Why Cyprus2018-08-26T22:45:28+00:00

Cyprus – Country Overview

Cyprus is the third largest island in the  Mediterranean Sea, located at the eastern end of Europe, at the crux of the busy shipping and air routes linking 3 continents, Europe,  Africa and Asia.

The island, through its rich and turbulent history, going back more than  10 000 years, has developed from a Stone  Age settlement into a modern and thriving  European Union state today, with a host of opportunities and prospects for economic growth and prosperity.

This small but dynamic country has long established a strong reputation as a “center of excellence” for international business activities, retaining unique clusters of expertise and service capability to support key growth sectors of the economy.

Capitalising on its competitive advantages,  driving and enhancing both traditional and new economic sectors and continuously improving and enhancing its business environment, Cyprus has a modern, free-market,  service-based economy with an effective and transparent regulatory and legal framework offering international investors and domestic businesses confidence to invest, grow and prosper. It continuously and systematically strives to offer an innovative, diverse and investor-friendly environment.

Cyprus has developed into a destination of choice for doing business.

Main Benefits

Growth Sectors

Cyprus offers exciting potential in both traditional and emerging economic growth sectors, continuously aiming at diversifying and enriching its product. Traditional sectors,  such as shipping,tourism, banking, financial  and professional services,have been the key  driving forces of the island’s economy for  years,while new sectors, such as energy,  investment funds, research & development,  education and wellness tourism, offer a modern perspective and give impetus  to the country’s path towards growth and  a varied, knowledge-based economy.

Numerous opportunities are waiting to be explored in all development sectors, while various incentives and funding opportunities are frequently introduced in order to improve Cyprus’ competitiveness and enhance ease of doing business.

Tourism

Tourism, one of Cyprus’most resilient and strong economic sectors with a significant contribution to the country’s GDP, continuously experiences substantial growth, as per the record number of more than 2.5m tourists visiting Cyprus every year. The island has all the prerequisites to further develop this industry and offers great potential for investments in niche areas such as Health &  Wellness, Sports, Luxury, and Lifestyle.

Cyprus’ tourism industry has been honored with numerous prestigious awards, such as  the Sustainable Destinations Global Top 100, while Cyprus’ famous beaches have  been awarded with 57 Blue Flags and hold three records:

  • Most Blue Flags per capita in the world
  • Most dense concentration of BlueFlag Beaches
  • Most Blue Flag beaches per coastline

Shipping

Cyprus is a renowned International Shipping Centre, offering the only EU approvedTonnage Tax regime with benefits for ship-owning,

ship-management and crew management, and home to some of the world’s leading names in the global shipping industry. Currently, more  than 1000 registered vessels with 21 million gross tonnage are registered under the Cyprus  flag, rendering the island:

  • The largest Ship Management Centre in EU
  • Among top 3 ShipManagement  Centres globally
  • 3rd largest merchant fleet in EU
  • 11th largest fleet worldwide

Real Estate and Large-Scale Development  Projects

Acquiring property in Cyprus, either as an investment or as a second home, has always been a popular choice among foreign investors.  A combination of high quality of life, year-round sunshine and natural beauty, ease  of doing business and investment incentives  offer investors an attractive experience in terms of both living and doing business

  • A wide range of prestigious Large-Scale  Development projects are available, ranging from residential and commercial  developments, to luxury tourist attractions,  such as marinas, golf courses, tourist resorts
  • There are schemes for acquiring the Cypriot Citizenship and ImmigrationPermit through  investment, subject to conditions

Banking and Financial Services

The Cyprus financial services sector is diverse,  comprising domestic banks, International  BankingUnits (IBUs), insurance and other companies that offer financial intermediation services. Several foreign banks from the Middle East, Europe, and Asia operate subsidiaries, branches or representative offices in Cyprus.

•Cyprusbanking and financial services sector  legislation is in line with international best practices
•An effective and transparent tax system, fully EU, OECD, FATF, FATCA and FSF compliant  in place
•Commercial banking arrangements and  practices follow the British model
•All banks maintain correspondent networks around the world and are able to carry out  both traditional and specialised financial transactions

Investment funds

Cyprus is rapidly developing into not only a European but a global investment funds and asset management domicile.

Due to its modern and well-regulated framework, Cyprus attracts increased interest and substantial investment from funds and asset managers worldwide. The relevant law has also been enriched with provisions that increase Cyprus’ attractiveness vis à vis other jurisdictions, both forUCITSandAIFs.

•Assetsunder management have tripled in Cyprus from €1to €3billion in the last years
•Incentives for funds’set up and operation, e.g. low-income rates, exemptions and the  absenceof any withholding tax on dividends,  are widely offered and upgraded

Professional Services

Cyprus is recognised as an international centre of excellence for the provision of a wide range of professional services,with highly qualified and experienced professionals offering efficient legal, accounting, auditing, consulting and other specialised services,at competitive costs. Notably, two of the world’s leading accountancy organisations, the Institute of Chartered Accountants in England and Wales (ICAEW) and the Chartered Institute of Management Accountants (CIMA), chose the island as the first country in the world outside the UK to train ICAEWand CIMA  accountants. Currently, there are:

•morethan 120 limited accounting firms and  160 limited liability law firms and
•offices of the top international accounting  firms operating in Cyprus

Energy

The discovery of hydrocarbons in Cyprus’  Exclusive Economic Zone (EEZ) has created new and exciting prospects for Cyprus to become an energy hub in the Eastern  Mediterranean.This development has attracted worldwide interest and significant investments from leading international energy giants, such as Noble Energy, Delek, Total, ENI  and KOGAS,as well as renowned international providers operating in the oil and gas auxiliary services sector. Comprehensive strategies are being developed to exploit the country’s wealth not only for local needs,  but also for export purposes.

•Exploration licences have been granted for  several offshore blocks within Cyprus’ EEZ
•Energyhas also fostered regional  cooperation with Cyprus concluding  agreements with countries such as Israel, Egypt and Lebanon

Education

Cyprus aspires to become a major educational centre of excellence in the region, through the establishment of international universities’  branches in the island. Cyprus is committed to further strengthening education,  consistently allocating over 6%of GDP  as public expenditure on this sector.

•High percentage of tertiary education  attainment,exceeding the national target, and achieving a percentage higher than  theEU28 average of 36.8%, and one of the highest in the world
•All universities in Cyprus offer high quality  programmes and courses in English

Research and Development and Innovation

Research and Development (R&D) is an emerging priority sector with the country aiming at cultivating a knowledge-based economy. The Cyprus startup ecosystem is a promising and developing area, with existing incubators,also supported by Universities operating research centres within their premises.

Various incentives are constantly  introduced, such as:

•Incentivesto boost entrepreneurship and investment in innovative projects
•EU and nationally-funded research initiatives

Technology

Technology is an important driver of productivity,  growth and economic performance crossing horizontally all sectors of the economy. Cyprus’ technology strategy aims at developing a digital economy and is fully aligned with flagship initiatives “Digital Agenda for Europe”  and“Innovation Union” of the “Europe 2020” growth strategy, and supports projects one-Government, e-Business, e-Learning, e-Inclusion, e-Health and overall services.

•The launch of the country’s first Science  TechnologyPark (STP) will further expand the opportunities for becoming a tech hub
•Global technological leading companies hold  their headquarters or regional offices in Cyprus