Invest in Cyprus

Cyprus offers an attractive package for international investors seeking new investment and business opportunities.

But what makes Cyprus an alluring investment destination?

These are 10 + 1 reasons to invest in Cyprus:

1. Cyprus enjoys a strategic location, being situated at the crossroads of three continents, Europe Africa and Asia. Cyprus’ location has facilitated its growth into a major trading post and a prominent international business and services centre.

After its accession in the European Union, Cyprus is being transformed into a key outpost in the Eastern Mediterranean, facilitating partnerships and serving as the springboard for investments among Europe, Africa, and Asia.

Τhe island’s location provides a bridge for investors to penetrate new markets and also makes it an ideal transshipment centre, with Cypriot companies operating independently and with foreign partners to ship goods into and out of the EU via Cyprus.

2. Cyprus since 2004 has been a full member of the EU. As a corollary the EU laws and regulations known as the Acquis Communautaire, apply in Cyprus. Furthermore since the beginning of 2008 Cyprus joined the European Monetary Union leveraging a robust economic performance marked by banner key indicators. Apart from achieving and maintaining the indicators to meet the strict EMU entrance requirements, a key advantage of joining the eurozone is price transparency: with exchange rate risk eliminated and costs significantly lower, prices are transparent across the Eurozone, fostering competition and lower prices in the medium to longer term.

3. The Cypriot Corporate Tax Rate is the lowest within the EU and is currently at 10%. Dividends, dividend income and profits from overseas permanent establishments are exempted from tax, while there is no withholding tax on dividend income and on interest and royalties paid from Cyprus. Moreover Cyprus has an extensive double tax avoidance treaty network.

4. The island’s business infrastructure is sophisticated, while the regulatory environment is transparent and sound. Cyprus offers efficient legal, accounting and banking services.

The Common Law based legal system is strong and sound, while the law profession is long established and comprises of many independent law practices, consisting of highly qualified professionals.

The accounting profession is very well represented, with many international companies operating on the island, as well as a number of private individuals providing accounting, auditing and consulting services.

The banking sector is well developed and offers a wide variety of financial services to both businesses and individuals. Banking services include insurance, leasing, hire purchase finance, factoring, mutual fund management, investment and consulting as well as custody and asset management services. The supervision of the banking system by the Central bank of Cyprus safeguards stability and proper regulation.

5. Cyprus enjoys macroeconomic stability with successful economic performance. This is reflected through real GDP Growth. Cyprus’s real GDP growth rate is well above the average growth rate of EU 27 as well as that of Eurozone. Specifically, in 2008 the real GDP growth rate reached 3,7% . The annual growth rate is expected to continue in such high levels in the future. Furthermore the unemployment rate is well below the EU average.

6. There is a Foreign Direct Investment track record. Cyprus is one of the most attractive locations for foreign investments, ranking among the frontrunners of the world indicating both high FDI performance as well as high FDI potential.

7. One of Cyprus’s most valuable resources is the workforce, which is multi-lingual and highly qualified. Researches indicate that the workforce in Cyprus is one of the best-educated in the World.

8. Cyprus is a highly reputable international shipping centre, ranking among the 10 leading maritime nations in the world.

Cyprus is one of the largest ship-management centres in the world; around 50 ship-management companies and marine-related foreign enterprises are conducting their international activities in the country, while the majority of the largest ship-management companies in the world have established fully fledged offices on the island.

Furthermore it has long grow into a transhipment centre for Asia Pacific trade with Europe as well as with shipping markets situated along the coasts of the Levant and Black Sea, or the North Adriatic.

Overall it an attractive location for the establishment of ship-management companies and companies with shipping related activities. The geographical position of the island, its accession to the main international maritime conventions, as well as the generous tax incentives and the extensive network of bilateral agreements in merchant shipping, have enabled Cyprus to become an ideal shipping centre.

9. Considerable investment has been made into transforming the island into a telecommunications hub for the region. Cyprus has complemented its geographic advantage with world-class telecommunication services. It is connected to a number of advanced technology submarine cables which provide excellent connectivity to Europe, the Middle East and Asia. In addition, seven satellite earth stations provide further satellite telecommunications connectivity making it easy for companies to locate here and be connected globally through an advanced and reliable communications network.

10. The local infrastructure is ideal. Due to modern road network, extensive port facilities and its two brand new international airports, travel and transport in and beyond Cyprus is fast, efficient and economical.

10+1. More than 300 days of Sunshine per year!