According to new Eurostat data, Cyprus continues to show steady growth in entrepreneurial activity. In 2023, the number of new companies on the island increased by 9.67%, while the business “mortality” rate stood at only 7.17%. This means that the number of businesses being established significantly exceeds those ceasing operations.
This positive trend reflects not only the flexibility of the Cypriot economy but also its ability to adapt to modern challenges — from digital transformation to shifts in international trade.
Overall picture across the European Union
Across the EU, there were over 33 million enterprises in 2023, with 3.5 million newly registered and 2.8 million closing down. Thus, the average business creation rate in the EU stood at 10.5%, while the closure rate was 8.5%.
Cyprus ranks among the countries maintaining stable entrepreneurial activity. For comparison, the highest growth rates were recorded in Lithuania (19.6%), Malta (17.1%), and Portugal (16.8%), while the lowest were in Austria (6.2%), Denmark (7.3%), and Italy (7.8%).
Meanwhile, the highest rates of company closures were observed in Estonia (27.5%), Ireland (16.6%), and Bulgaria (16.5%), highlighting the uneven development of the entrepreneurial landscape across Europe.
Why business continues to grow in Cyprus
The growth in the number of new enterprises in Cyprus is driven by several factors.
First, the flexible tax system and favorable conditions for international investors make the island an attractive location for company registration. The most active sectors include financial services, IT, tourism, and logistics.
Second, Cypriot banks — such as Bank of Cyprus, Eurobank, and Alpha Bank Cyprus — offer special business loan and support programs, helping startups and small businesses gain access to financing and strengthen their market positions.
Government policy also plays a crucial role: Cyprus actively promotes investment and simplifies administrative procedures. Online company registration, minimal bureaucracy, and transparent tax rules all contribute to the growth of business activity.
Entrepreneurship outlook
The positive trend is expected to continue in 2025, supported by the growth of tourism, the digitalization of public services, and the influx of foreign professionals.
Within the framework of the Cyprus Vision 2035 strategy, special emphasis is placed on innovation, green entrepreneurship, and technology startups.
Economic analysts predict that the share of small and medium-sized enterprises (SMEs) will continue to grow, allowing Cyprus to further strengthen its position as one of the most attractive business hubs in the Eastern Mediterranean.