Cyprus continues to modernise its public administration and enhance its investment attractiveness, President Nikos Christodoulides announced at a general meeting of the Association of Large Investment Projects.
Despite international instability and economic uncertainty, Cyprus remains a reliable investment destination. This is achieved thanks to its modern regulatory framework, business-friendly environment, and responsible tax policy.
The President emphasized that the country possesses comparative advantages that strengthen its regional role and is capable of becoming a hub for entrepreneurship, innovation, and development. According to financial indicators, Cyprus’s economic growth remains among the highest in the European Union, and public debt is expected to be below 56% of GDP by the end of the year. The unemployment rate fell to 4.3% in the first half of 2025, indicating full employment for the first time since 2008.
Christodoulides noted that Cyprus has received an A rating from all major rating agencies, confirming the restoration of confidence in the country’s economy. Among the priority reforms, the president cited tax reform, the audit and legal services, pension reform planned for 2026, and teacher certification.
An equally important area is digital transformation, which is changing the way citizens and businesses interact with the public sector. Targeted infrastructure projects and reforms are aimed at increasing the competitiveness and stability of the economy.
Particular attention is paid to large-scale developments, which are considered a key driver of economic activity. From the outset, the government has collaborated with the business community to ensure stability and sustainable development, supporting investment and competitiveness.
The President noted the importance of major projects that create jobs and strengthen Cyprus’s reputation as a regional hub of knowledge and quality. The government is working to modernize public administration by simplifying procedures across various agencies, providing modern services for investors and businesses. As part of this, a business services center is operating, bringing together government services to provide coordinated support to both Cypriot and foreign investors.
To improve transparency and oversight, a standards review and enforcement unit is planned to be established in the Department of Urban Planning and Housing in 2026.
The tax reform, scheduled for January 1, 2026, aims to stimulate productive activity, attract investment, support private initiative, and ensure a fair distribution of income with targeted assistance to those in need.
The President emphasized that the process of modernization and strengthening Cyprus’s competitiveness is continuous and multi-layered. In implementing this strategy, the government relies on partnerships with the Chamber of Commerce and Industry (KEVE) and the Association of Major Developers.
According to Christodoulides, even in the face of external challenges, responsible fiscal policy and bold reforms, combined with the active participation of the business community, can turn risks into new opportunities for the Cypriot economy.
