Cyprus Business Now: weekly wrap-up
Here are the top business stories in Cyprus from the week starting December 29:
The aim is to strengthen commercial ties during the official working visit of President Nikos Christodoulides to the kingdom.
The event is being organised in cooperation with the Embassy of the Republic of Cyprus in the Kingdom of Bahrain and is intended to promote direct engagement between Cypriot and Bahraini businesses.
According to the chamber, the forum will be held in Bahrain and will take place alongside the president’s visit, offering Cypriot companies a timely platform to explore new international partnerships.
Participation will be limited to companies active in FinTech and technology, financial services, renewable energy, agriculture and food products, real estate and construction, as well as shipping and marine technology.
The message, relayed by Greek business outlet Newmoney, mentioned that the outgoing year was marked by consistent execution across three key strategic pillars, namely organic growth, revenue diversification and preparation for the banking environment of the future.
“On the level of organic growth, Eurobank recorded a strong increase in its loan balances,” said chief executive Fokion Karavias in his Christmas letter, adding that the group further strengthened its presence in wealth management, private banking and bancassurance.
He also pointed to the continued upward trajectory of deposits and payroll accounts, underlining the resilience of the group’s core banking activities.
In his New Year message, Stavrou said that “the Cypriot economy had shown resilience, adaptability and dynamism in recent years, despite an unstable international environment shaped by geopolitical tensions, energy crises, inflationary pressures and rapid technological change”.
Against that backdrop, he argued, Cyprus is called upon not only to manage challenges but to plan its future “with realism and vision”.
The current picture, he noted, remains encouraging. Growth continues to outpace the Eurozone average, reaching around 3 per cent of GDP, unemployment remains close to 5 per cent, while public finances have improved, with public debt falling below 60 per cent of GDP.
Against that backdrop, the Deputy Ministry of Shipping is preparing to set up, in early 2026, the Pollution Response Supervision and Coordination Unit (PRSCU), an executive body with pan-Cyprus powers to coordinate action on marine pollution.
The move follows a commitment by President Nikos Christodoulides to address water quality concerns in Limassol, which have become increasingly visible in recent years.
According to information obtained by philenews, coordination of the new body will be assigned to Theodoulos Mesimeris, a former director of the Department of Environment and now deputy director general at the Shipping Ministry.
Officials point to his 22 years of experience in environmental regulation as a key asset at a time when institutional know-how is being shifted closer to the shipping portfolio.
In a written response to Parliament, Ioannou said official data show a gradual decline in applications for rent subsidies alongside a rise in applications under schemes supporting the purchase or construction of housing.
The shift, he said, reflects market conditions, notably sustained increases in rental prices, which have narrowed the gap between rent and mortgage repayments.
The number of rent subsidy beneficiaries fell to 3,155 in 2024, down from 3,712 in 2023 and 4,509 in 2022, the minister said.
At the same time, subsidy amounts were raised by around 15 per cent at the start of 2024 in an effort to ease pressure on tenants.
The developments locally are unfolding against a backdrop of national legislative change, potentially making the university’s choices a bellwether for the broader public sector.
At the UoC, teleworking was established as a formal practice after the pandemic, under a 2022 regulation that allowed staff up to 40 teleworking days per year, roughly three days per month.
That number, once seen as generous and progressive, has now become the subject of intense internal review. University officials and staff representatives are examining a range of scenarios.
Among the options being considered are a slight increase in the annual allowance to 45 days, but there are also strong proposals for a substantial reduction to as few as 22 or even 15 days.
More than 2,800 primary, secondary and high school students have attended financial education lectures organised by CySEC to date, as part of its broader effort to strengthen financial literacy among young people.
During the most recent cycle of lectures, which took place between October and December 2025, a total of 29 sessions were delivered following expressions of interest submitted directly by schools.
The programme was implemented by 13 CySEC officers, including Officers A’, Officers and Assistant Clerical Officers, who visited schools across all districts of Cyprus.
Presenting the budget execution report for the period from January 1 to November 30, 2025, the Treasury said the state budget, prepared on a cash basis, projected a 4 per cent increase in revenues for 2025 to €11.75 billion, compared with €11.28 billion in 2024.
The report added that projected expenditure fell by 4 per cent to €13.01 billion in 2025, compared with €13.60 billion a year earlier.
It said the expected rise in revenues was mainly due to higher direct taxes of €0.27 billion and indirect taxes of €0.17 billion, while the projected reduction in expenditure stemmed largely from lower loan repayments of €0.76 billion, partly offset by increased social benefits spending of €0.15 billion.
A series of interviews published through the year captured how policymakers and industry figures see that transition unfolding, and the pressures shaping the course ahead.
In an interview with Cyprus Mail, Marina Hadjimanolis, Shipping Deputy Minister to the President of the Republic, described shipping as a strategic pillar that must evolve without losing its human core.
She spoke of registry growth and green incentives alongside seafarer welfare, training and gender inclusion, arguing that competitiveness and sustainability are not mutually exclusive.
Cyprus, she said, is positioning itself as a reliable maritime partner and a bridge between Europe and the wider region, particularly as it prepares to place shipping high on the agenda of its 2026 EU Council Presidency.
In comments to the Cyprus News Agency (CNA), Mais said “headline performance can give a misleading picture, as underlying pressures, particularly around housing and living costs, continue to weigh on a significant part of the population”.
Looking at Paphos specifically, he said tourism and services, which form the backbone of the local economy, enjoyed an exceptionally strong year.
Tourist arrivals reached record levels, while revenues across the sector rose accordingly, reinforcing tourism’s role as the area’s main growth engine.
That strength, however, has not translated into easier access to housing. Mais said owning a home is now out of reach for many households, arguing that the state needs to move faster on workable affordable housing measures.
The bank said the warning aimed to prevent fraud and protect customers from misleading investment claims.
Specifically, the bank said that in recent weeks several fake profiles had appeared on Threads, the text-based social media app owned by Facebook’s parent company Meta.
The profiles used the name and photograph of Bank of Cyprus chief executive officer Panicos Nicolaou.
“These profiles falsely present him as offering investment advice or promoting investment opportunities,” the Bank of Cyprus said, stressing that the content is deceptive and unauthorised.
Based on results from the passengers survey, revenue from tourism reached €458.60 million in October 2025.
This represented an increase of 12.4 per cent compared with the corresponding month of the previous year, when revenue stood at €407.90 million.
For the period from January to October 2025, tourism revenue was estimated at €3.43 billion.
This compared with €2.98 billion recorded in the same period of 2024, marking an increase of 15 per cent.
According to the explanatory note accompanying the 2026 state budget, the Deputy Ministry of Tourism is allocating €27.7 million to international promotion and awareness campaigns, alongside €14.9 million for fund schemes aimed largely at upgrading and diversifying the tourism product.
Presenting the budget to parliament, Costas Koumis framed the strategy as a shift in emphasis rather than a change of direction.
Tourism development, he said, is continuing, but with a clearer focus on sustainability, destination viability and respect for both the natural and cultural environment, while ensuring that local communities derive tangible, multiplier benefits from tourism activity.
An overview of the top 40 most read business stories reveals what readers followed most closely and what drew their interest across sectors that shape the island’s economy and daily life.
The strongest theme running through the list was aviation and connectivity, with readers showing intense interest in how Cyprus connects to the outside world and what that means for tourism, business and long-term growth.
That readiness, however, comes with a broader warning: without a long-term tourism strategy for the capital, the gains from the Presidency risk being short-lived.
In an interview with Xenodochos magazine, Iacovidou said hotels in the capital are entering the EU Presidency period better prepared and more experienced than in the past.
Asked how Nicosia’s hotel sector is gearing up for the Presidency, she said the city’s hotels are “fully prepared to welcome the delegates”, adding that “they have undertaken serious renovations for this purpose”.
She also pointed out that this is not uncharted territory, noting that Cyprus last held the rotating EU Presidency in the second half of 2012.
These new provisions will significantly expand the categories of individuals required to submit a tax declaration.
The thinking behind the legislation is that every person with a substantial economic presence (whether through salaried services, self-employment, or other sources) must be registered with the Tax Department.
This is the case regardless of whether their final tax liability is zeroed out by the tax-free threshold or other deductions.
The most substantial change for individuals involves the broadening of those required to submit a tax return, irrespective of their total income level.
The seminar will take place in Nicosia on February 3, 2026, and aims to equip professionals with the methodologies required to navigate a rapidly evolving market environment.
Hosted at the Keve building, the programme will run from 08:45 to 16:45 under the instruction of Michalis Maimaris, with all teaching conducted in Greek.
“The market environment is constantly evolving and thus the sales sector is changing,” according to a statement from the chamber highlighting the necessity of the training.
The authority said the programmes are designed to strengthen skills across the workforce, with a focus on improving productivity, boosting competitiveness and enhancing the resilience of businesses.
Training will span all sectors of the economy and cover a broad range of professions.
Areas to be addressed include business management, new technologies and innovation, green and blue economy skills, renewable energy and energy efficiency, occupational safety and health, business continuity and the training of trainers.
Digital skills also feature prominently, ranging from basic competencies to more advanced fields such as artificial intelligence and robotics, alongside specialised training tailored to specific professions.
In an announcement, the Ministry of Education, Sports and Youth said the programme will be implemented by the directorate of secondary general education, within the framework of the government’s Governance 2025 planning and the ministry’s Annual Action Plan for 2025–2026.
The intervention falls under Strategic Objective 1, which focuses on student-centred educational policies.
The measure revives the institution of the work week, providing for the planning and implementation of a structured job-shadowing experience for second-year lyceum students.
The House plenary approved the reform on December 22, voting through five of the six bills submitted by the executive after amendments introduced during deliberations at the Parliamentary Finance and Budget Committee.
The legislation was published this week in the official gazette, according to a circular issued by the Employers and Industrialists Federation (Oev), formally clearing the way for implementation.
Oev said it had played an active role in shaping the final amendments, both during the public consultation phase and the article-by-article discussions in committee.
Its involvement, the federation noted, was guided by the objective of supporting the Cypriot economy through tax reform, strengthening business competitiveness and preserving the country’s appeal to foreign investors.
“The German market has been for years the largest market in the world in relation to outbound tourism,” he told journalists while visiting the Christmas market in Statos-Ayios Fotios in Paphos.
He said that for Cyprus, Germany was a small market and that the best performance of the German market was, until recently, the 250,000 arrivals recorded in the distant 1997.
“This year we broke the record of the German market for the first time,” he said, adding that “we essentially have a new performance after 28 years and it is a market that interests us the most and we have proceeded in cooperation with the special sector in a series of actions, to increase even more”.
Koumis highlighted as very important the fact that the air connections between Germany and both airports of Cyprus is improving, while underlining that “the most important thing is that German visitors are visitors who like to visit various areas of our country”.
The agreement was signed by the interior ministry and the Cyprus land development corporation (Koag), with the apartments, once constructed, set to be made available to those eligible to benefit from Koag’s affordable rental scheme.
The government said the project is “part of the state’s comprehensive housing policy, and specifically the pillar of increasing the housing stock, with a particular focus on the production of affordable housing”.
“The aim is to further financially support Koag, so that, on the one hand, it can implement its development plan, and, on the other hand, implement additional projects, which will contribute to alleviating the housing problem, which is most acutely faced by low- and middle-income households,” the government said.
Data from the Israel Airports Authority show that Cyprus tied with Italy for fourth place, each recording 1.2 million passengers on flights originating from Israeli airports.
Greece ranked first with 2.2 million passengers, followed by the United States with 1.6 million and the United Arab Emirates with 1.5 million.
Cyprus also recorded the highest number of weekly flights worldwide from Israeli airports, with services from Tel Aviv and Haifa peaking at 186 per week.
Israeli visitors stay in Cyprus for shorter periods compared with other destinations, largely due to travel distance, while visitor flows extended beyond the summer season.
“From tomorrow and for six months, our homeland assumes the presidency of the Council of the European Union. This is undoubtedly a moment of pride, a national mission, a huge responsibility to which I am certain we will respond successfully,” he said.
He said Cyprus will “work for an autonomous union, open to the world” during the six-month term, which will mark the second time since the country’s accession to the EU in 2004 that it has undertaken the role.
Away from the matter of the Council of the EU, he said that “the arrival of 2026 finds the Republic of Cyprus, as a result of our responsible fiscal policy, walking with confidence and pride on the path of economic growth”.
Ten applications have already been approved, three rejected and 15 remain pending, according to local media.
The scheme, approved by the cabinet in March and introduced by the Interior Minister Konstantinos Ioannou, offers planning incentives that allow schools to bypass bureaucratic delays. Nine of the 28 schools benefit directly from these incentives, and three have already received approvals.
Two of the schools used the incentives to reduce the minimum required area for open spaces and sports facilities, avoiding the need for special exemptions.
The third school exceeded the allowed building coefficient and paid 20 per cent of the excess, equivalent to 669 square metres.
According to figures published by the CBC, total loans recorded a net increase of €71.5 million in November 2025 compared with the previous month, mainly driven by lending to households.
The data showed that €50.3m of the increase in loans was linked to household borrowing, highlighting sustained demand for consumer and housing finance.
Total deposits, meanwhile, posted a net increase of €330.8m in November 2025, although this was lower than the €412.3m rise recorded in October 2025.
Of the increase in deposits, €258.6m came from residents of Cyprus, indicating that domestic savers remained the main source of deposit growth.