Equity share of foreign capital in Cyprus reaches 76.2%

According to the Central Bank of Cyprus, the share of shares and equity interests in total foreign wealth placed in Cyprus reached 76.2%, against 68.4% in 2021.

This means that the structure of foreign capital on the island has shifted noticeably: a smaller part of foreign assets is now in bank deposits and debt instruments, and a larger part in ownership of shares and holdings in companies and funds.

The growth in the share of equity is linked primarily to two factors: the activity of international investment funds that use Cypriot structures to hold assets, and investment in real estate, both directly and through companies.

This is consistent with a broader trend of recent years: foreign investors increasingly no longer see Cyprus mainly as a place for bank deposits and use it more and more as a jurisdiction for structuring the ownership of businesses, funds and property.

For the island's economy such a shift is usually seen as a positive signal: capital invested in shares, equity interests, funds and property is generally longer-term and less mobile than bank deposits, which can be withdrawn almost instantly.

It also reflects the development of Cyprus as a jurisdiction for structuring international business, funds and asset ownership, and not only as a place to hold cash.

For foreign investors, the growing share of equity confirms that Cyprus remains in demand as a place to own a business, take part in funds and invest in real estate, and not only for banking.

When choosing a structure for investing in Cyprus, whether buying property, taking part in a fund or registering a company, it is worth thinking in advance about exactly how ownership will be set up, taking into account the tax and regulatory consequences of each option.