Cyprus business registrations outpace EU average in late 2025

Business registrations in Cyprus rose sharply in the fourth quarter of 2025, outpacing the overall increase recorded across the European Union, according to Eurostat.

In the final quarter of 2025, registrations of businesses in the EU increased by 0.5 per cent compared with the third quarter of 2025, while Cyprus recorded a significantly stronger performance based on the quarterly index.

At the same time, the number of bankruptcy declarations in the EU rose by 2.5 per cent compared with the third quarter of 2025, indicating mounting pressure in parts of the business economy.

The data form part of Eurostat’s latest release on quarterly registrations of new businesses and declarations of bankruptcies, offering insight into trends across sectors and member states.

According to the index, which uses the year 2021 set at 100 units, Cyprus reached 118.7 units in the fourth quarter of 2025, up from 114.7 units in the third quarter of 2025.

This marks a substantial increase compared with 95.2 units in the fourth quarter of 2024 and 107.2 units in the third quarter of 2024, highlighting a strong year-on-year rebound.

By contrast, the EU business registration index stood at 112.5 units in the fourth quarter of 2025, compared with 111.9 units in the previous quarter.

A year earlier, the EU index measured 107.3 units in the fourth quarter of 2024 and 104.5 units in the third quarter of 2024.

The figures show that Cyprus not only exceeded the EU average in the final quarter of 2025 but also demonstrated a more dynamic recovery compared with its own levels in late 2024.

Across the bloc, business registrations increased in five out of eight sectors of the business economy during the fourth quarter of 2025.

The information and communication sector growth was the strongest, with registrations rising by 6.4 per cent compared with the previous quarter.

This was followed by industry, which recorded a 4.9 per cent increase, and accommodation and food services, which rose by 1.3 per cent.

In contrast, modest declines were observed in trade, which fell by 0.3 per cent, and in the construction and transport sectors, which each decreased by 0.1 per cent.

The figures also revealed mixed developments in sectoral bankruptcy trends across the EU during the same period.

What is more, Eurostat reported that the number of bankruptcies increased in six out of eight sectors.

The largest increases were recorded in accommodation and food services, where bankruptcies rose by 8.6 per cent, followed by the information and communication sector at 7.9 per cent and transport at 5.6 per cent.

Decreases in bankruptcies were registered in trade, which fell by 3.4 per cent, and in finance, which declined by 0.7 per cent.

The overall rise in EU bankruptcies alongside higher business registrations points to a complex economic environment in which entrepreneurial activity and financial strain coexist.

For Cyprus, the jump in the registration index to 118.7 units in the fourth quarter of 2025 suggests renewed momentum in business creation compared with both the previous quarter and the same period a year earlier.

The comparison with 95.2 units in the fourth quarter of 2024 underlines the scale of improvement within twelve months.

While Eurostat did not provide a separate quarterly bankruptcy index for Cyprus in this release, the broader EU trend of rising insolvencies may serve as an indicator of challenges facing certain sectors across member states.