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Cyprus Economy Maintains Resilience With Robust Growth In 2025

Overview Of Economic Resilience

Cyprus’ economy sustained a strong growth trajectory in 2025, with Gross Domestic Product (GDP) expanding by 3.8% on an annual basis and by 4.5% in the fourth quarter. Updated official data released on Monday confirm continued economic momentum, supported by key domestic sectors.

Adjustment Of National Accounts

Revisions to annual and quarterly National Accounts were introduced following updates in public finances, Balance of Payments data, and the integration of the 2022 Supply and Use Tables. While these methodological adjustments refined the data, they did not alter the broader growth narrative, which remains positive.

Robust Annual And Quarterly Performance

In real terms, GDP increased by 3.8% in 2025. At current prices, growth reached 4.9%, with total output amounting to €36.48 billion. This performance was underpinned by strong activity in information and communications, alongside solid contributions from tourism, retail trade, and construction. These sectors continue to play a central role in supporting overall economic expansion.

Sector-Specific Drivers

During the fourth quarter of 2025, GDP grew by 4.5% compared to the same period in 2024, while quarter-on-quarter growth reached 1.4%. Construction recorded the highest increase at 9.4%, reflecting ongoing development activity. Information and communications expanded by 8%, while the combined retail and tourism sectors grew by 7.2%, highlighting their continued importance for economic momentum.

Shifts In Consumption And Investment

On the expenditure side, private consumption rose by 3.4% during the fourth quarter, while public consumption increased by 4.4%, supporting overall demand. In contrast, gross fixed capital formation declined by 15.2%, primarily due to fluctuations in high-value investments, including ships and aircraft, which tend to introduce volatility into investment data.

External Sector Contributions

The external sector also contributed positively to GDP composition. Exports of goods and services increased by 2.9%, while imports declined by 4.2%. This shift reflects improved external balances and continued competitiveness in export-oriented sectors.

Outlook

Overall, the data point to a balanced and steadily expanding economy, supported by domestic demand, sectoral performance, and favorable external dynamics. Future growth will depend on investment stabilization and broader international economic conditions.

Cyprus Company Registration: Two To Four Days, Unless Security Checks Intervene

Cyprus aims to register companies within two to four working days when applicants submit complete documentation. However, regulatory approvals, sanctions checks, foreign ownership and national security considerations can extend the process or prevent registration.

Energy, Commerce and Industry Minister Michael Damianou outlined the timeframe in a written response to MP Efrem Christou, who asked about company formation procedures and the checks required before approval.

Fast Registration Depends On Complete Documentation

Damianou said authorities seek to process complete applications within two to four working days, regardless of a company’s structural complexity. The timeframe also depends on whether applicants pay an additional fee for expedited processing.

According to the official incorporation requirements, the standard registration fee is €165, rising to €235 for companies without share capital. Expedited processing costs an additional €100.

Applicants must submit an approved company name, a memorandum and articles of association, and forms HE1, HE2 and HE3. Public companies must also provide form HE5.

Regulated Businesses Require Additional Approval

Companies operating in certain sectors must obtain prior clearance from the relevant authorities or professional bodies. These include medical and dental businesses, law firms, insurance and reinsurance companies, and firms supervised by the Cyprus Securities and Exchange Commission.

The Central Bank of Cyprus must also approve company names associated with payment institutions, electronic money and foreign exchange services. Additional restrictions apply to educational institutions using terms such as “university” or “college”, casino operators, broadcasters and wine producers.

Non-profit organisations seeking to register without “Limited” or “Ltd” in their names also require ministerial authorisation.

Sanctions And Foreign Ownership Trigger Extra Checks

Applications involving shareholders, directors or company secretaries subject to EU, UN or US sanctions receive additional scrutiny. Registration can proceed only if the competent sanctions authority does not prohibit it. Damianou noted that US sanctions are considered indirectly but have not been incorporated into Cyprus legislation in the same way as EU and UN restrictions.

Applications involving Turkish interests are also subject to additional review. Under procedures introduced around 20 years ago, the registrar must consult national security services before proceeding with registrations involving Turkish interests or businesses that could threaten the Republic’s security.

Damianou distinguished these cases from applications submitted by Turkish Cypriots, saying there is “no substantial difference” in how their registration documents are examined. Applications may nevertheless be refused if classified information raises concerns about national interests or national security.

Public Servants Face Separate Restrictions

Under Article 65 of the public service law, government employees cannot act as directors, company secretaries or shareholders in private or public companies without prior special permission from the finance minister.

Proposed Law Would Expand Registrar’s Powers

The government is also seeking to strengthen the Registrar of Companies’ authority to address potential security risks. An amendment to the companies law, submitted to Parliament on September 17, would allow the registrar to reject applications, refuse company filings or remove existing businesses from the register on grounds including national security, public order, public interest and the protection of state sovereignty.

The proposal, approved by the Council of Ministers on August 6, remains before the House commerce committee. It would allow authorities to withhold detailed justifications where disclosure could reveal sensitive information, while informing affected companies of the general grounds for decisions.

The bill follows parliamentary discussions about companies controlled by non-EU nationals, particularly those with Turkish ultimate beneficial owners, and possible implications for property ownership through foreign-controlled businesses. Further details are available in the proposed amendment and earlier parliamentary reporting.

Balancing Investment And Oversight

Cyprus is seeking to maintain an efficient company registration process while strengthening checks on ownership, sanctions compliance and potential security risks.

The two-to-four-day target supports the country’s appeal to entrepreneurs and international investors, but the actual timeline depends on the nature of the business, the documentation submitted and any additional regulatory or security reviews required.

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