EY survey finds strong investor interest in Cyprus despite cost and bureaucracy concerns

Nicosia, Cyprus. Cyprus remains attractive to international investors, according to the EY Cyprus Attractiveness Survey 2026, with 83 per cent of respondents rating it favourably for foreign direct investment. Investors also identified energy costs, access to finance and bureaucracy as significant concerns.

Investment and survey findings

The survey, presented by Stelios Demetriou, EY Cyprus Head of Strategy and Transactions and M&A Leader for Central, Eastern and Southeastern Europe & Central Asia, put Cyprus’ foreign direct investment stock at around €82 billion in 2025. Investment remained concentrated largely in financial services, real estate and ICT.

Of those surveyed, 56 per cent described Cyprus as definitely attractive and 27 per cent as fairly attractive. Another 13 per cent were neutral, while 4 per cent considered it unattractive.

The survey covered 80 foreign investors from 23 countries and 11 sectors. Participants were senior executives and investment decision-makers, and about 92 per cent already had business operations in Cyprus.

Expansion plans

Sixty-seven per cent of respondents planned to enter the Cypriot market or expand existing operations, up from 57 per cent in 2024 and 29 per cent in 2022.

Among businesses already operating in Cyprus, 62 per cent planned to expand over the next 12 months, while 29 per cent expected to maintain their current level of activity. Half of respondents without an existing presence said they were considering entering the market.

Strengths and concerns

Taxation was Cyprus’ strongest-rated attribute, with 90 per cent of respondents describing its corporate taxation and wider tax regime as attractive. Quality of life followed at 82 per cent, political and social stability at 65 per cent, local workforce skills at 58 per cent and growth prospects at 49 per cent.

The assessment followed an increase in Cyprus’ corporate income tax rate from 12.5 per cent to 15 per cent at the beginning of 2026 as part of a wider tax reform. The European Commission has said corporate income tax accounts for about 20 per cent of Cyprus’ tax revenues, more than twice the EU average.

Despite the positive ratings, investors identified energy costs, access to finance and bureaucracy as areas needing improvement.