The increase in the number of Israelis living in the Greek Cypriot Administration of Southern Cyprus (GCASC) has fueled debate over economic ties between the two sides and Israel’s influence on the island. The Israeli Embassy in Nicosia said approximately 15,000 to 20,000 Israelis consider the GCASC home, adding that the number has risen significantly over the years.
The embassy said geographical proximity and Israel-GCASC relations are among the factors that make the island attractive to Israelis. As economic ties have strengthened, Israeli companies have begun to view the GCASC not only as a market for selling products but also as a hub for conducting their international operations.
Rapid growth in tourism and trade
Data from the GCASC Statistical Service showed that Israel became the island’s second-largest tourism market in 2025. Israeli visitors accounted for 13 percent of total tourist arrivals that year.
Trade between Israel and the GCASC exceeded 600 million euros in 2025. While Israeli investments have expanded in energy, real estate, technology and tourism, the two sides are also exploring new opportunities for cooperation in agriculture and water technologies.
The possibility of establishing a pilot demonstration farm to test Israeli agricultural technologies under GCASC conditions and introduce them to farmers in the region was also considered.
Some Israelis living in the GCASC hold European Union passports, which can result in these individuals not being listed as Israeli citizens in official statistics.
Trend of Israelis leaving the country
According to research by Tel Aviv University, approximately 49,000 Israelis left the country for more than one year in 2023 and 2024. The research projected that around 50,000 people who left Israel in 2025 would be classified as emigrants if they remained abroad for at least 12 months.
The study assessed that continued high levels of emigration could have consequences for Israel’s economy and security. A study by the Planning and Economics Division of the Israel Tax Authority also found that emigration among affluent Israelis reached a record level in 2023 and 2024, nearly twice the level recorded through 2019.
Doctors, engineers, and highly educated, high-income workers accounted for a significant share of those emigrating.
Technology and energy projects
Partnerships between Israel and the GCASC also cover energy storage, artificial intelligence and cybersecurity. In a joint project carried out by Israel-based BaroMar and the GCASC Institute, the PROTEAS system, which stores energy underwater using compressed air, was integrated into a research facility and is being tested there.
Assessments of the impact on the Greek Cypriot community
Assessments that some Greek Cypriots in the GCASC are uneasy about Israel’s growing influence have entered public debate. These assessments argue that the settlement of Israelis in the GCASC could become permanent and that the government’s preferential policies toward Israelis have sparked controversy.
It has been argued that the establishment of schools, places of worship, businesses and infrastructure to serve Israelis’ needs has strengthened the perception that Israel’s presence has taken on a settlement character, going beyond investment and tourism. It was assessed that continuing in this manner could weaken acceptance within the Greek Cypriot community of maintaining good relations with Israel.
