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Cyprus is moving from resilience to momentum, attracting investment, innovation and talent to drive its next phase of growth.
Every year, EY analyzes global investment trends and surveys thousands of international business leaders to understand what makes countries attractive destinations for investment.
We are proud to present the EY Cyprus Attractiveness Survey 2026, the 4th edition of our flagship study on foreign direct investment (FDI) in Cyprus.
The report offers valuable insights into how international investors view Cyprus today, highlighting the country's competitive advantages, evolving opportunities and key areas for further development. It also provides recommendations to help strengthen Cyprus's investment proposition, foster informed dialogue and support the country's ambition to attract greater investment, innovation and long-term growth.
01 | Current attractiveness
Resilience amid headwinds: sentiment stays positive, anchored in core fundamentals
Cyprus continues to demonstrate resilience as an investment destination, with FDI stock reaching approximately €82 billion in 2025. Investment activity remains centered on financial services, real estate and ICT, while investor confidence stays strong, with 83% of respondents viewing Cyprus as an attractive location for foreign direct investment. The country's favorable tax framework, high quality of life and stable business environment remain key drivers of its appeal.
Areas where Cyprus is currently considered as attractive by investors
Areas where Cyprus is considered less attractive as an investment destination
Types of operations linked to investors’ decision to enter or expand their presence in Cyprus
Cyprus continues to attract investors primarily for core commercial activities, with almost half (48%) citing the sale of products and services as their planned focus. The findings also suggest a more diversified and sophisticated investment profile, with growing interest in R&D activities, regional headquarters and business support services.
Main risks to Cyprus’s FDI attractiveness over the next three years
Geopolitical tension and conflicts remain the dominant concern for investors (74%), while connectivity, regulation, talent availability and energy costs continue to influence investment decisions.
Cyprus’s ability to adapt quickly to changing international conditions remains a key element of its economic resilience.
02 | Future attractiveness
Momentum builds: Investors confident in Cyprus’s improving attractiveness
This positive sentiment is also evident in investment plans, as 67% of participating investors intend to enter the market or further expand their existing operations, representing an increase compared with previous years.
Expectations for Cyprus’s FDI attractiveness evolution over the next three years
Investor confidence in Cyprus remains strong, with 60% of investors expecting the country’s attractiveness for FDI to increase over the next three years, supported by a stable business environment, strong economic fundamentals and a competitive tax framework.
Sectors expected to lead Cyprus’s long-term growth
Traditional sectors like Real Estate and Tourism remain core, with ICT and fintech also identified by investors as key engines of future growth.
Investor priorities for strengthening Cyprus's competitiveness
According to the survey, investors see infrastructure development, innovation and a more agile regulatory environment as the key priorities for strengthening Cyprus’s investment attractiveness.
Despite its economic resilience, Cyprus’s FDI attractiveness depends on structural reforms, technology adoption and a more agile, investor-focused environment.
03 | Competitiveness enablers
Five levers define the next chapter: Technology, Talent, Tax, Banking and Sustainability
Survey findings highlight the competitiveness enablers that will play a critical role in strengthening Cyprus's long-term investment proposition and supporting sustainable growth.
04 | Global shift and trade outlook
Rebalancing under uncertainty.
Survey findings highlight a global rebalancing of investment priorities, driven by geopolitical uncertainty, AI acceleration, energy security concerns and talent availability. While Europe has experienced a significant slowdown in FDI activity, investor confidence remains resilient, with 60% expecting the region's attractiveness to improve over the next three years.
As investment increasingly shifts towards AI, defense, low-carbon energy and digital infrastructure, innovation, talent, infrastructure and regulatory agility are emerging as critical enablers of future competitiveness.
Summary
The fourth edition of the EY Cyprus Attractiveness Survey offers valuable insights into how international investors perceive Cyprus as an investment destination. It highlights the country's strengths, identifies areas for improvement, and explores opportunities to further enhance its attractiveness for foreign direct investment (FDI).
Alongside the survey findings, the report puts forward key considerations to encourage continued dialogue on strengthening Cyprus’s investment environment. EY Cyprus will repeat the survey at regular intervals to monitor progress, track changing perceptions, and identify emerging trends shaping the country’s FDI landscape.
