Cyprus remains one of the largest financial hubs in the Eastern Mediterranean, and the stock of accumulated foreign direct investment in its economy continues to be measured in hundreds of billions of euros. According to the Central Bank of Cyprus, the total volume of foreign investment as of 2024 stood at approximately €365 billion. Despite a significant decline over the past two years, these figures confirm that the island remains an important magnet for international capital.
Europe strengthens its position in the Cypriot economy
Countries of the European Union account for roughly one fifth of all accumulated foreign investment in Cyprus. The total volume of capital originating from the 27 EU member states exceeded €74 billion. This means that Europe is now one of the key sources of financial presence on the island, and the role of European companies and holdings in the Cypriot economy continues to grow.
Luxembourg has emerged as the leading EU investor, accounting for more than one third of all European investments. Its investment presence in Cyprus is comparable in scale to that of entire regions and represents a significant share of all foreign capital registered in the country. Luxembourg is followed by the Netherlands, along with other EU states that actively use Cyprus as a financial and corporate platform.
Russia remains the largest source of capital, but its share is shrinking
Despite changes in geopolitics and global financial flows, Russia remains the single largest source of accumulated investment in Cyprus. The volume of registered Russian capital exceeded €83 billion; however, compared with previous years, this figure has declined markedly. Over the past two years, Russian investment has fallen by more than €50 billion, becoming a key factor behind the overall reduction in foreign investment in the country.
The United States, the United Kingdom, and the Middle East in the investment structure
The United States continues to play a substantial role in Cyprus’s investment landscape, accounting for nearly one fifth of all accumulated foreign investment. The United Kingdom also remains among the largest investors, although its presence declined noticeably over the past year. Other significant sources of capital include Ukraine, Israel, and several Middle Eastern countries, as well as offshore financial centers in the Caribbean and the Pacific, underscoring the international nature of Cyprus’s financial ecosystem.
Why investment volumes are falling, yet Cyprus remains a financial center
Between 2022 and 2024, the total stock of accumulated foreign investment in Cyprus decreased by more than €100 billion. This was primarily due to the restructuring of international holding companies, the closure of certain financial schemes, and the withdrawal of capital from specific countries. However, these figures largely reflect balance-sheet positions of multinational companies registered in Cyprus rather than real-economy projects such as construction or manufacturing plants.
Cyprus has traditionally attracted holding, financial, and treasury structures, which means that the recorded volume of investment can significantly exceed the actual size of the country’s economy. Nevertheless, the continued presence of substantial European and American capital confirms Cyprus’s status as a stable and well-regulated financial jurisdiction, in demand for international business, asset management, and corporate operations.
Even amid declining individual investment flows, Cyprus remains one of the key financial platforms in the Mediterranean, and the growing role of the EU in the investment structure is making the island increasingly integrated into the European economic system.