EY survey finds Cyprus attractive to investors despite energy and bureaucracy concerns

Nicosia, Cyprus. Cyprus remains attractive to foreign investors, according to the EY Attractiveness Survey, although high energy costs, slow procedures and limited international connections continue to affect its business appeal.

The survey found that 83 per cent of investors consider Cyprus an attractive destination for foreign direct investment, while 62 per cent plan to expand their operations on the island during the next year.

Investment confidence

The findings were presented at EY’s Cyprus Future Realised forum, where discussions focused on Cyprus’ strengths and unresolved challenges.

They were released on the same day that President Nikos Christodoulides said substantive foreign investment in Cyprus had increased by around 10 per cent in 2025.

EY Cyprus representative Andreas Anastasiou said the tax system was Cyprus’ strongest advantage, receiving a positive assessment from 90 per cent of respondents.

Quality of life, political and social stability, EU membership, the professional services sector and the legal system were also viewed positively by investors.

Expansion plans

In addition to the 62 per cent of respondents planning to expand, 29 per cent said they expected to maintain their operations in Cyprus at current levels.

Among investors without an existing presence on the island, half said they intended to establish one. Sixty per cent of respondents said they believed Cyprus would become a more attractive investment destination over the next three years.

Key concerns

Energy costs ranked among Cyprus’ leading weaknesses for the first time, with 50 per cent of respondents placing them near the top of their concerns.

Access to finance and bureaucracy were also identified as concerns, both of which have appeared repeatedly in previous surveys.