Here are the top business stories in Cyprus from the week starting September 8:

Cyprus’ airports reached record-breaking levels of passenger traffic in August, with a combined 1.8 million travellers recorded at Larnaca and Paphos.

According to figures released on Monday by Hermes Airports, this marks an increase from 1.6 million passengers during the same month in 2024.

The data also show that for the fifth month in a row, traffic across the island’s airports has exceeded the one million passenger mark.

At Larnaca airport, traffic climbed to 1.3 million passengers compared with 1.2 million in August 2024.

At Paphos airport, the figure rose to 501,100 passengers from 439,900 a year earlier.

The Cyprus Real Estate Agents Registration Council on Monday announced that written examinations for new candidate real estate agents will take place on November 6, 2025.

According to the announcement, the exams are scheduled for Thursday at 4.30 p.m. at the Pavilion in Nicosia.

Council president Marinos Kineyirou explained that the written examinations are held under Article 11(1)(a)(v) of the Real Estate Agents Law in order to establish that candidates for entry in the Register of Real Estate Agents have adequate knowledge of the Republic’s property and planning legislation.

“These skills are necessary for the correct and responsible practice of the real estate profession,” he said.

The exams will be conducted in Greek, with closed notes.

Spending to tackle the risks of the climate crisis in Cyprus remains far below what is necessary, according to a statement released on Monday by Cyprus’ national Fiscal Council.

The warning comes ahead of preparations for the 2026 Budget and the Medium-Term Fiscal Framework 2026-2028.

The Fiscal Council said Cyprus continues to lag in developing infrastructure, policies, and other tools to mitigate the impacts of climate change.

“Impact estimates at fiscal, macroeconomic, and social levels must be a cause for concern,” it said, adding there is also potential political risk as Cyprus is on a trajectory of failing to meet its European Union obligations.

It stressed that the cost of inaction should be considered significantly higher, with implications for public finances and potential future tax increases or politically bold spending cuts.

The House finance committee concluded on Monday that there is a need to clarify with the European Commission whether natural persons with dual nationality from an EU member state and a third country can apply to make investments within the European Union.

The discussion took place during the article-by-article review of the harmonising bill that establishes a national framework for screening foreign direct investments.

The bill aims to bring Cyprus in line with European practices, introducing stricter controls on investments of strategic importance while at the same time ensuring that the country remains a competitive destination for credible investment.

Particular debate centred on whether individuals holding dual nationality, that of an EU member state and a third country, should be allowed to proceed with investments in the EU.

Cyprus has expressed support for simplifying state aid rules during the first meeting of the Working Party on Competitiveness and Growth under the Danish Presidency, which recently took place in Brussels.

The Cypriot delegation was led by State Aid Commissioner Stella Michaelidou, accompanied by her team.

Her office will chair the working group during the upcoming Cypriot Presidency of the Council of the European Union.

According to an announcement from the Office of the Commissioner for State Aid Control, Stella Michaelidou was joined at the meeting by Constantinos Cholevas, president of the group, Elena Ioannidou, deputy president, and Vassilis Koiliaris, member.

Building applications received by the Larnaca district local government organisation (EOA) increased by 53 per cent in January-July 2025 compared to the same period last year.

According to the organisation’s statistics, 1,295 applications were submitted in the first seven months of 2025, compared to 844 in 2024 and 749 in 2022.

The data, published by Philenews, highlights a steadily rising trend in construction activity in the city and district of Larnaca.

The increase is attributed to several factors, including the full implementation of the digital system Hippodamos, which allows electronic submission of applications 24 hours a day.

Government housing policies and the revision of urban planning incentives for housing have also contributed to the rise, the statistics show.

The Cyprus Chamber of Commerce and Industry (Keve) and the Institute of Certified Public Accountants of Cyprus (Selk) have set out their views on the government’s upcoming tax reform, expressing both support and serious concerns as the public consultation draws to a close today.

In a six-page memorandum submitted as part of the consultation, Keve welcomed the government’s determination to tackle tax evasion and improve tax collection, describing this as a cornerstone for transparency and fairness in the market.

At the same time, it warned against changes that might undermine Cyprus’ competitive tax regime, which it said has long been one of the country’s strongest advantages for attracting foreign investment.

Keve stressed that the reform must strike a balance between supporting local businesses across all sectors, from industry and commerce to services, while preserving Cyprus’ appeal as an investment destination.

The Labour Ministry recently launched a €4 million scheme to encourage employers in Cyprus to hire inactive women through flexible employment arrangements.

The plan, approved by cabinet September 3 and co-funded by the EU’s Social Fund Plus under the ‘THALEIA 2021–2027’ programme, seeks to bring at least 470 women into the workforce. 

Under the scheme, employers will receive €48 per working day for the first ten months of employment, regardless of the actual wage cost.  

They must then keep the employee for two additional months without subsidy. Based on this unit cost, the maximum payment over a 12-month contract reaches €8,600. 

The measure applies to ‘inactive women’, defined as those who are neither employed nor self-employed, not registered with the Public Employment Service (Pes), and not seeking work in the previous 28 days. Eligibility is assessed against active unemployment registration records held by Pes. 

Foreign investors in Cyprus face significant hurdles due to bureaucratic inefficiencies, excessively demanding banking procedures, and gaps in infrastructure, a number of officials warned.

During a House energy committee meeting on the challenges confronting foreign businesses in Cyprus, it was revealed that the government is considering changes to its investment strategy.

According to a report shared by Philenews, the government’s aim is to streamline administrative processes and make the country more attractive to foreign investors.

A representative of the Cyprus Chamber of Commerce and Industry (Keve) said that “banking checks on foreign companies in Cyprus are much stricter than in other EU countries”.

The Bank of Cyprus (BoC) on Thursday announced that on September 10, 2025, it successfully launched and priced an issue of €300 million unsecured and subordinated Tier 2 Capital Notes under its €4 billion Euro Medium Term Note Programme.

“The transaction was highly successful due to the strong interest from investors,” the bank said in a statement.

The issue received demand from more than 100 institutional investors, with the final order book exceeding €3 billion and more than ten times oversubscribed.

“This demand demonstrates the confidence of foreign and local investors in the Bank of Cyprus,” the bank added.

The Cyprus International Businesses’ Association (CIBA) on Thursday submitted its positions on the proposed tax reform bills as part of the government’s public consultation process.

According to CIBA, its positions are the result of extensive consultation with its member companies and thorough analysis by the association’s tax and legal committees, which are composed of experts in taxation matters.

The association emphasised that its positions focus primarily on the competitiveness of the Cypriot economy and do not merely comment on individual provisions of the draft bills.

They also include well-documented legal and economic analysis, and in several cases, provide recommendations on how the government and relevant authorities should approach tax reform.

Eurobank Cyprus on Friday confirmed that its merger with Hellenic Bank is now fully underway, marking the creation of the new Eurobank Limited.

In an official announcement, the new entity was described as “a strong and modern bank that combines local expertise with the group’s know-how and high service standards”.

The bank stressed that the integration process is focused on upgrading the banking experience while ensuring a seamless transition.

“The top priority is to ensure smooth and uninterrupted service, without any inconvenience and without requiring any action from the customer,” the bank said.

The European Central Bank (ECB) is under no pressure to cut interest rates further to achieve stable inflation, according to governing council member and Central Bank of Cyprus (CBC) governor Christodoulos Patsalides.

“The present interest rates are appropriate if inflation develops as projected,” he told Bloomberg.

“So unless there’s any other significant development, there’s no need to take action soon,” he added.

The ECB kept its deposit rate unchanged at 2 per cent for the second straight meeting, with president Christine Lagarde noting that inflation is now “where we want it to be”.

Patsalides said risks to the outlook are balanced and stressed that the next move in rates could be up if needed.

“Risks are balanced, so this means interest rates could go either way next,” he said, adding that “I wouldn’t like to exclude a rise in interest rates if the need arises.”

Rising construction costs and their knock-on effect on the housing shortage were at the centre of talks held in Brussels by Stephanos Pierides, secretary general of the Federation of Associations of Building Contractors (Oseok) and Head of Environmental Issues at the European Construction Industry Federation (Fiec). 

During his visit, Pierides met separately with Cypriot MEPs Loukas Fourlas, Michalis Hatzipandelas and Costas Mavrides, stressing the pressure that soaring costs place on the sector and underlining their impact on housing affordability. 

He also held discussions with Demetris Petrides, Attaché at the Permanent Representation of Cyprus to the EU, focusing on ways to step up cooperation ahead of Cyprus taking over the Presidency of the Council of the EU in 2026. 

Telecommunications provider Cyta on Friday announced the departure of Andreas Neocleous from his role as chief executive officer, effective September 12, 2025.

“During his tenure as CEO, Neocleous contributed decisively to Cyta’s dynamic growth and success”, the organisation said.

“He oversaw an increase in profitability, strengthened the customer base, and enhanced the technological and commercial value of the company”, Cyta added.

During his time, Cyta continued, “the organisation implemented major internal transformation projects”.

These included a new Personnel Performance Management System and a new Promotion System, which Cyta said positioned it as “a pioneer in the wider public sector”.

Limassol will host two major international trade union events in September, placing Cyprus at the centre of global maritime discussions.

According to Omepege – Sek, which supports their organisation and represents Cypriot maritime workers, the International Transport Workers’ Federation (ITF) Maritime Roundtable will take place from September 15 to 18 at the St Raphael Resort Hotel.

The event, held every five years, is described as one of the most important in international trade unionism, bringing together more than 180 representatives from 140 countries to strengthen cooperation and defend the rights of seafarers and dockers.

The official opening will be addressed on September 15 at 9.30 in the morning by the Minister of Transport, Alexis Vafeades. Charalambos Avgousti, general secretary of Omepege – Sek, and ITF president Paddy Crumlin will also deliver greetings.