CYPRUS
INVEST WITH CONFIDENCE
www.cipa.org.cy
Severis Bldg 9 Makariou III Ave. 4th Floor Lefkosia 1065, Cyprus
P.O.Box 27032 Lefkosia 1641, Cyprus
Tel + 357 22 441133 Fax + 357 22 441134 www.cipa.org.cy info@cipa.org.cy
...« Strange, I can see it here, the light of the sun, the gold net where things are quivering like the fishes which a great angel draws together with the nets of the fishermen »...
From the poem “Ayia Napa” by George Seferis Nobel Prize Laureate - 1963 - Literature
A GLIMPSE OF CYPRUS
Cyprus, the third largest island in the Mediterranean Sea, is the eastern-most corner of the European Union, and a strategic post throughout the centuries and layers of history. Cyprus has a robust, market-driven economy supported by a stable democracy and driven by a diverse, well-educated, skilled workforce, along with an excellent telecommunications and infrastructure network and the lowest
Location & Population Cyprus, with an area of 9251 km² and coordinates at 35 N and 33 E, lies at the crossroads of Europe, Africa and Asia
in violation of ceasefire agreements arranged by the UN. Turkey
Cyprus is a Democratic state. The Executive authority is vested
and forcibly expelled from their homes about 200,000 Greek
in the President who is elected for a five year term by universal vote, and exercised by a Council of Ministers appointed by the President. The Legislative authority of the Republic is exercised
at the crux of the busy shipping and air routes linking
by the House of Representatives. House Members are elected by
the three continents.
universal vote every five years. The administration of Justice is exercised by the Judiciary, which is a separate and independent
occupied 36,2% of the sovereign territory of the Republic of Cyprus Cypriots. These displaced people, who in effect became refugees in their own country, constituted 69% of the population of the occupied areas and about one quarter of the total population of the island. To this day, these persons are deprived of their right to return to their homes and properties.
tax regime in the EU. The country currency is the euro.
The population of Cyprus is about 850,000. The capital
These characteristics along with over 300 days of sunshine
of Cyprus is Lefkosia situated in the heart of the island with
and centuries of art and culture, perhaps constitute the best
a population of approximately 315,000. The second largest
The Government of Cyprus welcomes Foreign Direct Investment
possible description in one breath, of one of the
city is Lemesos on the south coast with a population
supporting the economic development priorities of the country.
up-and-coming members of the European Union: Cyprus.
of approximately 180,000 and the island’s major port.
international organizations, including:
Larnaca and Pafos are the third and fourth largest cities,
• European Union (2004) and Eurozone (2008)
each with a new airport, situated on the south west and south east coasts respectively.
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Government
body. The current President of the Republic, is H.E. Mr. Dimitris Christofias, elected in February 2008 for a five year term.
The Cyprus Issue
International Memberships Since 1960, Cyprus has been granted membership to several
• The World Trade Organization (1995) • The International Monetary Fund ( IMF) (1962)
On July 20, 1974, Turkey invaded Cyprus with massive military
• The World Bank (1962)
force. The pretext was a coup against President Makarios
• The Commonwealth (1961)
on July 15 instigated by the military junta of Greece.
• The Council of Europe (1961)
A second wave of invasion followed in August of the same year,
• The United Nations (1960) 3
EUROPEAN UNION MEMBERSHIP
After a long journey of over three decades, the Republic
With the dawn of 2008, Cyprus joined the European Monetary
These priority economic growth sectors include:
of Cyprus became a full member of the EU on May 1, 2004.
Union leveraging a robust economic performance marked
Banking & Financial Services, Education, Information & Communication Technologies,
by banner key indicators. Apart from achieving and maintaining
Medical Services, Wellness Tourism, Professional Services (incl. legal and accounting),
the indicators to meet the strict EMU entrance requirements,
Research & Development, Shipping, Renewable Energy and Environmental Technologies.
a key advantage of joining the Eurozone is price transparency:
Overlaying in all sectors, Cyprus is keen to promote Knowledge Process Outsourcing (KPO)
with exchange rate risk eliminated and costs significantly
and Business Process Outsourcing (BPO) while enhancing business process innovation.
Accession to the EU was a natural choice for Cyprus, driven by its culture, civilization and history, as well as its unwavering commitment to the values of democracy, freedom and justice. EU accession has launched a new era of opportunities and responsibilities for Cyprus. The application of the EU laws and regulations, known as the Acquis Communautaire, is suspended for the area under military occupation by Turkey, pending a solution to the division of the island.
lower, prices are transparent across the Eurozone, fostering competition and lower prices in the medium to longer term. Accession to the EU has also launched a new era of commitment
entrepreneurship and innovation across sectors and processes.
to growth in Cyprus. Cyprus encourages Foreign Direct
In 2012 between July to December, Cyprus assumes, for the first time, the EU Presidency. In this role, as the face and the voice
Investment opportunities in the priority economic growth
of the European Union, Cyprus will direct the work of the Council of the European Union, maintain relations with other Union
sectors, highlighted in the country’s Strategic Development Plan
institutions and represent the European Union in international matters.
2007-2013.
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Today, Cyprus actively participates in EU Programs, focusing on strengthening growth in various economic sectors, as well as
For more info: www.europa.eu, www.eic.ac.cy
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CYPRUS: A LOW RISK, MARKET ECONOMY
ROBUST, STEADY GROWTH Cyprus’s ten economic freedoms
Since its independence in 1960, Cyprus has demonstrated
The low risk of the economy of Cyprus is reflected both in key
Several internationally acclaimed organizations such
a steady record of successful economic performance reflected
economic indicators and the various sovereign credit ratings.
as the World Economic Forum and the Heritage Foundation,
today in robust growth, near full employment conditions
In 2008, Moody’s, with the changeover to the Euro, upgraded
and macroeconomic stability. This success is attributed
the sovereign credit rating for Cyprus one notch up, from “A1”
largely to the sound macro-economic policies of successive
to “Aa3” with a stable outlook. Also in 2008, Standard & Poor’s
governments, a thriving market-oriented economic system,
rating is A+ and Fitch IBCA is AA-. According to the 2008
a favorable tax regime and a well educated, dynamic
Country Report published by Dun & Bradstreet, Cyprus
and entrepreneurial talent pool.
is ranked with a rating of ‘DB2d’ which designates low degree of uncertainty associated with expected returns.
Cyprus Economic Indicators
Cyprus Sovereign Credit Ratings
reflect the steady growth of Cyprus and improvement during the past several years. Specifically, the World Economic Forum 2008 report highlights that Cyprus is quite competitive, ranking 40th out of 134
Business Freedom
70.0
Trade Freedom
81.0
Fiscal Freedon
78.2
Government Size
43.0
Monetary Freedom
85.0
Investment Freedom
70.0
Financial Freedom
70.0
Property Rights
90.0
Fdm fm Corruption
56.0
Labor Freedom
70.0
100=most free, =world average
0
50
100
Source: The Heritage Foundation, 2008
economies. The report ranks economies in three stages of development. Cyprus is ranked as an economy in the most
These scores reflect that the economy of Cyprus enjoys world-class
advanced, and challenging, third stage where innovation
property rights and solid investment, monetary, trade, labour, business,
is the main driver of growth.
and financial freedom. The judiciary is independent which reflects a robust and transparent legal system. The labour market is relatively
Additionally, the Index of Economic Freedom which is published
flexible, with moderate severance packages and unemployment
Indicator
2007
2008
2009*
Rating Agency
Rating (2008)
by the Heritage Foundation and the Wall Street Journal,
benefits. The financial market is sound and open to foreign competition.
Real GDP Growth (annual % change)
4.4
3.6
-0.5
Moody’s
Aa3
states that the economy of Cyprus is 71.3 percent free,
The only category scoring low is the Government size which,
Inflation Rate
2.2
4.4
1.0
Standard & Poor’s
A+
which makes it the word’s 22nd freest economy.
for a population of about 850,000, could be considered large.
Unemployment Rate (%)
4.0
3.7
5.5
Fitch IBCA
AA-
Dun & Bradstreet
DB2d
Source: Cyprus Ministry of Finance
*Forecast
Cyprus scored above average in nine of the ten categories of this index.
The World Bank’s Doing Business Report 2010 has ranked Cyprus 40th out of 183 countries. DoingBusinessReport evaluates and ranks countries according to 10 business indicators. This is the first time
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that Cyprus has been included in this influential report.
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COMMITMENT TO REFORM
ROBUST LEGAL & REGULATORY SYSTEM
The Government of Cyprus is committed to reforms to further
Within the EU, the Common Customs Tariff (CCT)
Cyprus has a robust legal and regulatory framework. The legal system has evolved from Common Law and is harmonized
strengthen the regulatory and business environment
and all relevant EU legislative framework for the facilitation
with the European Union legal framework, the Aquis Communautaire, or the EU body of common rights and obligations.
in the country. Since joining the EU, Cyprus has implemented
of the free movement of goods, capital and services
significant economic and structural reforms which transformed
have been adopted.
the economic and business landscape of the country. Today, and relating in particular to the “Foreign Direct Investment” Tariffs and quantitative restrictions have been eliminated
environment, the Cyprus Investment Promotion Agency (CIPA)
for all manufactured goods and agricultural products originating
in conjunction with both the government and the private sector,
in Cyprus and other EU countries, liberalizing trade.
is covering significant ground in ensuring that laws and regulations
Interest rates and price controls, as well as investment
are updated and recalibrated to reflect the development of the
restrictions have been lifted and key public utility
economy and to encourage further opportunity for growth
sectors such as electricity supply and telecommunications
of Foreign Direct Investment in the country.
are now open to competition.
Relevant legislation to Foreign Direct Investment includes: • Company Law Law 113 incl. 92(I)2004
• Intellectual Property & Patent Law Trade Marks, Patents, Trade Names, Copyright, Designs
• Anti Money Laundering Law Law188 (I)/2007
• Transparency Law Law 190(1)/2007 (Greek)
• MIFiD Source: www.cysec.gov.cy, www.centrabank.gov.cy
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FAVORABLE TAX SYSTEM
Cyprus, offers a broad range of tax advantages to both
• No withholding tax on capital gains and no income tax on the disposal
individuals residing and companies conducting business
of either the shares of the subsidiary’s share capital, or the shares
on the island. Cyprus has the lowest corporate tax in Europe
of the Cyprus holding company;
of 10%, and has concluded double tax treaties with over 40 countries worldwide.
• No taxation on capital gains or income on the liquidation of the Cyprus holding company;
Personal Income Tax Highlights An Individual tax resident of Cyprus is an individual who resides in the republic for 183 days in the year of assessment. Cyprus tax residents are taxed on income earned both in Cyprus
• No withholding tax on distribution of profits, (subject to conditions)
and abroad whereas, non-tax residents are taxed on income
Corporate Tax Highlights
• Outward dividends paid by the Cyprus holding company
earned only from Cyprus sources.
A company registered in Cyprus benefits from the 10% corporate tax rate as well as the following tax incentives:
• Profits earned from a permanent establishment abroad are fully exempt
• Double tax treaties with over 40 countries, eliminating or enabling lower
• A diversified group of Cyprus companies belonging to a Cyprus holding
withholding tax rates on dividends or other income received from subsidiaries abroad;
company can utilise Group relief for the set off of tax losses; • No minimum holding period required, when selling an investment tax free.
subject to certain conditions; • Income received in the form of retirement gratuity, compensation for death or injuries, provident fund, pension fund, or other approved funds, is exempt from tax For further detailed information contact
to its non-resident shareholders are exempt from any withholding taxes;
from tax in Cyprus, subject to certain conditions;
• Current and previous years losses, are deducted from the taxable income,
The following tax provisions apply to individuals:
the Institute of Certified Public Accountants of Cyprus
• Low income tax rates;
at www.icpac.org.cy
• No tax on profits of a permanent establishment abroad and on salary earned abroad, under certain conditions; • No tax on profits gained from the sale of securities;
• Being an EU member state, holding companies registered in Cyprus may also enjoy no withholding tax on dividends received from EU subsidiaries
This information is intended for general guidance only. For details please contact professional advisors. 10
This information is intended for general guidance only. For details please contact professional advisors. 11
A YOUNG, WELL-EDUCATED TALENT POOL
Cyprus has a young, well-educated talent pool. The country
In 1996, Cyprus established the Cyprus Council for the Recognition
is committed to education and is focusing on reforms to
of Higher Education Qualifications (www.kysats.ac.cy) which oversees
achieve sustainable growth. Since 2004 Cyprus has consistently
the implementation of standards in higher education in the three public,
Two international airports, a modern road network
the Larnaca port into the second deep-sea port on the island.
allocated over 6% of GDP of public expenditure on Education.
including one Open University, and three private Universities. Cyprus
and multipurpose port facilities have long established Cyprus
has more than 20 colleges and 184 accredited study programs.
There is also a shipping terminal at Vasilikos, close to Lemesos.
as a commercial, financial and business centre in the region.
During 2007, 5466 ships called at Cyprus ports. Given its location
More than 33 Airlines, including Cyprus Airways and Eurocypria
and infrastructure, Cyprus welcomes investment to strengthen
operate scheduled fl ights from and to Larnaca International
capacity and growth in logistics.
Great value for money
With accession to the EU in 2004, to ensure the highest standards of quality in education, The Ministry of Education and Culture
An average annual starting salary for a young graduate with a Bachelor Degree is €15,000. The employee will contribute €945 for social security will pay 0 income tax. The employer will contribute €1500 to social security, for an average total labor cost, for such talent, of €16,500 per year.
has harmonized the educational system of Cyprus with the European standards & guidelines. Cypriot educational institutes actively participate in EU programs, like the Eurydice Network and the ERASMUS program. Of all secondary students 88% speak English, 38% speak French.
Transportation
Cyprus has one deep-sea port in Lemesos which expands over 1.3 square kilometers. Operations have begun to also transform
Airport (5 km from Larnaca town centre) and Pafos International Airport (15 km east of Pafos town). A new airport in Paphos was inaugurated in Nov. 2008 increasing flights by 58% and raising passenger capacity
Telecommunications
to about 2.7 million per year. The new airport in Larnaca
Considerable investment has been made into transforming
Cyprus is ranked Top among the EU countries in terms of the proportion
is expected to begin operations in late 2009, increasing
the island into a telecommunications hub for the region.
There were 345 public and 28 private primary schools
of the population with tertiary education qualifications. In 2007,
arrival capacity up to 9 million passengers per year.
Cyprus is connected to a number of advanced technology
and 126 public and 36 private secondary schools in 2007/08.
47% of the population of Cyprus in the 25-34 age range have a tertiary
One can be in London, Moscow or Dubai in about four hours
submarine cables which provide excellent connectivity to Europe,
Since 2005, Cyprus is in the top ten countries within the EU
level education while the EU27 average for the same year is 29.9%.
from Cyprus! With shipping accounting to 4% of the GDP
the Middle East and Asia. In addition, seven satellite earth stations
with the highest pupil per teacher ratio of 17,8 pupils
Also, 55.7% of Cypriot tertiary students studied abroad in 2007/08.
of Cyprus, ports and shipping terminals are critical components
provide further satellite telecommunications connectivity making
per teacher.
In Lefkosia alone, there are over 1300 researchers, providing ample
of this contribution.
it easy for companies to locate here and be connected globally
opportunity for growth in research, knowledge and innovation. 12
ADVANCED INFRASTRUCTURE
through an advanced and reliable communications network. 13
FDI GROWTH SECTORS
Fostering FDI Growth
Professional Services
Banking & Financial Services
Energy
Below are highlights of the priority economic growth sectors
The accession of Cyprus to the European Union and the euro zone,
The Cyprus banking and financial services sector is diverse,
Cyprus is committed to ensuring security of energy supply,
for the economy of Cyprus. Please contact the Cyprus
in conjunction with the developed, open market economy, strategic
comprising of commercial credit institutions, the Co-operative
protecting the environment, fostering healthy competition
Investment Promotion Agency (info@cipa.org.cy)
geographical location, advanced and attractive tax environment,
Credit Institutions (CCIs), the former International Banking Units
in the energy sector and encouraging development
for detailed information and investment opportunities
provides FDI opportunities, including Business Process Outsourcing
(IBUs), insurance companies, and other companies that offer
of renewable energy technologies and production.
in each of these sectors.
and Knowledge Process Outsourcing, leveraging the professional
financial intermediation services. There are many foreign banks
services sector.
from the Middle East, Europe, Africa and Asia that operate
Shipping
Highlights • There are approximately 2,586 active members of the Institute of Certified
Cyprus is an internationally renown shipping centre. The island’s merchant fleet has been growing steadily, reaching a top 3 position in Europe and a top 10 global ranking.
• In 2008, there were approximately 120 limited companies and 40 partnerships operating in Cyprus
as subsidiaries, branches or representative offices in Cyprus.
• Cyprus ranks number one per capita in the world in solar energy use for water heating in households.
In 2004, Cyprus completely liberalised capital movements
• 1,975,970 million toe (tons of oil equivalent) were consumed in 2008
enabling the former “Offshore Banks” to provide credit and full banking services as branches or subsidiaries of foreign banks.
Highlights
Highlights
• All major international accounting firms are present in Cyprus
• In 2008, Financial Intermediation services accounted for 8% of GDP
• More than 2,100 vessels with 43 million gross tonnage
• Cyprus offers a wide range of professional accounting, auditing, management
• The Cyprus banking sector (banks and co-operatives) operated
are registered in Cyprus • More than 130 ship owning, ship management and shipping related companies maintain offices in, and conduct international activities 14
Public Accountants of Cyprus registered accountants in Cyprus
from Cyprus
consultancy, taxation, financial advisory and other administrative service to both the private and public sectors • Cyprus follows the International Financial Reporting Standards (IFRS)
Highlights
• The average rate of increase of final energy consumption over the period 2001-2008 is estimated at 2.2% • Renewable Energy Sources accounted for 4.5% of total energy consumption in 2008 • €19,86 million were allocated by a special fund created by the Government to promote the use of Renewable Energy Sources in 2008
more than 920 branches and employed over 12,500 people in 2008 • At the end of 2008, the banking sector held almost 56 billion Euros in deposits and loaned over 54.7 billion Euros 15
FDI GROWTH SECTORS
Research & Development The contribution of the Research Promotion Foundation of Cyprus (www.research.org.cy) to research, technological development, and innovation funding is on a rising trend, with expenditure increasing from €0.077 million in 2000 to €8.54 million in 2007. The budget is expected to grow in the coming years according to the following five strategic categories: • Strategic & Multi-thematic Research and Development • Growth of National Scientific & Research Human Capital • Applied Research Development and Enterprise Innovation • Research Infrastructure Development and large scale Investments • International networking and collaboration in R&D and Innovation The combination of renown scientific personnel now working in Cyprus, along with numerous qualified researchers, and the full support of the Government, provides ample opportunity for investment in research, development and innovation. 16
Information Communication Technology One of the priority growth sectors in the Government of Cyprus Strategic Development Plan (2007-2013), is Information & Communication Technology. Specifically, Cyprus welcomes FDI to expand and/or develop projects on e-Government, e-Business, e-Learning, e-Inclusion, e-Health and overall ICT services.
Highlights
Education
Health Services
Cyprus is ranked top among the EU countries in terms of the
Medical services tourism is a developing industry that combines
proportion of the population with tertiary education qualifications.
medical treatment with vacation. The Government of Cyprus
In 2007, 47% of the population of Cyprus aged 25-34 had tertiary
and the Cyprus Tourism Organization focus on the promotion
level educational qualifications Compared to the EU27 average for the
of medical services in an effort to differentiate and enrich
same year of 29.9%. In 2007, 58% of all Cypriot university students
the tourism sector.
studied abroad, mostly in the UK and the United States in fields such as business administration, accounting, law and engineering. Cyprus provides great opportunity and encourages further growth in the establishment of new universities, colleges and research institutes.
• In 2006, there were 113 mobile subscriptions per 100 inhabitants (EU25=107) • 97% increase to enterprises having broadband from 2004 to 2007 (EU25=65%) • 62.5% increase to households with internet from 2002 to 2007 (EU15=51%)
Highlights • Expenditure of health services was €1.023 billion in 2007, €466.3 million (45.55%) of which constitutes expenditure of the public sector and €557 million (54.45%) of the private sector (provisional data) • The share of expenditure as a percent to GDP increased
Wellness Tourism The Cyprus Tourism Organisation has recalibrated its strategy to support the development of new tourism products and services, including the wellness tourism:
The body: fitness: exercise and therapy / diet: food / skin: beautification • The soul: relaxation: stress management, meditation • The spirit: culture, health education, health advice
•
from 6.1% in 2005 to 6.2% in 2007 • Five public General Hospitals: two in Lefkosia, and one each in Limassol, Larnaca and Paphos • Other specialized medical institutes, offering services in: ˜ Cancer treatment ˜ Organ transplants ˜ Services on bone marrow ˜ Cardiac surgery procedures and non-invasive Cardiac surgery ˜ Neurology and Genetics
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AN ENVIABLE LIFESTYLE
Cyprus offers a wonderful environment for a very comfortable standard of living
Arts and culture have a long tradition in Cyprus with historical
In the recent years a burgeoning fashion milieu has grown
Stress levels are low and business is still largely done with
monuments dating back to 10,000 BC. In the capital
from numerous young, creative and entrepreneurial fashion
a personal touch and slower pace of life. Crime rates are very
of Lefkosia there are over seventeen museums showcasing
designers, many of whom have trained in the world’s renowned
low and the sense of safety and security is quite high across
a broad array of archaeological collections, byzantine icons,
art and design institutions and fashion capitals.
the country.
Indicatively, according to the latest publication of the Human
several artists and painters and the gallery community
Gastronomy and wine have a long tradition in Cyprus. Local
Commutes are minimal. The island has a developed network
Development Index which is a measure of the standard
has grown steadily in the last few years. The Performing Arts
cuisine based on the Mediterranean diet provides several
of four lane highways linking all main destinations. One can
of living of a country, published by the UN Development
are flourishing. Throughout the year, local and international
culinary treasures ranging from healthy salads, the famous
drive from the capital, Lefkosia, to the beach in Larnaca,
Program (UNDP) in 2005, Cyprus ranks as the 28th highest
festivals, concerts of renowned performers and events take
halloumi cheese and vegetable appetizers, to main courses
in about 30 minutes.
in the world, with 90.3 points. The highest score
place in ancient open air amphitheaters, including international
was 96.8 points.
independent fi lm festivals, annual classical music festivals
coinage, paintings, and other cultural treasures. Cyprus boasts
and an opera festival at the end of summer.
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which include goat meat on the spit, pork reduced in wine, and scrumptious honey dipped deserts and fruits preserved with recipes dating back hundreds years.
With a pleasant weather throughout the year, sports aficionados can ski in February, swim and kite surf until October, bike and play tennis and golf all year!
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CYPRUS INVESTMENT PROMOTION AGENCY
The Cyprus Investment Promotion Agency (CIPA)
CIPA succeeds the efforts of the Foreign Investors Center
The CIPA team is dynamic and tightly knit with a broad array
at the Ministry of Commerce, Industry & Tourism and takes
of expertise both locally and internationally.
Established with a Council of Ministers decision in 2007,
and partnership with the private sector and related government
CIPA encourages foreign businesses to explore opportunities
of Commerce, Industry and Tourism, serves both local
the Cyprus Investment Promotion Agency is a registered
organizations and agencies.
for investment in Cyprus.
and foreign based companies. Providing one single
not-for-profit company limited by guarantee and fully funded by the Government of Cyprus. The Board of 13 Directors (10 from the private and 3 from the public sector) was appointed for an initial 4 year term.
CIPA has established its membership with the World Association of Investment Promotion Agencies (WAIPA) and Med-Invest, the Mediterranean countries’ Investment Promotion Agencies Foundation. Memberships in these and other fora provide a platform for best practices sharing and learnings in the area
Promotion Agency has a threefold mandate:
of FDI promotion and strategy implementation.
in key priority growth sectors • To advocate reform in Cyprus required to improve the regulatory and business environment and infrastructure • To provide investor support with after care and further development services
The One-Stop Shop, under the auspices of the Ministry
point of contact regarding:
Operating since January 2008, the Cyprus Investment
• To promote Cyprus as an attractive international investment centre
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the lead in attracting foreign direct investment in conjunction
One Stop Shop
CIPA is actively involved in advocating key reforms to remove hurdles and strengthen the regulatory and business environment in Cyprus which is a foundational requirement to attract and retain foreign direct investment, especially
For information and guidance on investment in Cyprus, contact CIPA at:
• Company registration
Severis Bldg, 9 Makariou III Ave., 4th Floor P.O.Box 27032, Lefkosia 1641, Cyprus Tel.: +357 22 441133, Fax: +357 22 441134 Website: www.cipa.org.cy E-mail: info@cipa.org.cy
• Income tax registration
• VAT registration
• Social Insurance Fund and Employers Registration • Applications for the issuance of residence and work permits
For company registration and related procedures contact the One Stop Shop at: One-Stop Shop, Ministry of Commerce, Industry and Tourism 13-15 Andreas Araouzos Street, 1421 Nicosia, Cyprus Tel.: +357 22 409433/322, Fax: +357 22 409432 E-mail: onestopshop@mcit.gov.cy
in an increasingly competitive global economic framework.
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INCENTIVES
Free Zones Human Resource Development Authority of Cyprus (HRDAC) In Cyprus, there are three free zones, the Larnaca Free Zone and the Free Port Areas of Limassol and Larnaca. All of these operate as “Control Type II” free zones. In a “Control type II” Free Zone, controls are principally based on the procedures carried out by the Customs & Excise Dept of the Ministry of Finance pertaining to the warehousing
Human Resource Development Authority of Cyprus (HRDAC) The Human Resource Development Authority of Cyprus (HRDAC) provides funding in the form of grants to support a wide spectrum of training needs for any size company registered in Cyprus. Among the most popular funding opportunities are:
The Director, Department of Customs and Excise Customs Headquarters, 1440, Nicosia Tel.: +357 22 407510, Fax: +357 22 302031 E-mail: headquarters@customs.mof.gov.cy
Additionally, the Government of Cyprus provides funding
The Cyprus Tourism Organization (CTO) provides funding
in what are known as de minimis schemes which cover
in the form of Governmental grants intended to attract investment
a wide spectrum of entrepreneurial interest. The planning
for Sustainable Enrichment and Development of Tourism in Cyprus.
of such funding is reviewed every three years and is limited
Currently a funding program is available until 31 December 2013
to 200,000 euro per case over a period of three years.
supporting:
For information: www.publicaid.gov.cy
• Investment to enrich activities in the field of tourism • Investment to substantial upgrade and modernize existing tourist resorts
• Training provided by private training organizations in various fields For more information: www.hrdauth.org.cy
Research Promotion Foundation (RPF) The Research Promotion Foundation (RPF) provides funding in the form of Governmental grants aiming to promote the development of scientific and technological research in Cyprus and highlight fundamental importance of research in knowledge economies. For more information: http://crpf.metacanvas.com
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Cyprus Tourism Organization (CTO)
• In-company training for developing and upgrading skills
customs requirements.
For more information contact the Department of Customs and Excise at:
De Minimis Funding Opportunities
The Ministry of Commerce, Industry and Tourism
For more information: www.visitcyprus.com
Cyprus Institute of Energy (CIE)
The Ministry of Commerce, Industry and Tourism provides funding in the form of Governmental grants. The beneficiaries
The Cyprus Institute of Energy (CIE) administers funding
are existing, or new companies that have, or are planning
in the form of Governmental grants for the materialization
to establish control laboratories, testing, analysis and
of investments in the field of Energy Conservation (EC)
calibration of machinery products.
and the promotion of the Renewable Energy Sources (RES)
For more information: www.mcit.gov.cy/mcit
utilization. For more information: www.cie.org.cy 23
CYPRUS. INVEST WITH CONFIDENCE
OUR VALUE PROPOSITION
In a globalized economy where multinational companies
6. Low corporate tax rate and double tax treaties
are pressed to maintain and increase quality while cutting costs
Cyprus is among the countries with the lowest corporate tax in Europe
to meet increasingly higher client expectations, Cyprus provides
of 10%. Dividend income, profits from overseas permanent
a complete value proposition:
establishments and profits from the sale of securities are exempt from tax. No withholding tax on dividend, interest and royalties paid from
1. European Union and European Monetary Union Member State EU27 Member since May 2004, EMU Member since January 2008.
2. Strategic Location Cyprus is Europe’s eastern outpost at the crossroads of three continents.
3. Robust Credit ratings Moody’s: Aa3 Fitch’s: AA- Standard & Poors: A+
4. Highly educated, qualified and multilingual talent
7. Wide and efficient network of legal, accounting and banking services Long term presence of international accounting firms and banks.
8. Renown International Shipping Centre Cyprus is a highly reputable international shipping centre, ranking in the top 3 leading maritime nations in the EU 27 and top 10 in the world.
9. Advanced telecommunications network and easy travel
Cyprus: 47% of population in the 25-34 age group have tertiary level
Two International airports, state-of-the-art hi-speed internet
education compared to EU27: 29.9% (2007).
and mobile telecommunications.
5. Poised for long term growth
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Cyprus. Cyprus has concluded double tax treaties with over 41 countries.
10. Enviable quality of life
Global Finance Magazine and Citigroup’s Emerging Markets 2007
Living and working in Cyprus means fabulous weather, beautiful nature,
Report ranks Cyprus as a ‘hot’ economy, defined as an economy
low stress, art and culture, safety, security, gastronomy and wine
with the right conditions for serious growth.
and above all, hospitable people.
« Heaven bless the island of Cyprus » From “Othello” Act II, Scene II by William Shakespeare