Cyprus is moving ahead with plans to establish a national mechanism for screening foreign direct investment (FDI), with the revised bill gaining broad support in a meeting by the House finance committee.

The legislation aligns Cyprus with European practices by tightening controls on investments of strategic importance, while aiming to keep the country attractive to reliable investors.

A Finance Ministry representative said key changes include defining what constitutes a strategic enterprise, covering both local and foreign-registered firms operating in Cyprus, and exempting investors from EU, EEA and Switzerland.

The bill also introduces a €2 million notification threshold, obliges foreign investors to provide timely information, and allows for ex officio reviews even when no notification has been filed.

An exemption has been granted to the shipping industry, in order not to undermine its competitiveness, though floating natural gas units will remain subject to scrutiny.

The Cyprus Chamber of Commerce and Industry (Keve) on Monday announced that the 5th Cyprus Networking Forum, CNF2025, is set to take place in Nicosia on September 4, 2025.

The event is organised by the Centre for Social Innovation and aims to provide a platform for business leaders, policymakers, academics, and social actors.

The forum is designed to foster dialogue, spark new opportunities, and create collaborations that can have a lasting impact.

“CNF2025 brings together participants from different sectors to exchange ideas and explore strategic partnerships,” the organisers.

“It is an ideal event for anyone wishing to expand their network and engage with like-minded professionals,” they added.

Seats for the forum are limited and interested participants are encouraged to register early.

Cyprus’ overdue tax debts rose to €4.05 billion in the first quarter of 2025, nearly €1 billion higher than the same period of 2024, according to the quarterly progress report submitted by the Tax Department to the House.

The report, prepared under article 9E of the Collection of Taxes Law of 1962 and the VAT Law 95(I)/2000, was delivered by Tax Commissioner Sotiris Markides and accompanied by an annex detailing arrears in both direct taxation and VAT by category. 

Out of the €3.4bn owed in direct taxation, €2.54bn concerned unpaid tax, €620.2 million interest and €237.3 million surcharges.  

From this, €867.6m cannot be collected because of pending appeals and objections, while €665.3m relates to 44,184 taxpayers under liquidation or bankruptcy proceedings, or debts deemed irrecoverable after their completion.

Retail trade in Cyprus recorded solid growth in July 2025, with the Retail Trade Turnover Value Index rising by 5.2 per cent compared with July 2024.

The Retail Trade Turnover Volume Index showed an even stronger increase, climbing by 8.7 per cent year-on-year, according to the Statistical Service.

In terms of the Value Index, the largest increase was recorded in the category of food, beverages and tobacco in specialised stores, which rose by 15.3 per cent.

The steepest decline was seen in motor fuels, which registered a decrease of 5.7 per cent.

With regard to the Volume Index, the sharpest increase was also recorded in the category of food, beverages and tobacco in specialised stores, which jumped by 19.8 per cent.

Demetra Holdings Plc has initiated and executed share buybacks following shareholder approval at its annual general meeting in June, with transactions carried out through the Cyprus Investment and Securities Corporation (CISCO).

The company announced on September 1, 2025, that its board of directors had decided to launch a buyback programme authorised by the annual general meeting held on June 24, 2025.

According to an announcement by the company released this week, the decision was also communicated to the Cyprus Stock Exchange (CSE) on June 25, 2025.

Demetra stated that it had entered into an agreement with CISCO to manage the programme for the repurchase of its own shares.

Cyprus’ economy recorded solid growth in the second quarter of 2025, according to a report released this week by the state statistical service.

In real terms and adjusted for seasonality, Cyprus’ Gross Domestic Product grew by 3.3 per cent compared to the same quarter in 2024.

The Bank of Cyprus Holdings Plc has announced the appointment of a new member to its board of directors.

The announcement was published on September 1, 2025, through the Cyprus Stock Exchange.

The company confirmed that Andreas Kritiotis has joined the board as a director.

Ermes Department Stores Plc has completed the transfer of its ERA department store operations to Nicosia-based Gencom Ltd for a nominal sum of €1, the company confirmed following its May 9 announcement.

The disposal, finalised on Monday, forms part of a broader restructuring strategy aimed at streamlining operations and reducing exposure to loss-making ventures. In 2024 alone, the ERA stores recorded operating losses of €1.3 million. 

Under the agreement, Gencom will assume the long-term lease obligations of the four ERA stores, as well as supplier purchase orders worth around €4.5m for the Spring–Summer 2025 season.  

All store employees, fixtures, equipment and the UNIQUE customer loyalty programme have also been transferred, while remaining stock will be provided on a consignment basis.

The Cyprus Chamber of Commerce and Industry (Keve) and the Employers and Industrialists Federation (Oev) have found common ground with Tax Commissioner Soteris Markides on aspects of the proposed tax reform bills.

The discussions were revealed during Politis’ podcast ‘Matia stin Economia‘ (A look at the economy), where Keve director general Philokypros Roussounides spoke about recent consultations.

“We recently had a constructive meeting with the tax commissioner,” Roussounides said.

He added that “we had some concerns which we expressed, but also some suggestions.”

Moreover, Roussounides explained that “we are certainly concerned first and foremost about the timing of implementation and also specific parameters of the proposed bills which strengthen government tax collection and the fight against tax evasion, which is also something we want because it creates unfair competition between businesses”.

“We represent fair business practice, so we want to reduce or even eliminate, if possible, through tax reform, such phenomena,” he added.

Inflation in Cyprus is estimated to have fallen slightly in August 2025, with the annual rate expected at -0.1 per cent, Eurostat reported on Tuesday.

At the same time, the monthly inflation rate in Cyprus for August 2025 is estimated at 0.7 per cent, according to the statistical office of the European Union.

Cyprus recorded an annual inflation rate of 2.2 per cent in August 2024, which eased to 2.1 per cent in March 2025.

Rates then moderated further to 1.4 per cent in April 2025, 0.4 per cent in May, 0.5 per cent in June, and 0.1 per cent in July 2025.

Meanwhile, inflation across the euro area is expected to have risen to 2.1 per cent in August 2025, up from 2.0 per cent in July, according to a flash estimate from Eurostat.