Business bankruptcies in Cyprus down by 41.7%

In the second quarter of 2026, the number of business bankruptcy filings in Cyprus fell by 41.7% compared with the first quarter. Cyprus ranked second in the EU for the rate of decline after Malta, where the number of bankruptcies decreased by 50%. The decline followed a 9.1% increase in the first quarter compared with the final three months of 2025.

Eurostat notes, however, that the absolute number of bankruptcies in Cyprus and Malta is relatively small. Therefore, even a few additional or, conversely, fewer cases can have a significant impact on quarterly statistics. Across the EU as a whole, the situation was the opposite: the number of bankruptcies increased by 5.7% in the second quarter, while in the euro area it rose by 6.9%. In the EU, the indicator reached its highest level since the first quarter of 2019.

At the same time, the number of new company registrations in Cyprus continued to grow. It increased by 1.4% in the second quarter, although the growth rate slowed compared with the first quarter, when the indicator rose by 4.1%.

In the EU, meanwhile, the number of new registrations fell by 0.5%, while in the euro area it declined by 0.1%. In Cyprus, growth in registrations was not recorded across all sectors. The indicator decreased in five of the eight sectors considered. The most notable declines were recorded in industry — 3.6%, accommodation and food services — 3.4%, and education and social services — 3.2%.

The number of registrations increased most sharply in information and communication services — by 8.8%. In construction, the indicator rose by 1%, while in the financial sector it remained unchanged.

At the same time, the number of bankruptcies increased in five of the eight sectors. The largest increases were recorded in education and social services — 21.1%, transport — 11.4%, and the financial sector — 6.8%.

In accommodation and food services, the number of bankruptcies fell by 2.6%, in construction — by 1.7%, and in trade — by 1.2%.