Foreign-controlled companies were responsible for the majority of Cyprus’ service exports to countries outside the European Union in 2023, according to new Eurostat data on services trade by enterprise characteristics (STEC).

The latest figures show that foreign-owned firms accounted for 50.66 per cent of Cyprus’ total service exports to non-EU countries.

At the same time, domestic enterprises represented 28.45 per cent, while the remainder fell under enterprises of unknown ownership status.

This pattern places Cyprus among a group of EU economies—such as Slovakia, Estonia and Lithuania—where foreign-controlled firms dominate the export of services beyond EU borders.

The findings illustrate how Cyprus’ internationalised service sector, particularly in fields like financial, shipping, information technology, and professional services, continues to attract and sustain strong foreign business participation.

Across the European Union, total exports of services to countries outside the bloc reached €1.44 trillion in 2023.

Large enterprises, those with 250 or more employees, were responsible for 53.5 per cent of this total.

Medium-sized enterprises, employing between 50 and 249 people, accounted for 10 per cent, while small firms with fewer than 50 employees contributed 14.2 per cent.

The remaining 22.3 per cent of exports came from enterprises of unknown size, according to Eurostat.

In ten EU countries, large enterprises generated more than half of all service exports to destinations outside the Union.

The highest proportions were recorded in Germany, where large firms accounted for 72.8 per cent of total service exports, followed by Finland with 66.7 per cent and Denmark with 66 per cent.

In contrast, smaller economies showed a stronger contribution from small enterprises.

In Malta, for example, small firms made up 68.4 per cent of all service exports, while in Estonia, they accounted for 59.6 per cent.

Eurostat’s analysis also found that foreign-controlled enterprises held the largest export share in nine EU member states.

Luxembourg led the bloc, with 88.6 per cent of its service exports conducted by foreign-owned firms.

Ireland followed with 79.1 per cent and the Netherlands with 63.7 per cent.

By comparison, domestically controlled enterprises dominated in Denmark, where they accounted for 70 per cent of total service exports, as well as in Finland at 62.3 per cent, Malta at 59.8 per cent and France at 59.3 per cent.

Eurostat defines a foreign-controlled enterprise as one that is ultimately managed or owned by an institutional unit outside its country of residence, whether based within the EU or in a third country.

The data highlight the growing role of international ownership and investment in shaping the EU’s service export landscape, especially for smaller economies such as Cyprus that rely heavily on cross-border service trade.