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Cyprus Accelerates Digital Transformation In 2025 With Bold Reforms

Cyprus is set to make 2025 the year of Digital Transformation, aiming to reduce bureaucracy, enhance economic competitiveness, and promote transparency, President Nikos Christodoulides announced on Wednesday during the presentation of the Official Governance Agenda 2025 at the Presidential Palace.

Expanding E-Government Services

A key part of the government’s strategy is the launch of 60 new electronic services, streamlining essential processes for citizens and businesses alike. Among the planned digital initiatives are:

  • Student sponsorship applications
  • Re-issuance of refugee identity cards
  • Electronic employer registration
  • Applications for third-country worker employment
  • Renewal of temporary residence permits for employees of foreign-owned companies and domestic workers
  • Online school registration for all levels

To further improve public accessibility, the “Digital Citizen” and “Digital Assistance” platforms will be expanded with additional services, creating a more user-friendly, efficient digital ecosystem.

Harnessing AI For Public Sector Efficiency

Artificial Intelligence will play a pivotal role in the government’s digital strategy. Christodoulides highlighted plans to develop AI-driven solutions to address public sector inefficiencies while also fostering innovation among local businesses and research institutions.

Fast-Tracking Urban Planning And Social Benefits

As part of broader administrative reforms, Cyprus is streamlining urban planning and building permits, cutting approval times significantly:

  • Since October 2024, urban planning permits for up to two residences have been issued in just 20 days.
  • Starting February 1, 2025, building permits will also be issued in 20 days, meaning full approval for residential projects will take just 40 days.
  • From March 2025, a fast-track licensing system will be extended to medium-scale developments (e.g., apartment buildings with up to 20 units), ensuring planning and building permits are issued within 80 days.

Additionally, all social benefits managed by the Department of Social Insurance will be processed within 30 days starting March 2025, drastically reducing delays in government assistance programs.

A Modern, Efficient, and Credible State

Christodoulides emphasized that bold reforms are the key to transforming the state-citizen relationship, ensuring a modern, efficient, and internationally respected government.

“We want Cyprus to be a state that operates with efficiency, credibility, and dignity—both internally and on the global stage,”
the President concluded.

With these ambitious reforms, Cyprus is positioning itself as a leader in digital governance, embracing technology-driven solutions to enhance public services and economic growth.

A Shift in Shopping Habits: 76% of Cypriots Embrace Online Shopping

In an era heavily leaning towards the digital, Cyprus has marked a pivotal milestone with 76% of its citizens now engaging in online shopping, as revealed in the latest survey by the Office of the Commissioner of Electronic Communications & Postal Regulation (OCECPR).

The study shows not only an increase in the number of online shoppers, but also a rise in the frequency of purchases, from an average of 1.2 times per month in 2022 to 2.0 in 2025.

The survey collected feedback from over 1,500 participants, consisting of both citizens and small businesses, illustrating a nuanced shift in postal usage. Interestingly, while 95% of individuals still prefer Cyprus Post, this figure drops drastically for businesses, with just 28% relying on it, as they increasingly opt for private services.

Postal Patterns and Parcel Preferences

The report highlights a fascinating turnaround in postal habits. The number of letters received and sent has climbed since 2023, countering years of decline. Parcel deliveries have seen a similar uptick, with 71% of businesses reporting higher parcel over letter shipments and anticipating continued growth.

This aligns with global trends where businesses adapt to consumer demands for efficient logistics.

Decision Factors: Beyond Cost

Although citizens deem postal service costs reasonable, they largely base their choices on quality, location, and user experience. Businesses, on the other hand, prioritize quick service, competitive rates, extensive networks, and reliable tracking systems.

As the digital realm continues to evolve, it’s worthwhile considering the broader technological landscape and its implications.

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