The summer of 2025 saw a surge in activity from foreign businesses. Foreign entrepreneurs increasingly view the island as a key entry point into the European Union and neighboring markets in the Middle East. The island nation's strategic location, EU membership, and stable legal framework make it an ideal place to do business.
There was a sharp increase in foreign company registrations
According to the latest data from the Cyprus Ministry of Energy, Trade and Industry, 246 new foreign companies were established in the country between January and July of 2025. In June and July alone, the number of registrations increased by 30%. The main influx was from Israeli companies, followed by those from Russia, Lebanon, Belarus, Ukraine, and the United Kingdom. This indicates a high level of trust in Cyprus's jurisdiction among international businesses. Interestingly, more and more firms are moving their full headquarters, not just their regional offices, here.
For comparison, 465 foreign companies registered in Cyprus in 2024 and 283 in 2023. While 2022 remains a record year with 1,600 registrations, the current trend is encouraging and suggests a potential return to those numbers in the future.
Why Cyprus? The island's strengths
Foreign companies choose Cyprus for several key reasons. These include political stability, a transparent tax system, developed infrastructure, and a skilled workforce. An additional incentive is the country's improved investment rating, which has returned it to the “A” category with all international rating agencies.
The Democratic Party of Cyprus (DIKO) has expressed satisfaction with the growing interest of foreign companies in the island. In their statement, party representatives emphasized that this increase is a direct result of the government's consistent and responsible policies. They also noted that, given the positive investment momentum, maintaining the stability of the tax, legal, and institutional systems, strengthening transparency, and providing reliable support for entrepreneurial initiatives are extremely important.
Leading sectors range from IT to drones
New investments cover a wide range of industries. The leading sectors are software, financial technology, shipping, real estate, marketing, and medical services. Interest in gaming and unmanned technologies is also growing rapidly. Since the beginning of the year, foreign investment has contributed to creating more than 2,500 jobs for local and foreign specialists alike.
The Indian vector: New horizons for economic partnership
The growing interest from Indian corporations deserves special attention. Following Indian Prime Minister Narendra Modi's visit in June 2025, Cyprus saw the opening of representative offices of major Indian companies, including Thomas Cook India, a global player in business tourism and currency exchange; LTI Mindtree, a leading IT company specializing in digital transformation; and Drone Destination, a global player in business tourism and currency exchange.
- Thomas Cook India is an international player in business tourism and currency exchange.
- LTI Mindtree — a leading IT company specializing in digital transformation;
- Drone Destination — a manufacturer of drone components planning to export from Cyprus and train pilots for the EU and the Middle East — have opened offices in Cyprus.
Thus, the growth in the number of new companies is not just a statistic. It confirms that Cyprus is once again becoming an attractive economic center in the Eastern Mediterranean region. A combination of investment reliability, geographical location, and well-thought-out government policy makes the island an advantageous platform for starting and scaling up a business to an international level.