Cyprus’ Progress Towards Schengen Membership: An In-Depth Look

by News Editor

April 23, 2025

In a recent update, European Commissioner for Internal Affairs, Magnus Brunner, stated that the European Commission is meticulously observing Cyprus’ journey to meet the Schengen membership criteria. Notably, the politically sensitive buffer zone remains a central focus during evaluations, a point emphasized by former health minister and current MEP, Michalis Hadjipantelas.

EU investments exceeding €292 million have been channeled towards enhancing Cyprus’ border management and improving cooperation in migration and policing efforts. This includes €67.7 million allocated for building reception centers in Limni, €30 million for bolstering sea border surveillance, and €9.9 million for upgrading digital infrastructures like the Schengen Information System (SIS).

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Implications of Schengen Membership for Cyprus

President Nikos Christodoulides has highlighted the benefits of integrating into the Schengen zone, particularly in boosting tourism and investment opportunities. As the deadline of mid-2026 approaches, Cyprus’s strategic actions are set to finalize their preparatory steps.

Challenges on the Horizon

Despite these preparations, the presence of the UN-patrolled buffer zone continues to complicate Cyprus’ accession efforts. Transforming this zone into a regulated Schengen boundary might elevate existing tensions.

While other nations like Bulgaria and Romania have progressed into the Schengen area, Cyprus and Ireland remain outside. The unique geopolitical landscape of Cyprus makes its path to Schengen distinct.

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Foreign Firms Contribute €3.5 Billion To Cyprus Economy In 2023

by THEFUTURE.TEAM

November 12, 2025

Recent Eurostat data reveals that Cyprus remains an outlier within the European Union, where foreign-controlled companies contribute minimally to the nation’s employment figures and economic output. While these enterprises have a substantial impact in other member states, in Cyprus they account for only 10 percent of all jobs, a figure comparable only to Italy and marginally higher than Greece’s 8 percent.

Employment Impact

The report highlights that foreign-controlled companies in Cyprus employ 32,119 individuals out of a total workforce that, across the EU, reaches 24,145,727. In contrast, countries such as Luxembourg boast a 45 percent job share in foreign-controlled firms, with Slovakia and the Czech Republic following closely at 28 percent.

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Economic Output Analysis

In terms of economic contribution, these enterprises generated a total value added of €3.5 billion in Cyprus, a small fraction compared to the overall EU total of €2.39 trillion. Notably, Ireland leads with 71 percent of its value added stemming from foreign-controlled firms, followed by Luxembourg at 61 percent and Slovakia at 50 percent. On the lower end, France, Italy, Greece, and Germany exhibit values below 20 percent.

Domestic Versus Foreign Ownership

The data underscores Cyprus’s heavy reliance on domestically controlled enterprises for both employment and economic output. However, it is important to note that certain businesses might be owned by foreign nationals who have established companies under Cypriot jurisdiction. As a result, these firms are classified as domestically controlled despite having foreign ownership or management components.

Conclusion

This analysis emphasizes the unique role that foreign-controlled enterprises play within the Cypriot economy. While their overall impact is limited compared to some EU counterparts, the presence of these companies continues to contribute significantly to the island’s economic landscape.

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