Cyprus Among EU Countries with Lowest Share of Jobs and Output from Foreign-Controlled Firms, Eurostat Reports

Cyprus ranked among the European Union member states where foreign-controlled companies accounted for the smallest share of employment and economic output in 2023, according to data published by Eurostat on Wednesday. Despite the significant overall impact of foreign-controlled enterprises across the EU, their presence in Cyprus remains comparatively limited.

Based on figures that include both employees and self-employed individuals, foreign-controlled enterprises in Cyprus represented just 10 per cent of all jobs. This percentage was equal to that of Italy and only slightly higher than Greece, which recorded the lowest rate at 8 per cent.

Eurostat’s data showed that foreign-controlled enterprises in Cyprus employed a total of 32,119 people, placing the country near the lower end of the EU scale. Across the entire European Union, the number of people employed by foreign-controlled firms reached 24,145,727.

By contrast, the share of jobs attributed to foreign-controlled enterprises was much higher elsewhere in the bloc, reaching 45 per cent in Luxembourg and 28 per cent in both Slovakia and the Czech Republic.

When it comes to economic output, the report found that foreign-controlled companies in Cyprus generated €3.5 billion in total value added—just a small portion of the EU total, which stood at €2.39 trillion. The highest proportions of total value added generated by foreign-controlled firms were recorded in Ireland, at 71 per cent, followed by Luxembourg with 61 per cent and Slovakia with 50 per cent.

At the opposite end of the scale, the lowest shares of value added by foreign-controlled enterprises were reported in France (15 per cent), Italy (17 per cent), and both Greece and Germany (18 per cent each).

The findings suggest that Cyprus remains heavily reliant on domestically controlled enterprises for both employment and overall economic activity, setting it apart from several larger EU economies where foreign ownership plays a greater role.

However, Eurostat also noted an important nuance regarding company classification in Cyprus. Some firms may be owned or managed by foreign nationals who have relocated to the island but have registered their businesses under Cypriot jurisdiction. As a result, these companies are considered domestically controlled, even though their ownership or leadership may be foreign in origin.

By fLEXI tEAM