According to data from the Central Bank of Cyprus, in June 2026, stocks and equity interests in companies and investment funds accounted for 76.2% of all financial assets held by non-residents in Cyprus. In 2021, this figure was significantly lower—68.4%. At the same time, the share of other types of investments declined:
Bank accounts and deposits: 15.4% compared to 21.5% in 2021
Loans: 5.3% compared to 7.1%
Bonds and other debt instruments: 2.1% versus 3%
Thus, the structure of foreign capital has changed significantly. Whereas previously a significant portion of funds was held in bank accounts, the majority is now allocated to business ownership, investment funds, and other assets.
Why Foreign Investors Choose Cyprus
One reason for this growth has been the activity of international investment funds and special-purpose companies, through which investors manage assets and participate in international transactions.
Cypriot companies are also used to hold real estate and carry out large-scale investment projects. This applies to both direct property purchases and investments made through legal entities and funds.
Data from the Cyprus Securities and Exchange Commission (CySEC) provides additional context. According to its 2024 statistical bulletin, the assets of collective investment schemes invested directly in the island’s economy totaled approximately 2.9 billion euros. This represents roughly 29% of the total investments made by these funds. Of this amount, approximately 65% was in private equity, and 14% was in real estate.
These figures reflect Cyprus’s development as an international hub for investment funds, asset management, and asset structuring.
What This Means for Cyprus’s Economy and Investors
The growth in the share of equity and equity investments can be a positive sign for the economy. Unlike bank deposits, such investments are often linked to long-term projects, corporate development, and real estate investments.
However, it is important to note that owning shares does not guarantee that capital will remain on the island permanently: investors may sell assets and restructure their investments. Furthermore, the value of shares and real estate can either rise or fall.
For foreign investors, statistics confirm that Cyprus remains a sought-after jurisdiction for registering companies, participating in investment funds, and owning real estate.
For those planning to invest on the island, it is important to consider the legal structure of ownership in advance. Purchasing real estate as an individual, acquiring it through a company, or investing in a fund can have different tax and legal implications. Therefore, before closing a deal, it is advisable to review all terms and conditions and consult with specialists.