Cyprus has become the leading European Union jurisdiction for companies providing cross-border investment services to retail clients. According to data from the European Securities and Markets Authority (ESMA), in 2024 firms registered in Cyprus served around 3.6 million retail investors from EU and European Economic Area (EEA) countries. A year earlier, this figure stood at 3.4 million, confirming steady growth in the sector and Cyprus’s strengthening role as an international financial hub.
The study was conducted in cooperation with national regulators and covered 30 EU and EEA countries. Domestic operations and branch activities were excluded from the analysis; only services provided under the freedom to provide services in accordance with the MiFID II framework were considered. The focus was on firms serving more than 50 retail clients in a host country, allowing regulators to better assess risks, market concentration, and levels of investor complaints.
Cross-Border Services Market: More Clients, Fewer Firms
According to ESMA, in 2024 cross-border investment services were provided by 370 companies serving around 10.5 million retail investors across the EU and EEA. Compared with 2023, the number of companies declined by 4%, while the number of clients increased by 32%, indicating business consolidation and expanding scale among leading market players.
At the same time, an increase in complaints related to cross-border investment services was recorded. In 2024, total complaints reached 10,968—46% more than the previous year. Nevertheless, the complaint rate per 100,000 clients rose more moderately, from 94 in 2023 to 104 in 2024, an increase of 9.6%.
Cyprus, Luxembourg, and Germany as Key Jurisdictions
Cyprus ranked first among EU countries as the main “home” jurisdiction for cross-border investment firms, accounting for 21% of all companies operating under an EU passport. It was followed by Luxembourg with 15% and Germany with 13%. In absolute terms, 79 companies providing cross-border services were operating from Cyprus in 2024, up from 78 in 2023. In Luxembourg, the number fell from 59 to 55, while in Germany it declined from 55 to 47.
Together, Cyprus, Luxembourg, and Germany accounted for around 49% of all cross-border investment firms in the EU and EEA, a share that remained largely unchanged from 2023. The market remains highly concentrated, with companies based in a limited number of countries dominating both client numbers and geographic reach.
Client Distribution and the Role of Cyprus
Companies registered in Cyprus served approximately 3.6 million retail investors in 2024—the highest figure among all EU and EEA countries. Lithuania ranked second with 2.6 million clients, showing a sharp increase from around 1 million the previous year. Germany served 2 million clients, while Ireland served about 939,000.
Overall, companies based in Cyprus, Lithuania, Germany, and Ireland accounted for 86% of all retail investors receiving cross-border investment services in 2024. The remaining 235 companies from 24 countries served only 1.46 million clients, or about 14% of the market.
The average number of cross-border clients per firm across the EU and EEA was around 28,000, though this varied significantly by country. The top five firms by client numbers included companies from Lithuania, Cyprus (two firms), Germany, and Ireland, each serving between 700,000 and 2.6 million investors.
Complaints and Geography of Demand
The highest number of complaints in 2024 related to companies based in Germany, accounting for 45% of the total, or 4,936 complaints, up from 35% a year earlier. Lithuania and Ireland each accounted for 14% of complaints, while Cyprus’s share declined to 10%, indicating an improvement in relative service-quality metrics.
The main destination markets for cross-border investment services remain Germany, France, Spain, and Italy, which together account for 52% of all retail investors. Germany served 1.6 million clients, France 1.5 million, Spain 1.4 million, and Italy 1 million. Italy and Germany also became the countries whose investors were served by companies from the widest range of other jurisdictions—25 and 24, respectively.
Regulatory Outlook
ESMA emphasizes that it will continue to collect and analyze data on an annual basis, using the results to strengthen market supervision and enhance investor protection across the EU and EEA. Against a backdrop of tightening regulation and growing cross-border activity, Cyprus maintains its status as one of Europe’s key financial centers, attracting investment firms thanks to its developed infrastructure, EU legal framework, and strategic location.