Recent data from the 2026 Henley Passport Index officially ranks the Republic of Cyprus passport as the 14th most powerful worldwide, granting visa-free or visa-on-arrival access to 174 global destinations.

For High Net Worth Individuals (HNWIs) and corporate founders, this ranking reinforces Cyprus as a premier destination for business relocation and lifestyle planning. Beyond frictionless global travel for business and cross-border investments, holding Cypriot citizenship provides full European Union freedom of movement—allowing families to live, work, and study anywhere in the EU.

Coupled with Cyprus’s highly attractive tax frameworks (including the non-domicile regime) and its allowance of dual citizenship, the strong global standing of the passport significantly reduces administrative barriers, making the island an optimal base for wealth preservation and international mobility.

Cyprus is finalizing a new national framework for screening Foreign Direct Investment (FDI) to align with EU Regulation 2019/452. The bill, approved by the Council of Ministers in July 2025, mandates that non-EU/EEA/Swiss investors notify the Ministry of Finance at least 10 days before finalizing significant investments. The mechanism focuses on safeguarding strategic infrastructure, including energy, health, and financial services, where an investment exceeds €2 million or involves a 25% or greater shareholding. This oversight ensures transparency and protects national security while bolstering Cyprus's international credibility as a secure investment hub.

The Cyprus 2026 Tax Reform (pending approval) modernizes the system with these key shifts:

• Corporate: Rate increases to 15% (from 12.5%); Dividend tax drops to 5% (from 17%).

• Personal: Tax-free threshold raised to €20,500; new tax credits for families and students.

• Crypto: New flat 8% tax on profits from disposal/exchange.

• Real Estate: Rental SDC abolished; property swaps are now tax-free.

• Compliance: Mandatory tax returns for all residents over 25; stricter powers for the Tax Commissioner to seal non-compliant businesses.

Grant Thornton Cyprus has officially achieved the ISO/IEC 27001 certification, the global benchmark for Information Security Management Systems (ISMS). This milestone validates the firm's robust approach to data protection and risk management, covering people, technology, and internal processes. The certification is valid for three years and underscores the firm’s ability to move beyond theory, embedding high-level cybersecurity principles into daily operations to safeguard sensitive client and company data.

1. Taxation of Provident & Pension Funds Funds tax-exempt for 20+ years; no EU pressure to change. 29 of 36 OECD countries don't tax fund returns. Unfair to employees, civil servants, and lower-income earners. Hurts long-term savings and Cyprus's fund industry competitiveness.

2. Corporation Tax Increase (12.5% → 15%) Justified as offsetting SDC dividend reduction (17% → 5%), but the OECD Pillar Two argument is misapplied — Pillar Two only affects MNEs with €750M+ revenue (<2% of Cyprus companies). Frequent rate changes undermine Cyprus's stability as an international financial centre.

3. Excessive Tax Commissioner Powers Proposed powers (suspending operations, seizing shares, blocking property transfers) bypass court oversight. Risks legal uncertainty and damages Cyprus's prestige. Better solution: faster, more efficient courts.

Bottom line: Reform is generally a positive step, but these 3 areas need reconsideration to preserve Cyprus's competitiveness as an international financial centre.