Cyprus, e-commerce and logistics

More businesses and consumers are embracing the convenience and accessibility of digital platforms in Cyprus.

Could the Mediterranean island nation be your next e-commerce destination?

Image of Palaipafos pillars, Cyprus

Why Cyprus?

The Republic of Cyprus (ROC) is the third largest and populous island in the Mediterranean. Its location – between Europe, Asia and Africa – makes it a natural trading hub. Overall, the Cyprus market is mature, competitive and price sensitive. While in the past, many Cypriot companies and consumers may have been sceptical about using e-commerce, the COVID-19 pandemic accelerated and significantly increased the use of online services.1

Today, while web-based trade remains relatively small, it is still growing steadily. Most companies now have their online presence through Facebook, Instagram or individual website pages and consumers are becoming more accustomed to making payments online.

The UK is an important trading partner for Cyprus, with exports covering most sectors and services. British brands and labels are also widely recognised and highly valued.

  • 1.2 million
    Population
  • 92%2
    Population that are internet users

The e-commerce landscape

With a population of approximately 1.23 million, Cyprus boasts a high internet penetration rate. In 2022, 92% of its population was utilising the internet and 63% of them were e-shoppers.

The adoption of digital technologies among Cypriot small and medium-sized enterprises, with 66% of them demonstrating a basic level of digital intensity, surpassing the EU average of 55%, indicates promising growth potential. With Cyprus’ commitment to a national plan to boost digital skills between 2021 - 2025, there is even more reason to feel encouraged.3

The e-commerce market in Cyprus is poised to grow at a Compound Annual Growth Rate (CAGR) of 13.87 % by 2027.4

When it comes to e-commerce sales in Cyprus, various product categories have witnessed substantial growth. Today, some of the most popular online purchase categories include clothing and footwear, electronics and appliances, beauty and personal care products, and home and garden items.

Most purchased products in Cyprus

  1. Furniture
  2. Home electronics
  3. Food & beverages

Opportunities

With an advantageous tax regime, strong legal system, highly skilled workforce and advanced telecommunications infrastructure, Cyprus boasts an attractive appeal to online business owners. As a result, the outlook for e-commerce in Cyprus is highly promising, right now and in future years.

The Cypriot government has taken initiatives to facilitate online businesses and e-com transactions by implementing digital payment systems, developing secure online platforms and promoting consumer trust through regulations and protection policies.

Cross border e-commerce constitutes a significant portion of the overall e-commerce sales market in Cyprus. Many consumers in Cyprus tend to buy products from international online retailers, attracted by a broader product selection and competitive prices.

Cross-border purchases have doubled since COVID 195

Logistics

The ports of Cyprus are operated and maintained by the Cyprus Ports Authority. Major harbours of the island are Limassol Harbour, and Larnaca Harbour, which service cargo, passenger, and cruise ships. Limassol is the larger of the two and handles a large volume of both cargo and cruise vessels.

You can familiarise yourself with the weights and prices of sending a package to Cyprus using our helpful shipping rates chart: https://samos-e.com/pricing/samos-shipping-rates.

Keep in mind

The standard VAT rate in Cyprus is 19%. There are reduced rates of 9%, 5% and 0% on specific goods and services.

Cyprus is a member of the EU. All goods entering the EU are now subject to VAT, which eliminates the previous VAT exemption for low-value goods. The EC rules established an “Import One Stop Shop” (IOSS), where e-commerce vendors can streamline their VAT payment obligations for their sales throughout the EU. It allows easy VAT registration in EU and ensures that the correct amount of VAT will be paid to the Member State based on sales location. However, if you do not have an IOSS, SAMOS can still help you ship efficiently.

What our experts say:

“The Cypriot e-commerce market has shown remarkable growth. As the market continues to evolve, there are lucrative opportunities for online businesses looking to tap into a growing consumer base.”

Ben Bagnulo, CEO, SAMOS

To find out more about how SAMOS can help you achieve fast and cost- effective deliveries to Cyprus get in touch today

1. https://www.great.gov.uk/markets/cyprus/

2. https://weareprocarrier.com/country-guides/article/shipping-to-cyprus

3. https://irglobal.com/article/the-booming-cyprus-e-commerce-landscape-a-promising-future/

4. https://www.mordorintelligence.com/industry-reports/cyprus-ecommerce-market

5. https://weareprocarrier.com/country-guides/article/shipping-to-cyprus