Expats doing business in Cyprus tend to find a relaxed, friendly working environment. The island has a long history of trading with foreigners, so locals are generally open to expat business partners, and English is the main language of business. Trust and personal relationships are the foundation of doing business here.
Services are the bulk of the economy. Tourism and shipping are the traditional mainstays, and Cyprus has one of the largest shipping fleets in the EU. Banking and professional services are big earners too, and international tech firms have moved into Limassol and Nicosia in growing numbers, so both cities now have sizeable expat business communities. Setting up a business is largely straightforward, but the bureaucracy can be slow, so expect some paperwork and a slower pace than you might be used to.
Fast facts
Business hours
Offices are generally open Monday to Friday, roughly 8am to 5pm or 6pm. Many businesses still work a split day and close for a couple of hours around lunch. The afternoon break can be long during summer, and offices open and close a little later.
Business language
English is widely spoken in the business world and is the main working language at many international firms, so you won't usually need a translator. Greek is useful too, especially with local companies and government offices.
Greetings
The standard greeting is a handshake with direct eye contact. Start off using Cypriots' titles and surnames until invited to switch to their first names. Some devoutly religious people, mostly among Turkish Cypriots, prefer a nod over shaking hands with the opposite sex, so take your lead from them.
Dress
Cyprus is casual day to day, but you should always dress formally for meetings. Men should wear a dark, conservative suit, and women a smart dress or trouser suit. Formal wear is expected even in high summer, so reach for lightweight fabrics rather than dressing down.
Gifts
Gifts aren't expected in business, although a small corporate gift is always welcome. Don't expect it to be opened in front of you. If you're invited to a colleague's home, bring something consumable, such as chocolates or a good bottle of wine. Steer clear of white lilies if you bring flowers, since they're tied to funerals.
Gender equality
Women have an equal legal footing in the workplace, and expat businesswomen will generally be treated with respect and professionalism. They are still underrepresented at the top though. Cyprus has one of the lowest shares of women in management in the EU, and there are few women on the boards of its listed companies.
Business culture in Cyprus
The business culture in Cyprus is relaxed and Mediterranean, and Cypriots prioritise personal relationships over quick wins. The easygoing business style can take some adjustment for expats from faster-paced backgrounds. Once you've patiently earned people's trust, doors will open quickly though.
Trust and loyalty
Trust is the cornerstone of business in Cyprus. Because the pace is slower here than in many places, partners have time to get to know each other before committing to anything. By the time both sides sign, they usually know each other well.
Loyalty here is usually to a person, not their company. Keep that in mind if you're thinking about changing jobs or letting staff go.
Hierarchy
Most Cypriot firms are hierarchical, and senior management or the owner makes the big calls. Decisions can take time because approval usually has to come from the top. Be patient, and make sure the real decision-maker is on your side.
Meetings
In Cyprus, business meetings often go off topic and rarely end in firm decisions. Treat them as a chance to get to know your associates. The real business tends to follow only once a solid relationship is in place.
Set up meetings well in advance, and confirm the appointment as the date approaches. Be punctual yourself, even if your Cypriot counterparts turn up late; they'll still appreciate it.
Cypriots enjoy negotiating and are sharp at it, so negotiations can be lengthy. Leave room for concessions in your opening offer, and expect a fair bit of back and forth. Once a contract is signed, though, both sides tend to stick to it closely.
Dos and don'ts of doing business in Cyprus
- Do be patient and let business relationships develop at their own pace
- Do be ready to haggle, as it's common practice and Cypriots are skilled negotiators
- Do follow up after a meeting with a short, polite note to keep the relationship warm
- Don't bring up politics or religion while you're still getting to know people, and tread carefully around the island's division
- Don't lose your composure or show too much emotion in a meeting