Shares and equity made up 76.2 per cent of non-residents’ holdings in Cyprus in June 2026, up from 68.4 per cent in 2021, according to Central Bank of Cyprus data. Over the same period, their cash and deposits fell to 15.4 per cent from 21.5 per cent.
The figures, from Table 10 (Rest of the World sector) of the Central Bank’s quarterly financial accounts, point to a shift towards investment over the past five years. Over the same period, Cypriot savers have sought safety in bank deposits.
The rise in equity holdings is driven by the activity of special purpose entities (SPEs) and the rapid growth of international investment funds based on the island. Cyprus is used as an institutional gateway for global investment deals and for large investments in the domestic property and infrastructure markets.
The rise in equity holdings is the result of Cyprus’s strategic choice to align fully with the strictest EU anti-money laundering (AML) directives. This has attracted high-quality institutional portfolios that had previously avoided the island because of geopolitical risks and its dependence on certain eastern markets.
“Opportunistic” offshore deposits from third countries have fallen by 90 per cent compared with the period before the 2013 crisis. The non-resident accounts that remain now mainly hold working capital for the day-to-day operations of international technology, shipping and professional services companies that have moved their headquarters to Cyprus.
Loans account for 5.3 per cent of foreign capital, down slightly from 7.1 per cent in 2021. Financial analysts say these are mainly intra-company loans. Because of high interest rates, foreign groups avoid borrowing from Cypriot commercial banks and prefer to fund their local subsidiaries directly from parent companies abroad.
Holdings of bonds and other debt securities fell to 2.1 per cent from 3.0 per cent in 2021, a lack of interest shared by Cypriot investors.
With non-resident deposits limited to operational needs, Cypriot banks are turning to specialised custody services and wealth management.
