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...
Cyprus has cemented its commitment to European security standards with a freshly passed bill that mandates rigorous vetting of certain foreign capital inflows. The legislation, approved by Parliament on Thursday, creates a formal mechanism to monitor Foreign Direct Investments (FDI) in sectors deemed strategically critical, thereby achieving full adherence to the European Union’s FDI Screening Regulation...
Cyprus's banking sector experienced a significant acceleration in new loan activity in September 2025, primarily fueled by a massive increase in credit to non-financial corporations. Data from the Central Bank of Cyprus (CBC) also indicated a broad stabilization of interest rates across various loan and deposit categories. New Lending Volume Jumps The total value of new loans disbursed by Monetary...
Cyprus's tourism industry recorded an unprecedented performance, achieving historic highs in both monthly and year-to-date revenue through August 2025. August: A Record-Breaking Month Revenue generated from tourism in August 2025 climbed to a massive €581.8 million, according to data from the Statistical Service of Cyprus's Passengers Survey. This exceptional monthly figure represents a 13.8% surge...
Cyprus's Council of Ministers has formally approved the extension of the zero Value Added Tax (VAT) rate on a selection of essential household products, providing relief for vulnerable citizens for an additional year. The Extension Decision The measure, initially set to expire in December 2025, will now remain in force until December 2026. Finance Minister Makis Keravnos made the announcement...
Apartment prices across Cyprus surged to a new all-time high in the second quarter of 2025, breaking a 17-year-old record set in 2008. According to new data from the Central Bank, the apartment price index has been driven by a combination of limited housing supply, strong foreign demand, and rising construction costs. A New Peak for Apartments The Central Bank's apartment price index reached 118.2 points...
Cyprus's state budget implementation rates for the first nine months of 2025 were lower than the previous year, but the Treasury of the Republic reported this was primarily due to significant reductions in loan transactions rather than a slowdown in the core economy. In fact, core tax revenues showed healthy growth during the period. The Headline Figures By the end of September 2025, total state revenues...
International investment in Cyprus's real estate market remains exceptionally strong, with foreign nationals acquiring 1,669 properties in the 12-month period from September 2024 to September 2025. Data submitted to Parliament by Interior Minister Constantinos Ioannou confirms the island's enduring appeal to a diverse range of overseas buyers. Residential Homes Lead the Way Residential properties were...
The Cypriot government's ambitious new bill to regulate the management of 30,000 jointly-owned buildings is facing collapse after the five District Local Government Organisations (DLGOs)—the very bodies tasked with implementing it—have strongly opposed the plan. In a memorandum to Parliament, the DLGOs warned that the proposed law would saddle them with complex, resource-intensive duties they are...
