83% of investors consider Cyprus attractive for FDI — Cyprus Mail

In Cyprus, 83% of surveyed international investors consider the country attractive for foreign direct investment. These findings are contained in the EY Cyprus Attractiveness Survey 2026, as reported by Cyprus Mail. At the same time, survey participants identified energy costs, access to financing and bureaucracy as key challenges for businesses.

Fifty-six percent of respondents rated Cyprus as definitely attractive for investment, while another 27% considered it sufficiently attractive. Thirteen percent gave a neutral assessment, and 4% described the country as unattractive. The survey involved 80 foreign investors from 23 countries and 11 economic sectors; 92% of them already operate in Cyprus.

Expansion plans

Sixty-seven percent of respondents plan to enter the Cypriot market or expand their existing presence. In 2024, this figure was 57%, compared with 29% in 2022. Among businesses already operating in the country, 62% intend to expand their activities over the next 12 months, while 29% plan to maintain their current scale of operations. Half of respondents that do not yet have a business on the island are considering entering this market.

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Investors named corporate taxation and the overall tax regime as Cyprus’s greatest advantage, with 90% of participants considering them attractive. Quality of life was cited by 82%, while political and social stability was noted by 65%. Another 58% of respondents pointed to the skills of the local workforce, and 49% cited the country’s growth prospects.

Energy and geopolitical risks

Investors most often identified energy costs as the country’s weak point, with 50% of respondents giving this answer. Access to financing and capital was named as a problem by 38%, while 35% cited the bureaucratic and administrative environment. Transport and logistics infrastructure was mentioned by 33% of participants, and the availability of investment opportunities by 31%.

Seventy-four percent of investors consider geopolitical tensions and conflicts a potential risk to Cyprus’s investment attractiveness over the next three years. Despite this, 60% of those surveyed expect the country to become more attractive for foreign direct investment during this period. They named real estate, infrastructure and construction, as well as tourism, ICT and telecommunications, as the most promising sectors for long-term growth.