Nicosia, Cyprus. Cyprus recorded a 0.4 per cent rise in employment in the first quarter of 2026, remained third in the eurozone by number of pension funds despite a five-year decline, and signed a double taxation agreement with Hong Kong.
Employment growth in early 2026
Eurostat figures showed that Cyprus was among the strongest performers in the European Union labour market in the opening months of 2026.
The country recorded an increase in the employment rate of 0.4 per cent between the fourth quarter of 2025 and the first quarter of 2026. Belgium, Lithuania, Slovakia, and Sweden recorded the same increase, while Italy posted the largest rise at 0.5 per cent.
Across the European Union, the employment rate for people aged 20 to 64 reached 76.3 per cent in the first quarter of 2026, up from 76.2 per cent in the previous quarter.
Pension funds decline but ranking holds
The Central Bank of Cyprus on Friday released its first statistical report on pension funds for 2025, outlining developments in the assets and liabilities of Cyprus-based pension funds and providing information on the number of funds and their members.
According to the report, the total number of pension funds in Cyprus stood at fewer than 600 at the end of 2025. This reflected a decline of more than 30 per cent over the previous five years following the implementation of legislation governing occupational retirement provision.
Despite the reduction, Cyprus retained the third-highest number of pension funds in the eurozone. Ireland ranked first with around 5,000 funds, followed by Spain with approximately 1,000.
Agreement signed with Hong Kong
The Republic of Cyprus on Friday signed an agreement with the government of the Hong Kong Special Administrative Region of the People’s Republic of China to eliminate double taxation on income and combat tax evasion and tax avoidance.