Cyprus has become an even easier place to do business, according to TMF Group’s Global Business Complexity Index 2025. The island climbed one position compared to last year, ranking 63rd out of 79 jurisdictions, meaning it is among the world’s least complex locations for corporate operations. Within the European Union, Cyprus now ranks 5th in business simplicity, underscoring its appeal as a hub for international investors. 

The index’s scoring is inverted: the lower a country’s position, the greater its complexity. Thus, a higher ranking reflects a simpler and more efficient regulatory environment.

Cyprus’s progress in the index has been steady. It ranked 53rd in 2022, 56th in 2023, 62nd in 2024, and now 63rd in 2025—a consistent move toward reduced complexity and greater ease of doing business.

Cyprus’s 63rd position places it close to Ireland (61st) and Mauritius (62nd), and significantly ahead of Greece, which tops the global list for a second year, due to frequent rule changes and heavy near-term compliance demands as the state digitises filings.

• Trade corridors and supply chains: More than half of jurisdictions say resilience now comes from diversifying trade relationships and routes—an accelerating shift as firms look beyond single points of failure. Governments are also investing in ports, roads and digital networks to harden logistics. For a services-heavy island economy like Cyprus, deeper connectivity and agile customs processes are competitive levers.

• Labour markets: Wage inflation is a major concern across EMEA—83% of jurisdictions flag it—pushing employers toward more competitive pay and benefits. Skills gaps, especially in tech and healthcare, and higher staff turnover compound the challenge.

• Hybrid work is mainstream: Remote/hybrid working remains widely adopted, with EMEA leading in acceptance and implementation. Legal frameworks in many European countries now codify remote-work rights and obligations—an area where clear, predictable rules help reduce operational friction.

Now in its 12th edition, the GBCI analyses 79 jurisdictions covering about 94% of global GDP and 95% of net FDI inflows. It assesses business environments through 292 indicators across three areas: accounting & tax, global entity management, and HR & payroll. The report draws on TMF Group’s in-country experts, offering insight into regulatory frameworks, digitalisation, and labour conditions.

Cyprus’s place in the lower-complexity tier is an asset for attracting regional headquarters, shared-service centres and fund administration—especially as companies rebalance supply chains and talent footprints. The competitive frontier is shifting from “how complex is the rulebook” to “how certain and predictable are the rules,” backed by efficient digital administration and modern labour-law clarity. Sustaining progress on streamlined filings across tax, payroll and entity management, while aligning with EU-level digital and employment standards, would help preserve Cyprus’s comparative advantage.