Investment in Cyprus

About Cyprus

Cyprus is the third largest island in the Mediterranean, located geographically between Europe, Africa and Asia. This strategic location of the island has played an integral role in establishing it as a tourist destination but most importantly as a business hub, transforming Cyprus into a modern, cosmopolitan, transparent business centre offering opportunities for investment across a wide range of services.

Cyprus is a dynamic EU member state known for its business activity and as a destination for doing international business utilizing expertise and services to support key growth sectors of the economy. Due to its strategic location, the island is an ideal getaway to the EU as well as a portal for investment outside the EU, mainly in the Middle East, India and China.

This island offers visitors a great living experience combining a relaxed and stress-free way of life in a safe environment, perfect for people who seek balance between work and pleasure.

Why Invest in Cyprus

Positive economic outlook

Cyprus GDP Growth rate is above 2,5% since the fourth quarter of 2015 and is expanding faster than the EU average with a GDP of 4% in Q1 2018.

Prices for all commercial property types have been increasing since the 3rd quarter of 2016 according to the RICS index.

In the third quarter of 2017 commercial property prices registered year-on-year increases in excess of 4%.

Inflation in Cyprus is expected to continue to be positive in the next two years.

The continuing strong GDP and job growth should contribute to increasing income in the economy and further strengthening of consumer and investor expectations.

These developments, along with the successful continuation of the permanent residence and citizenship by investment programs and some tax incentives should sustain continued growth in both domestic and foreign demand and transaction activity.

Attractive tax system

With a 12,5% cooperate tax system, Cyprus has one of the most attractive tax systems in Europe. A few of these tax benefits are:

  • No tax on dividends or interest for those non-domiciled in Cyprus
  • No tax on disposal of securities (shares, bonds, debentures)
  • No succession taxes
  • Attractive IP regime
  • Attractive tonnage tax system for shipping companies
  • Personal tax exemptions for new residents and non-domiciles
  • No estate duty, wealth or inheritance tax.
Excellent Regulatory structure and EU member state

Based on English Common Law principles, since Cyprus was previously a British colony, the legal system is comprehensive, robust and business-friendly and is frequently updated to meet investors’ needs. Being an EU member state since 2004, Cyprus is committed to quality, efficiency and transparency in all transactions. EU membership ensures access to a market of more than 500million citizens.

Access to talent & services

Cyprus ranks amongst the top countries in Europe for tertiary education per capita and the talented staff available is one of Cyprus’ competitive advantage as they provide a broad range of high quality professional services.

Growth Sectors

Traditional sectors such as shipping, tourism, banking, financial and professional services have been the key island’s driving forces in the economy. New sectors such as energy, investment funds and education contribute to the growth of the economy.

Tourism: historically the island’s strongest economic sector which contributes significantly to the country’s GDP, has significant prerequisites to further develop with great potential for investments.

Shipping: Cyprus is amongst the top 3 Ship Management Centres globally due to tax benefits available.

Real estate & large scale development projects: due to the high quality of life, year-round sunshine, natural beauty, ease of doing business and investment incentives, acquiring property in Cyprus either as an investment or a second home, Cyprus has always been a popular choice for investors.

Banking & financial services: Cyprus offers a diverse financial services sector comprising of local banks, international banking units and insurance companies.

Investment funds: due to its well-regulated and modern framework Cyprus is developing into a global investment fund and asset management domicile attracting interest and investments from funds and asset managers worldwide.

Professional services: a range of professional services are provided by highly qualified and experienced professionals offering legal, accounting, auditing, consulting etc.

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. Prospects in the energy sector are promising due to the island’s geostrategic location, connecting Europe and the Black Sea with markets in the Middle East and Asia. Recent developments have attracted worldwide interest and significant investments from leading international energy giants, such as Noble Energy, Delek, Total, ENI and KOGAS, ExxonMobil 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.

Education: Cyprus aims to become a major educational centre of excellence in the region through the establishment of branches of international universities. Over 6% of GDP is invested as public expenditure in this sector.

High quality of life

Residents enjoy an enviable lifestyle in a safe, clean and healthy environment with high standards of living. Low crime rates, sunshine all year round, hospitality, art, culture, history and a delicious gastronomy all contribute to a high standard of living.  Cyprus is one of the top 5 safest countries in the world and ranks as number 4 best retirement destinations.

Cyprus, indeed, has all the right ingredients to for an investor, due to its small size, productive labor force, business friendly and flexible government.

Amidst today’s constantly changing international environment, the Cyprus government aims to attract foreign investment as a key driver for economic growth. In line with this policy, the Cyprus government has introduced two schemes for granting foreign investors Cypriot Citizenship and Immigration Permit to Cyprus.

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