Cyprus maintains investment appeal despite energy and bureaucracy concerns

Cyprus remains a highly attractive destination for foreign direct investment, according to the EY Attractiveness Survey. Approximately 83 percent of investors view the island as an attractive destination, with 62 percent planning to expand operations within the next year. The country's tax system is its strongest asset, receiving positive feedback from 90 percent of respondents, alongside its quality of life, political stability, and EU membership.

Despite this optimism, investors identified several significant challenges. High energy costs were cited by 50 percent of respondents as a primary concern. Additionally, bureaucracy, limited international connections, and access to finance continue to hinder the business environment. President Nikos Christodoulides noted that substantive foreign investment in Cyprus rose by approximately 10 percent in 2025.

For individuals considering relocation, EU citizens can stay in Cyprus for up to 90 days without formalities, but must apply for a registration certificate, known as a ‘Yellow Slip’, if staying longer. Employees must provide proof of employment, while self-employed individuals require social insurance registration. Those without employment must demonstrate sufficient financial means and valid health insurance.