Cyprus Ranks Among Europe’s Top Destinations For Expat Entrepreneurs Despite Venture Capital Constraints

by THEFUTURE.TEAM

August 26, 2025

The latest Europe-wide survey positions Cyprus as a formidable destination for expat entrepreneurs, registering a high density of startups and impressive survival rates despite limited venture capital support. This analysis underscores Cyprus’s emergent role as a strategic Mediterranean hub within the European Union.

Best Countries Expat Entrepreneurs William Russell

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Robust Startup Ecosystem

Cyprus boasts one of the highest rates of new business formations in Europe, with 12.79 startups per 1,000 working individuals. More than 87% of these enterprises navigate their critical first year successfully, reflecting a supportive framework that encourages entrepreneurial innovation.

Funding Constraints Temper Growth

Despite a vibrant startup landscape, funding remains a significant challenge. Venture capital investments in Cyprus amounted to just £375,000 (approximately US$500,000), a figure that pales in comparison to continental peers. Nevertheless, the island’s attractive tax policies and burgeoning digital nomad community continue to draw entrepreneurs in search of a Mediterranean base within the EU.

Comparative Analysis Across Europe

In contrast, the United Kingdom leads with an Expat Entrepreneur Score of 8.66 out of 10, underpinned by 18.62 new firms per 1,000 workers and a formidable £3.15 billion in venture capital inflows. Sweden and the Netherlands follow suit, each demonstrating strong survival rates and infrastructure that foster business growth. These comparative insights illustrate the diverse yet competitive nature of Europe’s entrepreneurial landscape.

Sector and Regional Leadership

Beyond the top-tier nations, several countries showcase distinct strengths. Estonia leads in startup density, Sweden in business survival, Hungary in workforce participation, Luxembourg in coworking space availability, and the UK in venture capital flows. Additionally, Switzerland, Norway, Iceland, and Belgium contribute unique value propositions, further enriching the continental entrepreneurial ecosystem.

This survey offers a nuanced view of Europe’s dynamic startup scene, highlighting both the strengths and challenges of each market. For Cyprus, the journey continues as it works to bolster funding avenues while capitalizing on its strategic location and favorable business climate.

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Cyprus Government Surplus Rises To €1.61 Billion In First Nine Months Of 2026

by THEFUTURE.TEAM

November 5, 2026

Cyprus recorded a general government surplus of €1.61 billion in the first nine months of 2026, equal to 4.0% of gross domestic product, as revenue growth outpaced the rise in public spending. Higher receipts from income taxes, social contributions and value-added tax (VAT) drove the improvement, while lower capital expenditure helped restrain spending.

Preliminary figures released Tuesday by the Statistical Service of Cyprus show the surplus rose to €1.17 billion, or 3.0% of GDP, up from € 442.1 million in the same period of 2025.

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Total government revenue increased 6.5% to €12.09 billion, while expenditure rose 2.9% to €10.48 billion.

Key Fiscal Measure	January–September 2025	January–September 2026
Total revenue	€11,353.9 million	€12,091.8 million
Total expenditure	€10,186.2 million	€10,482.1 million
Government surplus	€1,167.6 million	€1,609.7 million
Surplus as a share of GDP	3.0%	4.0%

Income Taxes And VAT Lead Revenue Growth

Taxes on income and wealth made the largest contribution to the increase in revenue. Receipts in this category climbed by €442.2 million, or 15.3%, to €3.34 billion, compared with €2.89 billion a year earlier.

Social contributions rose by €235 million, or 6.6%, to €3.78 billion. Taxes on production and imports increased by €251.5 million, or 7.2%, reaching €3.77 billion.

Net VAT receipts, after refunds, totalled €2.64 billion, up €293.1 million, or 12.5%, from €2.35 billion in the first nine months of 2025.

Some Revenue Streams Decline

Not all revenue categories moved higher. Capital transfers fell by €74.6 million to €96.7 million, while current transfers declined by €71.6 million, or 20.5%, to €278.2 million.

Revenue from services slipped 1.0% to €743.5 million. Interest and dividend receipts dropped by €37 million, or 28.6%, to €92.4 million.

Social Benefits And Personnel Costs Increase

On the expenditure side, social benefits rose by €199.6 million, or 4.9%, to €4.27 billion. Compensation of employees—which includes imputed social contributions and public-sector pensions—increased by €108.3 million, or 3.8%, to €2.99 billion.

Intermediate consumption, covering goods and services used in the delivery of public services, rose by €114.3 million, or 11.0%, to €1.16 billion. Interest payments increased by €8.7 million, or 2.6%, to €340.7 million. Current transfers were up €68.7 million, or 10.6%, at €714.7 million.

Lower Capital Spending Limits Expenditure Growth

The overall increase in spending was tempered by a decline in capital expenditure. Capital-account spending fell by €189.9 million, or 16.9%, to €936.2 million from €1.13 billion in the same period last year.

Investment in fixed capital declined by €94.1 million, or 12.1%, to €686.4 million. Other capital transfers fell by €95.8 million, or 27.7%, to €249.8 million. Subsidies also decreased, dropping by €13.9 million, or 15.5%, to €75.8 million.

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