Cyprus Business Now: weekly wrap-up
Here are the top business stories in Cyprus from the week starting March 23:
The bill, submitted to the House last week and referred to the commerce committee, would extend a transitional regime for businesses that have yet to secure an operating permit, while requiring them to meet specific safety and health conditions in the meantime.
According to the deputy ministry, the measure is intended to allow hotels and tourist accommodation providers to remain open within a defined timeframe while they regularise urban planning violations and comply with requirements related to safety.
It follows legislation that came into force on May 31, 2025, which gave operators without a permit until November 30, 2025 to obtain one from the Deputy Ministry of Tourism.
The scale of the planned spending broadly echoed what President Nikos Christodoulides had announced at the end of 2025 during the pan-district conference in Paphos, with officials describing it as a record package of projects and funding for the province.
At the top of the agenda once again is the Paphos-Polis Chrysochous motorway, following the government’s position that it should be built as a four-lane road with additional access through Mesogi.
Vafeades also said priority this year is being given to improving the existing Paphos-Polis road until the new motorway is completed, advancing the western bypass of Paphos, and unblocking the new road to Paphos airport by resolving pending environmental issues.
According to an official announcement, the initiative was carried out with the support of Junior Achievement Cyprus and the Education Ministry, reflecting closer collaboration between the private sector and public institutions.
This year’s Global Money Week theme, “Smart Money Talks”, underscored the importance of encouraging young people to openly discuss financial matters and seek guidance from trusted and knowledgeable sources.
Through education and dialogue, the initiative aimed at strengthening young people’s confidence in managing their finances responsibly and making informed decisions in an increasingly complex financial environment.
The union, which represents thousands of public and semi-government employees regardless of contract type, said it had been left out of discussions within the Labour Advisory Body as well as other institutional consultation forums.
These include the Joint Staff Committees, from which Isotita said it had also been excluded despite its broad representation.
In the memorandum, the union referred to “major issues of legal, actuarial and social justice” that directly affect the “fundamental, constitutionally guaranteed rights of tens of thousands of employees“.
Specifically, the statistical service on Monday reported that 17.1 per cent of the population in Cyprus was at risk of poverty or social exclusion in 2025, corresponding to the figure mentioned above.
The figure reflects the ‘At Risk of Poverty or Social Exclusion‘ (AROPE) indicator, which serves as the European Union’s main benchmark for monitoring progress towards its 2030 poverty reduction targets.
Nana Asmeni Pavlou, director of the Larnaca tourism board (Etap), said the organisation’s strategy had been designed to remain adaptable as conditions continue to shift.
“Our programme remains flexible and dynamic, in order to adapt to current developments and the needs of the tourism sector,” she told to Philenews.
“We must shape it according to developments with a multidimensional range of actions, concerning electronic marketing, the expansion of digital promotion tools, but also the creation of synergies with individuals who have an international presence and appeal,” Asmeni explained.
The new body aims to promote the professional, business, scientific and social interests of Greeks active in Cyprus.
The announcement stated that the founding general assembly took place in Nicosia, marking the formal launch of the organisation.
The initiative also seeks to systematically develop synergies among its members while strengthening institutional links with organisations in Cyprus, Greece and the European Union.
The chamber also stated that it does not object to the transfer of ownership of the port and marina to the Cyprus Ports Authority, while emphasising the importance of effective management.
In its announcement, the chamber highlighted that Larnaca’s geographical position, combined with proximity to the airport and urban centre, creates particularly favourable conditions for the development of an integrated coastal complex.
“The geographical position of the city, combined with its proximity to the airport and the urban centre, creates particularly favourable conditions for the development of an integrated coastal complex,” the chamber said.
The meeting, held on Saturday, on the initiative of the association of building contractors (Oseok), brought together Transport Minister Alexis Vafeades, scientific and technical chamber (Etek) president Constantinos Constanti and the heads of key professional bodies across the sector.
According to Oseok, the discussion pointed to the need for stronger cooperation and more regular dialogue, with the aim of shaping common positions and coordinated proposals as part of a broader push to modernise and upgrade the construction industry.
According to Politis, hotel operators in the Famagusta district said cancellations are now affecting mainly April and May, while the flow of new reservations has weakened just as most tourist accommodation is preparing to reopen by the end of March or early April.
Speaking to the Cypriot daily, Famagusta Hoteliers Association (Pasyxe) president Panayiotis Constantinou said that the concern is not limited to cancellations, but is centred increasingly on the lack of new bookings from European markets.
He said most summer reservations had so far remained largely intact, with only isolated cancellations reported for the months ahead.
The fiscal report for 2025 serves as a comprehensive review of the state budget for the previous financial year, outlining both projected and actual revenues and expenditures.
The report compares the budgeted revenues and spending with the amounts actually collected and spent during the year, taking into account supplementary budgets and any transfers of appropriations.
The Treasury explained that the preparation and submission of the report within three months of the end of the financial year is a constitutional obligation of the Accountant General of the Republic.
Speaking during a high-level fireside chat at the Council of the European Union on March 17, Skourides said closing the gender gap requires “both structural policy and cultural transformation”, adding that progress depends on “collaboration between genders, as well as a shared commitment to reshaping mindsets and enabling inclusive growth”.
The summit, organised by European Female Founders and hosted by member of the European Parliament Tsvetelina Penkova, was moderated by EU Female Founders president Monika Stanisheva and brought together women founders, innovators and entrepreneurs from across Europe.
The proposed legislation, which is expected to be examined by the new composition of the House, aims to ensure that recreational diving services are offered safely and in line with international standards, while also creating procedures to investigate accidents and assign responsibility where needed.
Under the bill, all recreational diving service providers would be required to obtain an operating licence from the director-general.
This would apply to diving centres, diving schools, independent scuba diving instructors, as well as licensed sea transporters carrying divers on registered and approved vessels.
Firstly, the reduced five-per-cent rate of value added tax on electricity will be extended until May next year, having initially been expected to expire in May this year, while the fuel consumption tax will be reduced by 8.33 cents per litre between April and June.
The rate of VAT on meat, poultry and fish will be zeroed between April and September, while “green taxes” on fuel, which had been set to raise the retail price of fuel by nine cents per litre, will not be implemented.
The government will also offer to cover 30 per cent of the wages of all workers in the hotel sector during the month of April, and will draw up a “special plan for more support for airlines to secure the seamless connectivity of the country with important destinations for the attraction of tourists”.
Regarding the former update, the federation held a certificate award ceremony in Nicosia earlier this week, centred around the circular economy certification scheme.
The scheme is being implemented under a broader initiative promoting sustainable practices in Cypriot hotels.
The event, held on Tuesday, marked the culmination of a four-year systematic effort aimed at supporting the green transition of Cyprus’ tourism product through the integration of circular economy principles, according to an announcement by the federation.
Speaking to Cyprus News Agency (CNA), Mitas said the district wants by 2030 to climb higher on the international tourism map and position itself as one of the eastern Mediterranean’s leading “smart”, green and cultural destinations.
That ambition, he added, builds on a strategy followed over the past 15 years to turn Paphos into a higher-quality destination offering a broader range of experiences, while at the same time protecting the environment and the area’s cultural heritage.
Among the main priorities for the coming years, as Mitas mentioned, are higher spending per visitor, stronger traffic to the countryside and local communities, and a gradual effort to curb urban sprawl.
The analysis, based on contracts of sale submitted to the department of lands and surveys for newly built residential properties sold off-plan or under construction, showed that apartments remained the dominant choice for buyers across the island.
Indeed, the €150,000 to €300,000 category proved the most popular in the apartment segment, accounting for 3,396 transactions, or 53.2 per cent of the total.
This was followed by the €0 to €150,000 range, which recorded 1,353 sales, representing 21.2 per cent.
According to announcement released on Thursday, the meetings followed his participation in the Women Who Built Europe Summit in Brussels, where he engaged with European leadership and institutions on advancing innovation and policy integration.
During his visit, Skourides met with European Commissioner for Fisheries and Oceans Costas Kadis, focusing on the role of artificial intelligence in supporting ocean-related policy and implementation.
The Savings and Investment Union initiative aims to mobilise Europe’s significant savings and channel them into productive investment opportunities for businesses and households.
In an article published in Eurofi magazine, Karamanou explained that while the Financial Literacy Strategy seeks to improve citizens’ knowledge and resilience, previous efforts across EU member states have had limited impact on retail investment participation.
Speaking on behalf of the Cyprus Presidency, Keravnos said the deal would help the EU respond to new geopolitical realities while safeguarding economic security.
He added that the new EU customs code would provide a modern set of tools to facilitate trade, ensure the proper collection of customs duties and offer the legal certainty required by businesses and authorities alike.
The reform marks a major shake-up of one of the EU’s oldest and most important integration projects.
The sweep, carried out with consumer protection authorities from EU countries as well as Iceland and Norway, examined 314 online traders to assess whether discount and pricing practices during major sales events complied with EU consumer law.
Under the EU’s Price Indications Directive, when a business advertises a discount, the reference price must be the lowest price applied during the previous 30 days.
However, authorities found that nearly one in three traders failed to follow that rule.
Notably, the 2026 budget is in deficit, with projected expenditure of €83,950,909 and expected revenue of €65,190,938.
The revenues are expected to come primarily from port operations, generating €37,326,560, alongside income from investments, bank interest and various financial revenues amounting to €4,000,000.
Additional income includes €965,000 from other sources, €9,016,870 from European funds, and €13,700,000 from the leasing of Limassol and Larnaca ports.
According to the finance ministry, the establishment of a framework for the control of FDI law of 2025, published as Law 194(I)/2025, will come into force on that date, introducing for the first time in Cyprus a comprehensive mechanism for the review of foreign direct investment.
The ministry said the framework is intended not only to protect national security and public order, but also to help create a more stable institutional environment that supports investment activity, in line with Regulation (EU) 2019/452.
In a letter to the president, Osika chairman Neophytos Thrasyvoulou expressed strong concern and disappointment over the latest package, saying the measures should support tourism in a more holistic way if the sector is to withstand mounting pressure.
He said the package made no provision for leisure centres, even though they are “an essential part of the island’s tourism offering”.
Thrasyvoulou added that “leisure centres do not operate separately from hotels and other tourist accommodation, but are part of the wider hospitality experience Cyprus offers visitors.”