Cyprus and the United Kingdom maintain a dynamic and enduring bilateral relationship rooted in a shared history dating back to the 19th century. These ties are strengthened by robust political, economic and cultural connections, further enhanced by Cyprus’ membership in the European Union (EU) and the Commonwealth. The two countries also collaborate closely within international organizations such as the United Nations (UN) and the Organization for Security and Co-operation in Europe (OSCE). Bilateral cooperation has deepened in recent years through evolving trade agreements and enhanced diplomatic dialogue.
As one of the guarantor powers of Cyprus’ independence and territorial integrity, the UK remains committed to supporting the peace process and efforts toward the reunification of Cyprus for a comprehensive, just, and lasting settlement based on a bi-zonal, bi-communal federation with political equality, as set out in relevant UN Security Council resolutions.
People-to-People Contacts
The close ties between Cyprus and the UK are reflected in strong people-to-people connections. An estimated 300,000 Cypriots reside in the UK, contributing to British society across diverse fields, including business, culture, academia and public service. Additionally, a large number of Cypriot students studying at British universities contribute significantly to enriching the educational bonds between the two nations.
Cyprus is also home to a significant British expatriate community, further fostering cultural and social ties. Approximately 30,000 Britons live in Cyprus, many of whom are retirees or professionals who have chosen to live and work on the island. This British presence is complemented by over 1.3 million British tourists visiting annually, accounting for nearly one-third of the total tourist arrivals to the island.
Economic and Trade Relations
The UK is Cyprus’ second most significant trading partner. Cypriot exports to the UK are valued at approximately €190 million, while UK exports to Cyprus exceed €350 million. Key Cypriot exports include Halloumi cheese, potatoes, pharmaceuticals, fresh or chilled vegetables, citrus fruits, building materials and minerals such as bentonite. Halloumi, a Protected Designation of Origin (PDO) product in the European Union, remains a flagship Cypriot export and continues to gain popularity in the UK market.
British exports to Cyprus primarily include motor vehicles and parts, boats, spirits, pharmaceuticals, food ingredients and clothing. The UK also plays a vital role in Cyprus’ service sector, particularly in financial services, legal consultancy and tourism-related industries. Total bilateral trade in services exceeds €3 billion annually.
Both countries have ensured the smooth flow of goods and services through trade arrangements that promote regulatory alignment in key industries. This relationship underscores their strong economic integration and shared commitment to expanding trade opportunities.
Foreign Direct Investment (FDI)
Foreign Direct Investment (FDI) between Cyprus and the UK remains significant. UK FDI into Cyprus is valued at approximately €7.5 billion, while Cypriot investments in the UK exceed €13 billion. Key sectors attracting UK investment include financial and insurance services, real estate, renewable energy and technology.
Meanwhile, Cypriot FDI in the UK is heavily concentrated in real estate and the hospitality sector, with notable growth in technology and innovation industries. This economic interdependence reflects the mutual confidence of businesses in both countries and continues to drive innovation and growth.