Cyprus ranks first in EU for drawing foreign investment from outside Europe

Cyprus stands out for reliance on non-EU foreign investmentNearly four-fifths of foreign direct investment in Cyprus originated from countries outside the European Union in 2025, the highest proportion among the 14 EU member states reporting figures to Eurostat. The share of investment coming from non-EU economies stood at 79.4 per cent in Cyprus, highlighting the country’s strong links with international investors beyond the bloc. Cyprus recorded by far the largest proportion of non-EU investment among the reporting countries, with the figures showing that its foreign investment profile differs markedly from that of most other EU economies. Eurostat said 14 EU countries reported inward foreign direct investment positions according to the ultimate investing economy in 2025, a measure that helps identify the country from which investment ultimately originates, rather than simply the immediate country through which it is channelled. This distinction is particularly relevant when investments pass through complex corporate ownership structures involving subsidiaries and intermediary holding companies. In nine of the 14 reporting countries, most foreign direct investment originated from within the European Union. The Czech Republic recorded the highest share of intra-EU investment, at 75.1 per cent, followed by Romania at 73.3 per cent and Estonia at 64.8 per cent. The remaining five countries, including Cyprus, received the majority of their foreign investment from outside the bloc. Spain, Sweden, Greece and Denmark also recorded non-EU investment shares exceeding half of their total, ranging between 51 per cent and 55.1 per cent. The data also identified the main economies ultimately responsible for foreign direct investment across the 14 reporting EU countries. The United States was the largest source, accounting for 15.4 per cent of the total value of foreign direct investment recorded across those countries. Germany followed with 11.5 per cent, ahead of France at 9.4 per cent, the United Kingdom at 9.3 per cent and Switzerland at 5.8 per cent. The figures underline the importance of investment originating outside the EU, with the United States and the United Kingdom among the leading sources, although the overall ranking covers the 14 reporting countries collectively rather than Cyprus alone.