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Cyprus Advances Government Modernization And Investment Appeal Amid Global Uncertainty

In a bold address to the association of large investment projects, President Nikos Christodoulides reaffirmed Cyprus’ commitment to modernize its governmental framework and enhance its attractiveness to investors. Despite a challenging international landscape marked by insecurity and ongoing global tensions, Christodoulides emphasized that Cyprus has maintained its status as a reliable and appealing destination for investment.

Strengthening Cyprus’ Investment Appeal

Christodoulides attributed the nation’s investment allure to a contemporary regulatory framework, a business-friendly environment, and a prudent fiscal policy. The President underlined Cyprus’ comparative advantages and strategically positioned the country as a pillar of stability in the region with promising prospects of emerging as a hub for entrepreneurship, innovation, and development.

Driving Economic Resilience

Highlighting fiscal achievements, Christodoulides noted that Cyprus recorded some of the EU’s highest growth figures, forecasting public debt to decline to below 56% of GDP by the end of the year. He also celebrated the return of full employment—the first occurrence since 2008—with unemployment rates dropping to 4.3% in the first half of 2025. With a steadily expanding productive base and increasing quality job opportunities, the government’s policies have restored international confidence, as evidenced by securing category-A ratings from all major rating agencies.

Ongoing Reforms And Digital Transformation

Central to the government’s strategy are a host of reforms: tax restructuring, modernization of the audit office, legal service upgrades, and an extensive pension reform scheduled for 2026, complemented by a thorough evaluation of the teaching workforce. These measures, coupled with a drive towards digital transformation, are reshaping the interaction between citizens, businesses, and public services. The establishment of a consolidated business service centre symbolizes this commitment to streamlining processes and reducing bureaucracy.

Synergizing Private Initiative With Public Strategy

The President also stressed the critical role of collaboration between the public and private sectors. By leveraging private initiative, expertise, and a robust network of partners, the government is fast-tracking large-scale development projects. Initiatives such as the fast-track examination for strategic developments—capped at 12 months—and the further digitalization of licensing procedures underscore these efforts. In parallel, the forthcoming creation of a dedicated control and enforcement unit within town planning and housing in 2026 will reinforce higher standards of transparency and safety in construction.

Looking Ahead

With tax reform poised for implementation on January 1, 2026, the comprehensive package is designed to incentivize productive activities, attract quality investments, and promote fair income distribution. By partnering with key economic stakeholders such as the Chamber of Commerce and Industry and the association of large development projects, Cyprus is strategically positioning itself to transform external challenges into new growth opportunities.

Christodoulides concluded with a resolute message: the government’s unwavering commitment to responsible fiscal policy and bold reforms, in collaboration with the business community, is set to drive Cyprus towards a more competitive, innovative, and modern future.

Cyprus Could Turn 30,000 Empty Buildings Into New Homes

Vacant Properties Could Be Renovated For Housing And Community Use

Cyprus has an estimated 30,000 vacant or abandoned buildings that could be renovated and brought back into use, potentially helping ease pressure on the housing market, particularly for renters.

Former parliamentary Environment Committee chairman Charalambos Theopemptou examined how other EU countries deal with vacant properties and outlined several measures Cyprus could consider.

Lessons From Europe

Countries such as Ireland, France, Spain and Portugal use different combinations of renovation grants, tax measures and urban renewal programmes to encourage owners to bring empty properties back into use.

Ireland offers grants of up to €50,000 for vacant homes and €70,000 for derelict properties, while France and Spain use tax measures in areas with high housing demand. Portugal supports renovation through a dedicated urban renewal fund. Cyprus currently offers grants of up to €40,000 for renovating a three-bedroom home.

Creating A National Register

Theopemptou suggested creating a comprehensive register of vacant, abandoned and dangerous buildings, with municipalities and communities working alongside the Interior Ministry and technical services.

Properties could be classified according to their condition, historical or architectural value and location. Buildings near schools, public transport, local centres or areas with demand for affordable housing could receive priority.

He also proposed combining financial incentives with simpler procedures and faster technical assistance for owners willing to restore unused properties.

Putting Empty Buildings To Work

Once renovated, vacant properties could provide affordable and student housing, small businesses, cultural spaces and other community facilities. Long-term leases, partnerships with owners, social enterprises and unused municipal buildings could also contribute.

Many properties may not require major reconstruction. Structural assessments, cleaning, basic repairs, energy improvements, accessibility upgrades and reconnection to utilities could be enough to return some buildings to use.

Theopemptou also called for faster permits for smaller renovation projects and greater use of EU funding linked to the Renovation Wave initiative. Local authorities could further improve transparency by publishing data on vacant properties, including how many have been classified as dangerous, renovated or returned to use.

Bringing more of Cyprus’s unused buildings back into circulation could increase the housing supply while revitalising neighbourhoods and improving quality of life.

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