Cyprus will inaugurate its new business service centre on May 26, a day after the launch of the Brain Gain campaign in London, aimed to attract talented Cypriots back to the island, president Nikos Christodoulides announced.

Speaking at the general assembly of the Employers and Industrialists Federation (Oev), the president said he was pleased that more than 550 Cypriots working in London have already registered to attend the Brain Gain event, showing an active interest in exploring opportunities to return to Cyprus.

He described the business service centre as an important step towards a less bureaucratic Cyprus with improved services, focused on the needs of businesses and investors.

President Christodoulides emphasised that a resilient economy cannot exist without strong businesses, and sustainable development is impossible in any country without robust private initiative.

“We will only be able to meet the challenges if we are resilient and competitive,” he said, adding that with the strengthening of Cyprus’ diplomatic presence—”there can be no separation of domestic and foreign policy”—the country has solidified its role as a pillar of stability in the region, bringing significant benefits to the economy.

The upcoming Presidency of the Council of the European Union in the first half of 2026, he said, offers a unique opportunity to further highlight Cyprus’ role as a credible and active EU partner.

He also referred to the European Commission’s “Competitiveness Compass”, which outlines a clear strategic framework for a more competitive and less bureaucratic Europe.

At the national level, the government continues to operate under a tripartite strategy: fiscal responsibility, a strong financial system, and ongoing bold reforms to build a new productive model, applied with consistency and method.

In 2024, Cyprus achieved a growth rate of 3.4 per cent, among the highest in the Eurozone, with projections for 2025 around 3 per cent.

Unemployment dropped below 5 per cent, while youth unemployment saw the largest decrease among EU member states, and employment reached 80 per cent.

The primary surplus for 2024 exceeded 4 per cent, and public debt has significantly declined, with a realistic goal to bring it below 60 per cent of GDP by 2026.

The president cited the continuous upgrades of Cyprus’ credit rating to investment grade “A” by rating agencies as a vote of confidence in the government’s responsible fiscal policy.

The International Monetary Fund also describes Cyprus’ economy as “flexible, resilient, and with significant potential for further development”.

“The upward course of the economy and the ongoing upgrades translate into tangible results and real advantages for businesses, households, and the entire Cypriot people,” he said.

Referring to his recent visit to the United States, the president noted that major technology firms such as Amazon (April 14–15) and Plug and Play (May 5–6) had already visited Cyprus, with more such as Microsoft and Google to follow.

“They are coming with very specific plans to open research and innovation centres in our country, to employ our compatriots, and all of this is a result of responsible economic policy,” he stressed.

He said that a strong economy allows the state to implement targeted social policies and to invest in areas such as health, education, welfare, digital transformation, and policies that benefit all citizens.

“Our goal is to build a sustainable, resilient and competitive economic model. A model that incorporates innovation, knowledge, environmental responsibility, and social cohesion,” he said.

During his recent US visit, he observed a positive shift in how Cyprus is perceived and noted strong interest in high-value, productive investments that can create well-paid jobs.

Addressing the need to tackle bureaucracy, a long-standing demand of the Oev, the president said the new Business Service Centre would serve as the central point of contact for both local and foreign investors.

“Instead of submitting an application to one ministry, which then sends it to others via letter and waits for replies and reminders, we will now bring all relevant licensing officials into one space to make immediate decisions,” he said.

He also highlighted the importance of the upcoming tax reform for 2025, calling it a government priority.

“One of our main objectives through this reform, responding to your requests, is to strengthen the competitiveness of Cypriot businesses and to address issues that may amount to unfair competition,” he said.

The abolition of deemed dividend distribution and the reduction of the defence tax on dividends will reduce the tax burden for hundreds of Cypriot businesses and free up liquidity that can hopefully be channelled into new capital investments.

He explained that the reform goes beyond tax relief, introducing targeted incentives for green and digital investments, including upgrades in technology, energy efficiency, and the transition to a circular economy.

“One of our major goals is to use taxation as a lever for economic transition and to support our efforts to build the new economic model,” he said.

He assured that work on the reform is progressing rapidly, with the aim of completing the legislation and launching the new tax framework on January 1, 2026.

“I am confident that the House of Representatives will do what is needed, and that tax reform discussions will remain outside the expected election campaign,” he added.

On the issue of energy costs, the president said the government’s efforts are multi-layered.

“Some of the factors are under our control, some depend on third parties, and yes, I am optimistic we will meet this major challenge,” he said.

He noted that the government has provided incentives to boost the use of renewable energy sources and energy efficiency through specific grants.

The trial electricity market is now in progress, with the necessary checks being finalised, and the competitive electricity market will be opened shortly after the summer to avoid seasonal challenges.

“We have activated a scheme for energy storage from existing RES parks. The application period ended in April and funding will begin soon,” he said.

He added that following the passage of the necessary legislation, a centralised energy storage system will also be installed to resolve existing challenges.

A new scheme is being developed for household and small business storage systems, and the Dekeleia power plant is also being upgraded.

Regarding the search for suitable labour, he said that the revised strategy for employment of third-country nationals has been approved.

The list of occupations eligible for higher foreign labour quotas has been expanded, as has the mobility of workers to different locations under the same employer.

The allowable housing deduction from gross wages has also been raised from 10 to up to 25 per cent.

“A relevant agreement has been signed with Egypt and will initially be implemented in the agricultural and livestock sector,” he said, adding that consultations are ongoing with India to sign a similar agreement to address labour shortages.

On digital transformation, he said that by 2025, the digital modernisation of public services will include online application platforms, improved infrastructure, employee training, and better interoperability between government systems for more effective collaboration.

He also said that the fast-track licensing measure has been extended to include residential developments of up to 20 apartments or 12 houses, which will be approved within 80 days from March 1, 2025.

This follows the implementation of fast-track licensing from 2024.

“As the executive, we know we cannot succeed alone—nor can the private sector by itself,” he said.

“Success comes when we co-create and collaborate, and this synergy is the most stable investment in the future of our country.”

“Cyprus may be small in size,” president Christodoulides concluded, “but it is great in potential, and if we work methodically, with a spirit of cooperation and shared vision, I have absolutely no doubt that we can achieve much more than we imagine today.”