growth, foster innovation and strengthen bilateral collaboration, according to its statement.
Against this backdrop, the summit commenced with opening remarks from Philippos Soseilos, CEO and Chairman of PwC Cyprus, Manish, High Commissioner of India in Nicosia, and Demetris Skourides, Chief Scientist for Research, Innovation and Technology of Cyprus.
The rescue unfolded late on Friday night, while the vessel was en route across the South Atlantic, when the crew received a distress call from MRCC Cape Town.
After informing the vessel’s owners and its charterers, Quadra Commodities, Cymona Eagle “positively responded and altered course toward the reported position”.
The vessel arrived at the distress location shortly after midnight on Saturday.
Talks are due to begin shortly between companies and trade unions where collective agreements are already in place, alongside discussions for two to three sectoral contracts that are nearing expiry.
The most complex negotiations are expected at the ports, where trade unions will face three separate employers. The structure of port operations, involving multiple procedures and distinct working conditions, is set to add further strain to the process.
On the employers’ side, talks are expected to involve Eurogate, DP World and the company established by shipping agents, which employs port workers.
The current agreement was signed in January 2025 following mediation by the labour ministry, covering the period from January 1, 2024 to December 31, 2025 and providing for general wage increases of 3.5 per cent in each year.
The report, covering the period from January to October, maps the island’s top-performing areas by value, volume and average sale price.
It showed Limassol leading in transaction value, Paphos standing out for higher average prices, while Larnaca and Nicosia account for the largest number of transactions.
Limassol continued to dominate the market in value terms, with three of its areas appearing in the island’s top ten and jointly generating more than €737 million in sales.
According to the announcement, the initiative was launched “to create and disseminate meaningful and reliable information to businesses, the media and society“, addressing key issues affecting the Cypriot business environment.
The cooperation will be implemented through a range of actions, including the production of video content, the publication of written material, and the organisation of informative seminars and online meetings.
“Through the communication channels of both organisations, useful knowledge and content will be shared to enhance transparency, improve understanding and encourage constructive dialogue on matters concerning Cypriot entrepreneurship and society at large,” the bodies stated.
According to the report, the number of building permits authorised during September 2025 stood at 793, highlighting steady demand in the sector.
The total value of these permits reached €319.5 million, while the total area covered amounted to 257.3 thousand square metres.
These permits provide for the construction of 1,545 dwelling units, underlining ongoing investment in residential development.
“The Central Bank of Cyprus expresses its deepest sorrow for the death of former President of the Republic of Cyprus, George Vassiliou,” the Central Bank of Cyprus said in an announcement issued on Thursday.
“George Vassiliou contributed substantially to shaping the country’s modern economic course, promoting reforms and policies that strengthened stability, modernisation and the European orientation of the Cypriot economy,” the CBC added.
“We express our sincere condolences to his family and loved ones,” the Central Bank said.
The figures were published in the central bank’s annual Foreign Direct Investment report for 2024, which provides a comprehensive overview of developments in FDI stocks, transactions, income, geographical distribution and sectoral activity in Cyprus.
“The Foreign Direct Investment publication, which is released annually, provides an overview of the major developments in the FDI of Cyprus and examines the level, the fluctuations, the associated income, the geographical breakdown and the sectors of economic activity related to these investments,” the central bank said.
“The specific analysis is based on data collected and compiled by the External, Economic & Government Finance Statistics Section of the Statistics Department of the Central Bank of Cyprus,” the CBC added.
The visit took place on January 15, 2026, on the occasion of the Republic of Cyprus assuming the presidency of the Council of the European Union.
Gawkowski and a high-level Polish delegation were welcomed by the chief scientist for research, innovation and technology and chairman of the board of the Research and Innovation Foundation, Demetris Skourides.
The meeting focused on key issues at the forefront of policy and technology, including digital transition, cybersecurity, artificial intelligence, and the strengthening of cooperation in research.
Speaking to Entrepreneurial Limassol, a periodical published by the Limassol Chamber of Commerce and Industry (Evel), Mesimeris clarified that the objective is to finally establish a clear coordination mechanism, with well-defined responsibilities and timelines, so that every involved authority knows exactly what actions to take, both preventively and in the event of a crisis.
This effort, however, did not emerge in a vacuum. The starting point dates back to January 2024, when the Council of Ministers decided to coordinate, at a central level, the issue of preventing and responding to incidents of marine pollution.
At the time, Mesimeris explained that “there was intense deliberation over who should assume the role of coordinator, as well as which services and institutional stakeholders could provide meaningful support for this critical objective.”
According to an announcement by the Cyprus Sustainable Tourism Initiative (CSTI), the project, titled ‘Creating Resilient SMEs in the Tourism Sector (ReTour)’, is led by the School of Electrical and Computer Engineering of the National Technical University of Athens.
It is funded under the Interreg NEXT MED programme, with a total budget of €1.83 million, of which €1.63 million, 89 per cent, is contributed by the European Union.
The initiative aims to support tourism SMEs in adapting to an increasingly volatile operating environment, marked by recurring crises, seasonal pressures, climate change and wider geopolitical developments.
Its president, Thanos Michaelides said that maintaining similar results over two successive seasons has helped create a more predictable operating environment for the industry, noting that “two consecutive years with similar results create an environment of stability”.
While occupancy indicators point to a successful year, Michaelides stressed that profitability remains the most critical factor for the long-term sustainability of hotel units.
In an article first shared in Cypriot daily Phileleftheros, the governor suggested that while the country is starting the year from a position of strength, the global landscape remains treacherous.
He explained that the Cypriot economy maintains solid prospects with a growth rate expected to hover around 3 per cent in the coming period, a figure significantly higher than the euro area average.
Patsalides stated that public debt is on a steady downward path, with the debt to GDP ratio falling below 60 per cent for the first time in several years, finally meeting the Maastricht Treaty threshold.
According to a Eurostat report released on Friday, the island’s tourism sector has experienced substantial growth, outperforming several regional averages.
In a comparison of annual data, the total nights spent at tourist accommodation in Cyprus rose from 15,636,125 in 2023 to 17,909,478 in 2024, representing a remarkable 14.54 per cent increase between those two years.
“The estimated number of nights spent at tourist accommodation establishments in the EU reached 3.08 billion, exceeding the previous year by 61.5 million, or 2 per cent,” the statistical office said in its first estimates.
In Larnaca, expectations remain upbeat following what officials describe as a strong year.
Speaking to the Cyprus News Agency, Larnaca Regional Board of Tourism (Etap) president Dinos Lefkaritis said that, after “a successful programme of actions in 2025”, work is under way to roll out a new action plan alongside ongoing initiatives.
The objective, he added, is to “upgrade the touristic Larnaca, promote it, enrich the tourist product and maintain and enhance our authenticity, which is an element that characterises the board”.
Beyond promotion, the focus will shift to practical improvements on the ground.