Cyprus is experiencing an increased convergence of average interest rates for both deposits and loans with the corresponding averages across the Eurozone. The Central Bank of Cyprus (CBC) announced this development in a recent press release, noting the trend reflects a maturing in the domestic financial environment. Deposit Rates Show Significant Difference Despite the overall convergence trend, Cypriot...
British nationals residing in Cyprus are facing a renewed and complex challenge in estate planning due to significant changes in UK Inheritance Tax (IHT) law, effective from April 2025. While Cyprus maintains its attractive zero inheritance tax environment, UK long-term residency rules could now subject the worldwide assets of many expats to a 40% IHT rate. The UK's New Residence-Based Tax Test The...
Cyprus's trade deficit saw a substantial annual increase during the first nine months of 2025, reaching €5.88 billion. This figure is significantly higher than the €4.79 billion deficit recorded during the corresponding period in 2024, highlighting a persistent imbalance between imports and exports. Year-to-Date Trade Gap Widens The widening deficit for the January–September period was driven by...
While Cyprus and Greece share cultural and service sector ties, their recent economic strategies reveal two distinct models for growth, particularly concerning real estate. This insight comes from Pavlos Loizou, CEO of Ask Wire, who highlights Cyprus’s aggressive reliance on new development versus Greece’s focus on utilizing its existing assets. Cyprus: The 'Building' Economy Loizou characterized the...
The transitional period for Cyprus's old, more generous 5% VAT scheme for primary residence purchases is set to expire on June 15, 2026. This deadline marks the complete phase-out of the 2016 law, which was widely deemed too lenient and triggered infringement proceedings by the European Commission. End of the Transitional Window For three years, the previous rules (Law N.42(I)/2023) and the new stricter...
Cyprus officially registered a negative inflation rate of 0.3% in October 2025 on an annual basis (compared to October 2024), according to data released by the Statistical Service on Thursday. While the Consumer Price Index (CPI) itself saw a marginal monthly rise of 0.54 points (reaching 118.25 units from 117.71 in September 2025), the year-on-year drop signals a mild deflationary environment. Sectoral...
The Cyprus Composite Leading Economic Index (CCLEI), compiled by the Economics Research Centre (ERC) of the University of Cyprus, registered a stable annual growth rate of 2.0% in October 2025. This figure, showing only a slight deceleration from 2.1% in August and 2.0% in September, suggests that the Cypriot economy is successfully maintaining a positive trajectory even as it faces persistent global...
Cyprus is rapidly establishing itself as one of the fastest-growing fund jurisdictions in Europe, now hosting over 330 registered investment funds and sub-funds with Assets Under Management (AUM) exceeding €10.7 billion. This significant growth was highlighted by Maria Panayiotou, President of the Cyprus Investment Funds Association (CIFA), at the 11th Cyprus International Funds Summit &...
Annual inflation across the euro area saw a slight deceleration in October 2025, according to preliminary figures based on the Harmonised Index of Consumer Prices (HICP) from Eurostat. The headline rate for the currency bloc eased to 2.1%, down from 2.2% recorded in September. In contrast, Cyprus experienced a minor acceleration in its domestic inflation rate, moving from 0.0% in September to 0.3% in...
Economic confidence in Cyprus saw a notable improvement in October 2025, with the Economic Sentiment Indicator (ESI-CypERC) rising by 2.0 points from the previous month's reading. According to the Economic Research Center (ERC) of the University of Cyprus, this upward movement was primarily fueled by renewed optimism in key business sectors. Sectoral Confidence: Where Strength Lies The overall boost to...
