Here are the top business stories in Cyprus from the week starting December 30
The new service will come into effect on January 9, 2025 and cover all banks in Cyprus and the single euro payments area (SEPA).
“Customers will be able to receive instant payments from any bank in Cyprus or the SEPA zone in significantly less time compared to traditional bank transfers,” stated the association.
Currently, standard transfers take one to two days to process.
The new system will see funds transferred from the payer’s account to the recipient’s within just 10 seconds, regardless of the country of origin.
“Visitors aged over 50 favoured taverns, as well as music-and-dance venues, while those under 50 enjoyed late-night entertainment at leisure centres,” said Neophytos Thrasyvoulou, president of the Federation of Leisure Centre Owners (Osika).
The festive season also saw significant attendance at Christmas villages, which were popular among both local and foreign visitors.
The statistical results received from the London exhibition were quite positive and show that the UK market is the most important one for Cyprus.
“If there is indeed a positive development in the first part of 2025 similar to the first months of 2024, then I believe that 2025 may surpass 2024,” Thanos Michaelides, chairman of the hoteliers’ association said.
Tourism, construction, and the wholesale and retail trade sectors have made significant contributions to economic activity, benefiting from increased investment activity.
Meanwhile, unemployment, which hovered at around 5 per cent, indicated conditions of full employment.
The stabilisation of inflation, estimated at around 2.2 per cent in 2024 compared to 3.9 per cent in 2023, stands out as one of the year’s key achievements.
Cyprus maintained a strong fiscal surplus of €867.5 million in the third quarter, while public debt continues to decrease steadily, aiming for 56.7 per cent of GDP by 2026.
You can read the full version of the 2024 recap here.
For the January-October 2024 period, tourism revenue totalled €2.983 billion, a 6.5 per cent rise from the €2.803 billion in the same period of 2023.
This growth was supported by increased spending per visitor and higher tourist arrivals.
The average per capita spending by tourists in October 2024 stood at €888.47, up 9.3 per cent from €812.95 in October 2023.
The CSE chairman said that there has been a 271 per cent rise in daily trading activity this year when compared to 2023.
In a statement, Christodoulides reported that the CSE General Index grew by 57.29 per cent as of December 27, 2024, reaching a daily trading volume of €1.38 million, up from €0.37 million in 2023.
Moreover, market capitalisation soared by 135 per cent, rising to €23.3 billion from €9.9 billion.
“The guide serves as an important source of information on all tax-related matters in Cyprus and is available as of January 1, 2025, on the organisation’s website only in English,” the company said.
The guide, the company mentioned, “includes valuable insights for both individuals and businesses, assisting them in planning and meeting their tax compliance obligations”.
“The tax guide serves as an essential reference point for current taxpayers residing in Cyprus, as well as for prospective international investors who may consider relocating or establishing their business base in Cyprus,” said Stelios Violaris, partner of tax advisory services at PwC Cyprus.
This year, the initiative will distribute €410,000 in prizes to twenty Greek Cypriot and Turkish Cypriot entrepreneurs who demonstrate successful collaboration between the island’s communities.
“Economic cooperation between the two communities in Cyprus is fundamental for building mutual understanding and trust, ultimately contributing to lasting peace on the island,” Sir Stelios stated.
“We remain committed to supporting joint initiatives and creating opportunities for new collaborations that promote social and economic development in Cyprus,” Sir Stelios added.
Speaking to the Cyprus News Agency, he said the process of setting up the LNG terminal at Vasiliko “must be accelerated as quickly as possible”, and, if possible, by the end of the year.
However, he expressed doubt over whether this will be possible.
“For Cyprus, it is something very important. If it comes by 2026, the price of electricity may be reduced by between 35 per cent and 40 per cent. Therefore, everything we can do must be done, because this project is completely in our hands and it does not depend on others,” he said.
The highest-value sale occurred in Limassol, involving offices in the Neapolis area, priced at €4.1 million.
The company’s findings for the month in question also revealed a slowdown in high-value property transactions across Cyprus.
Specifically, this segment of the real estate market dropped by 31 per cent month-on-month in November.
Limassol led the rankings, accounting for seven of the top ten transactions with a combined value of €17 million.
Speaking to CyBC, Papanastasiou emphasised the importance of LNG in the wake of Russia’s Gazprom halting gas exports earlier this week, marking a new era for the global LNG market. He highlighted the growing focus of the EU on the Eastern Mediterranean as a key resource hub.
“The key entry points for LNG imports to the continent are in Greece, Poland and Germany,” and Cyprus could become a supplier if the preliminary highly promising geological survey results in the island’s Exclusive Economic Zone (EEZ) are confirmed, Papanastasiou said.
The head of the Cyprus Consumers’ Association Marios Droushiotis said “We are pleased with the market activity. To be honest, I expected less traffic than what we witnessed, which is a pleasant surprise.”
He noted that shoppers were actively purchasing goods, both in shopping malls and street shops. However, the traffic in shopping malls was notably higher than in street shops, partly due to the rainy weather, Droushiotis told Cyprus News Agency (CNA).
