2020 Cyprus Country Report

CountryProfiler 

Global Edition 2020 | €10 

www.cyprusprofile.com 

CYPRUS 

COUNTRY REPORT 

Already the leader in EU funds per 

capita, a new deputy ministry and 

increased government spending 

are driving the research sector 

Increased investment in RES and a 

strong focus on research and innovation 

are fostering fresh efforts for Cyprus 

to develop a zero-carbon economy 

Digital Cyprus is fast-tracked with 

added state support, the launch of new 

national strategies, and incentives 

to attract foreign IT companies 

Growing numbers of foreign students, 

new degrees to meet future demands 

and investment in top-tier campuses 

are strengthening the education sector 

Growth on the Horizon 

Despite the slowdown due to the global 

pandemic, Cyprus forecasts growth in 2021 

ECONOMY • FOREIGN DIRECT INVESTMENT • SECTOR PROFILES • BUSINESS OPERATING ENVIRONMENT • BUSINESS DIRECTORY 

Headquartering Companies 

choosing to establish a base 

in Cyprus on the rise 

Sectors to Watch Energy, 

Investment Funds, ICT, Film 

Production and Education 

Who’s Who The definitive guide 

to Cyprus’ leading companies, 

executives & professional advisers

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DESTINATION 

DEVELOPMENTS 

BY CYBARCO 

More than a property 

A member of the reputable Lanitis Group, Cybarco has been 

shaping Cyprus since 1945. Celebrating decades of innovation 

and creativity, the island’s leading luxury property developer 

continues to push the boundaries, delivering iconic developments 

that transform lives and communities. Landmark projects like 

Aphrodite Hills Golf Resort, Sea Gallery Villas, Akamas Bay 

Villas, The Oval, Limassol Marina and Trilogy Limassol Seafront 

are part of Cybarco’s impressive portfolio, the foundation of a 

proven track record in property sales and customer satisfaction. 

Continuing to set new standards for property development 

in Cyprus, Cybarco combines world-class 

architecture, unique designs, and outstanding views 

in the finest locations to create “more than a property”. 

Michalis Hadjipanayiotou, CEO of Cybarco Development 

Ltd and Chairman of the Cyprus Land and Building 

Developers Association, shares the company’s vision: “We 

believe the perfect property isn’t just an object of desire or 

a financially savvy transaction, it’s something much more 

meaningful. We create homes and offices that are part of 

a destination and connect customers with the local community.”

Limassol Marina is just one example of a success story 

that saw a run-down part of Cyprus’ most vibrant city 

transformed into an award-winning and highly sought-after 

superyacht destination with its own residential community, 

dining, shopping, cultural and leisure facilities. Almost all 

properties have now been sold, exceeding a sales total of 

€500 million, and the project is nearing completion with 

its last phase apartments in the sea at Castle Residences - 

surrounded by the azure waters of the Mediterranean. 

A few kilometres to the east of Limassol Marina, Trilogy 

Limassol Seafront is the latest mixed-use destination by 

Cybarco. With financing secured, it offers the ultimate 

investment in a prime location and at great value across three 

shimmering beachfront towers. It is the only place to live, 

work and play in Cyprus, boasting offices and apartments 

with sea views from every window, dining, shopping, and 

leisure facilities. The two front towers’ construction is 

progressing apace, and piling of the North Tower has been 

completed. Sales and reservations for its luxury properties 

have now exceeded €170 million with interest still strong, 

despite the challenges of the pandemic. 

Just a few minutes from Trilogy, Cybarco’s boutique 

Aktea Residences offer an address for coastal living in one 

of Limassol’s up-and-coming areas. And from the vibrant 

shores of Limassol to the most serene and picturesque part 

of the island, Akamas Bay Villas is the developer’s private 

haven of natural beauty located near the Akamas Peninsula. 

Construction of its masterplan’s second phase is underway 

following the successful sales and completion of phase one. 

Undisturbed views of the sparkling blue sea and boundless 

sky, blend with harmonious architecture and outstanding 

design across a dozen newly released villas on fully 

landscaped plots, with show homes available for viewing. 

Michalis Hadjipanayiotou, is optimistic about the 

future: “We are particularly proud of our pioneering 

projects. We feel we have managed to raise the bar for 

development in Cyprus over the years. Projects like 

Limassol Marina and The Oval are landmarks in more ways 

than one. They have set the benchmark for future projects 

of their kind and given Cyprus much-needed exposure in 

markets we previously had no product to offer. We are very 

excited about the coming years and we strive to continue 

finding creative and unique ways to bring change for the 

better to Cyprus.” 

Trilogy Limassol Seafront 

Limassol Marina 

Shaping Cyprus since 1945 

For more information, contact 8000 50 30 or visit 

cybarco.com 

Aktea Residences 

Akamas Bay Villas

Publisher’s Information 


Global Edition 2020 | €10 


CYPRUS 

COUNTRY REPORT 

Already the leader in EU funds per 

capita, a new deputy ministry and 

increased government spending 

are driving the research sector 

Increased investment in RES and a 

strong focus on research and innovation 

are fostering fresh efforts for Cyprus 

to develop a zero-carbon economy 

Digital Cyprus is fast-tracked with 

added state support, the launch of new 

national strategies, and incentives 

to attract foreign IT companies 

Growing numbers of foreign students, 

new degrees to meet future demands 

and investment in top-tier campuses 

are strengthening the education sector 

Growth on the Horizon 

Despite the slowdown due to the global 

pandemic, Cyprus forecasts growth in 2021 

ECONOMY • FOREIGN DIRECT INVESTMENT • SECTOR PROFILES • BUSINESS OPERATING ENVIRONMENT • BUSINESS DIRECTORY 

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RESEARCH AND CONTRIBUTIONS 

CountryProfiler staff 

Headquartering Companies 

choosing to establish a base 

in Cyprus on the rise 

Sectors to Watch Energy, 

Investment Funds, ICT, Film 

Production and Education 

Who’s Who The definitive guide 

to Cyprus’ leading companies, 

executives & professional advisers 

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4 Country Report CYPRUS 2020

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VIEW THE PROPERTY COLLECTION AT MINTHISRESORT.COM 

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Pafos, Cyprus

Contents 

Contents 

10 

12 

16 

18 

26 

32 

34 

40 

42 

46 

FOREWORD President of the Republic of 

Cyprus, Nicos Anastasiades 

CYPRUS AT A GLANCE Key Facts & Figures 

GOVERNMENT & POLITICS A Key EU Outpost 

ECONOMY Growth on the Horizon 

FOREIGN DIRECT INVESTMENT FDI Destination 

FDI INSIGHTS Why did you choose to invest in Cyprus? 

HEADQUARTERING East Med HQ 

HQ INSIGHTS Why did you choose Cyprus? 

INTERVIEW Minister of Energy, Commerce 

& Industry Natasa Pilides 

INTERNATIONAL TRADE Quality Exports 


Expertise 

Solutions 

Value 

www.pwc.com.cy 

© 2020 PricewaterhouseCoopers Ltd. All rights reserved.

Contents 

Sector Profiles 

50 AGRICULTURE & FOOD Fostering Sustainable Farming 

56 BANKING Bolstering the Banks 

62 CAPITAL MARKETS Building a Dynamic Market 

66 CONSTRUCTION & REAL ESTATE Location Cyprus 

74 EDUCATION Educating a New Generation 

79 ENERGY: OIL & GAS Harnessing the Hydrocarbons Potential 

84 ENERGY: RENEWABLES A Greener Future 

88 FILM PRODUCTION Joining the A-List 

92 HEALTH Streamlining Health 

98 INSURANCE Mitigating Risk 

102 INTERNATIONAL FINANCIAL SERVICES 

Towards a Diversified Future 

108 INVESTMENT FUNDS Ready for Bold Moves 

112 MANUFACTURING & INDUSTRY Modernising Manufacturing 

116 MARITIME & SHIPPING Navigating High Seas 

122 RESEARCH & DEVELOPMENT A Future of Innovation 

128 TECHNOLOGY & START-UPS An Era of Disruption 

132 TELECOMS & SATELLITE COMMUNICATIONS 

Building a Gigabit Future 

136 TOURISM The New Age of Tourism 

144 TRANSPORT & LOGISTICS East Med Transport Hub 

150 

158 

170 

BUSINESS OPERATING ENVIRONMENT 

Doing Business in Cyprus 

TRAVEL & LIVING CountryProfiler Expat Guide 

WHO’S WHO Cyprus Business Directory 


Foreword 

Foreword 

Nicos Anastasiades 

President of the Republic of Cyprus 


Foreword 

Without any doubt, the Covid-19 pandemic has caused unprecedented 

challenges for all the countries around the globe with severe socio-economic 

consequences. 

In dealing with this, unfortunately, ongoing crisis, my Government 

has been assertive in its decision-making and proactive in providing 

medical and economic support to our citizens, workers and enterprises. 

Like many other countries, Cyprus had to take harsh, painful, but necessary 

measures, in order to deal in a timely and effective manner with this unprecedented 

public health crisis. 

We immediately acknowledged, however, that, beyond saving lives, we also had to 

safeguard livelihoods and address the potential economic and social disruption the 

lockdown measures would cause. 

We needed to ensure the sustainability of businesses, preserve jobs, maintain 

the income of our citizens, protect the rights of workers and provide the necessary 

support to our economy to recover as quickly as possible once the lockdown restrictions 

would gradually be eased and eventually lifted. 

To this end, we adopted one of the most comprehensive fiscal 

support packages within the European Union, without risking the 

long-term sustainability of public finances. This is due to the fact 

that the Cyprus Government accumulated the necessary fiscal surpluses 

in the past that could be used in emergency cases such as the 

current pandemic crisis. 

As regards the economic outlook, following the unavoidable 

recession of economic activity in 2020 due to the imposed lockdown 

measures, we expect a significant rebound in 2021, with 

positive growth rates, drop of unemployment, budget surplus and 

a reduced public debt. 

Our motto in Cyprus is that with every challenge there is opportunity. 

In this regard, the Government’s broader strategy for economic 

recovery also includes the implementation of much needed 

structural reforms for the further development of key economic 

sectors, fully exploiting newly established European mechanisms 

such as “SURE” and “Recovery and Resilience Facility”. 

Reforms, amongst others, as regards the pension, welfare and 

labour market system, the judicial and health care systems, and the sectors of digital 

transformation, tourism, research and innovation and green economy. 

We will also continue the sound governance of public finances, complemented 

by a business-friendly investment environment, moving forward with a comprehensive 

government strategy for investment facilitation and fully reforming the public 

service so that it facilitates growth in a modern, knowledge-based, scientific, hightech 

and innovative economy. 

We envisage that the Cyprus economy will be eventually transformed in such a 

way, in order to become even more competitive in the global economic stage. It’s up 

to us to make this happen and I am certain that we will deliver. 

In concluding, I wish to extend my deepest appreciation to the editors and publishers 

of the Cyprus Country Report for providing all these years essential insight 

on the Cypriot economy and the attractive investment opportunities in our country. 

“We adopted 

one of the most 

comprehensive 

fiscal support 

packages within 

the European 

Union, without 

risking the 

long-term 

sustainability of 

public finances” 


President of the Republic of Cyprus 

Country Report CYPRUS 2020 11

Publisher’s Cyprus Information 

a Glance 

CYPRUS at a Glance 

Lying at the crossroads of Europe, Asia and Africa, Cyprus 

has long served as a major eastern trading post. It is a small 

country, but the third largest island in the Mediterranean 

Sea and shares a maritime border with Egypt 300km to the 

south, Lebanon 108km to the east and Turkey 71km to the 

north, while inland Greece lies 800km to the north-west. With 

10,000 years of history, the island’s strategic location has 

long made it a jewel in the crown of the powers of the day. 

Cultural influences have come from all directions, with many 

civilisations leaving their mark on the island, contributing to 

the development of a rich and diverse cultural heritage. 

TOTAL POPULATION 

875,900 

Republic of Cyprus 

Non- 

Cypriot 

18% 

Cypriot 

82% 

OFFICIAL LANGUAGES 

Greek & 

Turkish 

(business generally 

conducted in English) 

INDEPENDENCE DAY 

October 

1st 

MEMBERSHIPS 

EU & Eurozone 

World Trade 

Organization 

United Nations 

Council of Europe 

Commonwealth 

World Bank & IMF 

CURRENCY 

Euro (€) 

MAIN MEDIA 

Cyprus Mail 

Phileleftheros 

Politis 

CyBC 


35ºN 33ºE 

Publisher’s Cyprus at a Glance Information 

Nicosia 

(Lefkosia) 

Population: 

341,700 

Famagusta 

(Ammochostos) 

48,200 

Paphos 

94,100 

Paphos 

International 

Airport 

Limassol 

244,900 

Larnaca 

International 

Airport 

Larnaca 

147,000 

TIME 

+2 Hours 

ahead of GMT 

SUNSHINE 

340 Days 

of sunshine / year 

AREA / SIZE 

9,251 km 2 

(3,355 km 2 in the occupied area) 

POPULATION DENSITY 

128.7 

(PERSONS PER KM 2 ) 

RELIGION 

89.1% 

Greek 

Orthodox 

AVERAGE TEMPERATURE 

Winter 

+13ºC 

Summer 

+34ºC 

ANNUAL RAINFALL 

790.1 mm 

average 

MEDIAN AGE 

37.9 

2.9% Roman Catholic 

2.0% Protestant/Anglican 

1.8% Muslim 

1.7% Unknown/Atheist 

1.4% Other 1.0% Buddhist 


Publisher’s Cyprus Information 

a Glance 

Business FIGURES 

GDP BY SECTOR 

TOTAL GDP 

€21.9 billion 

(2019) 

CORPORATE TAX RATE 

12.5% 

TIME TO START UP A BUSINESS 

1-3 days 

GDP PER CAPITA 

INFLATION 

ACCOUNTING STANDARD 

13.1% 

Taxes & 

subsidies 

71.9% 

Services 

€24,925 

(2019) 

0.5% 

(2019) 

IFRS 

6.1% 

Construction 

6.9% 

Mining, 

manufacturing, 

electricity & water 

2% 

Agriculture, 

forestry & fishing 

37th 

Economic Freedom Index 2020 

Heritage Foundation 

(out of 186 countries) 

GDP GROWTH 

3.2% 

(2019) 

INTERNATIONAL RANKINGS 

29th 

Global Innovation Index 2020 

INSEAD and the World Intellectual 

Property Organization 


UNEMPLOYMENT 

6.9% 

(July 2020) 

45th 

in World Happiness 

Report 2020 


CRIME 

0.9 per 

100 persons 

Cyprus is the safest 

country in the world for 

young people out of 184 

countries across the globe. 

(World Health Organisation 

WHO 2017) 

Enforcing 

Contracts 

Dealing with 

Construction 

Permits 

Overall Doing Business ranking: 54th 

(out of 190 economies) 

Starting a 

Business 

Getting 

Electricity 

Registering 

Property 

Getting 

Credit 

Protecting 

Minority 

Investors 

Paying 

Taxes 

Trading 

across 

Borders 

Resolving 

Insolvency 

50 th 125 th 75 th 71 st 80 th 21 st 29 th 50 th 142 nd 31 st 

STANDARD 

& POOR’S 

BBB- 

(September 2020) 

FITCH 

BBB- 


MOODY’S 

Ba2 


UK 

Germany 

Italy 

France 

Greece 

MAIN TRADING PARTNERS 

Israel 

China 


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©2020 KPMG Limited, a Cyprus limited liability company and member of the KPMG network 

of independent member firms affiliated with KPMG International Cooperative (”KPMG 

International”), a Swiss entity. All rights reserved. 

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Government & Politics 

A Key EU Outpost 

As the European Union’s easternmost member state, Cyprus has established 

itself as a geostrategic EU outpost at the crossroads of three continents. 

As an international business centre and with global cooperation in 

multiple sectors, Cyprus’ reach goes far beyond its borders, with 2020 also 

bringing new efforts to finally reach a solution for this divided island. 

The Republic of Cyprus is a unitary presidential 

representative republic, where the 

President of Cyprus is both head of state and 

head of government, and executive power is 

exercised by the government. Legislative power 

is vested in both the government and the parliament, 

and the judiciary is independent of the executive 

and the legislature. The seventh president 

of the Republic of Cyprus, Nicos Anastasiades, 

was re-elected for another five-year term on 4 

February 2018. The conservative candidate and 

head of the DISY party won his second term 

following a run-off presidential election with a 

majority of 55.99% of the vote. Embarking on 

his second term in office, the President called for 

unity to address future challenges. 

At the start of his first term, Cyprus suffered a 

major financial crisis, and President Anastasiades 

had to take robust measures to steer the country 

back on track from one of the most challenging 

economic times in the island’s history. The 

economy bounced back swiftly returning to 

growth in 2015, investment grade rating in 2018 

and recording an average GDP growth of 5.4% 

in 2016-19, making Cyprus one of the fastest 

growing economies in the European Union. In 

2020, this growth momentum has been stalled by 

the consequences of the Covid-19 pandemic, but 

with strong action and robust support packages 

in place the country has fared better than many 

of its European peers. 

The division of Cyprus remains one of the 

most long-standing and prominent issues in the 

political arena. UN-brokered peace talks between 

the Greek and Turkish Cypriot leaderships, 

which first began in 1968, had gained significant 

momentum in 2015 only to collapse in 2017. 

In October this year, following the presidential 

election win of Ankara-backed Turkish Cypriot 

leader Ersin Tatar, the ‘Cyprus Problem’, which 

led to the de facto division of the island between 

the mainly Greek-speaking south and the mainly 

Turkish-speaking north for over four decades, 

may have become a tougher puzzle to solve. The 

change in leadership comes amid rising ten- 

sions between Cyprus, Greece and Turkey over 

hydrocarbons explorations in Cyprus’ Exclusive 

Economic Zone (EEZ) and the controversial 

partial reopening of the coastal city of Varosha 

in Famagusta. However, the new Turkish Cypriot 

leader has already accepted Cypriot President 

Nicos Anastasiades' offer to resume talks, backed 

by the encouragement from the UN and the EU 

to show “constructive engagement”. 

DIVIDED ISLAND 

In 1960 Cyprus gained independence from 

Britain and became a unitary state of both Greekand 

Turkish-Cypriots (respectively around 80% 

and 20% of the population). In July 1974, a rightwing 

coup backed by the military junta in power 

in Greece overturned the democratically elected 

government, forcing the Cypriot President 

Archbishop Makarios to flee. This prompted 

Turkey, one of the guarantor powers, which also 

include Greece and the UK, to send its troops 

into the island to support the Turkish Cypriot minority. 

Fierce fighting followed and the ensuing 

ceasefire line – known as the Green Line and patrolled 

by United Nations troops – has effectively 

partitioned the island ever since. However, visitors 

can safely access either side through various 

checkpoints along the Green Line. Today, Nicosia 

is the world’s last divided capital, since the fall of 

Political Parties 

Constitution, Institutions 

and Administration 

The 1960 constitution provided 

for power sharing between 

the Greek Cypriot and Turkish 

Cypriot communities. Votes 

on important issues required 

separate parliamentary 

majorities, and the Greek 

Cypriot president and the 

Turkish Cypriot vice president 

both had the right of veto 

on important decisions. 

The system of government 

is presidential, with the 

separation of powers between 

the executive and the 

legislature. The presidential 

term lasts five years, with the 

next presidential election due 

in 2023. Ministers, who are 

appointed by the president, 

cannot hold seats in the 

House of Representatives. 

The House of Representatives 

is elected by proportional 

representation. Its normal 

term is five years. 

Dominant Political Parties: 

Democratic Rally (DISY), a right-wing party led by Averof Neophytou 

Progressive Party of the Working People (AKEL), a left-wing party led by Andros Kyprianou 

Democratic Party (DIKO), a centre-right party led by Nicolas Papadopoulos 

Movement of Social Democracy (EDEK), a social democratic party led by Marinos Sizopoulos 

Smaller Political Parties: 

Ecologists Movement, also known as the Cyprus Green Party, led by Charalambos Theopemptou 

Allileggii (Solidarity), a nationalist party led by Eleni Theocharous 

Citizens’ Alliance (Symmaxia Politon), a centre-left party led by Giorgos Lillikas 

National People’s Front (E.L.A.M.), an ultranationalist party led by Christos Christou 


Government Structure 

President of the 

Republic of Cyprus 


Minister of Foreign Affairs 

Nikos Christodoulides 

Government & Politics 

Minister of Finance 

Constantinos Petrides 

Minister of Interior 

Nicos Nouris 

Minister of Defence 

Charalambos Petrides 

Minister of Health 

Constantinos Ioannou 

Minister of Education 

and Culture 

Prodromos Prodromou 

Minister of Transport, 

Communications and Works 

Yiannis Karousos 

Minister of Energy, 

Commerce and Industry 

Natasa Pilides 

Minister of Agriculture, 

Rural Development 

and Environment 

Costas Kadis 

Minister of Labour, Welfare 

and Social Insurance 

Zeta Emilianidou 

Minister of Justice 

and Public Order 

Emily Yiolitis 

Government Spokesman 

Kyriacos Kousios 

Under Secretary to 

the President 

Vasilis Palmas 

Shipping Deputy Minister 

Vassilis Demetriades 

Deputy Minister for Tourism 

Savvas Perdios 

the Berlin Wall. The population of the southern 

two-thirds of the island, controlled by the government 

of the Republic of Cyprus, is almost entirely 

Greek Cypriot, while the population of the northern 

third, controlled by the breakaway Turkish 

Republic of Northern Cyprus (recognised only 

by Turkey) comprises Turkish Cypriots, settlers 

from the Turkish mainland and around 42,000 

Turkish troops. 

FROM FOREIGN RULE TO THE 

REPUBLIC OF CYPRUS 

Colonised by the ancient Greeks in 1400 BC, 

Cyprus has had a succession of foreign rulers 

through the centuries, including the Romans, the 

Byzantines, the Franks and the Venetians, whose 

300-year rule ended in 1571 when the island 

became part of the Ottoman Empire. After almost 

250 years of Ottoman rule, Cyprus was placed 

under British administration in 1878. The island 

finally became independent in 1960 after a protracted 

and violent struggle against the colonial 

power between 1955 and 1959. After lengthy negotiations, 

Britain, Greece and Turkey drafted a 

constitution for the new state, along with Treaties 

of Guarantee and Alliance. The Republic of Cyprus 

came into being in August 1960. The constitution 

and the two accompanying treaties established a 

complex power-sharing structure between Greek 

and Turkish Cypriots, which precluded partition 

of the island, or union with Greece or Turkey. Both 

countries, along with Britain, were also designated 

guarantors of the independence, territorial integrity 

and security of the Republic. The constitution 

provided for a Greek Cypriot president and a 

Turkish Cypriot vice president, while the Turkish 

Cypriot community was granted three ministerial 

positions out of a total of 10, and 15 out of 

the 50 seats in the House of Representatives. After 

intercommunal strife between the two communities 

in 1963, Turkish Cypriots vacated their seats. 

Since then, ministerial positions have increased to 

11, all duties carried out by Greek Cypriots and 

the number of parliamentary seats has extended 

to 80 of which 30% (24) are allocated to Turkish 

Cypriots as per the constitution but remain vacant. 

INTERNATIONAL RELATIONS 

Cyprus joined the EU on 1 May 2004 together 

with nine other European countries. Under the 

terms of its accession the entire island is considered 

technically to be a member of the European 

Union, despite its continued division and the fact 

that the government of the Republic has no effective 

authority in the northern part of the island. 

However, the terms of the acquis communautaire, 

the EU’s body of laws, have been suspended 

in the north. Cyprus has historically followed a 

non-aligned foreign policy, although it increasingly 

identifies with the West in its cultural affinities 

and trade patterns, and maintains close relations 

with Greece. Turkey refuses to recognise the 

government of the Republic of Cyprus, arguing 

that the latter – as established by the Constitution 

of 1960 – ceased to exist when the intercommunal 

violence that broke out in December 1963 ended 

Turkish Cypriot participation in government. 

As a result, Turkey still refuses to allow Cypriotflagged 

vessels access to its ports, despite pressure 

from the European Union. Cyprus is a member 

of the United Nations and most of its agencies, 

as well as the Commonwealth of Nations, World 

Bank, International Monetary Fund and Council 

of Europe. In addition, the country has signed the 

General Agreement on Tariffs and Trade (GATT) 

and the Multilateral Investment Guarantee 

Agency Agreement (MIGA). n 

Discover more at www.cyprusprofile.com 


Economy 

H 


Economy 

GROWTH ON 

THE 

ORIZON 

Following the banking crisis of 2013, Cyprus exceeded 

expectations and propelled itself into a front-runner as one of the 

fastest growing EU economies. Implementing critical reforms, 

strengthening investor confidence and launching new incentives 

were key to achieving this success. With the break of the 

coronavirus pandemic the economy has taken a severe hit along 

with many other countries, but early action has proved key in 

Cyprus’ efforts to secure a sustainable and competitive economy. 


Economy 

The small, open economy 

of Cyprus is known for its 

resilience, having enjoyed 

uninterrupted expansion 

for more than 30 years 

until the global financial 

crisis pushed the country 

into recession in 2009. The 

economy bounced back 

swiftly after the banking 

crisis in 2013, returning to 

growth in 2015, investment 

grade rating in 2018 and 

recording annual average 

real GDP growth of 5.4% in 2016-19. During this 

period the banks took the opportunity to consolidate, 

boost and diversify their capital base and cut 

non-performing loans by over two-thirds. At the 

same time, the government reformed its public 

finances, brought debt back below 100% of GDP 

and paid off its debt to the IMF five years early. 

The medium-term focus is on continuing 

structural reforms that will encourage investment, 

raise the economy’s competitiveness and 

leverage the eurozone economy’s highly educated 

population. The immediate impact of the Covid- 

19 pandemic on the economy has of course been 

significant, but the government has marshalled 

considerable domestic and eurozone resources to 

support business activity. Early signs of returning 

confidence suggest that the country’s legendary 

resilience will prevail. 

KEY SECTORS 

The Cyprus economy is dominated by services, 

which accounted for 82.7% of gross value added 

in 2019, while industry accounted for 8%, construction 

7% and agriculture, forestry and fishing 

2.3%. Over the past two decades the economy 

has diversified. While tourism remains one of the 

most significant sectors, especially because of its 

wider impact on retail, transport, construction 

and employment, its value-added contribution, 

when narrowly defined as accommodation and 

food services, has now been overtaken by professional 

services, financial services and real estate. 

Diversification has been made possible by the 

growing importance of Cyprus as an international 

business centre. Information and communication 

services are also expanding rapidly from a 

low base, as the country takes advantage of its ge- 

In addition to the upheaval it caused to peoples’ lives 

and its continued health threat, unavoidably, the Covid 

pandemic also has a momentous impact on businesses 

and the economy. From the onset of the crisis, maintaining 

positive epidemiological conditions was at the cornerstone of 

government policy response. Having achieved to contain the 

spread of the virus helps us now to enter the recovery phase 

with more confidence despite the uncertainty that still lie ahead. 

In the economic front we responded with early and frontloaded 

economic measures to address the effects of the pandemic, adopting a generous fiscal stimulus 

package mainly based on short term income support and liquidity measures for the employees 

and the businesses affected by the pandemic. Those measures have delivered and we can 

now focus on the broader recovery strategy for the medium and long term. A strategy which 

includes the use of the medium-term budget and the EU recovery fund to achieve two main 

recovery goals: to strengthen the resilience of the Cypriot economy and to give a new impetus 

to its transformation. A transformation through structural reforms, into the era of a digital, 

green and sustainable economy. Taking into consideration the demonstrated flexibility of the 

Cypriot economy, I am confident that by following the correct policies through the necessary 

political consensus, we will also emerge strong from this crisis as we did in the near past. 

Constantinos Petrides 

Minister of Finance 


Economy 

Real 

GDP 

Growth 

Source: European 

Commission, 

European 

Economic Forecast, 

Summer 2020 

GDP in 

€ Billions 

Source: Cystat 

19.4 

19.8 

19.4 

18.0 

17.4 

17.8 

18.9 

20.0 

21.1 

21.9 

4.1% 3.2% -7.7% 5.3% 

2018 2019 2020 

(forecast) 

2010 

2011 

2012 

2013 

2014 

2015 

2016 

2017 

2018 

2019 

GDP per 

capita in € 


23,402 

23,273 

22,502 

20,877 

20,421 

21,031 

22,163 

23,315 

24,294 

24,925 

2021 

(forecast) 

ographic location at the crossroads of three continents. 

Administrative services are also rising fast, 

boosted by the growing compliance industry. As 

in many advanced countries, the largest single 

sector is wholesale and retail trade, serving the 

general population as well as incoming tourists. 

CHALLENGES AND OPPORTUNITIES 

The immediate challenge for the economy is to 

limit the impact of the Covid-19 pandemic. By 

September 2020 the government had committed 

€1.3 billion (6.4% of GDP) to businesses, mainly 

to support salaries and another €1.9 billion in 

liquidity support to the banking sector. The 

country will also be eligible for €479 million of the 

EU’s Support to mitigate Unemployment Risks 

in an Emergency (SURE) programme and €968 

million from the EU’s Recovery and Resilience 

Facility, while the European Central Bank (ECB) 

is also providing support via the Public Sector 

Purchase Programme (PSPP) and the Pandemic 

Emergency Purchase Programme (PEPP). 

Dealing with the short-term crisis has not distracted 

the government from pursuing structural 

reforms. A new Deputy Ministry of Research, 

Innovation and Digital Policy was established in 

March 2020 and was key to accelerating digitisation 

of the public sector at the height of the pandemic. 

The government approved the Fast Track 

Business Activation Mechanism for non-EU nationals 

in September 2020, building on the Fast 

Track Headquartering scheme introduced in 

2019. 

Key prospects lie in energy, interconnectivity, 

tourism and headquartering. Energy prospects 

arise from offshore natural gas finds, further 

electricity liberalisation and investment in renewables, 

while opportunities for interconnectivity 

will come from the submarine electricity 

cables that will link Cyprus to the European and 

African continents. Investment in expanding and 

upgrading the island’s tourism offering will continue, 

while prospects for headquartering have 

been boosted by the government’s early public 

health interventions to rapidly contain the pandemic. 

This has further enhanced the country’s 

reputation as a safe eurozone location in which 

to do business. n 


Economy 

7.6% 

Financial Services 

8.9% 

Public administration 

& defence 

10.9% 

Wholesale & 

7.9% 

Manufacturing, 

electricity, 

gas & water 

2.4% 

Agriculture & mining 

retail trade 7.0% 

Accommodation 

& food services 

Key sectors 

as % of total 

Gross value added 

(GVA) 


8.2% 

Professional 

services 

7.0% 

Construction 

40.1% 

Other services 

Gross public debt 

as % of GDP 

Source for 2018-19: Ministry of Finance 

Forecast source: Sapienta Economics, 

Country Analysis Cyprus, August 2020. 

100.6 95.5 117.6 114.9 108.1 

2018 2019 2020 

(forecast) 

2021 

(forecast) 

2022 

(forecast) 

Current account 

balance (% of GDP) 

Source for 2018-19: Central Bank of Cyprus 

Forecast source: Sapienta Economics, Country 

Analysis Cyprus, August 2020. 

-4.4 -7.6 

-1.0 -4.1 


Harmonised Consumer price inflation (%) 

Source: European Commission, European Economic Forecast, Summer 2020 

0.8 0.5 0.8 

Economy 

2018 2019 

Credit ratings September 2020 

2020 

(forecast) 

-0.5 

2021 

(forecast) 

BBB- BBB- BBB (L) Ba2 

Standard & Poor’s 

Stable Outlook 

Fitch Ratings 


Unemployment rate 

Source for 2018-19: Cystat 

Forecast source: Sapienta Economics, Country 

Analysis Cyprus, August 2020 

DBRS 


8.4% 7.1% 9.8% 9.1% 

Moody’s 

Positive Outlook 

The priority of the 

Ministry’s policies is 

to address the immediate 

issues arising as a result 

of the pandemic and 

the challenges that will 

be posed, in the best 

possible way for the 

benefit of the whole of 

society. Τhe Government 

and the Ministry of 

Labour, Welfare and 

Social Insurance, in 

parallel with the gradual 

upgrading of social 

benefits and the provision 

of care to citizens in 

need, closely monitors 

developments in the 

economy and business 

and makes every effort 

to strengthen businesses 

and, by extension, the 

economy, so that we can 

return to positive growth 

rates as soon as possible, 

safeguarding jobs and 

workers’ rights. We will 

use the resources of the 

European Social Fund 

to launch new Incentive 

Plans for the recruitment 

of the unemployed, as 

well as new projects 

combining training with 

employment subsidy 

and other measures 

aimed at preventing 

a large increase in 

unemployment. 

2018 2019 2020 

(forecast) 

2021 

(forecast) 

Zeta Emilianidou 

Minister of Labour, 

Welfare and Social 

Insurance 


Economy 

The challenges of maintaining 

economic prosperity in a 

Covid-impacted world is a key 

inflection point for countries 

and requires really significant 

changes in the way governments 

and businesses will need to adapt. The rate of 

digital transformation has never been higher and 

will be maintained. EY will invest substantially 

in our strategic advisory capabilities in Cyprus 

and we will look to attract the best and most 

diverse talent into our Firm to help our clients 

thrive amidst all the current uncertainties. 

David Barker 

Country Managing Partner 

EY Cyprus 

Exports of goods by economic destination 

in 2019 €/million (includes re-exports) 

Transport 

equipment 

1,018 

Machinery & 

electrical equipment 

239 

Mineral 

products 

666 Chemicals 

405 

Base metals 

& products 

95 

Vegetable 

products 

78 

Live animals 

& products 

270 

Unclassified 

78 

It is no secret that Cyprus’ 

economic activity in 2020 has 

been significantly affected as a 

result of the global outbreak of 

Covid-19 and the confinement 

measures that followed. 

Even though Cyprus’ performance in containing 

the spread of the virus has been remarkable, 

the contraction of the economy is expected to 

be over 7% of the GDP. The outlook for 2021 

is quite encouraging though, with growth 

rates that are expected to be between 5-6% 

of GDP. Various reforms are already under 

way, while the country has embarked on an 

ambitious programme of digital transformation 

that will increase further its efficiency and its 

international competitiveness as an established 

business and services centre in the area. 


Netherlands 

Food, beverages 

& tobacco 

135 

Libya 

Other 

171 

TOTAL EXPORTS 

3,146 

Top export markets for goods in 

2019 €/million (includes re-exports) 

Greece 

United Kingdom 

Hong Kong 

Marshall Islands 

Christodoulos Angastiniotis 

President 

Cyprus Chamber of Commerce and Industry (CCCI) 

The main question for the 

economy in the next 12 months 

is whether the legendary 

resilience of the Cyprus economy 

will prevail. There are some 

signs of life outside tourism, 

but this will not prevent negative growth rates 

in 2021. I am currently forecasting a real GDP 

contraction of 5.0% in 2020 and growth of 1.8% 

in 2021 but with the caveat that all forecasts 

are subject to more uncertainty than usual. 

Fiona Mullen 

Director 

Sapienta Economics 

406 315 235 189 81 71 

Top suppliers of goods in 2019 €/million 


UK 588 

Germany 496 

Italy 844 

Greece 1,669 Israel 489 


China 412 


Foreign Direct Investment (FDI) 

FDI Liabilities (Investments in Cyprus) 

FDI Assets (Investments abroad) 

Economy 

53,807 

57,985 

19,586 

22,539 

38,828 

49,707 

26,118 

39,939 

7,722 

5,699 

16,216 

14,835 

4,684 

-2,617 

21,174 

12,068 

2012 2013 2014 2015 2016 2017 2018 2019 

Cumulative inward FDI 

stock by country €/million 

Russian Federation 45,191 

Jersey 33,708 

British Virgin Islands 18,856 

Netherlands 18,071 

United Kingdom 16,219 

Germany 8,216 

Bermuda 6,047 

Poland 3,223 

Marshall islands 3,188 

Ireland 2,408 

Inward FDI flow by country 

in 2018 €/million 

Russian Federation 5,224 

China 165 

Germany 136 

Other Near and Middle East countries 99 

Greece 98 

Israel 44 

Lebanon 29 

Ukraine 22 

Jordan 20 

Vietnam 8 

Total including others 

€374,172m 

Source: Central Bank of Cyprus 

Total including others 

€5,478m 

Source: Central Bank of Cyprus 

Imports of goods by economic destination in 2019 €/million 

2,325 

1,857 

1,980 

Consumer goods 

Intermediate inputs 

Transport equipment & parts 

of which ships & boats 

489 

1,468 

117 

Capital goods 

Fuels & lubricants 

Unclassified 

TOTAL IMPORTS 

8,236 



Foriegn Direct Investment 

FDI Destination 

Cyprus has attracted formidable foreign investment over the last five years 

with billions of euros flowing into multiple sectors. Although the coronavirus 

pandemic has slowed down the global economy, the country has forged ahead 

with the launch of new incentives and reforms that continue to offer interesting 

opportunities to investors with capital and interest in the East Med region. 

The growth performance of Cyprus over 

the last five years has been exceptional 

and even exceeded international expectations, 

while successive credit 

rating upgrades and new incentives 

have attracted billions in foreign investment 

since 2015, with significant 

inflows from the US, Asia, Russia and 

the Middle East. Cyprus’ return to an investmentgrade 

credit rating in 2018 gave both the economy 

and investor confidence a much-needed boost, 

and the successful recapitalisation of its major 

banks and numerous large-scale projects, have all 

contributed to the resurgence of Cyprus as a top 

foreign direct investment (FDI) destination. The 

sectors that have seen the most significant FDI 

are banking, shipping, retail, tourism, pharmaceuticals 

and energy, while new luxury and infrastructure 

developments are underway across the 

country with significant foreign investor backing. 

A fast-track system is also encouraging international 

companies to set up international and 

regional headquarters on the island, which is becoming 

an increasingly attractive gateway to both 

established and emerging growth markets. 

DIVERSIFIED INVESTMENT OPTIONS 

For the last few years, Cyprus has been a hive of 

activity with several notable projects already implemented 

or in the pipeline, strengthening the 

country’s image and appeal. Foreign investment 

flows have been significant. In the ten-year period 

2010-19, inflows of FDI averaged €24 billion per 

year, while cumulative net FDI reached €17.3 

billion. This investment was driven by equity, 

with the shipping and real estate sectors playing 

a significant role. 

New large-scale real estate projects, luxury 

marinas and tourism infrastructure, coupled with 

exciting opportunities in the energy and shipping 

sectors have all reinforced Cyprus’ status as an interesting 

investment location. An added benefit 

of Cyprus is its secure and stable EU environment 

in a turbulent region, which provides an ideal 

base for regional headquarters or ancillary and 

support services for investors with clients in the 

wider Eastern Mediterranean region. 

Already renowned as a popular holiday destination 

and a thriving business hub servicing 

international companies with multinational 


operations, the island is sharpening its competitive 

edge by streamlining processes, modernising 

legislation, introducing incentives and 

speeding up licensing procedures to better cater 

to investors. Special schemes and incentives are 

in place to facilitate headquartering, which covers 

the sectors of technology, asset management, investment 

funds, shipping and higher education, 

‘Olivewood’ for the international film industry, 

the Startup Visa for non-EU nationals and a 

Fast Track Business Activation Mechanism for 

non-EU nationals approved in September 2020. 

PRIVATISATIONS AND LARGE- 

SCALE PROJECTS 

Cyprus’ FDI appeal has been on an upward trajectory 

with the economy posting a healthy 3.2% 

growth in 2019 and following improvements in 

its macroeconomic and financial environment, 

factors that have also revived international interest 

in around 30 major development projects on 

the island. Investment opportunities in Cyprus’ 

large-scale projects span various sectors, including 

high-value tourism and housing developments, 

projects with a special focus on golf 

courses and luxury marinas, as well as education, 

energy and, more lately, the international film 

sector. 

The liberalisation of markets in which stateowned 

entities used to dominate presents new 

opportunities in terms of FDI. The 2017 commercialisation 

of the country’s largest port in 

Limassol marked a new era for Cyprus as a commercial 

hub. The privatisation deal with Eurogate 

International GmbH and DP World Limited is 

expected to boost state coffers with €2 billion 

over the next 25 years, while the new port operators 

are injecting millions in upgrading services 

and infrastructure. The coming full liberalisation 

of electricity is also presenting new opportunities 

in the natural gas and renewables sectors. 

PERFECTING THE TOURISM PRODUCT 

Tourism has long been a driving force of the 

Cypriot economy and a concerted effort to diversify 

its offering in recent years has paid off. 

Ahead of the global pandemic, expansion of capacity 

as well as quality upgrades saw both arrivals 

and expenditure break new records for four 

years running. Cyprus has been attracting new 

interest by developing conference, sports, health 

and wellness and by extending the tourist season. 

The construction and investment in multipurpose 

projects and mixed-use developments such as 

luxury marinas, golf courses and more recently 

the island’s first-ever and only integrated luxury 

casino resort, are all part of the ongoing strategy to 

upgrade Cyprus’ tourism product. The temporary 

casino has started operations and the full integrated 

casino resort, City of Dreams Mediterranean, 

will have extensive facilities and five-star status 

by 2021. The casino resort is Hong Kong-based 

Melco’s first expansion outside of Asia and will be 

the biggest casino of its kind in Europe, with the 

investment for this mega project at €600 million. 

Following the success of Limassol Marina, 

there has been a swell of interest in these types 

of projects. The €300 million luxury Ayia Napa 

Marina – which is transforming the area – has 

graduated to its second phase, with berthing facilities 

now fully operational. The marina offers 

capacity for 600 yachts of up to 60 metres, a shipyard, 

and a range of luxury villas and facilities. 

With significant Egyptian investment backing 

the innovative project, the seafront residences, 

which will be completed by 2023, are already 

being marketed to investors worldwide. In addition, 

the €110 million Paralimni Marina project 

is well under way, with additional development 

incentives approved by the government in 2020. 

The tender for Larnaca Marina received approval 

in August 2020 and is expected to attract €1.2 

billion in construction and real estate development, 

while plans are in place for a luxury marina 

in Paphos. 

The number of foreign investors closing 

multimillion-euro deals in the last few years 

underlines the fact that tourism-related real 

estate and infrastructure continues to be one of 

the most attractive investment opportunities in 

Cyprus. With solid and continuous interest in the 

tourism sector, the country’s investment promotion 

agency Invest Cyprus has set up a dedicated 

and specialised unit, TourInvest, to promote investment 

opportunities in the tourism and hospitality 

sector. In cooperation with the Deputy 

Ministry of Tourism and other stakeholders, the 

unit focuses on attracting investment into largescale 

infrastructure projects that exist in diversified 

thematic areas. 

Worthwhile investments have already been 

made in the hospitality industry with acquisitions 

and the construction of new luxury hotels of wellknown 

hotel management chains. These include 

the prestigious Sun City Spa and Residences by 

Chinese group Jim Chang Global with an initial 

investment of €100 million to construct a fivestar 

resort hotel and exclusive beachfront residences 

in cooperation with the Giovani Group. 

The Radisson Hotel Group, one of the largest and 

most dynamic hotel groups in the world, has big 

plans to grow its existing portfolio in the country 

to six hotels and almost 1,000 rooms by 2025. 

In 2019, the Luxury Collection, part of 

Marriott International, opened the Parklane 

Luxury Collection Resort & Spa resort in 




Limassol. Owned and operated by Parklane 

Hotels Limited, the property marks Marriott 

International’s entry into Cyprus. Another major 

international deal in recent years was South 

African Atterbury acquiring two of the country’s 

flagship Nicosia retail outlets, the Mall of Cyprus 

and the Mall of Engomi, for €200 million. 

In July 2020, Hyatt Hotels Corporation announced 

a management agreement with Anolia 

Holdings Limited for the launch of the first Hyatt 

hotel in Cyprus. The 300-room luxury resort 

Grand Hyatt Limassol is expected to open in 

2025. The new beachfront resort will also be a 

key element of Zaria Resort, a mixed-use luxury 

development, comprised of residential apartments 

and private villas totaling more than 80,000 

square meters. The announcement of Grand Hyatt 

Limassol follows a significant expansion in Hyatt’s 

brand footprint in Europe over the last year, and 

Cyprus has proven to attract travellers from Hyatt’s 

key strategic markets including the UK, Russia, 

Greece, Germany and the Middle East. 

EXPANDING PROPERTY MARKET 

Cyprus continues to be on the top of the list for 

investors, holiday-home seekers, expats and retirees, 

with the traditionally popular areas of 

Paphos and Limassol leading the way. One of 

the latest projects is the Sofitel Resort & Spa, a 

joint venture between Singapore-headquartered 

Oxley Holdings and Planetvision on the Limassol 

beachfront. The project will be the first Sofitel 

Resort with branded residences in Europe and is 

expected to be completed by 2022. 

Health and wellness developments are increasingly 

popular, and a prime example of 

this is the Eden Seniors Resort in Larnaca 

which opened its doors in 2018. The project, 

developed by the Cypriot-Lebanese joint 

venture Eveningfall Investments Ltd, is a wellness 

and rehabilitation centre, with spa and 

relaxation facilities for the elderly. In 2021, 

Paphos is due to see the first dedicated retirement 

village in Cyprus – a segment that has 

much potential in Cyprus along with rehabilitation 

related projects. The €16 million retirement 

village, branded Lazaris Mill, will consist of 82 

individual apartments, ranging from studios 

to larger flats and a small 24-room hotel, and 

provide both necessary and bespoke facilities. 

Until now, no retirement villages were available 

on the island and whilst common in many other 

countries, this project is a first for Cyprus. 

The high-end residential property segment 

accounted for 20% of the total transaction value 

of real estate in Cyprus during the first half of 

2019, with a keen interest from foreigners. For 

the whole of 2019, 66% of properties were acquired 

by non-EU buyers. 

NEO, Pafilia 

FDI LIABILITIES (INVESTMENTS IN CYPRUS) Source: Central Bank of Cyprus 

8,511 

47,099 

23,419 

28,909 

53,807 

19,586 

38,828 

26,118 

7,722 

16,216 

4,684 

21,174 

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 


A GROWING ENERGY SECTOR 

Since US company Noble Energy made the first 

natural gas discovery in 2011 with estimated 

resources of 4.5 trillion cubic feet (tcf) in the 

Aphrodite field, Cyprus’ hydrocarbons discoveries 

have captured the attention of several global 

energy giants. ENI, Kogas, ExxonMobil, Royal 

Dutch Shell, and Total have all secured exploration 

licences and conducted exploratory drilling 

while US giant Chevron will be taking a stake in 

Block 12 after announcing its intention in July 

2020 to buy out Noble Energy Inc. ExxonMobil 

announced the discovery of an estimated 5 to 8 

tcf in Block 10 in early 2019 and ENI announced 

a promising discovery in Block 6 in early 2018. 

More drilling is expected in the next few years 

and in 2019 Cyprus agreed to build a subsea pipeline 

connecting Aphrodite to Egypt’s liquefaction 

plants and concluded a production-sharing 

deal with Noble Energy and its partners over the 

Aphrodite gas reservoir. 

New opportunities are being created for 

a range of energy investments, including gas 

imports for power generation, the expected liberalisation 

of the electricity market by 2021, 

the growing share of renewables, the EuroAsia 

Interconnector project to connect Cyprus, Israel 

and Greece via submarine electricity cable, the 

related EuroAfrica Interconnector to connect 

Egypt, and the potential for the world’s longest gas 

pipeline from Israel via Cyprus to Italy. The discoveries 

have boosted the development of a new 

energy industry in the country, which is also well 

positioned to offer a multitude of auxiliary services 

to companies operating in the wider region. 

A floating storage and regasification unit (FSRU) 

terminal in Vassilikos, which will transform domestic 

power production, attracted finance in 

2020 from the European Investment Bank (EIB) 

and the European Bank for Reconstruction and 

Development (EBRD). 

A LEANER BANKING SECTOR 

In the era of globalisation, 

boundaries between 

international politics 

and international 

economic relations have 

become even more 

blurred. The outbreak 

of Covid-19 pandemic 

has posed additional, 

unprecedented challenges 

on governments and 

businesses alike and 

has accelerated the 

changes that were already 

underway. Overcoming 

these challenges 

successfully will 

ultimately depend on how 

countries are able to adapt 

to the new environment. 

I am confident that our 

new strategy for Economic 

Diplomacy will stand us in 

a strong position to bring 

into play all elements 

that make Cyprus an 

attractive investment 

destination: membership 

of the EU with easy access 

to a market of 500 million 

consumers, a modern 

legal framework, an 

attractive tax system, 

an extensive network 

of more than 60 Double 

Tax Treaties, a highly 

skilled workforce 

and high-quality 

professional services, 

to mention but a few. 

Nikos Christodoulides 

Minister of Foreign Affairs 

Cyprus banks maintain high levels of capital adequacy 

and liquidity. The gradual restructuring 

of the banking sector after 2013 has attracted important 

institutional investors and fresh foreign 

capital, and encouraged accelerated sales of nonperforming 

loans. These developments have substantially 

reduced risk and enabled the financial 

system to operate on a more sound basis. 

The island’s biggest lender, Bank of Cyprus, 

secured €1 billion of investment from worldrenowned 

investors in 2014 and issued another 

€220 million in Additional Tier 1 (AT1) capital in 

December 2018. The bank listed on the London 

Stock Exchange in January 2017, which has substantially 

opened up access to large foreign investors, 

such as Morgan Stanley. 

Hellenic Bank completed a capital increase 

of €150 million in March 2019 to support its acquisition 

of mainly performing loans from the 

former Cyprus Cooperative Bank. The acquisition 

boosted the bank’s assets to €16 billion and 

raised market share for loans to 30%. The capital 

raise brought in new international investors, such 

as US-based Poppy Sarl (PIMCO), with the other 

major shareholders being Demetra Investments 

Ltd, Wargaming, Third Point and investment 

fund 7Q Financial Services Ltd. 

Mergers and acquisitions in the past few years 

have transformed the landscape somewhat with 

strategic new investment entering the sector from 

the sale of the majority stake of the Cyprus subsidiary 

of Greece’s largest lender Piraeus Bank, to 

Lebanese Holding M. Sehnaoui SAL – which injected 

€40 million in fresh capital into the bank in 

2017, now renamed AstroBank. In January 2019, 

AstroBank went on to acquire the locally based 

USB Bank for €40 million and agreed to buy 

NBG Cyprus in late 2019. The deals are expected 

to contribute to the further consolidation of the 

Cyprus banking sector and highlight potential 

investment opportunities in Cyprus. 

The banking sector has seen more activity 

and investment in recent years, providing opportunities 

for new players to enter into the market 

to encourage healthy competition and a wider 

scope of services. Investment opportunities that 

could be tapped into by international banks and 

financial groups are mergers and acquisitions, 

private equity and venture capital projects via the 

budding funds sector, as well as financing of large 

infrastructure projects. 

WORLD-CLASS SHIPPING HUB 

One of Cyprus’ most successful export services 

has been the maritime industry, which now has 

its own dedicated deputy ministry. The growth 

of Cyprus’ resident shipping sector over the past 

50 years has helped develop a strong maritime 

cluster that includes Cyprus-based banking, professional 

services, insurance and IT. The cluster 

has gone from strength to strength over the 

years and is consistently attracting more quality 

tonnage and shipping-related companies to its 

shores. 

The decision in July 2018 by leading London 

ship insurer P&I Club to open a post-Brexit EU 

subsidiary in Cyprus, reaffirmed the island’s position 

as one of the top global hubs for shipping. 

Another coup came in early 2019, when British 

shipping firm P&O Ferries decided to register 

its English Channel operating fleet under the 

Cyprus flag to take advantage of the benefits and 




security it provides. 

Two of the industry’s most highly respected 

privately-owned shipmanagement companies, 

Columbia Shipmanagement and Marlow 

Navigation – both based in Cyprus – merged in 

2017 to form Columbia Marlow, creating one of 

the world’s largest ship and crew-management 

companies. Another transaction constituting FDI 

was the 2018 buyout of Limassol-based Songa 

Offshore SE by Transocean Ltd, the world’s 

largest offshore drilling contractor for oil and gas 

wells, in a deal worth US$3.4 billion. 

In the past six years there has been an increase 

of more than 65% in the number of shipping 

companies that have registered with Cyprus’ 

specialised shipping taxation system, boosting 

the sector’s revenue by around 25%. In addition, 

natural gas finds within Cyprus’ EEZ and efforts 

to exploit it in cooperation with neighbouring 

countries have expanded opportunities for the 

island’s already thriving shipping sector. 

EXCELLING IN EDUCATION 

Cyprus has seen a rapid expansion of tertiary 

education in the past few years, and is well on 

its way to develop the island into a regional education 

centre and knowledge hub. Cyprus has 

already attracted cooperation and synergies 

with international universities, most notably the 

University of Nicosia launching the island’s first 

degree programme in medicine in collaboration 

with St George’s Medical School at the University 

of London, and University of Central Lancashire 

– Cyprus (UCLan), being the first British university 

to establish a campus on the island. The 

number of foreign students choosing Cyprus for 

their studies has almost tripled in the last five 

years, representing over 60 different countries 

and supporting the growth of Cyprus into a true 

global educational centre. This fact underlines 

the great opportunities that exist in Cyprus for 

the establishment of new universities, colleges 

and research institutes. 

FOCUS ON INNOVATION 

A new Deputy Ministry of Research, Innovation 

and Digital Policy was established in March 

2020 to leverage Cyprus’ potential for innovation 

and to support digitisation in the economy, 

which has accelerated during the Covid-19 

pandemic. In addition, a range of initiatives 

are under way to support start-ups, including a 

Startup Visa scheme to attract more international 

talent to establish ventures with high growth 

potential. Opportunities are therefore opening 

up for business angels and venture capitalists 

looking for innovative start-ups, and to invest 

risk capital in exchange for equity in promising 

business ideas and products. Recent changes to 

taxation on intellectual property (IP) also supports 

innovative research. 

The technology and communications sector 

in Cyprus has become fiercely competitive, with 

a number of players deploying cutting edge solutions 

to both increase their local market 

share and generate growth through the launch 

In the ten-year period 2010-19, inflows of FDI averaged 

€24 billion per year, while cumulative net FDI reached 

€17.3 billion. This investment is driven by equity, with the 

shipping and real estate sectors playing a significant role. 

The new 

reality has 

brought 

significant 

changes 

globally with 

FDI flows expected to drop 

at least by 40% as predicted 

by UNCTAD. Clearly the 

pandemic crisis has affected 

all countries, which are now 

paving the way for recovery 

and mobility. According to 

the EU Commission forecast, 

real GDP in Cyprus, will 

contract by 7.75% in 2020 and 

recover in 2021 by 5.25%. 

George Campanellas 

CEO 

Invest Cyprus 

2021 will 

be a year of 

challenges. 

The 

uncertainty 

caused by 

Covid-19 will continue to affect 

businesses both in Cyprus and 

internationally and the extent to 

which Cyprus will be adversely 

influenced depends on the 

measures taken to alleviate the 

loss of GDP from the reduction 

of tourism and overall 

Covid-19 impact. As Cyprus 

has gone through a similar 

shock in 2013, it is our belief 

that the same determination 

exhibited then will enable 

Cyprus to recover quickly. 

Doxia Nikia Hadjivassiliou 

President 

Cyprus International 

Businesses Association (CIBA) 


The sectors that 

have seen the most 

significant FDI 

are banking, shipping, 

retail, tourism, 

pharmaceuticals 

and energy, 

while new luxury 

and infrastructure 

developments are 

underway across 

the country with 

significant foreign 

investor backing. 


Professional 

services are 

constantly 

being 

upgraded 

in order to 

meet the emerging needs of 

businesses, investors and the 

society in the post-Covid-19 

era. Technology and the 

provision of remote services 

are now key, increasing the 

likelihood of saving time while 

creating economies of scale. 

I expect that the sector will 

adapt once again to the new 

business environment, as 

the country’s professionals 

foster their efforts towards 

the recovery of the sector. 

Christos V Vasiliou 

Managing Director 

KPMG Cyprus 

of new technology and products. The sector 

saw new investment in July 2018, with South 

Africa’s telecom MTN Group – which entered 

the Cypriot market 11 years ago and has around 

one-third of the market – selling its Cyprus 

operations to Monaco Telecom S.A. in a €260 

million deal. In 2019, the company was rebranded 

Epic, and the group announced strategic cooperation 

with China’s Huawei on developing a 

5G network in Cyprus. 

CAPITALISING ON OPPORTUNITIES 

Time and again, Cyprus has proven its resilience 

as an economy and FDI location. Having endured 

a challenging economic climate earlier this 

decade, and now tackling the effects of the global 

coronavirus pandemic, Cyprus has nevertheless 

exceeded expectations and the transformation its 

economy is going through today, presents many 

opportunities for serious investors. 

To further enhance investor interest, the government 

is making staunch efforts to improve its 

FDI framework and has vowed to cut through 

red tape. Reforms accelerated in 2020 include a 

specialised commercial court and upgrades to 

the judicial system, as well as targeted incentives 

to better facilitate investment. These efforts have 

been recognised, with Cyprus seeing an increase 

in FDI and the registration of new companies 

setting up on the island. 

Cyprus’ open economy, European Union status 

and established role as a regional business hub 

between three continents continue to appeal to 

investors. The island also hosts a thriving forex industry 

with many global giants basing their operational 

headquarters in Cyprus. In addition, the investment 

funds sector has grown exponentially in 

the last few years with continuous upgrades to the 

regulatory framework. Assets under management 

have more than tripled from €2.1 billion in 2012 

to €7.97 billion in the second quarter of 2020, recording 

a 5.3% increase over the first quarter of the 

year. If recent growth rates are sustained, industry 

experts predict assets under management could 

reach €20 billion in the next five years. 

Cyprus’ liberalised FDI Policy, both for EU 

citizens and investors from third countries, along 

with its favourable tax regime makes it one of the 

most attractive investment targets in Europe. At 

12.5% Cyprus’ corporate tax rate is one of the 

most competitive in the EU, and its extensive 

network of double taxation treaties with 65 countries 

have strengthened its position as a business 

gateway and a preferred location for corporate 

headquarters. The country’s skilled talent, low 

cost of doing business, top-tier professional services, 

and high quality of life renders Cyprus 

not only a wise business choice but also a great 

relocation destination. As work progresses on 

implementing structural reforms to bolster the 

business environment, the attractive incentives 

and the ever-expanding opportunities will continue 

to attract foreign investors. n 



FDI Insights 

WHY DID YOU CHOOSE TO 

invest in Cyprus? 

Oxley Planetvision 

Country of Origin: Singapore 

AstroBank 

Country of Origin: Lebanon 

We believe in Cyprus, its potential and its future. 

We believe in Cyprus, as a country, as a promising 

economy and as a privileged gateway between the 

East and Europe. We are confident that the Cypriot 

banking sector in particular, after weathering the 

storm, is gradually stabilising and offers interesting 

investment opportunities. In addition to that, the 

seriousness and commitment of the Central 

Bank of Cyprus to maintain a solid and supportive 

regulatory environment which provides stability and 

sustainability was a decisive factor. For us Cyprus 

is a perfect illustration of the saying “never let a 

good crisis go to waste”, which means that a crisis 

often offers the opportunity to do things you could 

not do before. It is this reasoning that made us 

invest in Cyprus and we look forward to becoming 

a channel for others to invest in Cyprus as well. 

Maurice Sehnaoui 

Vice Chairman 

AstroBank 

We see a renewed vigour and enthusiasm in Cyprus, driven by robust economic growth, 

political stability, a resurgence in tourism, and a stable and growing financial sector. We 

have great confidence in Cyprus’ overall economy and its property market. This improved 

economic backdrop has encouraged direct foreign investment into Cyprus for large-scale 

projects and provides a solid platform for future investments. Therefore, the time is 

right to invest in Limassol’s future as the country embraces its 

evolving role on the international economic scene. As the local 

market is experimenting with multi-storey towers, Oxley will 

apply its vast international experience to provide Limassol 

with a distinguished landmark which will offer a genuinely 

new lifestyle experience everyone will want to be part of. 

Atterbury Europe 

Country of Origin: South Africa 

There are various reasons for companies 

such as Atterbury and Attacq – both 

originating from South Africa – to invest 

in Cyprus. Our recent acquisition of The 

Mall of Cyprus and The Mall of Engomi 

indicates a strong relation between two 

countries in different hemispheres. With 

both countries former British colonies, 

the influence is evident in legal and 

land ownership structures that provide 

significant common ground. As an added 

benefit, investments in Cyprus provide 

much sought-after exposure to the Euro 

currency. Infrastructure is world class and 

professional service providers are highly 

skilled and reliable in their responsibilities 

and communication with clients. There 

are lucrative tax benefits for companies 

investing in Cyprus, making it much 

more than a beautiful and culturally 

rich destination. From an economical 

perspective, Cyprus is rapidly recovering 

as can be seen in the recent upgraded 

credit ratings and positive progress on 

various issues that further improve the 

reputation of Cyprus as an investment 

destination on the world stage. We intend 

to establish a long-term presence in 

Cyprus with further investments in our 

existing portfolio as well as other 

locations on the island. 

Raoul de Villiers 


Atterbury Europe 

Ching Chiat Kwong 

Executive Chairman Oxley Holdings Limited, 

Oxley Planetvision Properties Ltd 


Melco International 

Country of Origin: Hong Kong 

Cyprus is an ideal location for Melco’s initial plans for expansion 

beyond Asia. It is a fitting site for what will become Europe’s 

largest integrated casino resort, ‘City of Dreams Mediterranean’. 

Cyprus is the only jurisdiction in the region to have successfully 

passed legislation and complete a transparent RFP for a largescale 

integrated resort; and has a great history of implementing 

the rule of law. Furthermore, Cyprus’ location, with its proximity 

to Europe, the Middle East, and Africa is hugely appealing. 

Developments in infrastructure and hospitality means Cyprus 

has huge potential for tourism expansion. Our investment of 

€550 million for the integrated casino resort project aims to 

create a unique world-class development, which will support 

important advances to Cyprus’ economy and touristic product. 

UCLan Cyprus 

Country of Origin: United Kingdom 

The University of Central Lancashire (UCLan), the fourth 

largest University in the UK, through its strategy of developing 

educational satellites around the globe, showed strong 

interest in choosing Cyprus as the first step in expanding 

its presence, primarily due to the geopolitical position and 

large local demand for UK higher education in Cyprus. 

After researching the best location for their branch campus 

and the local procedures for setting up a University, 

UCLan chose Larnaca as the ideal strategic location to 

establish the first British university on the island. 

Floros Voniatis 

CEO - Chair of the Council - Founding Partner 

UCLan Cyprus 

M.M. Makronisos Ltd 

(Ayia Napa Marina) 

Country of Origin: Egypt 

We invested in Cyprus right after its 

financial crisis of 2013, as we saw it 

as a big opportunity, it could only go 

upwards. This, coupled with one of 

the most attractive and transparent 

tax systems in Europe, which is 

fully compliant with EU laws and 

regulations, as well as a modern and 

business-friendly legal system, have 

proven Cyprus to be an attractive 

destination for a foreign investor 

interested in Europe. Our experience 

as investors in Cyprus has been 

very positive. The government and 

authorities are welcoming and don't 

spare any efforts to facilitate hurdles 

faced by foreign investors, and have 

been efficient in providing necessary 

permits for our project. The Cyprus 

Permanent Residency Programme 

is a great incentive for foreigners to 

invest in real estate and is helping 

to create a big opportunity for us to 

develop a huge project like Ayia Napa 

Marina, which we envisage to change 

the face of the Cypriot coastline and 

become the best luxury destination in 

the Eastern Mediterranean. Finally, I 

am very happy to acknowledge that 

construction is progressing very 

well, with the Marina being in full 

operation since June of 2020 and the 

Commercial Area will welcome the 

first guests in the Summer of 2021. 

FDI Insights 

Lawrence Ho 

Chairman and CEO - Melco International 

Naguib Sawiris 

Chairman 

M.M. Makronisos Ltd. 

Monaco Telecom 

Country of Origin: Monaco 

Cyprus was our destination of choice. It is one of the most 

dynamic economies inside the EU, providing a stable and 

clear regulation, and promoting open competition. Monaco 

Telecom is building a Group of independent operators in 

the European Mediterranean environment with Cyprus, 

Malta and Monaco as its major geographies. Our two 

shareholders, the Government of Monaco and French 

entrepreneur Xavier Niel share a long-term view to provide 

high end and innovative telecommunication services at 

great value. We have invested here two years ago and we 

are very proud of the growth and progress of Epic. It is 

now recognised as the best mobile network in the country 

and it is attracting more and more customers. We are 

now focused on building a high-quality fiber to the home 

network to provide a full range of services, at home and 

everywhere. We really feel privileged to operate in Cyprus. 

Martin Peronnet 

CEO 

Monaco Telecom 


Headquartering 

EASTMEDHQ 

Cyprus’ appeal as a convenient international headquartering 

location is gaining momentum. Its stable business environment 

and emerging prospects in multiple sectors, strategic EMEA access 

and excellent quality of life are just a few of the many reasons why 

companies are relocating their strategic operations to Cyprus. 

The Oval, Cybarco 

A 

key attraction to set up headquarters 

(HQ) in Cyprus is the country’s good 

relations in the region and its convenient 

access to both the EU’s single market of 

over 500 million people and markets of 

the Middle East, Asia and Africa. The country’s 

government and private sector have recognised 

the growing appetite of companies and have been 

expanding the list of incentives to attract more 

headquarters to its shores and establish the island 

as the ideal East Med HQ base. 

An added boost has come from the strong 

economic growth and investor confidence of the 

past few years, and emerging prospects in the 

real estate, investment fund, shipping and energy 

sectors. Another area where Cyprus ticks all the 

boxes for companies seeking a regional base, is 

its efficient and transparent legal and regulatory 

framework, modern banking sector, and its competitive 

EU-approved corporate tax regime. This 

coupled with the relatively low set-up and operational 

costs, convenient time zone and various 

tax breaks for expat executives have created a 

winning combination for decision makers. 

GLOBAL REACH 

Cyprus’ can-do attitude, easy access to decision 

makers, and wide range of services make running 

a multinational business a smooth task. Its geographical 

location in the Eastern Mediterranean 

at the crossroads of three continents has long 

played a pivotal role in influencing the country’s 

destiny and prosperity – and has fostered close 

cultural and business relationships with countries 

in the region. The island has good air connectivity 

through two international airports and 

sophisticated ports to support operations, as well 

as excellent satellite and telecommunications infrastructure. 



Cyprus’ entry into the EU in 2004, and the eurozone 

in 2008, was welcomed by the international 

business community, who saw it as a new opportunity 

for foreign companies to use Cyprus as a convenient 

entry point into the EU marketplace. As 

part of the European Single Market, Cyprus enjoys 

the free movement of goods, services and capital 

with other EU member states and members of 

the European Free Trade Association. This comes 

without tariffs, complex bureaucracy or regulatory 

obstacles allowing companies to benefit from the 

more than 40 EU trade agreements and double tax 

treaties with 65 countries. 

Multinationals from a range of different 

sectors have already cherry-picked Cyprus as the 

location for their regional headquarters. Global 

companies such as NCR, Kardex, Wargaming, 

eToro, 3CX, TSYS and Amdocs are just some of 

the corporations that have based operational or 

corporate management functions on the island. 

An added benefit of Cyprus is its secure and 

stable EU environment in a turbulent region. 

Prominent news organisations, such as AFP, have 

capitalised on this aspect and use the island as 

their base between Europe and the Middle East 

due to its security, convenient time zone and 

travel times, reliable communication infrastructure 

and availability of multilingual support staff. 

Cyprus is an especially ideal base for regional 

headquarters or ancillary and support services 

for investors with clients in the wider Eastern 

Mediterranean and Middle East region. 

Two prime examples of this are Sykes and 

Whipper. A global leader in business process 

outsourcing, Sykes Enterprises, picked Cyprus 

from 20 other competing jurisdictions as its base, 

citing the right work-life balance as a key reason. 

High-tech and entertainment start-up Whipper, 

led by a founding team of executives and advisors 

who hail from Riot Games, Netflix, Swiftkey, 

Amazon, Echo UK, Omnicom, and Viber, also 

established its global headquarters in Limassol 

– adding more gravitas to the growing start-up 

culture in Cyprus. 

Major multinational firms in the ICT industry, 

including consulting, fintech and regtech 

firms, set up a base in Cyprus to use the country 

as a gateway into and out of the EU for various 

corporate services, such as sales and marketing, 

project management, software development, 

systems integration, testing services, training 

and development, disaster recovery and business 

continuity, as well as joint R&D among countries 

in the region. Also, international giants such as 

Microsoft, Oracle, SAP and IBM have been based 

in Cyprus for many years, supporting the country’s 

tech evolution. 

A crucial element especially when it comes to 

the ICT and tech industry is guarding intellectual 

property (IP), and Cyprus offers strong IP protection 

through domestic legislation and a network 

of EU and international agreements. Cyprus’ 

regime applies to a wider range of income than 

that of other IP Box regimes – as most focus exclusively 

on income derived from patents and 

offer less exemptions on capital gains on the disposal 

of IP assets. 

The main feature of the Cyprus IP Box regime 

is the 80% deduction of revenue earned from 

the use of intangible assets. This four-fifths exemption 

from profits means that only 20% of IP 

income is taxed at the corporate tax rate of 12.5%. 

After applying the calculations, Cyprus-resident 

companies can see an effective tax rate as low 

as 2.5% – the lowest in Europe. The IP regime 

of Cyprus is largely responsible for the growing 

interest in the jurisdiction. Digital goods are increasingly 

more valuable and the favourable tax 

and business environment in Cyprus has made it 

a hub for digital business goods, IT software, and 

related services. 

As a former British colony, Cyprus has also 

proved a convenient alternative for global companies 

in the post-Brexit world. Its modern and 

forward-looking legal and regulatory framework 

based on English Common Law principles offer 

companies the advantage to continue operating 

in an EU jurisdiction with a familiar UK legal 

framework. 

A first point of contact for investors is the 

country’s investment promotion authority Invest 

Cyprus, which is a key player supporting foreign 

investors interested in setting up business functions 

on the island. 



CORPORATE COMPETENCE 

Doing business in and from Cyprus is easy and 

straightforward. Home to a major international 

business and financial services sector, the country 

is an ideal base for region-wide corporate coordination 

and central management functions, 

sales, marketing and customer service. As a probusiness, 

neutral, cost-effective and politically 

stable country, Cyprus offers companies a perfect 

climate to successfully compete in the region and 

beyond. 

Decades of experience as a successful international 

business centre means Cyprus has a vast 

talent pool in the corporate and financial services 

sphere. The country has more than 4,000 registered 

accountants and 700 registered accounting 

firms – which include all major global firms 

– and more than 3,000 registered lawyers and 

around 160 law firms. 

Cyprus has also taken a strong approach in promoting 

its digital agenda and research and development 

by utilising EU funding. Supporting these 

efforts are its booming higher education sector 

with innovative programs in computer science, 

software engineering and ICT to produce tech 

savvy talent, as well as incentives for start-ups and 

entrepreneurs. Foreign companies already based 

in Cyprus comment positively on their experiences 

with local employees in terms of productivity, 

language skills and dependability. The business 

language is English and the country has one of the 

youngest and most highly educated workforces in 

the EU. In addition, the EU has a workforce of 240 

million people and Cyprus offers visa-free access 

to this talent pool – allowing companies to attract 

the best of the best into their ranks. 

TOP SHIPPING HUB 

Cyprus is one of the most influential global hubs 

for ship owning and shipmanagement services. 

Today, Cyprus is the largest third-party shipmanagement 

centre in Europe and the largest 

crew management centre in the world, while 

the island’s international ship register is the 

third largest in Europe and the 11th largest in 

the world. Thanks to its advantageous legislative 

framework the island has attracted some of the 

world’s most influential names in shipping for 

the last 50 years, with most headquarters located 

in Limassol – the island’s maritime capital. The 

country’s Shipping Deputy Ministry is determined 

to maintain Cyprus’ competitive edge by 

further expanding the island’s registry and maritime 

cluster, strengthening international relations, 

and upgrading available services. 

Cyprus is the EU’s largest shipmanagement 

centre, with one in five vessels under third 

party management controlled from Cyprus. 

With more than 200 ship-owning, management 

and other shipping-related companies based 

in Cyprus, such as Columbia Marlow and BS 

Shipmanagement, the success of the sector has 

developed clusters and auxiliary services, which 

is a model that could be successfully replicated 

in other sectors, such as the growing oil and gas 

sector. Cyprus provides a secure and convenient 

base for operations for various ancillary services 

to the oil and gas industry as well as for company 

headquarters to support activities in the EMEA 

region. 

One of our 

strategic 

priorities is 

to promote 

Cyprus as an 

international 

investment hub and 

headquartering centre. We 

are happy to see that when 

it comes to choosing the 

right location to establish 

international and regional 

headquarters Cyprus 

is increasingly gaining 

momentum as a prime solution 

in the minds of decision 

makers of multinationals. In 

recent years, a number of tech 

companies have expanded 

or re-located to Cyprus. Our 

targeted promotional activities 

are dedicated to proving that 

Cyprus is an attractive location 

that could be used as a gateway 

for international companies 

wishing to gain access into 

the EU. Cyprus can also serve 

as a strategic location for UK 

companies, choosing to retain 

a presence in Europe following 

Brexit. Human talent, attractive 

IP regime, alongside a thriving 

professional services industry, 

means that Cyprus is able to 

offer significant benefits to 

businesses seeking to build 

headquarters in Europe. 

George Campanellas 

CEO 


3CX Headquarters, Nicosia 



CONNECTING WITH THE WORLD 

In addition to its geographical proximity to 

major markets, Cyprus has good connectivity. 

The country is connected by its two international 

airports with major cities in Europe and key destinations 

in Asia, North Africa and the Middle 

East. In the last two years, connectivity has seen 

further improvement with new airlines adding 

Cyprus to their schedules and existing airlines increasing 

the frequencies of their flights. Naturally 

the current coronavirus pandemic has forced 

Cyprus to take strict measures at the moment in 

terms of airline traffic, but the measures are being 

continuously assessed and modified as the situation 

evolves. 

Thanks to its location, Cyprus enjoys business-friendly 

time zones, enabling international 

companies to do business with the East in the 

morning, Europe throughout the day and with 

the West in the afternoon. The country also has 

long-established links with Russia and Eastern 

European countries with many Cypriot professionals 

having in-depth knowledge of these 

markets, and often acting as key business introducers. 

LUXURY OFFICE SPACE 

Wargaming Headquarters, Nicosia 

The flood of new companies setting up in Cyprus 

and seeking top-tier real estate has driven the 

development of new luxury multi-use office 

complexes in Limassol and Nicosia. With the 

completion of the office developments currently 

under construction, Cyprus should reach a staggering 

260,000 square meters of office space in 

its market by the end of 2020. Among the major 

office projects that are planned to be delivered to 

the market in Nicosia are the signature lifestyle 

commercial development Nicosia City Centre 

(NCC), the Capital Gate and the Asteroid Tower, 

as well as upcoming projects like the Cymiva 

Office Tower. 

Over the years, the coastal city of Limassol has 

steadily grown to become the main international 

business hub, while the inland capital city Nicosia 

attracts multinationals that require closer access 

to government. The majority of international 

companies choose Limassol, due to the cosmopolitan 

seaside lifestyle, the large expat community 

and the short distance to both Larnaca and 

Paphos international airports. 

Landmark commercial buildings like The 

Oval and Trilogy have raised the bar for prestigious 

commercial addresses in Cyprus. As some 

of the tallest office buildings in Limassol these 

projects offer large open-air balconies and uninterrupted 

views across the Mediterranean – an 

enviable working environment for mixing business 

with pleasure. A number of other mixed-use 

buildings are springing up across the city offering 

residential, commercial and retail space and are 

changing the skyline of Limassol, offering stunning 

views and luxury living. 

For companies requiring proximity to ministries, 

embassies and government departments, 

the capital Nicosia is also expanding its stock of 

state-of-the-art offices. For jet-setters, Larnaca 

– located on the sea and adjacent to the airport 

– might be the right choice. Cyprus caters for 

companies of all sizes, and smaller organisations 

or those new to Cyprus can easily find companies 

offering serviced office rental on a short-let 

or permanent basis. Regus, with offices across 

the world, have locations in both Limassol and 

Nicosia, and have been joined by numerous local 

companies offering turn-key spaces. 

COSMOPOLITAN AND SAFE LIFESTYLE 

Boasting one of the lowest crime rates in the EU 

and ranked as one of the top five safest countries 

in the world by Value Penguin, a superb 

Mediterranean climate, competitive personal tax 

rates, as well as excellent educational and healthcare 

systems, Cyprus is an easy sell for expats and 

in particular to those with families. Cyprus is an 

ideal location to achieve work-life balance, and 

to make business both pleasurable and profitable. 

A stable business environment and excellent 

quality of life are just a few of the many reasons 

why companies relocate operations and other 

strategic functions to Cyprus. In the long term, 

the country has great prospects to benefit from 

growth in the region and become an increasingly 

popular choice as a location for international 

and regional headquarters and act as a strategic 

springboard into neighbouring markets. n 


Cyprus is an 

ideal location to 

achieve work-life 

balance, and to 

make business 

both pleasurable 

and profitable. 


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HQ Insights 

WHY DID YOU CHOOSE 

CYPRUS? 

NCR has been doing business 

in Cyprus for 64 years, and 

we have been a significant 

contributor to the Cyprus 

economy and the evolution 

of the local IT industry. 

Cyprus is an excellent host 

for our investments and our 

headquarters for the Middle 

East and Africa region. We 

have always maintained 

a significant share of the 

IT market in Cyprus in the 

sectors of retail, banking, 

and government. There are 

many reasons why NCR has 

been investing in Cyprus 

for decades. The country’s 

high number of IT-educated 

people from top universities 

allows us to find young 

high-flyers and turn them 

into revenue generating 

professionals for NCR. The 

strong financial sector and 

upgraded airports and ports 

support our financial needs 

and we can easily import 

our products – also our 

executives can travel with 

ease. Last, but not least, 

Cyprus is one of the safest 

countries in Europe, with 

low crime rates, and less 

effort and cost to ensure the 

wellbeing of our employees. 

Kyriakos Kyriakou 

General Manager, 

NCR Cyprus Ltd 

In July 2017, SYKES 

opened a new 

service delivery 

facility in Larnaca 

as the result 

of conducting 

a thorough 

investigation and 

due diligence 

looking at about 

20 locations in 

southern Europe. 

SYKES Cyprus 

operation has 

augmented and 

strengthened 

its multilingual 

customer 

engagement 

capabilities. 

Given the growth 

opportunities 

in certain key language segments of the EMEA 

market, Larnaca is well situated geographically and 

serves as an optimal place for commerce given its 

diverse multilingual human capital talent pool and 

its competitive operating model. Worth mentioning 

that the Cyprus investment promotion agency Invest 

Cyprus provided us with remarkable proactive 

support in getting this effort off the ground. 

Christian Schaffer 

Senior Vice President 

SYKES Central & Northern EMEA 

Amdocs is a leading provider of software and services 

for communications and media companies with 25,000 

employees serving customers in 85 countries. Our 

development centre in Cyprus opened more than 20 

years ago and is a strategic centre for the company 

and the European HQ of corporate services such as 

finance and learning. The centre has continuously 

employed a highly skilled, multinational workforce, 

offering a variety of languages and cultures onsite, 

empowering great communication at ease. In addition 

to its excellent education infrastructure, there are 

numerous advantages for foreign companies to 

establish presence in Cyprus. The island offers 

quality of life and climate, a welcoming social 

environment for expats, and is a safe destination 

for our employees and their families due to the low 

crime rate and political stability. English is widely 

spoken and there is a good immigration process and 

support system for emerging country nationals. 

Yiannis Tinis 

Head of amdocs Cyprus 

Cyprus combines numerous advantages as a 

business base with quality of life. Our decision 

made good business sense and we remain 

committed to the country, having relocated a 

large number of our top executive employees 

and invested in a local bank and property. 

Cyprus’ geographical location allows us to serve 

our operations in Europe, Asia, the CIS region 

and US, while retaining a significant presence 

in Belarus, where half of our employees are 

based. Cyprus’ business advantages include 

political stability, EU membership, and a free 

market economy with a favourable tax regime, a 

modern and transparent legal and tax framework 

and a highly developed professional services 

sector. The infrastructure and communications 

network is well developed, while the workforce 

is highly educated and multilingual. Cyprus 

is welcoming to international business and 

recently enacted reforms and offered additional 

incentives to attract foreign investment. The 

excellent living conditions, including the climate 

and low crime rate, are also an important factor. 

Victor Kislyi 

CEO - Wargaming.net 


Cyprus has been an important 

base of operations for 3CX 

to enter the European and 

Middle Eastern markets. 

The country’s emphasis on 

creating a business-friendly 

climate has meant that we 

have been able to quickly 

grow our operations in Cyprus 

to a team of over 100. Our 

team benefit from the great 

climate, friendly people 

and the safety and security 

that Cyprus provides. 

Nick Galea 

CEO - 3CX 

For Whipper, Cyprus has aggressively set 

itself up to be a strong, next-level, start-up 

destination. There really was no comparison 

to where we would headquarter Whipper. 

The favourable Cypriot tax legislation 

benefitting innovative businesses made it 

highly rewarding as an R&D, investment and 

taxation environment. Look out California 

and London! What are the most important 

metrics? 326 to 284 to 224 – that's the number 

of sunny days Limassol vs. Santa Monica vs. 

London, and the average commute – 6 min in 

Limassol, to 25.5 min in Santa Monica to 74.2 

min in London. By basing our HQ in Cyprus, 

Whipper gets to apply more of every euro it 

makes into scaling into a global behemoth 

and enjoy the sun whilst doing it. Ask a 

Java Script engineer if they'd like to work in 

London or Limassol, Cyprus near the beach? 

For a company with a vibrant culture and an 

innovative product, they'll choose Cyprus every 

time. The Cypriot Government has proactively 

given the tech industry every reason to 

storm the gates and take up residence. 

Clark Westerman 

CEO - Whipper.live 

Bernhard Schulte Shipmanagement (BSM) 

was the first shipmanagement company 

incorporated on the island as Hanseatic Shipping 

Co in 1972. Cyprus was chosen due to its ideal 

geographical location as a ‘gateway’ to Europe 

and the Middle East. Foreign investors benefit 

tremendously from the availability of very 

educated local personnel as well as the high 

quality of life for expatriates. In addition, foreign 

companies benefit from the ease of doing 

business which is enhanced by the island’s well 

developed infrastructure. Another key factor is 

the strong support provided to investors by the 

government and local industrial associations 

such as the Cyprus Shipping Chamber. 

Cyprus is one of the key ship management 

clusters in the world and a global company 

like BSM benefits a lot by being part of this 

advanced and dynamic business community. 

HQ Insights 

Ian Beveridge 

CEO - Bernhard Schulte Shipmanagement (BSM) 

Kardex export HQ for MEA area has been based 

in Cyprus since 1980 and is the Kardex Group 

company responsible for the sales, marketing, 

technical and software support services to our 

distributors in the Middle East, Gulf, Africa, Balkans 

and Central Asia. After over 35 years in Cyprus, we 

will definitely stay on the island, as time has proved 

that we made the right decision to have Cyprus as 

our base. We still maintain the same advantages 

of operating in an efficient business environment 

with experienced professionals, an attractive tax 

framework and overseas market proximity to 

Africa, the Middle East, Gulf, Europe and Asia. 

Demetris Kouloundis 

Regional Sales Director MEA - Kardex Systems Ltd 

When we came to 

Cyprus back in 1988, we 

were first attracted by 

Cyprus’ location and 

proximity to the 

Middle East, which 

was our main target 

market at the time. 

We remained in 

Cyprus because it has 

matured into a solid 

international business 

centre offering many 

benefits, such as its 

advantageous and 

EU-compliant tax and 

regulatory framework, 

good access to various 

markets and an 

excellent quality of life 

Johny Abuaitah 

CEO - Windsor Brokers 


Interview 


Minister of Energy, Commerce and Industry 

SAFEGUARDING 

THE FUTURE 


Cyprus’ position 

as a competitive 

investment 

destination and 

international 

business centre is 

constantly being 

upgraded. Excellent 

investment 

opportunities exist 

in both new and 

existing areas, 

and the island’s 

growth efforts have 

been streamlined 

with the EU’s 

policy for greener 

and smarter 

development 

– with a strong 

focus on boosting 

productivity, 

innovation and 

access to markets. 

You took over as the 

new Minister of Energy, 

Commerce and Industry in 

July 2020, what key targets 

have you set out to achieve 

in your new position? 

Our government’s immediate priority is to minimise, 

as much as possible, the adverse effects of 

the 2020 global health crisis and to create the 

conditions necessary for the economy to return 

to a path of sustainable growth. In this light, the 

Ministry of Energy, Commerce and Industry, 

with the broad range of economic activity that 

falls under its competence, is at the frontline of 

our recovery and growth efforts, which have been 

streamlined with the EU’s policy for greener and 

smarter development. 

To achieve our main objectives, we are now 

working towards final approval of our new 

Funding Schemes for businesses and households, 

totalling around €270 million and covering the 

Programming Period 2021-2027. We are also 

in the process of enhancing and modernising 

the industrial sector, based on the guidelines set 

out in the new and cohesive National Industrial 

Policy 2030 developed by our Ministry. Our aim 

is to increase, in the next 10 years, our industry’s 

productivity, innovation and exports through 

digitisation, development of new skills and the 

upgrading of existing competencies, improvement 

of the business environment and enhancement 

of access to finance and markets. 

Moreover, to support entrepreneurship in 

Cyprus, we are planning to create a dedicated 

business service centre at our Ministry, intended 

to facilitate the process of setting up and scaling 

in Cyprus, through the provision of expedited, 

one-stop services, as well as personalised guidance 

and information on available funding tools. 

Other key targets of our Ministry include intensifying 

our efforts for hydrocarbons exploration 

and exploitation in the Exclusive Economic 

Zone (EEZ) of the Republic of Cyprus, transitioning 

to a 100% competitive electricity market 

in 2021 and further promoting the use of green 

energy on the island. Measures for the transition 

to green energy include, inter alia, the simplification 

of procedures for licensing large commercial 

Renewable Energy Sources (RES) projects, the introduction 

of Energy Efficiency Funding Schemes 

and the installation of energy storage systems 

and public charging points for electric vehicles. 

In addition, we are aiming to end Cyprus’ energy 

isolation and strengthen its security of supply 

by actively pursuing three Projects of Common 

Interest – the liquefied natural gas import terminal 

at Vasilikos, to be completed by 2022, the 

Israel, Cyprus and Greece electricity interconnection, 

known as EuroAsia Interconnector, and the 

EastMed gas pipeline, which will connect Eastern 

Mediterranean energy resources to continental 

Europe. 

The energy landscape 

in Cyprus has seen 

much activity over the 

past few years in both 

the hydrocarbons and 

renewable energy sectors. 

How do you see these 

areas developing and what 

opportunities are there 

for foreign investors? 

Energy is one of Cyprus’ most promising sectors, 

with a number of investment opportunities in 

new and existing projects, in both the oil and gas 

industry and in renewable energy and electricity 

production. 

In the area of hydrocarbons, the first exploitation 

licence was granted to the ‘Aphrodite’ gas 

field consortium back in November 2019, and 

in 2021 a new round of exploration work will 

begin in the Cypriot EEZ. Our aim is to have a 

clear picture of our EEZ’s energy potential and, 

subsequently, proceed with the first transfer 

of gas to Egypt for liquefaction and export by 

2024-2025. 

Specialised firms are already operating in 

Cyprus, servicing regional hydrocarbon activities. 

Depending on the discoveries made, a 

number of multibillion-euro infrastructure projects 

will be undertaken, which apart from the 

direct underwater pipeline to Egypt for transport 

of the ‘Aphrodite’ gas, may also include an 

onshore liquefaction terminal at the Vasilikos 

Energy Centre. The EastMed gas pipeline, 

another project of regional significance, is currently 

at the stage of final FEED studies (Front 

End Engineering Design) and is intended to 

connect Eastern Mediterranean resources to continental 

Europe. 

Regarding renewables and electricity production, 

we are focusing our efforts on the operation, 

by the end of 2021, of a fully competitive 

electricity market, whilst also making concrete 

steps to end our country’s energy isolation and 

moving towards green energy and storage installations. 

Notable projects in this regard are the 

€289 million LNG import terminal mentioned 

earlier, as well as the EuroAsia and EuroAfrica 

Interview 


Interview 

Interconnectors. The Ministry also plans to 

create a One-Stop Centre for commercial renewable 

energy projects, as well as to facilitate 

the construction of the projects proposed in the 

framework of our last two funding schemes – 222 

commercial RES projects in total. In addition, 

we are funding households and businesses for 

Energy Efficiency and the installation of photovoltaics 

and other RES systems for net-metering, 

net-billing and self-consumption. 

Cyprus has a longstanding 

reputation as a solid 

international business 

centre and its professional 

services sector has become 

a key economic pillar. 

How can Cyprus sharpen 

its competitive edge and 

ensure this sector sees 

further sustainable growth 

and diversification? 

Professional services have been the backbone 

of Cyprus’ economic model for decades and, 

consequently, key to maintaining our country’s 

position as a competitive investment destination 

and international business centre. With 

their high level of expertise and qualifications, 

Cypriot lawyers, accountants, auditors and other 

specialists, provide value-for-money, top quality 

services, to many businesses within a range of 

fast-growing economic areas, including the hospitality 

industry, shipping and shipmanagement, 

finance and investment funds. 

The professional services sector itself consistently 

shows strong growth each year, building on 

the island’s many comparative advantages that 

include, inter alia, a business-friendly environment, 

a legal system closely aligned to English 

common law, strong protection for investment 

and intellectual property, incentives for investment 

in start-ups and tailor-made provisions for 

industries such as shipping, investment funds 

and filming. As an EU and Eurozone member, 

Cyprus also offers investors preferential access to 

markets in Europe, the Middle East, North Africa 

and Asia. 

The Cyprus Government is committed to 

safeguarding and further enhancing the Cypriot 

business environment, by facilitating large investment 

projects, offering incentives for tourist 

development in specific areas of the island and, 

as I have mentioned earlier, by moving forward 

with our decision to set up a dedicated business 

service centre at our Ministry, to actively support 

entrepreneurship. 

Cyprus’ handling of the 

Covid-19 outbreak has 

been hailed a success, 

but the pandemic has 

undoubtedly had an 

impact on the global 

economy. What are 

your expectations for 

Cyprus and its economy 

in 2020-2021, and what 

message would you 

like to convey to the 

international community? 

A huge part of our government’s successful management 

of the pandemic has to do with the 

targeted budgetary measures promptly taken 

to support workers, businesses and vulnerable 

groups of the population. Α comprehensive, 

three-phase, Economy Support Programme of 

almost €3 billion, one of the largest of its kind at 

European level, is currently being implemented, 

benefiting an estimated total of 190,000 citizens, 

26,000 businesses and 22,000 self-employed 

persons. 

As such, not only does Cyprus remain a relatively 

safe destination for travel, but we have also 

been very effective in minimising the pandemic’s 

impact on our economy, despite the initial 

lockdown and the ongoing restrictive measures. 

According to the Ministry of Finance’s estimates, 

2020 will close with a 7% drop in GDP, 

whereas 2021 should mark a return to normality, 

with an expected 6% GDP growth rate. 

In conclusion, my message to the international 

community is that all the conditions and 

factors that make Cyprus an attractive investment 

and business jurisdiction are still in place 

and are constantly being upgraded. Moreover, the 

Republic’s government, in dealing with the 2020 

health crisis, has ensured that the island stays on 

course for a positive outlook, proving, once more, 

our hands-on approach to supporting businesses 

and the economy. Certainly, excellent investment 

opportunities exist in both new and existing 

areas, notably in energy, shipping, investment 

funds, tourism and hospitality, innovation and 

start-ups, real estate, filming and education. n 


Α comprehensive, 

three-phase, 

Economy Support 

Programme of 

almost €3 billion, 

one of the largest 

of its kind at 

European level, 

is currently being 

implemented. 


International Trade 

Quality 

Exports 

Cyprus’ strong track record of producing quality and soughtafter 

exports, coupled with the island’s strong EU trade links and 

unique position along key Mediterranean trade routes are further 

strengthening its longstanding reputation as a service centre 

providing exporters strong competitive advantages. Long-standing 

relationships with international export partners have also supported 

the development of the island and its transport infrastructure into 

a modern and efficient regional trading and transhipment hub. 

Potatoes 

73,635 tonnes 

€48.3 million 

Fruit & Veg 

Juices 


Star-Performing Exports (Volume / Value 2019) 

Pharmaceutical products 

increase by 36% 

Pharmaceuticals 

7,250 tonnes 


Fish 

5,896 tonnes 


Halloumi 

33,437 tonnes 


Meat 

4,086 tonnes 


Fastest Growing Exports (2015-2019) 

Halloumi 


Citrus Fruit 

20,787 tonnes 


Mineral Fuels 

634,131 tonnes 


Mineral Fuel and Oils 


Cyprus 

domestic 

exports 

registered a 

steady and 

remarkable 

increase reaching 131.3% 

from 2010 to 2019. Domestic 

exports of products (excluding 

petroleum products) marked 

a growth of 3.7% compared to 

2018, reaching €965 million. 

The total export of services 

marked an increase of 4.1% 

reaching €12.3 billion in 

2019, revealing the positive 

future prospects of the Cyprus 

services sector. The current 

world health crisis reduced 

economic activity and has had 

significant negative impact on 

trade flows worldwide. Cyprus 

export performance for 2020 

is unavoidably affected by the 

pandemic and a decline is 

expected on trade flows. Any 

estimation for the year ahead 

is subject to a high degree 

of uncertainty linked to the 

duration of the outbreak. The 

immediate goal is to mitigate 

damages with effective, 

rapid and vigorous policy 

decisions and measures, 

laying the foundations for the 

recovery. The government 

is fully committed to 

support export promotion 

and development aiming at 

increasing growth, employment 

and competitiveness. 

Panayiota Patsali 

Trade Director 

Ministry of Energy, 



Total Exports 


Domestic Exports 

€1.31 

billion 

Re-Exports 

€1.84 

billion 

Total Imports 


0.3% 

Minerals 

Export of Domestically 

Produced Goods (2019) 

7.5% 

Agricultural 

products (raw) 

citrus fruit, grapes, 

melons, vegetables 

and aromatic herbs 

1.1% 

Unclassified 

International Trade 

Export of Goods (2019): 


Export of Services (2019): 


22.7% 

Industrial products of 

agricultural origin 

fruit and vegetable juices, 

fish and meat products. 

Ratio of Goods and Services 

Exports to GDP (2019): 

70% 

38.9% 

Industrial products of 

manufacturing origin 

29.5% 

Industrial products 

of mineral origin 

Cyprus Trade Centres (2019) 

New York 

United States 

London 

United 

Kingdom 

Paris 

France 

Berlin 

Germany 

Athens 

Greece 

Cairo 

Egypt 

Vienna 

Austria 

Warsaw 

Poland 

Beirut 

Tel Aviv 

Lebanon 

Israel 

Dubai 

United Arab 

Emirates 

Moscow 

Russia 

Tehran 

Iran 

Beijing 

China 

Exports by Main Regions (2019) 

European 

Union 

41% 

Other European 

Countries 

4% 

America (North, 

South, Central) 

6% 

North 

Africa 

12% 

Other African 

Countries 

3% 

Near and 

Middle East 

8% Asia 

8% 

Oceania 

3% 

Country Report CYPRUS 2020 

47


Sector 

Profiles 

Agriculture 

& Food 

Banking 

Capital 

Markets 

Construction & 

Real Estate 

50 56 62 66 

Insurance 

International 

Financial Services 

Investment 

Funds 

Manufacturing 

& Industry 

Maritime & 

Shipping 

98 102 108 112 116 



Education 

Energy: 

Oil & Gas 

Energy: 

Renewables 

74 79 84 88 92 

Film 

Production 

Health 

Research & 

Development 

Technology & 

Start-Ups 

Telecoms & Satellite 

Communication 

Tourism 

Transport & 

Logistics 

122 128 132 136 144 


Agriculture & Food 

Sector Profile 

FOSTERING 

Sustainable Farming 

Innovative thinking focused on quality and sustainability is filtering into Cyprus 

agriculture, supporting the growth of superfood crops, the fight against climate change 

and the development of unique exports which are all helping to transform the sector. 

Over the last two years, Cyprus has 

introduced a number of initiatives to 

boost the agricultural sector in areas 

such as water and waste management, 

smart farming, environmental 

protection and new measures 

to ensure better animal welfare. In 

addition, the country is focusing 

on protecting and promoting quality traditional 

products worldwide, which will soon be marked 

with a new national and official ‘seal of origin’ to 

identify products made by the local agricultural 

sector using local raw materials. 

Nurturing resource-efficient farming and focusing 

on quality rather than quantity are key 

aims going forward into a new decade. The government 

has invested heavily in modernising and 

reorganising the overall agricultural sector with 

the help of generous EU funds and provided additional 

support to the sector through various 

programmes and subsidies. This overhaul of the 

agricultural sector is being conducted with the 

rural development programme co-funded by 

the EU and Cyprus, 52% and 48% respectively. 

More than €485 million is expected through the 

Common Agricultural Policy (CAP) between 

2014 and 2020, with further funds for modernisation 

and development under the new CAP 

from 2021 to 2027. The programme is open to 

all sectors for investment in the primary and 

secondary sectors, including organic farming, 

training, promotion, agritourism and applying 

for Protected Designation of Origin (PDO) or 

Protected Geographical Indication (PGI) status. 

Cyprus agriculture is definitely seeing a revival 

into a more efficient and value-added industry 

with the help of innovation and investment in renewable 

energy and smart tech, and with a business-minded 

younger generation keen to capture 

new markets around the world and capitalise on 

the future potential of this sector. 

HIGH-VALUE PRODUCE 

With today’s strong focus on healthy eating 

trends, Cyprus has seized the opportunity to 

achieve commercial success in niche markets 

by the systematic cultivation of long-overlooked 

fruit and vegetables – and bring back traditional 

local varieties of grapes to expand its rapidly developing 

wine industry. Long renowned for its 

citrus fruit, potatoes and olives, Cyprus is also 

becoming associated with high-value produce 

such as prickly pears, pomegranates, carobs, aloe 

vera and others that grow well in the island’s dry 

climate. 

KEY 

contacts 

Ministry of Agriculture, 



www.moa.gov.cy 


Over 50% of agricultural exports go the 

EU, followed by other European countries, the 

Middle East and Asia. Although unlikely that 

Cyprus’ agricultural sector will ever regain its 

high-performing levels of the 1960s, when it 

contributed 20% to the GDP, there is no doubt 

that its economic significance is steadily growing. 

The value of agricultural production plunged 

during the 2012-2014 economic crisis but picked 

up again in 2015 and grew by an impressive 12% 

over the next two years. In 2017, the value of agricultural 

production exceeded pre-crisis levels, 

reaching nearly €740 million, accounting for 

2.1% of GDP compared to 1.8% in 2014. Niche 

crops and traditional products unique to Cyprus 

are leading the way in this revival, with exports of 

halloumi alone showing a strong upward swing 

over the past decade. 

HOME OF HALLOUMI 

Halloumi is one of the country’s most unique 

trademarks worldwide. The value and quantities 

of halloumi shipped around the world has grown 

every year, and currently totals over 30 million 

kilos worth more than €200 million a year and 

is exported to over 40 countries. With the popularity 

of halloumi rising and more markets steadily 

being opened, producers predict that exports 

could reach over €300 million by 2023. 

To protect the heritage of the cheese, the name 

‘halloumi’ is now registered in the European 

Union as a Community Collective Trade Mark. 

Cyprus also retains the trademark in a number 

of other countries, including the US. It holds 

this classification in Jordan, and the Ministry of 

Commerce is in the process of registering it in 

other Middle Eastern countries. Cyprus is also 

working towards achieving the classification of 

halloumi as an EU PDO, which could further 

boost the brand appeal of the product. 

Identified as a key agricultural product and 

export, the government is investing €35 million 

to increase production of sheep and goat milk 

from which halloumi is traditionally made. The 

number of sheep and goats is to be increased by 

35,000, boosting milk production from three to 

14 million cubic litres a year by the end of 2020. 

Grants of €20,000 are available under an EU programme 

for first-time farmers aged between 18 

and 40 who raise these animals, in a bid to attract 

educated young people back into agriculture. 

Today, the production of the famous squeaky 

cheese is associated as much with high-tech labs 

as it is with a rustic lifestyle, with many boutique 

producers also making organic versions to cater 

to discerning market demands. 

The conservation 

and sustainable 

management of our 

natural and biological 

resources is of paramount 

importance for the 

overall well-being of 

our environment and 

our citizens. In Cyprus, 

the preservation of our 

natural environment 

has been set as 

our top priority, for 

environmental, social, 

economic, and ethical 

reasons. Recently, Cyprus 

has approved the National 

Biodiversity Strategy and 

the Action Plan 2020- 

2030, which includes 

a broad framework of 

objectives aiming to 

address the threats to 

biodiversity and a series 

of measures to meet 

these objectives, with a 

budget exceeding €22 

million. There is no 

doubt that the future 

holds many challenges. 

Protecting nature and 

the environment is a 

prerequisite for building 

viable societies that 

address the needs of 

their citizens. No form 

of development can 

be sustainable, if the 

natural wealth of our 

country is sacrificed for 

short term benefits. 

Costas Kadis 

Minister of Agriculture, 



CORONA IMPACT 

The coronavirus pandemic has had a significant 

impact on global trade and in Cyprus it has affected 

multiple sectors. Agriculture has felt the 

crunch and the government has rolled out measures 

to help struggling farmers. With a virtually 

non-existent tourism sector at the moment, there 

is a complete loss of demand from restaurants 

and hotels forcing farmers who had exclusive 

cooperation with catering companies to dump 

much of their produce. Farmers are losing out big 

time as they have already invested in cultivation 

based on previous orders by suppliers, who are 

now buying only a fraction of the orders placed 

earlier in the year. 

The pandemic lockdown has coincided with 

the harvest of many crops and the sharp drop in 

demand is proving devastating for many. Also 

the blanket commercial flight ban has hit hard as 

there are virtually no planes flying fresh produce 

abroad. Other affected groups include sheep and 

goat breeders due to reduced demand and a lower 

price of meat, vegetable and herb growers, as well 

as florists and producers who sell their products 

at public markets. So far, top exports like halloumi 

and potatoes have not been adversely affected 

by the Covid-19 pandemic 

In March 2020, additional support for farmers 

came from free water supply from governmental 

water works, but farmers are demanding more 

substantial support, such as electricity-use subsidies, 

to ensure the sector survives this difficult 

time. In May 2020, Cyprus approved an additional 

€4.6 million in support funds to ensure farmers 

can continue to produce safe and quality products. 

Part of this financing will be covered by a 

redistribution of European co-financed resources 

taking advantage of the CAP provisions. Another 

boost came in June 2020, with the European 

Commission approving a €1.8 million scheme to 

support farmers and address the liquidity needs 

of agricultural holdings to help them continue 

their activities during and after the coronavirus 

outbreak. 

SUCCESS IN NICHE CROPS 

Due to its small size, Cyprus cannot compete 

with countries that produce huge volumes at low 

cost, but what the country can excel at is quality, 

organic farming, bioproduction and superfoods. 

The decades-old success of the famous Cyprus 

potato provides a good example of what can be 

achieved by combining quality produce with 

strong marketing campaigns in key markets. 

The delicious flavour and quality, as well as their 

early harvest, make Cypriot potatoes one of the 

island’s most important agricultural export prod- 





ucts constituting around 40% of total raw agricultural 

products. They get their winning flavour 

from the distinctive potassium-rich red soil of 

Cyprus. Around 96% of potato exports are to the 

EU, with main markets being Greece, the UK and 

Germany. 

Today, there is less cultivation of various 

types of citrus fruit. Exports of these were hit 

around a decade ago after the EU reduced tariffs 

on imports of citrus from third countries in the 

Mediterranean such as Morocco, Egypt and 

Turkey – where labour costs are far lower and 

production volume significantly greater. Farmers 

dedicated to citrus were encouraged to shift to varieties 

that perform well in export markets, such 

as the tango orange and lemons. Government incentives 

are also in place to substitute citrus trees, 

which require a lot of irrigation and expensive 

pesticides, with hardy crops that naturally thrive 

in dry climates, such as vitamin-rich fruit like 

pomegranates and prickly pears. The medicinal 

oil from the seeds of prickly pears can sell for up 

to €40,000 a litre, proving that developing these 

types of fruit can be a highly specialised and lucrative 

business. In addition, aloe vera cultivation 

holds much potential in making beverages, skin 

lotions and cosmetics. 

Demand for such products in niche export 

markets is steadily rising because of the increased 

interest in well-sourced, nutritious food and the 

growth of European vegetarian and vegan communities. 

Cyprus has a clear advantage as many 

of these foods come from hardy plants that thrive 

in Cyprus’ climate and wider cultivation of such 

crops will help to address the challenge of water 

scarcity. Farmers have enjoyed greater water security 

in recent years thanks to the latest desalination 

and recycling technology. Also, many of 

these crops do not require large land holdings, 

which again suits Cyprus where around 90% of 

holdings are under five acres and most farms are 

owned and run by individual families. 

For centuries, olive oil has been hailed for its 

health benefits and one Cypriot farm has taken 

cultivation to the next level, garnering worldwide 

attention for its oil. The positive effects come from 

the number of phenolic compounds, and Atsas 

olive oil has by far the highest number of these 

compounds ever recorded worldwide. The oil, 

which is exported to Russia, Canada and the US, 

has attracted the attention of the scientific world 

who are researching the benefits of high phenolic 

olive oil in lowering cholesterol and combatting 

cancer. California’s UC Davis research institute is 

now running clinical tests in the anti-inflammatory 

effects of the oil, and the University of Athens 

school of pharmacology started clinical tests on 

Alzheimer’s. More recently, the prestigious Yale 

University announced its interest in researching 

the Cypriot oil. The philosophy of the organically 

certified Atsas farm is to use agroecology 

design to create agricultural systems which have 

the diversity, stability and resilience of a natural 

ecosystem. The idea is part of the new regenerative 

agriculture movement which is gathering momentum 

around the world, and the Cyprus- olive 

oil producer is a pioneer in the field. 

Innovation has helped revitalise traditional 

minor crops, or ones that were set aside by the 

advent of high-intensity cropping systems. 

For instance, a current joint effort spearheaded 

by the University of Cyprus (UCY), the 

Agricultural Research Institute (ARI) and the 

Central Chemistry Laboratory, is screening the 

indigenous carob genetic resources and developing 

food, beverages and medicinal products 

of high added value. Once dubbed ‘black gold’, 

but gradually abandoned over the decades, 

carobs are making a strong comeback. Under the 

UCY project, 6,000 carob trees were planted in 

November 2017, with another 34,000 to follow 

on land leased from the forestry department 

in Orites, Paphos, for what will be the island’s 

biggest organic carob plantation. 


u Cyprus cannot compete 

with countries that 

produce huge volumes 

at low cost, but what 

the country can excel 

at is quality, organic 

farming, bioproduction 

and superfoods 

u To promote the quality 

of Cyprus’ agricultural 

products, the government 

has pushed to register 

more PDOs and other 

international quality logos 

that attest to specific 

traditions and qualities 

of food, agricultural 

products and wines 

u Around 70 wineries 

produce award-winning 

wines in the foothills 

and high-altitudes of 

the Troodos mountains 

– establishing some 

as the highest altitude 

vineyards in Europe 

u Younger educated 

people are now entering 

what is seen as a 

cutting-edge sector 

u Farmers have enjoyed 

greater water security in 

recent years thanks to 

the latest desalination 

and recycling technology 

u Aquaculture activities 

in Cyprus are expected 

to treble by 2023, 

contributing to food 

supply, environmental 

protection and 

employment. 

The ARI, which cooperates with numerous 

international organisations and has five experimental 

stations in Cyprus, is also conducting 

research on how Cyprus can produce a bigger 

biodiversity of crops while improving yield, 

quality, resilience and taste. The objective is to 

increase the biodiversity in agricultural ecosystems 

by looking at traditional species no longer 

grown in Cyprus, as these old species – genotypes 

– have suitable characteristics to diversify 

crops and also improve the quality of products 

that can be enjoyed by consumers. Scientists 

from this European research project are testing 

an experimental breeding technology aimed at 

identifying plants adapted to Cyprus’ scorching 

heat and lack of water. In an experimental field 

that covers some 11 hectares, more than 20 varieties 

are grown, including corn, barley, ancient 

wheat, chickpeas and cowpeas. The more promising 

candidates will be naturally crossed among 

them to produce drought-resistant varieties. The 

project’s aim is to help local farmers expand their 

offering to potential new markets, and researchers 

predict that new crops could become a market 

reality in Europe by 2023. 

DEVELOPING AQUACULTURE 

Cyprus has a longstanding fisheries tradition and 

history despite its limited contribution to GDP. 

However, aquaculture is an important activity 

constituting around 80% in terms of both value 

and volume of the total fisheries production. 

The aquaculture sector has nine marine offshore 

farms and seven inland farms located in Troodos 

mountain area, as well as three marine fish hatcheries, 

one shrimp hatchery and two other inland 

units culturing ornamental fish. 

Marine fish production (mariculture) in open 

sea cage farms accounts for some 90% of the total 

sales value, and steady growth in this sector due 

to strong marketing on both a local and international 

level is likely to attract further investment. 

The main commercially cultured marine 

species are the gilthead seabream and European 

seabass, accounting for around 70% and 30% 

respectively of total production. Around 65% of 

the total national production of marine species is 

exported to markets in Europe, the Middle East 

and the US, with the rest consumed domestically. 

The main factors favouring the development 

of the aquaculture sector are the good environmental 

and climatic conditions of Cyprus, 

availability of adequate sea areas at a reasonable 

distance from the coastline, and the existence 

of appropriate infrastructure, skilled human resources 

and access to research facilities in Cyprus. 

Financing from the European Maritime and 

Fisheries Fund (EMFF) supports the aquaculture 

sector’s competitiveness and environmental 

sustainability, mainly through the development 

of joint support facilities and infrastructures, investment 

to increase the efficiency of aquaculture 

units, promotion of aquaculture products in new 

markets and the development of maritime spatial 

planning. According to the EMFF, aquaculture 

activities in Cyprus are expected to treble by 

2023, contributing to food supply, environmental 

protection and employment. 

REVITALISING VITICULTURE 

Cyprus has been producing wines since 3,500 

BC which were widely traded in the Eastern 

Mediterranean region and the Aegean Sea. 

Perhaps the best known ancient variety of 

Cyprus wine is Commandaria, a unique dessert 

wine made from sun-dried Xynisteri and Mavro 

grapes and reputedly enjoyed by Richard the 

Lionheart on his way to the crusades. The wine 

holds the distinction of the world’s oldest named 

wine still in production and is documented as far 

back as 800 BC, while the name Commandaria 

dates back to the 12 th century crusades. In the 

1980s the country embarked on a campaign to 

eradicate local grapes in favour of foreign varieties, 

such as Chardonnay, Sauvignon, Merlot, 

Grenache and Syrah in the belief that they would 

be more exportable. Fortunately, the trend was 

reversed after Cyprus joined the EU in 2004 

and with the Union’s focus on highlighting local 

produce of its member states. A programme was 

adopted to save native varieties that have been 

grown for centuries and were in danger of becoming 

extinct. 

Efforts to save the heritage of Cypriot viticulture 

has seen enormous success, and with the 

country now producing interesting vintages, the 

reputation of Cyprus wine and this new territory 

is growing rapidly worldwide. Four different 

wine regions have been designated as producing 

their own unique product with controlled appellations 

of origin. In each case, different proportions 

of indigenous Cypriot red grapes such as 

Maratheftiko, Ofthalmo or Mavro, or the white 

grape Xynisteri, are blended with smaller quantities 

of specified foreign varieties such as Cabernet 

Sauvignon, Cabernet Franc, Syrah or Merlot. The 

unique native varieties and local character of 

Cyprus wines reflect the country’s terroir – which 

is also one of the few places left in the world that 

is free from phylloxera, the pest dreaded by winemakers 

worldwide. 

The wine scene has developed dramatically in 

recent years, with around 70 wineries producing 

award-winning wines in the foothills and highaltitudes 

of the Troodos mountains – establishing 

some as the highest altitude vineyards in Europe. 





The government has recognised the budding 

success of this sector and announced €23 million 

would be made available to the local industry 

through the National Viticulture Support 

Programme for the period 2019-2023. Many 

vineyards today are run by young entrepreneurial 

Cypriots with solid training in viticulture and 

oenology from famous winemaking regions such 

as France, Italy and Australia. This along with the 

establishment and promotional work of an association 

of 11 leading Cypriot wineries – branded 

the ‘ambassador wineries’ through the Evoinos 

partnership programme – are definitely putting 

Cyprus’ wine territory on the map for international 

wine connoisseurs. 

Showcasing the rich viticulture of the island, 

Cyprus has created a wine trail project, offering 

six different organised routes for visitors to 

tour the island’s wine-producing regions. The 

reputation of the annual Limassol Wine Festival, 

launched in 1961, has also spread beyond the 

country’s borders and attracts over 100,000 visitors 

every August to the city’s municipal gardens 

to discover the wine portfolios of one of the 

world’s oldest wine-producing countries. 

OPPORTUNITIES AND CHALLENGES 

Climate change is undoubtedly one of the biggest 

challenges facing Cyprus and the entire region, 

and the agricultural sector has felt the effects first 

hand. For example, €11.2 million in compensation 

has been paid for damages suffered to certain 

types of crops due to extreme weather conditions 

– this figure exceeds by far the average compensation 

of the last 20 years. This reality has placed 

research at the heart of finding solutions to fight 

the effects of global warming. To this end, Cyprus 

along with 15 other countries has launched an 

initiative to create a new climate change action 

plan. The research and recording of relevant 

measurements in the region will be led by the preeminent 

and globally renowned research organisation 

the Cyprus Institute (CyI), and the data 

gathered combined with the scientific expertise 

is expected to result in new ideas and solutions. 

Currently there are around 55 research projects 

in various stages of completion in Cyprus thanks 

to the numerous research centres and universities 

leading the way in innovation. 

New trends in farming methods and produce 

are helping to address another challenge that 

Cypriot agriculture has long faced, the everincreasing 

average age of farmers. Younger educated 

people are now entering what is seen as a 

cutting-edge sector and many also have the marketing 

skills to make their agribusiness a success 

– changing the image of farming. The University 

of Central Lancashire (UCLan), the first British 

university to establish a campus in Cyprus, now 

offers a popular diploma programme in agriculture 

and animal husbandry, and the numerous 

private and university-led research projects and 

initiatives are also enticing the younger generation 

to explore opportunities in the sector. 

Another interesting initiative is the recent legislation 

allowing for the cultivation and trade of 

medical cannabis. Apart from the benefits it would 

bring patients – a number-one priority – it would 

also bring a boost to the economic development 

of the island, as well as attract significant foreign 

investment for the entire production chain. 

To promote the quality of Cyprus’ agricultural 

products, the government has pushed to 

register more PDOs and two other international 

quality logos that attest to specific traditions 

and qualities of food, agricultural products and 

wines. Like the PDO, the PGI denotes a specific 

link to a region’s product while the third logo, the 

Traditional Speciality Guaranteed (TSG), highlights 

a traditional production process. Cyprus 

has five food products already registered as 

PDOs, and four products have PGIs, with more 

applications for both PDO or PGI certification in 

the pipeline. In the wine category Cyprus boasts 

the famous Commandaria, which is said to be the 

earliest known wine brand in the world. In addition, 

Zivania and Ouzo are potent alcoholic beverages 

listed as PGI products since 2004. There 

is growing interest to gain these unique badges 

of quality because they bring added value to any 

produce, especially as European consumers are 

prepared to pay more for well-sourced food and 

ingredients. Achieving more certifications for 

Cypriot products is a good opportunity to help 

rebrand Cyprus and its agricultural sector. 

DIVERSIFICATION IS KEY 

Cyprus is determined to become cleaner and 

greener by adopting principles of sustainability, 

and with increasing input from scientists and researchers 

agriculture is diversifying with its boutique 

wineries, aquaculture and farmers cultivating 

nutritious and medicinal plants. Agri-tech 

and smart farming methods are on the rise and 

start-ups and research centres are working more 

closely with farmers for fresh ideas to transform 

agribusiness. With a winning mix of resilient 

and resourceful farmers, increased government 

support and cutting edge research, Cyprus agriculture 

is experiencing a transformation that will 

allow it to respond to the fast-changing trends in 

the European market and to ultimately become a 

more sustainable sector in the future. n 



TASTE OF 

CYPRUS 

Ministry of Energy, Commerce and Industry 

6 Andreas Araouzos street, CY-1421, Nicosia - Cyprus 

T: +357 2286 7100 • E: ts@mcit.gov.cy • W: www.mcit.gov.cy

Banking 


Bolstering 

THE BANKS 

A strong focus on going 

digital, implementing 

more innovative banking 

solutions and integrated 

products are supporting 

the industry and enhancing 

competitiveness, as well as 

bringing fresh opportunities 

to support sustainable 

development in a post- 

Covid era of stiff competition 

and increasing costs. 

The Cyprus banking sector has taken 

big strides in correcting fundamental 

weaknesses in the financial system, 

cleaning up balance sheets, successfully 

raising private capital and maintaining 

strong capital positions over 

the last few years. Until the end of 

2019, and before the coronavirus outbreak, 

banks were showing strong performance 

with decreasing non-performing debt and an 

increase in deposits, a total of €3 billion in fresh 

loans provided during the last year, as well as continuous 

credit rating upgrades boosting market 

and investor confidence in Cyprus. 

Technological advancements, new market 

demands and growing funding needs of both 

households and businesses have been driving 

developments in the banking industry, and the 

sector is focused on introducing services to com- 

KEY 

contacts 

The Central Bank of Cyprus 

www.centralbank.cy 

The Association of 

Cyprus Banks (ACB) 

www.acb.com.cy 


Although key 

indicators 

are under 

pressure at 

the moment 

due to the 

pandemic, Cyprus banks had 

strong performance in 2019, 

are stable and well capitalised, 

and the sector has shown 

overall improvement during 

the last years. Banks are 

now focusing on providing 

the widest possible support 

to the economy to minimise 

the pandemic impact and 

to safeguard the banking 

sector’s performance 

in the years ahead. 

Michael Kammas 

Director General 

Association of Cyprus 

Banks (ACB) 

30+ 

BANKS 

panies, start-ups and ventures with high growth 

potential. At the same time banks have been instrumental 

in expanding lending to key sectors 

such as shipping, tourism, real estate and professional 

services – which are significant economic 

drivers for Cyprus. 

The reforms and increased European supervision 

have already produced more agile and 

future-proof banks – and with the industry embracing 

digital innovation the sector is bolstering 

its adaptability and competitiveness. If Cyprus 

continues to display the same level of resilience it 

has shown over the last five years and continues 

to efficiently restructure its institutions, it will be 

well-equipped to overcome the challenges and 

emerge stronger as a true international financial 

centre. 

COVID SLOWING MOMENTUM 

Supported by the healthy growth of the Cyprus 

economy over the last few years, the banking 

sector was showing positive results in 2019. 

However, the outbreak of the global coronavirus 

pandemic struck a severe blow to the momentum 

achieved. With growth-driving economic sectors 

heavily affected by the ramifications of Covid-19, 

the Cyprus banking sector implemented extraordinary 

measures during the first months of the 

pandemic to minimise the impact on households 

and corporations. Key measures included a loan 

repayments suspension until the end of 2020 and 

the postponement of foreclosures for a period 

of almost six months to support the economy, 

society and bank clients. 

In these unpredictable times, Cyprus banks 

have been working hard to evaluate the circumstances 

in an effort to clarify the real picture of 

the economy in real time. The situation is very 

challenging but manageable, according to the 

Central Bank of Cyprus, who has stated that 

apart from the low-interest rates debilitating eurozone 

banks’ profitability, Cypriot banks face 

the additional challenge of the still high level of 

non-performing loans (NPLs). Going forward, it 

will be absolutely crucial for banks to keep cleaning 

up their balance sheets and focus on tackling 

non-performing debt to safeguard the sector’s 

performance in the years ahead. 

STRONG FOUNDATIONS TO 

OVERCOME CHALLENGES 

Although the pandemic is currently shaking 

up the world economy and putting pressure on 

banks, Cyprus has shown improvement in the 

sector. Local banks are stable and have reorganised, 

developed capital strength and invested 

in corporate governance – establishing strong 

foundations to move toward a more sustainable 

future. According to 2019 Q4 key aggregate 

financial indicators released by the Central 

Bank of Cyprus (CBC) the Core Tier 1 Capital 

of Cyprus banks amounted to 17% at the end of 

2019, compared to 15.1% at the end of 2018. This 

is the highest level of CET1 capital in the CBC’s 

time series since December 2010. Deposits in 

the banking sector of Cyprus were up to €47.9 

billion in August 2020, an amount which equals 

less than 250% of the local GDP, while total loans 

stood at €31.8 billion. 

In addition, progress has been made in reducing 

the NPL ratio, which is now less than 30% 

in comparison with more than 50% some years 

ago. This was achieved through loan restructurings, 

sale of loans, debt-to-asset swaps and foreclosures. 

Another key part of NPL reduction 

has been through specialised units taking over 

NPL management and new international players 

buying up distressed asset portfolios from local 

banks. 

All core banks in Cyprus have passed successive 

and rigorous European Central Bank 

(ECB) stress tests and reforms in the country’s 

legal and judicial framework have given banks 

more avenues to reduce the burden of problematic 

assets and economic imbalances, a legacy of 

the 2013 financial crisis. Significant initiatives 

include a new state programme – Estia – for supporting 

the most vulnerable borrowers, a major 

set of laws passed in 2018 substantially strengthening 

the legal framework and allowing for 

the securitisation of loans and speeding up loan 

recovery rates – developments that were welcomed 

by credit rating agencies. However, even 

before these laws, the drop in NPLs in Cyprus 

was proportionately the fastest in the EU. 

Challenges do remain and banks will need 

to tread carefully and adopt a more proactive – 

rather than reactive – approach in order to stay 

on track and maintain competitiveness. With 

global uncertainty due to the pandemic, fluctuations 

in international markets, and external 

risks such as trade wars and changes in monetary 

policy, the banking sector must make provisions 

to ensure it has the ability to respond to any new 

potential crises. 

KEY PLAYERS 

Key players in the Cyprus banking landscape 

are Bank of Cyprus, Hellenic Bank and RCB 

Bank which are under the direct supervision of 

the ECB, with the rest of the market made up of 

smaller banks and foreign subsidiaries such as 

AstroBank, Eurobank and Alpha Bank. 

The island’s largest lender is the Bank of 

Cyprus (BoC) with a market share of 41.7% as 



Banking 


TOTAL DEPOSITS 

€47.9 

billion 

(August 2020) 

of June 2020, and the bank has come a long way 

since the 2013 financial crisis. Since the 2014 

peak, BoC has reduced its stock of non-performing 

exposures (NPEs) by €12.4 billion or 83% to 

€2.6 billion and its NPE ratio is now reduced to 

22% on a pro forma basis, from 30% as of yearend 

2019. The lender remains committed to 

further de-risking and its capital and liquidity 

position remains good and in excess of regulatory 

requirements. A considerable boost to BoC’s 

balance sheet came in August 2020, with the sale 

of almost €1 billion in NPLs to investment firm 

PIMCO. The sale is expected to be completed in 

the first half of 2021, and will reduce the bank’s 

NPE ratio by five percentage points, a credit positive. 

The Cyprus Cooperative Bank (CCB) was 

one of the top three banks, until the healthy 

assets of the state-owned lender were acquired by 

Hellenic Bank in June 2018. As part of the deal, 

Hellenic Bank (HB) acquired CCBs total deposits 

amounting to €9.7 billion and took on €10.3 

billion in assets consisting of performing loans, 

bonds and cash, and around €500 million in nonperforming 

loans. While assets worth approximately 

€8.2 billion were transferred to the state, 

with the so-called bad assets managed by stateowned 

Cyprus Asset Management Company 

(KEDIPES), which is managed by the Cyprus 

arm of Spanish company Altamira. 

The acquisition strengthened Hellenic Bank’s 

status as a major player in the market. Following 

the 2013 financial crisis, Hellenic Bank was successfully 

recapitalised through private funds, and 

also led the way in 2017 in becoming the first 

financial institution to join forces with an asset 

management company, APS Holdings, to manage 

its NPLs. The agreement with the Czech debtservicing 

specialist, whose clients include Merrill 

Lynch, Bank of America, Unicredit, Fortis Bank, 

Banco Populari and Deutsche Bank, is of strategic 

importance for HB and is part of the group’s 

strategy of reorganising and transforming its 

business model. APS Cyprus currently services a 

portfolio of NPLs and real estate assets of around 

€2.6 billion that consists of non-performing loan 

assets and real estate assets. 

RCB Bank has been a solid player in the 

Cyprus banking landscape for 25 years and 

has maintained a very low level of non-performing 

exposures and high level of coverage. 

Headquartered in Limassol, RCB has sound 

capitalisation and good asset quality according 

to credit ratings agency S&P, giving the bank a 

strong position to weather the macroeconomic 

effects of the Covid-19 storm. 

With the European Central Bank (ECB) 

calling for more consolidation in the EU banking 

sector, one Cyprus bank in particular has been 

making moves in the local market. Consolidation 

and strategic new investment came in 2017 with 

a group of international investors led by Lebanese 

banker Maurice Sehnaoui acquiring the majority 

stake of the Cyprus subsidiary of Greece’s largest 

lender Piraeus Bank. Now rebranded AstroBank, 

the lender, who cites growth as a top priority in its 

strategy, has taken bold steps to expand its opera- 

Sector Structure and Regulation 

The key 

opportunity is 

our country's 

transition 

to the era of 

the fourth 

industrial revolution. The 

digital revolution is no longer 

an abstraction. Bank of Cyprus 

is constantly upgrading and 

expanding its range of digital 

products and services and 

cultivating digital culture 

among its staff and customers. 

Our actions come under of the 

philosophy “CYON” (Cyprus On) 

and go beyond banking. Beyond 

Banking is about services and 

products that traditionally 

were not associated with 

the industry however recent 

technological innovations open 

up a variety of opportunities 

through Digital Channels. 

Panicos Nicolaou 

CEO 

Bank of Cyprus 

Cyprus’ banking sector is comprised of two tiers: domestically-oriented banks 

and international banks. International banks have long been attracted to the 

island for its fiscal regime and to use the country as a launch pad into high-growth 

and emerging markets. The list of banks of foreign origin in Cyprus consists 

of over 30 institutions, which mainly carry out international banking business 

and have limited interaction with the domestic economy. Beyond the traditional 

deposit and lending services to households, corporations and SMEs, banks in 

Cyprus operate under the ‘universal banking model’ and offer a diverse range of 

products and services. Deposits from customers have traditionally been the main 

source of funding for banks. Banking in Cyprus is regulated by the Central Bank 

of Cyprus and is fully harmonised with EU legislation and directives. Changes 

introduced by the EU’s Single Supervisory Mechanism (SSM) saw the transfer 

of supervision of all the eurozone’s largest banks to the European Central 

Bank (ECB) in 2014, harmonising the landscape for all big banks in Europe. 


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Banking 


tions. In 2019, it acquired the operations and staff 

of USB Bank for €40 million, followed by another 

agreement to acquire 100% of the National Bank 

of Greece’s Cyprus subsidiary. These deals were 

financed by AstroBank’s own resources and supported 

by a capital increase primarily from its 

existing shareholders. The Bank kept up the takeover 

momentum in 2020, by reaching an acquisition 

agreement to purchase the banking business 

of the Arab Jordan Investment Bank (AJIB) 

in Cyprus. However, the deal was terminated in 

August 2020 citing challenges brought by the coronavirus 

pandemic, with the two parties continuing 

to support the market independently. 

DEBT MANAGEMENT BUSINESS 

A key development in Cyprus changing the 

banking landscape – and the real estate sector in 

the long term – has been the entry of debt acquiring 

companies (DACs) that have bought assetbacked 

NPLs worth €14 billion from Cyprus 

banks. There are currently seven licensed DACs 

according to the CBC. 

The Norwegian B2 Holding Group signed an 

agreement with the Bank of Cyprus to acquire 

a portfolio of non-performing loans, with a 

face value of €400 million, consisting of consumer 

and small business loans without collateral. 

This is the group’s second deal in Cyprus, 

following B2 Kapital Cyprus, a subsidiary of 

Norway’s B2 Holding, acquiring an NPL portfolio 

worth €144 million from Hellenic Bank in 

2018. Since obtaining its Cyprus license in 2019, 

APS has acquired a small NPL package worth 

€245 million, and is also known for taking on 

Hellenic Bank’s ‘bad’ loans and real estate management 

business. 

Also on the list of licensed companies are 

Cac Coral, which has acquired a €400 million 

NPL package from the National Bank of Greece 

(Cyprus), while CYMC III and Gordian Holdings 

have acquired an NPL package sold by BoC 

known as Helix 1 with a gross book value of €2.8 

billion – of which €2.7 billion related to non-performing 

loans. The list also includes the Cyprus 

Asset Management Company (KEDIPES), 

which is a subsidiary of the Co-operative Asset 

Management Ltd (SEDIPES), the successor entity 

of the former Cooperative Bank of Cyprus. NPLs 

of the former Coop Bank is owned by SEDIPES 

and managed by KEDIPES, through Altamira 

Asset Management Cyprus. Alpha Bank signed 

a long-term partnership agreement with Italy’s 

biggest loan recovery specialist doValue for managing 

the bank’s portfolio in Cyprus, which includes 

bad loans and real estate assets with a total 

value of €3.2 billion. Reportedly, doValue is to establish 

an NPL management company which will 

take on Alpha Bank’s NPLs. 

With a large proportion of these NPLs relating 

to real estate assets, and European Banking 

Union directives dictating banks cannot hold on 

to a property they acquire through foreclosures 

or debt-to-asset swaps for more than three years, 

analysts have raised concerns banks will offload 

their properties either by directly selling them to 

the market through asset management companies, 

bringing property prices further down, or packaging 

more asset-backed loans to investment funds. 

Further uncertainty in this market is being caused 

by the pandemic, and once the foreclosure freeze 

is lifted in October 2020 and loan repayments reinstated 

in 2021, the Central Bank has warned that 

NPLs could increase and shrink the value of the 

assets – causing further losses to bank portfolios. 

The business 

world is facing 

a new socioeconomic 

reality due to 

the Covid-19 

pandemic. The unprecedented 

crisis brought a number of 

significant challenges, but 

for RCB Bank human life had 

to be placed in the epicentre 

of both business and society 

at large. RCB Bank, as a 

responsible business, stepped 

in without delay to continue 

offering a high level of service 

to corporate and individual 

clients via its digital channels 

and tools which are the future 

of banking during and post the 

pandemic. At the same time, it 

acted quickly in securing and 

donating 12 medical ventilators 

to the health authorities 

which are lifesaving when 

dealing with Covid-19 and 

have empowered the medical 

services of the country. 

Kirill Zimarin 

CEO 

RCB Bank Ltd 

Core Tier 1 

Capital of 

Cyprus banks 

15.1% 

16.6% 

17.0% 

2018 Q4 

2019 Q3 

2019 Q4 


The unfolding 

of Covid-19 

into a global 

pandemic 

will inevitably 

lead to 

unprecedented changes to the 

global economy which clearly 

impacts the banking sector 

worldwide. In this rapidly 

evolving economic environment 

the management of banks 

had to adapt their strategy 

accordingly in an effort to 

mitigate risks and plan ahead 

for the future. The fact that 

the impact is asymmetric, 

per sector, clearly leads to 

new opportunities for growth 

and changes in strategic 

priorities. With the above in 

mind, areas for growth for the 

year ahead include: digitisation 

drive, liquidity management 

solutions, focus lending in 

growth sectors, expansion of 

disintermediation and drive 

in wealth management. 

Costas Argyrides 

CEO 

cdbbank 

BALANCING THE REGULATORY BURDEN 

In the past five years, EU banks have been faced 

with an ever-increasing regulatory burden with 

stricter ECB guidelines and compliance requirements 

– forcing institutions to grapple with 

finding a balance where financial stability can 

be safeguarded without suppressing economic 

growth. 

The global challenges sparked by the Covid 

pandemic have brought a welcome, but temporary, 

respite as regulators have decided to postpone 

deadlines, the enforcement of upcoming 

regulations, and even provided some temporary 

simplification of regulations to give flexibility to 

capital markets and the banking sector. However, 

the landscape remains complex in terms of 

banking regulatory and supervisory standards, 

with no comprehensive long-term initiative to 

permanently reduce the regulatory burden by focusing 

on better regulation, rather than just more 

regulation. 

Some key changes now under discussion 

relate more to capital markets. Instructed by the 

European Commission, the High-Level Forum 

(HLF) published a report where it sets out a series 

of clear recommendations aimed at moving the 

EU’s capital markets union forward. This initiative 

was welcomed by the European banking 

sector as it will help remove regulatory obstacles 

and would allow for market-based financing and 

banking finance to work better together – rather 

than being mutually exclusive – to meet the needs 

of companies and investors, and to promote economic 

growth in the EU. 

DIGITAL SOLUTIONS THROUGH FINTECH 

The regulatory pressures are a global challenge 

for financial institutions, and part of the solution 

is to invest in new tech to enhance efficiency, 

profitability and prospects. A well-functioning 

banking system is a precondition for 

the sustainable development of every economy 

and embracing a digital future with more transparency 

will certainly help to achieve this goal. 

The last decade has seen a surge in new tech, 

solutions, tools and platforms coming into the 

market, but in its wake have also come concerns 

regarding transactional security and trust – 

aspects that are increasingly crucial in the world 

of financial technology (fintech) and achieving 

healthy competition in banking for consumer 

benefit. 

Banks are currently working on new and 

cost-effective services, while tackling various 

other issues and challenges operating in a rigorous 

regulatory, supervisory and legal framework. 

Crucial to succeeding in this new reality 

is better cooperation between the two main 

channels of service provision, banks and tech 

companies. This would bring the best solutions 

for the clients, high-end digital platforms 

and fully compliant procedures at every level of 

payment or transaction – through tech such as 

blockchain. 

A silver lining of the pandemic has been that 

the implementation of many digital strategies 

have been accelerated in Cyprus due to the circumstances. 

Almost every aspect of the economy 

can be faster and more efficient with the use of 

better tech solutions. These developments have 

also opened up more interesting investment opportunities 

and growth prospects for the Cyprus 

economy, not only in banking but in key sectors 

such as education, health and tourism, as well as 

the start-up ecosystem and technology sector in 

general. 

FOCUS ON SUSTAINABILITY 

The broad-based economic recovery of Cyprus 

continued straight through to 2019, significantly 

exceeding eurozone dynamics, and the country’s 

banks had gone from strength to strength until 

the pandemic hampered this strong performance 

with widespread economic disruption and the 

Cypriot economy expected to contract by around 

7% in 2020, before returning to healthy growth 

rates in 2021. 

The reforms and firm steps to strengthen its financial 

institutions in the past few years have not 

been in vain and have bolstered the sector, and 

multiple assessments have proved a high level 

of compliance across the banking industry, with 

some statutory requirements even more demanding 

than in other EU member states. Despite the 

current unpredictability of the global economy, 

Cyprus banks remain stable and the country continues 

to offer interesting investment opportunities 

that can be tapped into, such as distressed 

assets and loan portfolios, mergers and acquisitions, 

private equity and venture capital projects, 

as well as financing of infrastructure projects, 

such as tourism development and oil and gas 

projects. 

Although there are challenges ahead, a fresh 

focus on digital solutions and strong corporate 

initiative, coupled with the supervisory authorities’ 

more accommodative policy to give banks 

flexibility to support the economy, there is 

ample reason to believe that sustainable growth 

is possible in the banking sector in the next few 

years. n 




Capital Markets 


BUILDING A 

Dynamic Market 

The capital markets landscape in Cyprus has seen development over the 

last few years, supported by the country’s strong professional services 

sector and a growing investment funds industry. As a regional market 

with personalised service, Cyprus’ offering is increasingly sought after by 

international businesses seeking a cost-effective way to diversify their portfolios 

and tap into the capital markets of the EU and emerging niche markets. 

Cyprus’ appeal as a listing jurisdiction 

is steadily growing due to its 

cost-effectiveness, investor-friendly 

and transparent tax framework, 

European ‘passport’ for issuing, 

euro currency, and the free transfer 

of funds and offer of securities. The 

country has set its focus on building 

a reputation as a key listing jurisdiction for 

other emerging markets and to establish itself as 

a convenient gateway into the European capital 

market. At the heart of these efforts is the Cyprus 

Stock Exchange (CSE). The Exchange has positioned 

itself as an essential growth lever for the 

further development of the Cyprus economy, 

and has continuously been launching initiatives 

and new boutique services to attract more participants 

and satisfy discerning market demands. 

Taking into consideration the need for local 

companies, and the Cyprus economy in general, 

to recover from the negative effects of the Covid- 

19 pandemic, the key goal for the CSE in 2020 

is to strengthen its role within the economy as a 

vital capital raising tool to enable companies and 

institutions to expand their activities. Equally important 

in this quest is to attract new companies 

to list their securities on the CSE’s markets thus 

providing new investment opportunities. The 

CSE has numerous strengths and offers multiple 

advantages. The Exchange provides all basic securities’ 

operations, such as listing, trading, clearing 

and settlement, as well as registry services. 

The Exchange also operates within an advanced 

legal and regulatory framework, complying with 

all EU Directives and internationally accepted securities’ 

practices. 

TAPPING INTO MARKETS 

The Exchange currently operates a Regulated 

Market and a Multilateral Trading Facility – the 

Emerging Companies Market (ECM) – for shares 

KEY 

contacts 

Cyprus Securities and 

Exchange Commission 

www.cysec.gov.cy 

Ministry of Finance 

www.mof.gov.cy 

Cyprus Stock Exchange 

www.cse.com.cy 


and bonds, which operate under the Cyprus 

Securities and Stock Exchange Law and the 

Investment Services and Activities and Regulated 

Markets Law (MiFID). Shares, rights, warrants, 

corporate bonds, government bonds/ treasury 

bills, collective investment schemes and Global 

Depositary Receipts (GDRs) can be traded on 

the CSE, with the most popular being shares and 

bonds. Currently, CSE participants include 20 

Members (Broker Firms), 13 Custodians and 56 

Nominated Advisors. 

The Main Market, Alternative Market, 

Corporate Bonds Market, Government Bonds 

Market, Collective Investment Schemes Market 

and the Depository Receipts are all segments of 

the Regulated Market, which currently lists 65 

International Securities Identification Numbers 

(ISINs) for shares, 21 ISINs for bonds and 21 

ISINs for funds. 

The ECM also accepts listing of shares and 

bonds for companies whose registry is not kept 

by the Cyprus Central Securities Depository 

and Central Registry (CSD) – with 44 ISIN’s for 

shares and 24 for bonds listed in total. The ECM 

offers simplified listing criteria at a low cost and 

is successfully attracting companies both locally 

and internationally. It has evolved from being 

mainly focused on small domestic companies, 

to a growing international market offering opportunities 

to companies from around the world 

– and allows for a more personalised service at 

competitive fees, particularly to companies that 

are too small to list on a larger exchange or wish 

to gain their first experience of listing securities 

within the EU. The ECM has proved resilient and 

successful in the last years, despite the adverse 

economic climate and offers companies with an 

attractive commercial proposition the opportunity 

to attract funds. 

Additionally, the Exchange has the responsibility 

for the establishment and management of a 

Central Depository and Central Registry (CSD). 

The majority of the securities listed on the CSE 

are also registered in the CSD. Furthermore, 

issuers of non-listed securities that wish to have 

their registry maintained by the Cyprus Stock 

Exchange may assign this job to the Cyprus CSD. 

DIVERSIFICATION AND EXPANSION 

In an effort to expand its business, the CSE is 

focusing on sectors that are showing strong performance, 

such as funds, shipping, and energy. 

The aim is to ensure that the securities’ market 

can provide the necessary tools and prospects 

to participants to achieve their targets, and also 

provide regional market participants and companies 

a convenient venue for listing and investing 

in a transparent, efficient and business-friendly 

environment. 

With regards to funds, the Cyprus Stock 

Exchange has taken several initiatives. CSE operates 

two markets for listing funds, the Market for 

Tradable Collective Investment Schemes and the 

Market for Non-Tradable Collective Investment 

Schemes. Listing provides visibility and transparency 

to investors, and the Exchange provides fast 

and simple listing procedures and a competitive 

pricing policy. In addition, the CSE has launched 

a new service in order to offer registry services 

to fund managers, which means maintaining the 

registry of unit holders of non-tradable funds 

at the CSE’s Central Depository and Central 

Registry in a dematerialised form, and handling 

redemptions and transfers of funds’ units. 

In the energy sector, the CSE holds a 10% 

stake in the Hellenic Energy Exchange (HEnEx) 

– which was founded as part of the EU’s target 

model to create a single energy market and is expected 

to launch operations in accordance with 

the new target model as set by EU within 2020. 

The CSE is also examining other opportunities 

regarding the energy sector which are expected 

to be published in the near future. 

TRADING VOLUME 

For 2019, the turnover amounted to €85.3 

million, which represents a year-to-year decrease 

of 35.40%, compared to the turnover of €132.1 

million in 2018. The daily average turnover for 

2019 was €0.35 million per trading day, compared 

to €0.53 million in 2018. At year-end, the 

equity market capitalisation, amounted to €1.89 

billion, compared to €1.93 billion at the end of 

2018, thus registering a decrease of 1.99% from 

the previous year. The financial sector was the 

largest economic group as far as market capitalisation 

of the equity market is concerned, with 

56.75%, followed by the industrials services with 

12.68% of the equity market capitalisation. 

STRONG FUNDS INDUSTRY 

A sector that was nearly non-existent a few 

years ago, Cyprus catapulted itself into recognition 

by overhauling and modernising its investment 

funds regulatory framework. There has 

been growing interest from fund professionals 

around the world, but most notably from Europe, 

Asia and the Middle East, whose fund managers 

are increasingly seeking access to the EU market. 

Assets under management (AuM) in Cyprus have 

increased by 200% from €2.7 billion in 2016 to 

€8.3 billion in 2019, demonstrating that Cyprus is 

able to compete with Europe’s longer established 

fund domiciles. 

A CSE listing provides a number of advantages 

for fund managers and investors. The CSE 

is an EU-regulated and recognised Exchange, 



63

Capital Markets 


Financials 

56.75% 

Industrials 

12.68% 

MARKET 

CAPITALISATION 

VS ECONOMIC 

GROUP 

Consumer 

Discretionary 

11.53% 

Consumer Staples 

5.06% 

Technology 

5.01% 

Corporate and 

Government 

Bonds: 0.97% 

BREAKDOWN 

OF TOTAL 

TURNOVER 

Shares 

traded: 

99.03% 

FAVOURABLE 

TAX REGIME 

Corporate tax rate 

12.5% 

Basic Materials 

0.21% 

Energy 

4.76% Real 

Estate 

3.99% 

2019 TOTAL TURNOVER 

€85.3 

million 

(A YEAR-ON-YEAR INCREASE OF 35.4%) 

2019 TOTAL MARKET CAPITALISATION 

(INCL. BONDS MARKET): 


2019 DAILY 

AVERAGE TURNOVER 

€0.35 

million 

PER TRADING DAY 

EQUITY MARKET CAPITALISATION: 


No capital gains 

tax on securities’ 

transactions 

No fee (transfer levy 

on sale) imposed 

on securities’ 

transactions 

No withholding tax 

for dividends that 

are paid to non-tax 

residents of Cyprus 

Wide network of 

Double Tax Treaties 

1. 

Hellenic Bank 

Public Company 

Ltd 

5 TOP SHARES IN 2019 (MOST TRADED SECURITIES BY VALUE): 

2. 

Bank of Cyprus 

Holdings Plc 

3. 

Interfund 

Investments Plc 

4. 

Vassiliko Cement 

Works Public 

Company Ltd 

5. 

Logicom 

Public Ltd 

International Memberships 

WFE (World Federation of Exchanges) 

FESE (Federation of European Securities Exchanges) 

ANNA (Association of National Numbering Agencies) 

ECSDA (European Central Securities Depositories Association) 

FEAS (Federation of Euro-Asian Exchanges) 


CSE’s goal for 

2020 is to be 

recognised as 

an essential 

growth 

lever for the 

development of the Cyprus 

economy. The aim is to attract 

new companies to list on CSE’s 

markets, so they may develop 

and expand their activities 

and provide new investment 

opportunities to investors. 

CSE is also focusing on new 

alternative areas and sectors 

to enhance our markets, 

services and products. 

Nicos Trypatsas 

Acting General Manager 

Cyprus Stock Exchange 

which provides a transparent fund profile and 

credibility to investors. It has fast and simple 

listing procedures with minimum bureaucracy, 

advanced technology, infrastructure and effectiveness 

at a low cost. There is great potential for listing 

Collective Investment Schemes, of both UCITS 

and Alternative Investment Funds (AIFs) on the 

CSE, allowing fund promoters to attract greater 

interest from institutional investors. The favourable 

environment provided by Cyprus attractive 

tax regime, the legal framework which is harmonised 

with EU Directives, and the vast pool of 

skilled professionals provide the necessary prerequisites 

for enabling the future growth of the funds 

industry. The Cyprus Stock Exchange has already 

accepted listings for 17 non-tradable Collective 

Investment Schemes – more specifically, two 

single scheme UCITS funds and 15 sub-funds of 

one UCITS umbrella scheme. Additionally, two 

AIFs are also listed on the non-tradable Collective 

Investment Schemes, one single scheme and one 

umbrella scheme with two sub-funds. 

The island is positioning itself as a cost-effective 

alternative to the larger European fund 

centres like Luxembourg and Ireland, and many 

in Cyprus believe the sector has a great future 

ahead, estimating that AuM could reach €12 

billion in the next five years. 

CROSS-BORDER CONNECTIONS 

A key strategy of the Cyprus Stock Exchange 

is one of regional growth and collaboration 

with neighbouring stock exchanges, by signing 

Memorandums of Understanding with other exchanges. 

The CSE offers fully computerised online 

trading, clearing and settlement. Investors have 

access to the Securities listed on the CSE Market 

as well as to the securities listed on the Athens 

Exchange Market (Athex Group) through the 

Common Trading Platform established between 

the two Exchanges. Through this platform, Greek 

market participants (members and custodians) 

have access to view and trade the securities listed 

on the CSE and vice versa. The CSE also provides 

a successful service to non-listed companies that 

wish to submit their registries for handling by the 

Cyprus Central Depository and Central Registry. 

Additionally, the Exchange also introduced 

a regulatory framework for the operation of 

the Depository Interests (DIs) to facilitate the 

clearing and settlement of cross-border trades 

between the CSE and London Stock Exchange 

(LSE) for dually listed companies. 

The CSE has also been appointed by the 

Cyprus Securities and Exchange Commission 

(CySEC) as the Officially Appointed Mechanism 

for the Storage of Regulated Information (OAM) 

for Cyprus, according to the provision of the 

Transparency Directive – a system that makes use 

of digital signatures. Regarding digital signatures, 

the CSE has been assigned the role of a Local 

Registration Authority (LRA) of an authorized 

Registration Authority (RA). The CSE, as an LRA 

of an authorized RA, mediates for the issue of: 

Qualified Certificates for Electronic Signatures 

(natural person), Qualified Certificates for 

Electronic Signatures (natural person associated 

with legal person) and Qualified Certificate for 

Electronic Seal (legal person). Organizations or 

Companies can obtain from the CSE qualified 

certificates for electronic signatures/ seal, which 

they may use in their operations. An increasing 

number of organisations and companies choose 

to adopt the use of qualified electronic signatures 

to replace procedures requiring documents in 

printed form (ratified by seals and signatures). 

In addition, the CSE acts as the auctioneer of 

Greenhouse Gas Emission Allowances (EUAs) in 

the Republic of Cyprus. The Exchange is responsible 

for the supply of allowances to be auctioned 

in the primary market on behalf of the Cyprus 

government. 

The CSE issues Legal Entity Identifier Codes 

(LEI) to interested legal entities. This service 

is provided by the CSE in cooperation with the 

London Stock Exchange/Unavista, and the issuance 

of LEI codes is done through the Unavista 

platform. The CSE also continues to successfully 

provide the FISN, ISIN and CFI codes to interested 

market participants as the official national representative 

for Cyprus, as appointed by ANNA. 

RAISING FUTURE FUNDS 

Unfortunately, the economic consequences of the 

global Covid-19 pandemic cannot be easily assessed. 

Even though the majority of listed companies 

announced to the investing public the 

effects of the pandemic on their businesses, there 

remains uncertainty about the future. The CSE 

has an important role to play in the recovery of 

the Cyprus economy and as such it has the necessary 

tools to attract new companies to raise funds 

through the listing of their securities thus providing 

investors new investment opportunities. 

Over the years, Cyprus has time and time 

again proved its resilience, and armed with numerous 

comparative advantages – such as its 

geostrategic location, EU membership, investorfriendly 

environment and strong professional 

services sector – there is much potential to be 

harnessed in developing a stronger and more 

dynamic market and cement the country’s foundations 

as a key EU player in the wider region. n 




Construction & Real Estate 


LOCATION 

CYPRUS 

360, Cyfield 

The last few years have been the start of a boom time for the Cyprus construction 

and real estate sector with multiple high-end residential and commercial 

developments under construction and growing property sales to foreign buyers. 

The 2020 pandemic has undoubtedly had a big impact, but the industry is 

ready to adapt with hopes this will be a temporary setback for the sector. 

With new high-rise and luxury 

developments springing up 

in city centres and along 

the coast, and large-scale 

projects worth around €8 

billion seeking investors, the 

Cyprus construction and real 

estate market has been on an 

upward trajectory over the last couple of years. 

New residential and commercial properties, an 

increasing demand for top-tier office space and 

sales driven by foreign buyers have boosted the 

sector and Cyprus’ cosmopolitan appeal both as a 

second-home location and headquartering destination 

for multinational companies. 

The island has long been a firm favourite for 

property hunters worldwide thanks to its ideal 

Mediterranean climate, high quality of life and 

one of the lowest crime rates in Europe. Other 

key factors are its EU member status, its thriving 

international business centre and strategic position 

between three continents, which have been 

appealing aspects for companies looking for a 

location to set up a regional base to service their 

clients in the EMEA region. 

Cyprus has steadily been laying the foundations 

to further develop its real estate sector and 

showed strong market performance until the 

end of 2019, but like in many other countries 

the global coronavirus outbreak and subsequent 

KEY 

contacts 

Department of Lands 

and Surveys 

https://portal.dls.moi.gov.cy 

Cyprus Land and 

Building Developers 

Association (LBDA) 

www.lbda.com.cy 


In this last year the 

Ministry of Interior, as 

the most polythematic 

Ministry of the Republic 

has faced a lot of 

challenges. The rapid 

growth of recent years 

has necessitated reforms 

in many areas of the 

Ministry’s competence 

in an effort to improve 

and enhance the 

citizen’s quality of life, 

whilst also reinforcing 

overall development 

in the country. Within 

this framework we are 

proceeding with radical 

reforms in the fields 

of urban planning and 

licensing, and the local 

authorities’ model, 

expecting to enhance 

the urban and rural 

development of the island. 

Nicos Nouris 

Minister of Interior 

national lockdowns have struck a severe blow to 

the industry. Sales and construction ground to a 

standstill for several months and many projects 

are experiencing delays and set-backs despite the 

local lockdown measures having been lifted. The 

general insecurity and uncertainty in the global 

market due to the pandemic has decreased the 

appetite of investors to invest in foreign markets 

and industry experts forecast that the sector will 

not see signs of a rebound until 2021 – which may 

also result in price reductions across the market 

spectrum. 

UPWARD SWING IN 2019 

Developments and figures from 2019 underline 

the fact that Cyprus remains a desirable investment. 

The real estate market has constantly been 

developing and introducing more innovative 

projects that are upgrading Cyprus’ offering to 

global investors and house hunters. The upward 

trend in Cyprus real estate sales has been steadily 

rising since 2014, when property sales first picked 

up following the 2010 peak of the European sovereign 

debt crisis, and in 2019 annual property 

sales were the highest on record since 2008 with 

sales rising in all districts. 

Most notably, there was increased demand for 

grade A offices at prime locations in city centres, 

apartment units within close proximity to employment 

hubs, and housing units in specific 

suburbs, which has pushed the industry to diversify. 

The residential market has seen a big leap 

forward from years of stagnancy following the 

global financial crisis with a substantial number 

of large residential complexes currently under 

construction in all major cities by top developers 

such as Cybarco, Cyfield and Pafilia, adding to 

the supply of new luxury residential space. 

In the first half of 2019, investment activity 

levels were high. Total transaction value in the 

real estate sector reached €2.5 billion representing 

an increase of 25% compared to H1 2018, 

while construction activity expanded with the 

total value of building permits doubling. This 

significant boost was fuelled by foreign capital 

flowing into the residential property sector. 

Although there was a sharp 35% decrease in Q3, 

the number of sales contracts dropped only by 

3%. Interest from foreigners, and predominantly 

from non-EU buyers, continued to be the key 

driving force in the market, representing approximately 

45% of total transaction value during H1 

2019. The high-end residential property segment 

continued to be critical during the first half of the 

year, with total transaction value of properties 

with a price tag of over €1.5 million increasing by 

46% compared to H1 2018. 

SLOWDOWN IN 2020 

In the first four months of 2020, 45% of all 

properties sold were purchased by foreigners, 

with Limassol and Paphos being by far the most 

popular locations and the districts with the largest 

share of luxury residential property transactions 

– proving there continues to be global interest in 

Cyprus. However, as expected, there has been a 

reduction in the foreign buyer interest due to the 

flight and travel restrictions to Cyprus. 

Following the coronavirus outbreak, the 

trends in the local real estate market are similar 

to global ones. Commercial property and in particular 

hotels and retail have been hit hard, as 

have offices due to the increase in working from 

home. Residential units and plots of land, on the 

other hand, appear to be more resilient to the 

effects of the pandemic. 


View from 360, Cyfield 




NEO Penthouse, Pafilia 

Pafilia is 

focused on 

conceptoriented 

premium 

projects 

that appeal to high-net-worth 

individuals for both lifestyle 

and investment. Cyprus has 

a new, more discerning, 

type of client that expects 

world-class finishes, facilities 

and service in addition to an 

outstanding property with 

exceptional construction 

quality and specifications. This 

has been our focus, reflective 

in our flagships large-scale 

developments Minthis, ONE and 

NEO, as well as our extensive 

range of classic projects. 

We will continue to deliver 

outstanding resorts that offer 

long-term value to our clients. 

In the first seven months of 2020, property 

sales were down by 37% compared to the same 

period in 2019, with sales falling in all districts, 

according to official figures from the Department 

of Lands and Surveys. However, considering 

there was an 80% fall in April, 71% in May, 10% 

in June, and only 8% in July compared to July 

2019, the trajectory of the figures is encouraging 

given the on-going Covid-19 situation. 

DEMAND FOR OFFICE AND 

COMMERCIAL SPACE 

Following the success of the Oval project, there 

has been much action in the office space segment, 

with an important change happening as many 

companies are now increasingly interested in 

downtown locations for business. With the completion 

of the office development schemes currently 

under construction, Cyprus should reach 

a staggering 260,000 square metres of office space 

in its market by the end of 2020. Among the 

major office projects that are planned to be delivered 

on the market in Nicosia are the signature 

lifestyle commercial development Nicosia City 

Centre (NCC), the Capital Gate and the Asteroid 

Tower, as well as upcoming projects such as the 

Cymiva Office Tower. 

The industrial and land sector is also set to experience 

expansion in the future. In 2019, more 

than 10,000 square metres of modern industrial 

and logistics facilities have been completed, with 

the current total supply in Cyprus of over 340,000 

square metres. 

The retail sector is also seeing a revival with 

significant investments and 2020 will bring new 

shopping destinations such as the Neo Plaza in 

Nicosia and the Metropolis Centre in Larnaca. 

Once these facilities are completed, Cyprus will 

have 450,000 square metres of modern retail 

space, which will facilitate the entry of many new 

brands to the market. 

Evangelia Eliadou 

Executive Director 

Pafilia Property Developers Ltd 

Vida Apartments, Pafilia 


A development by



TOURISM REAL ESTATE 

With tourism one of the key economic drivers of 

Cyprus, there is no doubt that hotels and tourism 

infrastructure continue to be a very promising 

market and play a vital role in the sector – 

albeit the current challenges tourism is facing 

due to Covid-19. In this segment, the additions 

of new Radisson hotels and a Sofitel, as well as 

the soon-to-be-completed Ayia Napa Marina will 

strengthen market. The €220 million Ayia Napa 

project features twin skyscrapers and a yacht 

marina for 600 vessels. Backed by Egyptian business 

magnate Naguib Sawiris, the project is set to 

transform the status and interest in the Ayia Napa 

region. Following the success of Limassol Marina, 

marina projects are redefining luxury and the 

scope of real estate in Cyprus and plans for 

new marinas in Larnaca, Paralimni and Paphos 

are also in the pipeline. The tender for Larnaca 

Marina received approval in August 2020 and is 

expected to attract €1.2 billion in construction 

and real estate development. 

Investors are now keeping a keen eye on 

Larnaca, as it is a city expected to flourish on 

par with Limassol in the near future. The coastal 

city, home to one of Cyprus’ two international 

Melco Resort 

airports, is already seeing its share of new highrises 

and hotels springing up. The city is revealing 

plenty of investment opportunities with its 

marina set to be completed in the next few years 

and the increasing demand for real estate is supporting 

the industry to diversify and develop 

more apartments, houses and office space. 

A serious game changer in Cyprus’ tourism 

product will be the island’s first-ever and Europe’s 

largest integrated luxury casino resort. The 

almost €600 million casino – which is being run 

by the consortium of Integrated Casino Resorts 

Cyprus (ICRC) which includes global gaming 

giant Melco Resorts & Entertainment Ltd – will 

have 500 rooms, extensive facilities and exceed 

five-star status. The resort project is Hong Kongbased 

Melco’s first expansion outside of Asia and 

will be the biggest casino of its kind in Europe. 

We believe 

that we will 

see a shift in 

the foreign 

investments 

of properties 

into assets that provide yields, 

compared to sun and beach 

destinations. We anticipate 

the high demand from locals 

to continue, as the banks 

are willing to keep lending 

money for mortgages. In 

the contracting business, 

the next few years will be 

extremely busy given the 

government’s policy to release 

more infrastructure projects 

to increase fiscal spending 

and expand the economy. 

George Chrysochos 

Executive Director 

Cyfield Group 

Petra Villas, Minthis, Pafilia 

In 2019 annual 

property sales 

were the highest 

on record since 

2008 with 

sales rising in 

all districts. 




The gaming area at the casino is set to span across 

7,500 square metres, over 9,600 square metres 

will be for convention, meeting and event spaces, 

and a 1,200 square metre retail area will replicate 

the feel of the old Nicosia city centre. The resort 

is expected to contribute around €700 million 

annually to the economy. The project will also 

support the local construction industry as it is 

expected to create around 4,000 jobs each year 

during the construction period. In addition, it 

will contribute an estimated 6,500 direct and indirect 

full-time positions in Cyprus when fully 

operational in 2021. 

The number of foreign investors closing 

multimillion-euro deals on new projects and 

acquisitions of existing assets such as five-star 

hotels, malls and luxury marinas is evidence of 

the appeal of tourism-related real estate. In this 

area, the country’s investment promotion agency 

Invest Cyprus has also set up a dedicated and 

specialised unit, TourInvest, to promote investment 


sector. The unit focuses on attracting multimillion 

investment into large-scale infrastructure 

projects, that exist in diversified thematic areas, 

such as nautical tourism, cultural tourism, sports, 

conference, health and wellness, as well as rural 

tourism in cooperation with the Deputy Ministry 

of Tourism and other stakeholders. TourInvest 

acts as the first point of contact to international 

investors, and provides valid and useful information 

on projects of their interest. 

POST-CORONA REALITY 

No country has come out unscathed by the coronavirus 

outbreak, including Cyprus, and it is still 

difficult to assess the long-term impact it may 

have on the real estate and construction sector. 

For the last few years, the industry in Cyprus 

has gone full steam ahead but a new reality has 

emerged since the pandemic and insecurity in 

the global economy. 

All sectors of the real estate market came to a 

temporary standstill with a multitude of projects 

that are unfinished and many transactions already 

agreed in principle or even midway through 

were frozen or postponed. Many developers 

had already been scaling down activity during 

2019, but others who got into the development 

of residences late, and particularly in multi-unit 

towers, have a large stock of unsold units. Though 

the pandemic brought construction to a halt for 

several months, work quickly picked up where it 

left off. Construction sites were amongst some of 

the last to close when lockdown measures were 

announced but the first to reopen, highlighting 

the importance of the sector to the economy. 

Our 

authorities’ 

excellent 

handling of 

the recent 

pandemic 

managed to raise our profile 

and created a lot of interest in 

purchasing property in Cyprus. 

Buyers on the high end of 

the market are continually 

looking for opportunities 

to invest, particularly in 

destination developments 

with high returns, offering an 

exit strategy. We have every 

reason to remain optimistic 

and expect demand to 

continue to be strong in 2021, 

especially for ready to move 

in properties and projects 

approaching their delivery. 

Michalis Hadjipanayiotou 

CEO 

Cybarco Development Ltd 

The number of foreign investors closing multimillioneuro 

deals on new projects and acquisitions of existing 

assets such as five-star hotels, malls and luxury marinas 

is evidence of the appeal of tourism-related real estate. 

Limassol Marina, Cybarco 


To adapt to this new reality some developers 

are now planning to change use from residential 

to office or hotel accommodation, which they 

hope will be in greater demand when the market 

starts to move again. Industry experts say the 

prominent marina, casino and Larnaca port projects 

will all suffer delays in the short to medium 

term. These unexpected events will result in a 

reduction in pricing through the market, but 

quite how low prices will fall remains to be seen 

and will also depend on when the demand will 

start again and what additional incentives the 

Cyprus government may introduce. 

With foreign buyers constituting such a large 

proportion of all transactions, the residential 

market is certain to take a hit, as investors will 

be revising their investment plans and reluctant 

to invest in foreign markets due to the general 

insecurity and problems in their home countries. 

This could also have an effect on FDI interest 

in large-scale infrastructure projects. 

Demand for office space could see some 

changes too, as companies and organisations 

reconsider their plans for new offices after the 

lockdown forced a universal remote-working 

trend with many employees working from 

home. On the other hand, logistics, warehouses 

and industrial operations have benefited from 

this crisis due to the massive increase in e-commerce. 

A key challenge, which remains a legacy 

problem for Cyprus and could have longstanding 

effects on the real estate market is the local 

banks’ growing property portfolios acquired 

through repossessions and debt-for-asset swaps 

to restructure the burden of non-performing 

loans – an unfortunate by-product of the financial 

crisis. The question remains what effect the 

gradual unloading of these properties into the 

market will have on today’s fiercely competitive 

environment. 

BUYER SAFEGUARDS 

Changes to the law relating to title deeds have 

ramped up protection and peace of mind for 

prospective buyers, with additional legal safeguards 

streamlining processes and efficiency. 

These types of measures have also paved the way 

for increasing confidence to invest in Cyprus 

real estate. As in all markets, prospective buyers 

are advised to seek independent legal advice 

before purchasing real estate. The island has 

mainly been on the radar of British buyers, due 

to the countries’ historical ties, strong tourist 

market and attractive tax treatment – an incentive 

that may disappear with Brexit. The 

Immovable Property Tax (IPT), which was significantly 

reduced in 2016, has been abolished, 

while temporary reductions in property transfer 

fees introduced in 2015 have been made permanent. 

Purchases that include VAT incur no 

property transfer fees, while VAT-exempt purchases 

incur only 50% of the previous fees. In 

addition to the UK and Europe, interest from 

investors in China, Russia, the Middle East, and 

beyond has also grown – though on hold temporarily 

due to the pandemic. 

MOVING UPMARKET 

Cyprus has confidently forged ahead into the 

luxury market direction – a fact evident in the 

number of extravagant residential developments 

rapidly rising up along the coast and most exceeding 

the half million price tag. These range 

from apartments in architecturally unique highrises 

to exclusive villas in five-star complexes, golf 

course and seafront developments as well as boutique 

townhouses. 

HOME IN THE SUN 

Since 2001, there has been an overall expansion 

of the real estate market and the arrival of large 

global companies and private investor-residents, 

which have changed the image of Cyprus and 

its property sector. More recently the industry 

has seen fast expansion and made bold moves 

to upgrade and diversify its offering, and also to 

bring more 21 st century innovation to its projects 

to build a more sustainable sector. 

Cyprus has one of the highest home ownership 

rates in Europe and also has a longstanding 

market for second homes and holiday 

villas, making the economy heavily reliant on 

the sector. The growing appetite of foreign 

buyers and investors is raising confidence in 

the Cypriot market, and renewed interest in 

large-scale projects in Cyprus has seen a rush of 

foreign investors looking into the acquisition of 

entire complexes and projects that are both in 

the planning stages and already under construction. 

The coronavirus pandemic might delay 

some of these developments, but the significant 

investments into real estate of the past few years 

have certainly once again raised this sector to be 

a key driver of growth in Cyprus. Adaptability, 

diversification and sustainability will be absolutely 

key moving forward and to secure the 

future. n 




Education 


EDUCATING A NEW 

GENERATION 

Cyprus is fast becoming a new generation education 

hub attracting growing numbers of both foreign 

students and acclaimed academics to its universities 

with the introduction of new degrees meeting future 

market demands and investment in top-tier campuses. 

T 

he Cyprus education sector has 

seen a veritable boom in the last 

few years. It has become a key 

sector the country is determined to 

further develop and promote with 

the goal of establishing Cyprus as 

an international education and 

research centre of excellence. The 

country’s universities are competing 

with each other in introducing 

new programmes to fit future industries, building 

state-of-the-art facilities and developing strong 

partnerships with renowned universities and institutions 

around the world. 

Cyprus has always placed strong focus on educating 

its population. Public spending on education 

and training was around 5.7% of GDP in 

2018, well above the EU average of 4.6%. Cyprus 

also has the second-highest tertiary educational 

attainment rate in the EU at 57.1% – clearly 

surpassing the EU average of 40.7% – and at 

64.4% women have a considerably higher attainment 

rate than men at 49.2%, according to the 

European Commission. 

Naturally there is still room for improvement 

in the outcomes and efficiency, but with the increasing 

number of Cypriots choosing to enrol 

in local universities instead of going abroad, and 

with the growing number of foreign students 

choosing Cyprus, it is clear that the quality and 

versatility of the country’s higher education offering 

is a strong pull factor. 

KEY 

contacts 

Ministry of Education 

and Culture 

www.moec.gov.cy 

Cyprus Higher Education 

(Ministry of Education 

and Culture) 

www.highereducation.ac.cy 

Cyprus Agency of Quality 

Assurance and Accreditation 

in Higher Education 

www.dipae.ac.cy 


Education 

main priority of the 

A Ministry of Education, 

Culture, Sport and Youth 

for 2021, gaining urgency 

after the experience of 

the global health crisis, 

is the further integration 

of digital technology in 

Cyprus’ public education 

system. Within this 

context, our plans for 

the new school year took 

into account the latest 

epidemiological data and 

adhering to the advice 

of public health experts. 

Already, electronic 

enrolment to secondary 

schools has been 

completed successfully 

for the 2020-21 school 

year, whereas legislation 

is underway to establish 

and safeguard distance 

learning. Additionally, 

efforts are made to 

develop an e-Learning 

Database, as well 

as to implement a 

comprehensive roadmap 

for digital sufficiency 

in schools, both in 

equipment and, through 

systematic training, 

teachers’ digital skills. 

A GROWING SECTOR 

The island’s first university – the University of 

Cyprus (UCY) – was established as recently as 

1989, yet even before that only the US and Canada 

had more graduates per capita as Cypriots sent 

their children to universities abroad. Today the 

landscape is vastly different with eight rapidly 

expanding universities, five of which are private, 

that have forged links and cooperative agreements 

with reputable universities across the 

globe. 

Cyprus has steadily established itself as a hub 

for quality higher education (HE). Over the last 

decade, the sector has grown by more than 80% 

in student numbers, exceeding 47,000 students 

during 2017-2018. In 2016 alone the education 

sector is estimated to have contributed around 

€900 million to the local economy and was responsible 

for approximately 9,500 jobs in HE and 

its supporting industries. 

The number of foreign students choosing 

Cyprus for their studies has almost tripled in 

the last five years, representing over 60 different 

countries and supporting the growth of Cyprus 

into a true global educational centre. A major attraction 

for students from non-EU countries is 

that compared to many other countries, Cyprus 

offers a value-for-money education and qualifications 

recognised by EU members and validated 

by accreditation agencies of various countries. 

But more than affordability, it is the high academic 

standards that are attracting a growing number 

of students from prosperous countries such as the 

United States, Canada, Australia and even New 

Zealand. 

The number of overseas students at the island’s 

accredited universities soared from fewer than 

400 in the 2004-2005 academic year to 17,601 in 

2015-16, and exceeded 50,000 in 2018-19. Some 

50% of overseas students were from Greece and 

the EU, but the range of countries that foreign 

students come from is rapidly expanding. A 2018 

EY report estimated that if the current level of 

HE activity in Cyprus is sustained and complemented 

by a moderate growth in international 

students and research expenditure, the sector’s 

economic contribution could grow by a further 

€400 million by 2023. 

CLIMBING UP THE RANKINGS 

The academic reputation of Cyprus universities 

has also been growing, with institutions climbing 

up international rankings. UCY is currently 

among the world’s top 400 universities and the 

67 th best of institutions that are under 50 years 

old, according to the Times Higher Education 

World University Rankings, an influential data 

provider in Britain that assesses university 

performance globally. In 63 rd place is another 

public institution, the research-focused Cyprus 

University of Technology (CUT/Tepak), established 

in Limassol in 2004. CUT is also ranked 

as the 17 th best university in the world with fewer 

than 5,000 students in 2019. In addition, Cyprus 

claimed two of the top three spots on the ‘New 

Europe’ table of the best research-intensive universities 

within the 13 nations that have joined 

the EU since 2004, in which CUT ranked first 

for citation impact, while UCY led on industry 

income and international outlook measures. 


Prodromos Prodromou 

Minister of Education, 

Culture, Sport and Youth 

UniHalls Premier 


Education 


Both UCY and the University of Nicosia 

(UNIC) have received great accolades in the 2020 

QS World University Rankings in the Emerging 

Europe and Central Asia (EECA) Region, with 

UCY making it to the top 100, at 96 th place 

and UNIC close behind at 106 th . The landmark 

ranking success of both universities is noteworthy 

in a region characterised by dynamic growth 

in higher education, particularly when contrasted 

against the large number of universities counted 

in the broader EECA region, which includes 26 

countries. UNIC was also ranked the 42 nd university 

in the world in the core area of quality 

education, according to the 2020 Times Higher 

Education University Impact Rankings and among 

the top 301-400 universities globally in terms of 

its overall social and economic impact. 

Building its international reputation and facilitating 

greater prospects for development, in 2020 

UNIC signed a Memorandum of Understanding 

with the University of London, one of the largest 

universities in the UK. This marks the highest 

international recognition of UNIC, furthering its 

strategy to enhance cross-border education. 

COVID-19 IMPACT 

So far, 2020 has been a challenging year for many 

countries and sectors due to the coronavirus 

pandemic. Cyprus acted early and fast, and has 

managed to contain the spread successfully, but 

there is no doubt the lockdown has also affected 

the education sector. However, despite having to 

undergo a major transformation in a short period 

of time, education in Cyprus quickly switched to 

digital, facilitating distance learning, a testament 

to the dedication of experts aiming to provide top 

quality learning to students both in government 

and private schools as well as higher education 

institutions. 

Universities across the island were working 

around the clock to ensure their students did not 

fall behind on any material, quickly shifting their 

teaching online, allowing international students 

to return back to their home countries while enabling 

them to continue with the same standard 

of education. Preparations were also made for 

exams to take place online, ensuring this did not 

come at a cost to quality. 

Secondary Education 

University of Cyprus library 

The success of the island’s universities is matched by its private secondary schools, which mostly 

offer an English-language education and boast high academic standards. Many of their pupils win 

places at the best universities in Britain, the United States and other countries. The oldest of these 

is the English School in Nicosia, established in 1900 to provide English-speaking clerical staff for the 

British colonial administration. Today, many of its alumni hold senior positions in the government and 

private sector. There are numerous private schools across Cyprus following different curricula – British 

and American systems as well as International Baccalaureate – and offering education in various 

languages, such as Greek, English, Russian and French, to cater to the ever-expanding community of 

professional expatriates and their families on the island. In addition, although the generously-funded 

Greek-speaking public secondary schools have to date not performed as well, they are also now set 

to improve after a recent government overhaul of an outdated system for recruiting teachers. 


Cyprus has steadily 

established itself as a 

hub for quality higher 

education (HE). Over the 

last decade, the sector 

has grown by more 

than 80% in student 

numbers, exceeding 

47,000 students 

during 2017-2018 

Cyprus’ impressive handling of the pandemic 

is also highlighted in the island’s forward planning. 

As far as the upcoming academic year is 

concerned, many institutions have already prepared 

to offer teaching on campus and online for 

students who may be unable to travel until the 

situation becomes clearer. 

CUTTING-EDGE CURRICULA 

There is stiff competition for places at Cyprus’ 

public universities, which enjoy growing international 

prestige and levy no charge on undergraduates 

from EU countries and very competitive 

fees for postgraduates. However, many Cypriots 

continue to choose to study abroad, a trend that 

has long ensured fresh ideas are successfully imported 

back to Cyprus with returning local talent. 

This international outlook has been increasingly 

strengthened with the growing number of both 

international students and faculty at universities. 

The public universities, which mainly instruct 

in Greek, have persuaded the government to allow 

them to offer more courses in English to attract 

more foreign students. Unlike the private universities, 

which teach mostly in English, their aim is 

not to generate revenue through tuition fees but to 

ensure they become truly international. 

Underlining the state’s commitment to lifelong 

learning is the government-funded Open 

University (OU), founded in 2002 and which now 

has over 4,000 students. It has flexible, modular 

learning programmes that provide career and 

personal development opportunities for students 

already in the workplace. The OU developed 37 

programmes of study for the 2020-2021 academic 

year. The official teaching language is Greek, 

but currently offers five Master programmes in 

English. 

All of Cyprus’ universities design programmes 

to meet current business trends and 

future employment needs. Many of these focus 

on the island’s status as one of the world’s leading 

shipping centres and the discovery of significant 

gas reserves in Cypriot waters. 

UCY’s new Larnaca-based Faculty of Marine 

Sciences and Technology began its first classes 

in 2018, all in English, and according to Lloyd’s 

Register, is set to provide the local and global 

maritime industry with high-quality human 

capital and research capabilities. In 2016, UNIC 

launched the Cyprus Maritime Academy, which 

collaborates with renowned shipping companies 

and supports the local industry by providing 

qualified crew. UNIC also offers the island’s first 

BSc programme in energy, oil and gas management 

and was the first university in the world to 

accept Bitcoin for tuition payments and to offer a 

master’s degree course in digital currency, available 

in English both on campus and online. 

Online higher education is a significant and 

still relatively untapped opportunity for Cyprus, 

with the potential value of the global market estimated 

anywhere between €1 billion to €4 billion, 

for which Cyprus will be competing against anglophone 

countries such as Australia, Singapore, 

and Ireland. 

The European University of Cyprus (EUC), a 

private institution also in Nicosia, offers a master’s 

degree in civil and environmental engineering, 

a course which incorporates the impact on 

construction of climate change and earthquake 

risk. 

Frederick University, based in Nicosia and 

Limassol, is also attempting to maximise the 

potential of Cyprus’ natural geographical advantages. 

Its existing course in maritime studies 

now offers a new combined MA/LLM master’s 

degree in maritime law and shipping business. 

Meanwhile, the University of Central Lancashire 

Cyprus (UCLan Cyprus) offers a degree in cyber 

security. 

A key aspect of the rapid development and 

recognition of Cyprus universities has been the 

strategic partnerships they have forged with 

top institutions around the world. For example, 

UCY’s successful collaboration with London’s 

Imperial College – ranked one of the 10 best universities 

in the world – is set to be expanded this 

year with a new MSc programme that began in 

September 2019 to teach highly innovative and 

intelligent systems from emerging ICT to tackle 

challenges in monitoring, control and security in 

critical infrastructure systems. The collaboration 

of the two institutions in several research projects 

has already produced more than 900 joint publications 

over the last five years. 



Education 


Cyprus’ public and private universities, all 

part of the Erasmus programme, have rapidly 

expanded their offering and continue to forge 

new links and collaborative agreements with renowned 

universities abroad. Distance learning 

is another growth area, with UNIC a pioneer in 

this field. Its medical schools offer busy working 

doctors worldwide the opportunity to take master’s 

degrees online in family medicine and in 

public health. 

MEDICAL SCHOOLS 

Medical schools are a relatively new and growing 

aspect of the Cyprus educational sphere. In the 

last decade, Cyprus has gone from no medical 

schools to three programmes offered by Cypriot 

universities. These are proving popular with both 

local and international students, as academic 

standards in Cyprus rival those of well-established 

British and American medical schools and 

students graduate with qualifications recognised 

across the EU and beyond. 

UNIC, which established the island’s first 

medical school in 2011, did so in partnership 

with London University and its prestigious teaching 

hospital, St George’s. It offers a four-year 

programme for graduate-level entry students, 

knowing this would appeal particularly to students 

from the US, which is the world’s biggest 

exporter of medical students, but also to regional 

markets such as Israel and Lebanon which have 

decent numbers of graduate-entry students. 

UNIC has since launched a second medical 

school, with a six-year programme for high 

school leavers. The approximately 650 students at 

UNIC’s two medical schools come from almost 

60 countries, proving its international appeal. 

Following suit, EUC established a medical 

school four years ago with a six-year course that 

has attracted students from Israel, Germany, 

Iran, Austria, Greece and Cyprus, among others. 

In 2017, it also launched a dentistry school. The 

mostly state-funded UCY established its medical 

school six years ago and graduated its first students 

in 2019. It also offers parallel courses in 

English to cater to 100 students a year. 

Cyprus’ main competition for medical students 

comes from eastern and central European 

countries where tuition fees and living costs are 

often lower, and some of the universities have 

hundreds of years of heritage. However, many 

of these universities sign up overseas students 

knowing that after four years they cannot provide 

enough clinical training slots for all students to 

complete their courses. Whereas, according to 

UCY all the medical schools in Cyprus operate 

on the basis of having clinical training spots for 

all students right from the beginning. 

INVESTING IN EDUCATION 

The location of Cyprus as the EU’s easternmost 

outpost and bridge to Asia and Africa also gives 

Cyprus a natural advantage in attracting overseas 

students and investment from foreign universities. 

For example, keen to recruit more students from 

Russia, the Middle East and China, the aforementioned 

British UCLan chose Cyprus as the site for 

its very first overseas campus almost a decade ago, 

built near Larnaca at a cost of €53 million. The potential 

for further growth and foreign investment 

is reflected in the building boom of the last few 

years of universities expanding and creating new 

departments, building new luxury and high-tech 

accommodation to house increasing numbers 

of students with facilities unlike anything seen 

in Europe so far, featuring rooftop pools, restaurants, 

gyms and private gardens. For example, the 

UNIC residences are the result of a €60 million investment 

constituting the largest university infrastructure 

investment to date in Cyprus – and once 

completed claims to be one of the most functional 

student hubs in Europe. 

However, in order to maintain the momentum 

of attracting foreign students Cyprus must 

improve its cumbersome visa application for 

non-EU nationals. Otherwise, the universities 

have few complaints and value the government’s 

assistance in forging new academic and research 

links and organising visits from international accreditation 

agencies. 

The global market for anglophone higher education 

geared at internationally mobile students is 

estimated to be up to €50 billion, and it is growing 

at 5% per year. Cyprus is well placed to capitalise 

on this provided it continues to develop its educational 

offering. Part of this effort is the government’s 

dedication to support this sector along with 

its investment promotion agency, Invest Cyprus, 

who in cooperation with the Ministry of Education 

and Cypriot universities launched a new campaign 

in 2019 branded ‘Study in Cyprus’. The campaign 

is a concerted effort to promote Cyprus as an educational 

centre of excellence and provide information 

on studying, living and working in Cyprus. 

Cyprus has always valued, and continues to 

invest in, education and today the innovative drive 

of Cyprus’ universities is enriching the island’s 

human capital and enhancing its attraction as an 

international centre for business and education. 

With expanding global links, spin-off projects and 

business ventures in multiple sectors, these institutions 

are bringing together a multinational and 

multidisciplinary community that is supporting 

the development of Cyprus into a veritable knowledge 

hub. n 


I see more 

programmes 

transitioning 

into online 

delivery 

methods. 

Several education institutions, 

including universities, have 

increased their online offerings 

opening new possibilities to 

attract a global audience. The 

online approach also provides 

solutions to individuals 

who lack the time to attend 

face-to-face classes or who 

cannot combine education 

with working hours. For 

certain, the use of technology 

in education will continue 

to play an important role for 

local education institutions. 

Marios Siathas 

CEO 

European Institute of 

Management & Finance 

PUBLIC UNIVERSITIES 

The University of Cyprus 

The Open University 

of Cyprus 

The Cyprus University 

of Technology 

PRIVATE UNIVERSITIES 

European University - Cyprus 

Frederick University - Cyprus 

Neapolis University - Cyprus 

University of Nicosia - Cyprus 

University of Central 

Lancashire - Cyprus 


Energy: Oil & Gas 

Publisher’s Sector Profile Information 

Cyprus has ambitions to become a strategic energy hub with energy giants investing 

in the region following significant gas-deposit discoveries in the last decade. Inevitably, 

KEY 

contacts 

HARNESSING THE 

HYDROCARBONS 

POTENTIAL 

the impact of the Covid-19 pandemic on the global economy has also affected 

exploration plans in Cyprus by delaying drilling, but the country is 

strengthening its role as a key player in the Eastern Mediterranean. 



www.mcit.gov.cy 

Cyprus Energy Regulatory 

Authority (CERA) 

www.cera.org.cy 

Cyprus Energy Agency 

www.cea.org.cy 

Cyprus Hydrocarbons 

Company (CHC) 

www.chc.com.cy 

Natural Gas Public 

Company (DEFA) 

www.defa.com.cy 

The discovery of vast natural gas 

reserves in both the Exclusive 

Economic Zone (EEZ) of Cyprus 

and its immediate neighbourhood 

in recent years has sparked 

an exploration race in the region 

and a new industry in Cyprus. 

The involvement of multinational 

oil and gas companies in 

Cyprus’ EEZ has strengthened 

the island’s ambition to become 

an important hydrocarbons player in the Eastern 

Mediterranean, and the developing industry 

has become a new opportunity for business and 

foreign investment. 

Cyprus’ strategic location in the East Med, 

at the southeast tip of the European Union and 

close to the Suez Canal, makes it ideally suited 

not only as an important fuel hub and headquartering 

location, but also as an energy interconnection 

node, connecting the electricity grids of 

the Eastern Mediterranean and North Africa to 

those of Europe. 

Cyprus has completed three successful offshore 

licensing rounds, awarding the majority 

of its offshore blocks to some of the world’s top 

international oil companies. Global energy giants 

such as Italian ENI, South Korean Kogas, French 

Total, American ExxonMobil, Qatar Petroleum, 

American Noble Energy, Israeli Delek Group and 




Royal Dutch Shell, have all secured exploration 

rights in Cypriot waters. 

In July 2020, Chevron Corp announced an 

agreement for the acquisition of Noble Energy 

Inc, including its shares in Cyprus’ Aphrodite gas 

field. This is a positive development improving 

project realisation prospects, as after ExxonMobil, 

Chevron is the second biggest international oil 

company in terms of market capitalisation. 

Although the global energy sector is undergoing 

dramatic change due to the impact 

of the Covid-19 pandemic and currently delaying 

exploration plans around the Eastern 

Mediterranean until 2021-2022, the commitment 

and interest remain strong to capitalise on the full 

hydrocarbons potential of this region. 

DEPOSIT DISCOVERIES 

The first natural gas discovery in Cyprus’ EEZ 

was made in 2011 by US firm Noble Energy and 

Delek Group in the Aphrodite gas field in offshore 

Block 12, which is estimated to have 4.5 

trillion cubic feet (tcf) of gas. Following a successful 

appraisal programme, Aphrodite was declared 

commercial in 2015. 

The next discovery was made by the consortium 

of Total and ENI at the Onesiphoros prospect 

in Block 11 in 2017. But it was a small, technical 

and non-commercial discovery. This was followed 

by the discovery of the Calypso gas field in 

Block 6 by Italian ENI in late 2017. The discovery 

is currently under appraisal. 

The most recent success was the discovery 

in February 2019 of the Glaucus gas-field in 

the promising Block 10 by the ExxonMobil and 

Qatar Petroleum consortium, estimated to hold 

5 to 8 tcf of gas. This was great news because 

Glaucus, Calypso and Onesiphoros were discovered 

in geological formations similar to the giant 

30 tcf Zohr gas field discovered by ENI in 2015 in 

the Egyptian EEZ and adjacent to Cyprus’ Block 

11. These more recent discoveries confirm that 

the Zohr geological model extends more widely 

in the Eastern Mediterranean region. 

These results bode well for Cyprus and the 

region, adding to its reputation as an emerging 

gas region. Combined with other discoveries, they 

are rousing interest amongst major players hoping 

to secure a piece of the action in the Eastern 

Mediterranean. ExxonMobil has already extended 

its interests with licences for two blocks southwest 

of Crete and in Egypt, where it has secured Block 

3 in Egypt during the recent licensing rounds. It 

is eyeing more prospects, including opportunities 

in Israel. Chevron has also extended its interest in 

Egypt, gaining rights to three offshore blocks, and 

in Israel taking over Noble Energy’s shares in the 

Tamar and Leviathan gas fields. 

Our aim is to have a 

clear picture of our 

EEZ’s energy potential 

and, subsequently, 

proceed with the first 

transfer of gas to 

Egypt for liquefaction 

and export by 2024- 

25. Specialised firms 

are already operating 

in Cyprus, servicing 

regional hydrocarbon 

activities. Depending 

on the discoveries 

made, a number of 

multibillion-euro 

infrastructure projects 

will be undertaken, which 

apart from the direct 

underwater pipeline 

to Egypt to transport 

gas, may also include 

an onshore liquefaction 

terminal at the Vasilikos 

Energy Centre. The 

EastMed gas pipeline, 

another project of 

regional significance, is 

currently at the stage 

of final FEED studies 

(Front End Engineering 

Design) and is intended 

to connect Eastern 

Mediterranean resources 

to continental Europe. 




Re-analysis of seismic survey data using the 

knowledge gained from these discoveries has 

shown good prospects for new, potential discoveries 

also in Cyprus’ EEZ. As a result, ENI 

and Total plan to drill at least three more wells in 

their licenced blocks in 2021-2022. ExxonMobil 

is also planning to drill one more exploration 

well and an appraisal well at Glaucus in Block 

10, likely in 2021-2022. Any new discoveries 

would further strengthen potential exploitation 

of Cyprus’ gas resources. 

FUTURE REVENUES 

The oil and gas sector is certainly set to become 

a key driver of economic growth, with Cyprus 

actively considering options to exploit its natural 

gas, hoping for high revenues in the future. 

Cyprus’ Energy Minister confirmed in March 

2018 discussions with Shell to buy around 8 

billion cubic metres (bcm) of gas per year, over 

a 15-16-year period, from Aphrodite for liquefaction 

at the Idku plant in Egypt and to export 

this to European and global markets. These discussions 

have since progressed, with the signing 

in 2018 of an inter-governmental agreement 

between Cyprus and Egypt to build a subsea 

pipeline connecting Aphrodite to Egypt’s liquefaction 

plants, and a revised production-sharing 

agreement with Noble Energy – soon Chevron – 

and its partners over the Aphrodite gas reservoir. 

The plan provides that the consortium will 

be responsible for the extraction platform at the 

site of the field. Analysts describe the deal as a redistribution 

of profit, increasing the share of the 

companies when oil prices are low, but conversely, 

when global oil prices rise, Cyprus’ share will 

increase. Based on the plan, first gas was expected 

in 2025, and according to the Energy Ministry it 

would be the biggest infrastructure project ever 

undertaken in the Republic of Cyprus. Even 

though the plan may experience some delays due 

to the coronavirus pandemic, Cyprus and Egypt 

are committed to it. 

Since then, the Cypriot and Egyptian governments 

have intensified discussions on the 

gas pipeline and Chevron, the new operator of 

Aphrodite, reaffirmed the importance of developing 

the gas-field and intention to proceed with 

plans on how to exploit it as soon as possible. 

The recent discovery of Glaucus in Block 10 

by ExxonMobil and Qatar Petroleum could also 

become a game-changer. ExxonMobil has repeatedly 

stated that should more discoveries be made, 

its preferred option is to build a gas liquefaction 

plant at Vassilikos for liquefied natural gas (LNG) 

exports to Europe and Asia. This would require 

total gas discoveries to approach 15 tcf and global 

gas prices to justify commercial viability. All eyes 


Recovering 

from the 

impact of 

the Covid-19 

pandemic our 

expectations 

are for the intensification of our 

exploration and exploitation 

activities in the coming period. 

The discovery and exploitation 

of Cyprus’ natural gas offshore 

resources will be key in 

unlocking cleaner energy for 

Europe, the region and beyond. 

With the upcoming Cypriot 

offshore activities and regional 

projects, Cyprus will continue 

its growth as a safe and reliable 

hub for hydrocarbon activities. 

Demetris Fessas 

Acting General Manager 

Cyprus Hydrocarbons 

Company Ltd 

As a 

fundamental 

link in the 

oil supply 

chain in the 

East Med, 

VTTV provides logistics and 

storage solutions to cater 

for international and local 

customers. Given the sectors 

we service, the opportunities 

and growth are in oil ship-toship 

and LNG. The expectation, 

despite the challenging and 

uncertain global environment, 

is to explore further these 

sectors to offer safe, efficient 

and cost-effective solutions 

whilst also being able to 

provide business opportunities 

for our customers. 

George Papanastasiou 

General Manager and 


VTTV 

are on the results of the next drilling campaign, 

expected in 2021-2022. Such a development 

could completely transform Cyprus’ fortunes. 

Currently, Cyprus is reliant on heavy fuel oil and 

diesel imports for its electricity needs and spends 

over 8% of its GDP to cover the costs. The option of 

an LNG plant at Vassilikos would not only tip the 

gas balance of the region, but would also come with 

major add-on benefits for Cyprus – not just profits 

from the sale of LNG, but advantages such as new 

employment, more support industries and service 

companies, the development of a downstream industry 

using cheap gas as feedstock, and low-price 

gas to the Electricity Authority of Cyprus (EAC) 

bringing electricity prices down. 

IMPROVING PORT FACILITIES 

In order to support the increase in offshore drilling 

activities resulting from the old and new 

licences, a new support base has been set up in 

Limassol Port to cater to the expanding needs 

of the international exploration companies. The 

government has also committed to establish a 

dedicated industrial port at the energy centre at 

Vassilikos, to become operational by 2023. The 

port will operate as a service centre for the oil and 

gas industry in Cyprus and the wider region, and 

it will cost around €250 million to set up. 

The decision to build the port was taken in 

response to increasing demand from oil and gas 

companies and those providing support services 

to the industry, not only in Cyprus, but also 

in neighbouring countries. It is an essential step 

to support Cyprus’ drive to become a regional 

centre providing support services to the Eastern 

Mediterranean oil and gas industry. 

EAST MED GAS FORUM 

Given the geopolitical challenges the region 

faces, respect of international law, and particularly 

the United Nations Convention on the Law 

of the Sea (UNCLOS), is crucial to the peaceful 

exploitation of hydrocarbons in the East Med. 

With this goal in mind, the energy ministers 

and representatives from Egypt, Cyprus, Greece, 

Israel, Italy, Jordan and the Palestinian Authority 

met in Cairo in January 2019 and set up the 

East Mediterranean Gas Forum (EMGF) – with 

European Commission and World Bank representatives 

attending the meeting as observers. 

The Forum is based in Cairo, with the aim 

to be an international organisation that respects 

the rights of members in regard to their natural 

resources in accordance with the principles of 

international law, and supports their efforts to 

benefit from their reserves and use of infrastructure. 

This also includes a commitment to pave the 

way for fruitful cooperation in the technical and 

economic fields, with a view to efficient exploitation 

of the gas potential in the region. 

East Med countries who agree with the 

Forum’s interests and objectives will have the 

right to join the founding members. It will be 

open to other countries or regional and international 

organisations as observers, and will 

work with non-members to help create dialogue, 

mutual understanding and mutual benefit. 

EMGF also underlines that the private sector has 

an important role to play in these efforts. 

EMGF could benefit regional gas development 

through dialogue on natural gas policies, 

including environmental considerations, leading 

to the development of a regional integrated 

market in a way that maximises the utilisation of 

gas resources and transport infrastructure in the 

region, and would contribute to further cooperation 

in the East Med. 

Gas export projects could also benefit from 

such cooperation, especially with regards to 

ensuring a conducive regulatory environment, 

putting in place the required inter-governmental 

arrangements and removing political risk. 

Natural gas could make a crucial contribution 

to the future of East Med countries and any 

such initiatives that could promote its development 

can only be helpful. The large gas discoveries 

in the East Med could also have a major impact 

on energy security and economic development 

through the exploitation of the gas regionally. This 

could be in power generation, but also in downstream 

and petrochemical projects. Given global 

energy developments, exploitation of natural gas 

resources regionally is gaining increasing importance 

– the Forum is well placed to facilitate this. 

TRANSHIPMENT TERMINAL 

Cyprus is fast developing into a regional fuel hub 

for Europe, Asia and Africa, thanks mainly to 

the successful operation of the sophisticated oil 

storage terminal by Netherlands-based global oil 

terminal company VTTI. The company’s €300 

million project in Vassilikos became operational 

in 2014, and was one of the biggest infrastructure 

projects constructed in Cyprus in recent years 

and put the island on the global energy map. 

The company uses Cyprus as a transhipment 

terminal, blending its raw materials and then exporting 

them to the rest of the world, but mainly to 

Lebanon and Israel. With large refineries operating 

and more being built in the Middle East, the 

international market expects more product-vessel 

traffic through the Suez Canal, bound for European 

and Mediterranean markets. These cargoes need 

to be resized or blended with other products to 

change specification and meet regional require- 





ments. VTTV’s strategic location makes it the first 

terminal of its kind in the Eastern Mediterranean 

offering these services and connecting Europe and 

the Black Sea with markets in the Middle East and 

Asia. The industry has tremendous growth prospects 

with Cyprus’ determination to establish itself 

as a key energy hub and a stronghold of stability 

in the region. 

LNG IMPORT TERMINAL 

Until it is able to develop its own gas, Cyprus is 

planning to import LNG to replace heavy fuel oil 

and diesel in power generation. Not only is this 

expected to bring the cost of electricity down, 

but it will also lead to a substantial reduction 

in carbon dioxide emissions, helping Cyprus 

achieve its Paris Agreement pledges. 

In December 2019, Cyprus signed a landmark 

deal with a Chinese-led consortium to build a 

€290 million LNG import terminal at Vassilikos. 

The project has secured a €101 million grant from 

the EU under the Connecting Europe Facility 

(CEF), with the EAC contributing €43 million 

securing a 30% stake. 

The terminal will include a floating storage and 

regasification unit (FSRU), a jetty for mooring 

the FSRU and related infrastructure. The attractiveness 

of Cyprus to gas companies is confirmed 

by another offer to import LNG. This is under 

consideration by the Cyprus Energy Regulatory 

Authority (CERA). Construction of the terminal 

started in July 2020, with completion expected by 

2022. It is Cyprus’ largest project. 

CONNECTING POWER GRIDS 

Another important regional energy project is 

the EuroAsia Interconnector, which will link the 

power grids of Cyprus with Greece and Israel via 

an undersea cable. The 2,000-Megawatt (MW) 

Interconnector, is the only North-South electricity 

interconnection in the Central Eastern 

and South Eastern Europe Priority Corridor. 

Licenced Blocks 

Block Licensors Year 

2 ENI, Kogas 2013 


6 ENI, Total 2017 

7* ENI, Total 2019* 

8 ENI 2017 


10 ExxonMobil, Qatar Petroleum 2017 

11 Total, ENI 2013 

12 Noble Energy, Delek Drilling, 

BG Cyprus Limited 2008 

* Formal licence approval still pending 

The permitting procedure started in 2019 and 

is expected to be completed by December 2020 

for the construction of the first power ‘corridor’ 

with a capacity of 1,000 MW costing €3.5 billion. 

The Crete-Attica link is expected to commence 

in September 2022, and the Cyprus-Crete and 

Cyprus-Israel links in December 2023. 

The Interconnector will end the energy isolation 

of Cyprus and contribute to achieving the 

EU Energy Union’s goals of connecting European 

energy networks, achieving the electricity interconnection 

target for 2030 of at least 15%. It will 

also contribute to the internal energy market integration, 

increase security of energy supply, and 

support sustainable development by integrating 

renewable energy sources across the EU. 

The project is progressing to plan, with the 

selection in March 2020 of Siemens AG as the 

preferred bidder for the award of the contract for 

the construction of the ‘VSC Converter Stations’ 

of the EuroAsia Interconnector. 

An important milestone was achieved in 

July 2020, when the government of Cyprus 

issued the Interconnector with the final building 

permit to construct a high voltage direct current 

(HVDC) converter station in Cyprus, with a capacity 

of 2,000 MW. Construction is planned to 

start before the end of 2020. 

This has since been followed by a framework 

agreement to also set up an EuroAfrica 

Interconnector to link the power grids of Egypt, 

Cyprus and Greece through subsea HVDC cables 

with the capacity to transmit 2,000 MW. The 

Interconnector is a VSC-HVDC scheme which 

will allow the bidirectional transfer of 1,000 MW 

(Stage 1) between the converter stations, with an 

estimated cost of €2.5 billion. Completion of the 

project is planned for December 2023. 

KEY ENERGY HUB 

Cyprus is well positioned to further strengthen its 

role as a stable and attractive location in which 

to base energy infrastructure projects and headquarters 

for international companies servicing 

the region. The country’s EU status and beneficial 

business operating environment provides the 

island with unique advantages to establish itself 

as a strategic player and facilitator in the EMEA 

energy market. With increased regional cooperation 

and the unfolding discoveries in the Eastern 

Mediterranean, the growing potential of the developing 

oil and gas sector offer expanding opportunities 

for investors, and has established 

Cyprus as a stable and secure location for companies 

to manage their operations from. n 


This year we 

have the start 

of the Cyprus 

LNG Import 

Project. A 

significant 

transformational project 

for Cyprus that will have a 

broader impact on the Eastern 

Mediterranean region. Through 

the project, we will achieve 

the opening of the power 

generation from conventional 

sources with the activation 

of IPPs. Competition coupled 

with a cleaner and lower cost 

fuel will drive a reduction 

of electricity costs for all. 

Symeon Kassianides 

Chairman 

Natural Gas Public 

Company (DEFA) 

New 

discoveries 

and the 

plans for 

more drilling 

bode well, 

prospects for more 

discoveries are excellent 

and hopefully increasing 

gas reserves will bolster 

export viability, especially 

through a liquefaction 

plant at Vassilikos but 

also to regional markets. 

The longer-term future of 

hydrocarbon development 

in Cyprus looks good, 

despite regional geopolitical 

challenges. With unit costs 

continuing to drop, including 

those of storage batteries, 

the potential to expand 

development of renewables is 

strong and can bring Cyprus’ 

high electricity costs and 

carbon emissions down. 

Charles Ellinas 

CEO 

E-C Natural Hydrocarbons 

Company Ltd (e-CNHC) 


Energy: Renewables 


A GREENER 

FUTURE 

Although still heavily reliant on fossil fuels, increased investment in 

renewable energy sources and a strong focus on research and innovation 

are fostering fresh efforts for Cyprus to develop a zero-carbon economy. 

Cyprus has been making concerted 

efforts to diversify its energy 

landscape over the last several 

years with the government 

placing more focus on subsidising 

green initiatives and international 

companies investing 

in installations to harness the 

island’s 340 days of sunshine a 

year. The country’s top-tier universities 

and research institutes 

are also playing a pivotal part in these efforts to 

create a more sustainable energy mix through innovation 

in smart tech and research in ways to 

battle climate change. 

Supporting the development of Renewable 

Energy Sources (RES) and creating a more energy-efficient 

future is high on the agenda for 

Cyprus. Its EU 2020 Renewable Energy goal is to 

achieve 13% of its energy consumption coming 

from renewables. Cyprus achieved that with two 

years to spare. In 2018, the percentage of renewables 

in the gross final energy consumption rose to 

13.78%, helping Cyprus exceed its target. 

Given Cyprus’ electricity isolation and in a bid 

to introduce more flexibility to its power system, 

the country aims to introduce new and disruptive 

smart grid technologies, as well as state-ofthe-art 

control and storage methods to be used in 

parallel with new electricity market approaches. 

KEY 

contacts 






www.cera.org.cy 

Electricity Authority 

of Cyprus (EAC) 

www.eac.com.cy 


Renewables have 

the potential to 

create between 

11,000 and 

22,000 jobs 

in Cyprus by 2030 

The Cyprus Institute’s PROTEAS Facility in Pentkomo 

Cyprus has the highest potential for solar 

power of any European Union country, and the 

island is already one of the highest users per capita 

in the world of solar water heaters in households, 

with over 90% of households equipped with solar 

water heaters and over 50% of hotels using large 

systems of this kind. 

Cyprus submitted its final National Energy 

and Climate Plan (NECP) for the period 2021- 

2030 to the European Commission in January 

2020. Among other things, its 10-year roadmap 

and 2030 targets focus on for example the implementation 

of a more sustainable transport sector 

through electric cars and on further promoting 

the use of RES in electricity production. It also 

proposes a 23% share of energy from renewable 

sources in gross final consumption of energy in 

2030. According to the €1.3 billion roadmap, 

Cyprus plans to reduce greenhouse gases by an 

ambitious 24%. 

Energy is one of Cyprus’ 

most promising sectors, 

with a number of 

investment opportunities 

in new and existing 

projects. Regarding 

renewables and electricity 

production, we are 

focusing our efforts on 

the operation of a fully 

competitive electricity 

market by the end of 

2021, whilst also making 

concrete steps to end 

our country’s energy 

isolation and moving 

towards green energy 

and storage installations. 

The Ministry also plans to 

create a One-Stop Centre 

for commercial renewable 

energy projects, as 

well as to facilitate the 

construction of the 

projects proposed in the 

framework of our last two 

funding schemes – 222 

commercial RES projects 

in total. In addition, we 

are funding households 

and businesses for 

energy efficiency and 

the installation of 

photovoltaics and other 

RES systems for netmetering, 

net-billing 

and self-consumption. 




SUPPORTING RES SYSTEMS 

Cyprus currently operates a scheme for the production 

of electricity from RES for own use, 

which includes installations of net-metering 

photovoltaic (PV) systems with capacity up to 10 

kW for all consumers, net-billing RES systems 

(mainly PV and Biomass) with a capacity up to 

10 ΜW for commercial and industrial consumers, 

and off-grid RES systems with no limit in 

total capacity. For the installation of net-metering 

PVs in households, the government is offering 

subsidies intended to encourage further RES installations 

by reducing the recuperation period of 

their investments. 

In addition, two successful support schemes 

for the installation of RES systems that will 

operate in the competitive electricity market 

have been implemented in the period 2017- 

2019. In the first scheme 114.5 MW PV systems, 

2.3 MW Biomass systems and 12.5 MW from 

a wind park have been approved, and in the 

second scheme 259 MW from PV parks. The 

RES systems that enter these schemes are expected 

to be operational before the end of 2021. 

Cyprus’ energy policy has created financial 

support for RES projects, and a special fund 

was created aiming to support RES and energy 

saving investments in Cyprus, with revenue 

derived from consumers paying a ‘green tax’ 

levied on electricity bills (currently at €0.005 

per kWh and €0.0025 per kWh for vulnerable 

groups). 

The country’s national grid system needs 

upgrading as it has certain intrinsic and technical 

limitations affecting RES penetration and 

reliability. However, studies by the International 

Renewables Agency (IRENA) concluded that 

using the existing system, renewable energy 

and mostly solar, could provide 25% to 40% of 

Cyprus’ total electricity supply in 2030 and bring 

costs down significantly. This can be increased 

further by implementing RES installations with 

storage capability through competitive bidding. 

The country is also exploring ways to introduce 

smart grids in the national network and is 

on the look-out for projects that could facilitate 

energy storage, and ventures that have production 

on a 24-hour basis. In addition, the prospective 

EuroAsia and EuroAfrica Interconnectors 

could bring more solutions down the pipeline. 

FOSSIL FUEL RELIANCE 

A key challenge for Cyprus is its high dependency 

on fossil fuels for energy – with the biggest 

share within the EU. This makes it crucial for 

the country to develop both its natural gas, the 

cleanest of the fossil fuels, and renewable energy 



Energy: Renewables 


sources. The potential of the latter is enormous, 

both in terms of clean energy and low electricity 

prices. 

Cyprus is reliant on heavy fuel oil and diesel 

imports for its electricity needs and spends over 

8% of its GDP to cover the costs. However, the 

country has embarked on a plan to import LNG 

for power generation by 2022 over a 20 to 30-year 

period so that it can reduce carbon emissions in 

line with EU targets, and until it can exploit its 

own gas reserves. The EU agreed in January 2018 

to partially fund the cost to build infrastructure at 

Vassilikos for this purpose to the tune of €101.5 

million, constituting about 40% of the eligible 

amount. 

The Natural Gas Public Company (DEFA), as 

the sole importer and distributor of natural gas 

on the island, announced tenders in 2018 for the 

construction of the required infrastructure at 

Vassilikos. This was successful and in December 

2019 DEFA signed a landmark deal with a 

Chinese-led consortium to build a €290 million 

LNG import terminal at Vassilikos. Construction 

started in July 2020, and has been followed by a 

separate tender for the procurement of LNG with 

23 companies expressing interest to participate. 

Tenders are under evaluation. Progressively, the 

project will include the introduction and use of 

natural gas by the transport, industry and energy 

sectors in Cyprus. 

HARNESSING THE SUN 

Solar energy is increasingly becoming a boom 

segment for Cyprus. The European Bank for 

Reconstruction and Development (EBRD) alone 

has financed five solar parks across the island 

with an investment of €10.85 million in a bid to 

increase photovoltaic capacity in Cyprus by 12%. 

Scandinavian Solar Parks, a Cyprus company 

with Swedish investors, has established nine solar 

power generation parks with a capacity of around 

1,300 KW of energy. Local Cyfield runs a 3 MW 

PV park in Ayios Ioannis, while the Electricity 

Authority of Cyprus (EAC) operates its own PV 

park in Tseri with a nominal capacity of 3 MWp, 

generating some 5,000 MWh per year and avoiding 

3,600 tonnes of carbon dioxide emissions per 

year. The state power company also has an ambitious 

project planned to self-finance and operate 

a 20 MW photovoltaic (PV) power station inside 

the Sovereign Base Area (SBA) of Akrotiri. In 

addition, PROTEAS, a solar field on the island’s 

southern coast in Pentakomo aims not only to 

generate electricity but to provide fresh water by 

powering energy intensive desalination plants. 

The research facility is a result of a partnership 

between the Commonwealth Scientific and 

Industrial Research Organisation (CSIRO) and 

the Cyprus Institute (CyI), which is pioneering 

research in renewable energy systems. 

In addition, the EAC forged a deal with the 

country’s Archbishopric in July 2018 to develop 

two photovoltaic parks in Nicosia, producing 

around 66 MW. The project is set to be the largest 

PV system in Cyprus, contributing to the island’s 

national renewable energy sources targets. 

These are all positive developments, but there 

continues to be untapped potential in terms of 

renewable energy production, and international 

interest in developing the sector in Cyprus is expected 

to increase considerably in the coming 

years. This investment is also crucial in order for 

Cyprus to achieve its targets – and further open 

up the field for companies with expertise in renewables. 

Cyprus’ largest PV park, an 8 MW facility, 

started subsidy-free operations in February 

2020. This was developed by the Vassiliko 

Cement Works Company Ltd to supply around 

10% of the annual electricity needs of its cement 

factory. Under subsidy-free rules, the power will 

be bought by the EAC at a ‘cost-avoidance rate’, 

based on the average price it would have paid if 

the electricity had come from fossil fuels. 

STORING POWER 

A limitation in realising the full solar power potential 

of the island is lack of electricity storage. 

There is a drive to increase use of battery 

systems, to store excess energy and create a 

‘powerbank’. The first energy storage system, 

30 kW/50 kWh, was connected to the electricity 

system in Nicosia in 2018. Cyprus became 

the testing ground for an innovative community 

project delivered by a German electric utility 

company Autarsys, where 30 kW/50 kWh was 

connected to a conventional distribution substation 

in Nicosia. The project provided the opportunity 

to interact with real battery systems and 

gather knowledge about their operation, branding 

the efforts as a success. State-of-the-art highvoltage 

lithium-ion batteries were used, and the 

battery system provided services to the distribution 

network, such as power balancing, network 

and frequency support, as well as services that 

stabilise and protect the seamless operation of 

the network and are considered essential for 

modern power networks. The project received 

funding from the European Union’s Interreg 

Mediterranean research and innovation programme 

under the project StoRES. 

An innovative EU project, also under the 

StoRES project, involving Cyprus, Greece, Italy, 

Spain and Portugal is supporting the development 

of optimal policy for the effective integration 

of energy storage systems. It aims to boost 

Cyprus needs 

to invest in 

drawing up 

a longterm 

consolidated 

sustainable energy strategy. 

Now is the time to invest in 

new sustainable technologies, 

to manage our energy resources 

and needs in an optimal 

way, to reduce the impact on 

the environment and to ensure 

our future energy security. We 

need to start working right now 

for a more sustainable Cyprus 

by 2050. We need to accelerate 

the country’s transition 

towards a hydrogen economy. 

Andreas Poullikkas 

Chairman 



A key aim is to 

make Cyprus 

a hub for solar 

innovation, 

technology 

transfer, industry 

start-ups and job 

creation where 

ideas can grow 

and achieve their 

full potential 


To decrease 

dependence 

on heavy 

fuel oil for 

electricity 

generation 

and to diversify our energy mix 

we are investing in renewable 

energy sources and preparing 

the infrastructure for the 

use of natural gas. We also 

aim to meet national targets 

on clean, efficient energy and 

to upgrade technologies to 

decrease our carbon footprint. 

Our aim is to deliver a steady 

and secure supply of cleaner, 

greener, more affordable 

energy to the people of Cyprus. 

Panayiotis Olympios 

General Manager 

Electricity Authority 

of Cyprus (EAC) 

photovoltaic (PV) self-consumption in the 

Mediterranean region, while solving market, 

technical, grid and tariff issues without compromising 

grid stability and reliability. 

The University of Cyprus (UCY) is developing 

a 10 MWp photovoltaic park inside the United 

Nations buffer zone in Nicosia, supported by 

European funds. The first stage of the project will 

include 5 MWp of PV capacity with 2.35 MWh of 

battery storage, with plans to conduct testing for 

a blockchain program. 

SUSTAINABLE INNOVATION 

The University of Cyprus (UCY) is set to construct 

its second solar panel park ‘Apollon’ with 

assistance from the EAC to establish UCY as 

completely energy self-sufficient. Set to become 

the island’s first ‘green area’, the photovoltaic 

park will have a peak output of 10 MW coupled 

with battery storage of 2 MWh capacity, making 

it the island’s largest self-sufficient renewable 

energy facility. The University already covers 

around 15% of its electricity needs through 

photovoltaics with around 400 kWp already installed 

on a number of university buildings and 

the ‘Phaethon’ PV park made up of 1,645 solar 

panels with the capacity to produce 632,000 

kWh of electric energy annually. 

Central to this flagship project is the work 

of the University’s FOSS Research Centre for 

Sustainable Energy, which carries out cuttingedge 

research in the field of renewable sources 

of energy, with emphasis on solar energy, smart 

grids, smart buildings, grid integration and enabling 

technologies. FOSS has been highly successful 

in competing for funds, so far securing 

€16 million from more than 50 EU, national 

and industrial-funded projects. Well-known 

international players in the field of energy 

such as Honeywell, Hanwa Q Cells, Gantner 

Instruments, IBM amongst other leading international 

brands are already collaborating with 

FOSS and are testing their products in Cyprus. 

FOSS strives to promote cooperation 

between academia, industry and business 

sectors, as well as contributing to the transfer of 

knowledge from advanced European clusters to 

the region. A key aim is to make Cyprus a hub 

for solar innovation, technology transfer, industry 

start-ups and job creation where ideas can 

grow and achieve their full potential. 

ELECTRICITY MARKET LIBERALISATION 

Authority (CERA), to ensure that the electricity 

market in Cyprus is liberalised. CERA has 

worked towards the full opening up of the energy 

market and granting consumers the right to 

choose their own supplier. CERA’s proposition 

is a ‘net pool’ model, where the operations of the 

state power company, EAC, are unbundled and 

the production and supply operations separated. 

EAC production would then enter into bilateral 

agreements with suppliers for the sale of energy 

at regulated prices. CERA foresees establishing 

an electricity exchange where suppliers’ bids for 

quantities of electricity will be updated every 

half hour. The exchange will match supply and 

demand and fix the price for a contract. This 

will be operated by the Transmission System 

Operator (TSO). The target date to achieve electricity 

market liberalisation is December 2021, a 

move which will further open up the market for 

renewables, clean energy and lower prices. 

FOCUS ON EFFICIENCY 

Apart from the increasing foreign investment 

and a competitive energy market unfolding over 

the next few years, actions are being taken for 

the promotion of electric transport. This constitutes 

one of the cornerstones in the development 

of a zero-carbon economy, by encouraging 

greater use of electric cars and installing vehicle 

charging stations on roads across the island. 

Moreover, in 2021 the Ministry of Education, 

in cooperation with EAC, will proceed with 

thermal insulation of rooftops, as well as installations 

of PV systems in all public schools in 

Cyprus. The total capacity of those PV systems 

will be around 4.9 MW. 

Cyprus already has the resource of the sun 

and with new investment and projects in the 

pipeline, along with a government determined 

to develop renewable solutions, the country can 

truly harness its natural potential and become 

far more energy efficient in the years to come. 

Another economic benefit from high RES penetration 

is that according to estimates renewables 

have the potential to create between 11,000 

and 22,000 jobs in Cyprus by 2030. This is a 

significant number of new jobs in a country 

the size of Cyprus and would be a sign of a 

thriving new industry on the island with multiple 

positive knock-on effects in the economy. 

Decarbonisation is high on the agenda globally, 

and Cyprus is certainly making serious moves to 

reach its targets in the next decade. n 


Currently, Cyprus is in a transitional step before 

full electricity market liberalisation, which is 

being spurred on by the publication of a binding 

timetable by the Cyprus Energy Regulatory 



Film Production 


JOINING 

THE A-LIST 

Cyprus has attracted significant interest from the global film community 

in the last two years, following the launch of its fiscal incentive scheme. 

Despite the devastating impact of the coronavirus pandemic on the 

international film industry, the future of Cyprus film and the appeal of 

the island as a versatile filming location continues to look bright. 

Cyprus has set its sights on claiming a 

stake in the international film industry 

by providing the right incentives 

to maximise its untapped potential 

as a filming location, along with the 

multitude of other competitive advantages 

it offers as an investment 

destination. 

The country has garnered the attention of international 

film producers and placed itself firmly 

on the world cinematic map as an interesting and 

cost-effective film location. The official launch of 

its long-awaited incentive framework in 2018 established 

the island as a new Mediterranean film 

location branded ‘Olivewood’ and promptly attracted 

multimillion-budget movies headlining 

Hollywood stars such as Nicolas Cage and William 

Baldwin. These films employed more than 400 

Cypriot film professionals proving the scope of 

crew and talent available in the country to cater to 

international big-budget film productions. Since 

then, producers from Hollywood, Bollywood and 

many other European countries have been eyeing 

up the island for future productions thanks to the 

significant perks provided by the scheme. 

The local industry, albeit small in size, is also 

flourishing with talent and ideas. Films shot 

and produced in Cyprus have been screened at 

the Cannes and Venice Film Festivals, and have 

won awards and acclaim at the Tribeca, Quebec 

and Palm Springs Film Festivals over the last few 

years. 

Due to the Covid-19 pandemic, 2020 has seen 

major film release dates and many film festivals 

cancelled or postponed, both local ones like the 

Cyprus Film Days Festival and prestigious international 

ones like the Cannes Film Festival, and 

productions all over the world have ground to a 

halt. There is no denying these are challenging 

times for the creative industry, but the long-term 

future remains bright. Cyprus has long been on 

the radar of the international film community 

and hosts a solid local industry with international 

expertise to support the growth of this sector. 

This, coupled with the introduction of one of the 

most advantageous fiscal incentive schemes, presents 

a new opportunity for Cyprus to promote 

itself as a top filming destination and to enter the 

international audiovisual market with an attractive 

proposition. 

KEY 

contacts 


www.investcyprus.org.cy 

Cyprus Film Commission 

www.film.investcyprus.org.cy 


The multiplier 

effect to the 

local economy 

by developing 

the film 

industry is 

quite remarkable. It can first 

of all create jobs, promote 

our country worldwide and 

act as a driving force for 

the development of other 

industries. Invest Cyprus 

undertook the responsibility 

of developing this industry 

and promoting Cyprus as 

a unique film destination, 

starting basically from point 

zero and today we are very 

happy to see active interest 

from many producers. Our 

goal is long-term results; to 

support the industry and the 

Cyprus economy as a whole. 

PACKAGE OF PERKS 

A key achievement of the last two years was the 

Council of Minister’s approval of the Cyprus film 

incentive scheme, which is run by Invest Cyprus 

– the country’s investment promotion agency – 

with an annual budget of €25 million for reimbursement 

purposes. 

This development was crucial for the growth 

of the Cypriot audiovisual industry, and will 

also provide a boost to the overall economy with 

significant investments and multiple benefits to 

promote the country worldwide. 

The package has a number of benefits aimed at 

both local and foreign producers that opt to film in 

Cyprus, one of which is a cash rebate or tax credit 

of up to 35% on qualifying production expenditures. 

Production houses can also benefit from tax 

allowances of up to 20% for investment in infrastructure 

and equipment, as well as Value Added 

Tax (VAT) returns on expenditure in scope. 

The first international film exclusively shot 

in Cyprus using the 35% film incentive scheme 

was Jiu Jitsu starring Nicolas Cage. It was directed 

by Dimitris Logothetis and produced by Martin 

J. Barab and Dimitri Logothetis. The film was 

picked up by Highland Film Group (HFG), and 

successfully completed shooting on the island in 

August 2019. The feature is currently in post-production 

and is expected to be released in 2020. 

Within the scheme, the qualifying production 

categories include feature films, television 

films, series and mini-series, creative documentaries, 

digital and analogue animation, television 

research programmes and natural history 

programmes. In addition, trans- and crossmedia 

productions and reality programmes that directly 

or indirectly promote the Republic of Cyprus 

can also apply. Productions will also score extra 

points if they satisfy a number of cultural criteria 

such as hiring local actors in leading roles, highlighting 

local or international cultural elements 

and using the local language. 

The new Cyprus Film Commission, which is 

chaired by Invest Cyprus, also consists of representatives 

of the Ministry of Finance, Ministry of 

Education and Culture and the Deputy Ministry 

of Tourism. The Commission is the responsible 

body for examining all applications, while the 

remit of Invest Cyprus is to promote the incentive 

scheme abroad, facilitate productions and foster 

connections with the local industry through 

an online platform branded Film in Cyprus. 

Interested parties can submit their applications 

for the scheme through the portal, which also 

provides more detailed information on qualifying 

criteria. In addition, continuous support is 

provided by Invest Cyprus in cooperation with 

the relevant ministries and governmental departments 

in matters such as permits, importing and 

exporting equipment and other necessary instructions. 

CREW AND PRODUCTION SUPPORT 

Cyprus has a strong pool of multilingual professionals 

working in the film and television sector 

with international training and experience. An 

added benefit is that English is almost universally 

spoken on the island. Production and post-production 

crew such as directors, producers, DPs, 

camera operators, sound technicians, editors, 

location managers, photographers, grips, gaffers, 

production assistants, fixers, as well as wardrobe, 

hair and make-up professionals can be found 

relatively easily. 


Michalis P. Michael 

Chairman, Invest Cyprus 


Film Production 


Cyprus also has production equipment rental 

companies with high-end and reliable kit to 

support foreign teams filming on the island, or 

to hire second unit crews. These companies have 

a strong track record in working with both local 

and international crews and networks on productions 

of all sizes, ranging from feature films and 

documentaries, to music videos and TV ads. 

Although the country does not yet have big 

studios or sound stages, there are a number of 

smaller studio owners that can cater to the needs 

of foreign producers. In fact, the government has 

identified this niche as a potential investment opportunity 

as the sector grows further. 

In the summer of 2019, Hollywood producers 

visited Cyprus and declared their interest 

in the possibility of also building a film studio 

in the coastal city of Paphos. The International 

Chairman of the Producers Guild of America 

Kayvan Mashayekh, Oscar-winning producer 

Mark Foligno, Emmy award winner for animation/special 

effects Nassos Vakalis, and Demetris 

Anagnostou, CEO of Los Angeles-based Declare 

Productions, met with key stakeholders and expressed 

their interest in shooting in Cyprus. 

A YEAR-ROUND DESTINATION 

A key advantage of Cyprus for film production 

is the predictability of its climate. With over 300 

days of sunshine a year the island is a true yearround 

destination. The abundance of natural light 

is a key aspect of film production and it should 

be noted that Cyprus and Los Angeles are almost 

on the same latitude. The hot and dry summer 

is from May to October, and the mild and green 

winters with occasional rain are from December 

to February. There are clear distinctions between 

the two seasons, which are separated by a short 

autumn and spring when the island’s flora is in 

full bloom. 

CINEMATIC LANDSCAPES 

Dubbed a natural film studio, Cyprus certainly 

has much to offer despite being a small island. 

It has a rich historical and cultural landscape 

featuring various historical periods, ranging 

from archaeological sites to quaint villages and 

modern cities. 

Cyprus offers endless opportunities for film 

makers with its ruins of ancient city kingdoms 

with pillars and amphitheatres, Venetian bridges 

tucked away within the forest hills, ancient aqueducts, 

Byzantine art and architecture, as well as 

the unique 16th century Venetian city walls and 

heart-shaped bastions of Nicosia that protect the 

labyrinthine streets of the vibrant old city. 

The coastal city of Limassol is currently undergoing 

a transformation with multiple skyscrapers 

being built along its beach-front promenade 

offering a modern and more cosmopolitan 

city scape. The luxury Limassol Marina juts into 

the sea adjacent to the old town and the medieval 

Limassol Castle, where according to legend 

Richard the Lionheart married Berengaria of 

Navarre and crowned her Queen of England in 

1191. Also near Limassol is the Kolossi Castle, 

which is a former Crusader stronghold of the 

Knights of the Order of St John of Jerusalem and 

was briefly taken over by the Knights Templar in 

1306. 

Cyprus also provides much variety in terms 

of its natural landscape. Its 648 km of coastline 

presents rocky coves, stretches of beautiful pebble 

and sandy beaches, light houses, ports both big 

and small, as well as some of the cleanest beaches 

and waters in the Mediterranean Sea. In Nicosia, 

the flat plains look like a desert in the peak of 

summer, but are transformed to a lush green 

during winter months. In the centre of the island, 

the pine-clad Troodos mountains provide stunning 

hilltops, valleys, waterfalls and picturesque 

vineyards and traditional villages, with its peaks 

covered in snow in the winter. Larnaca offers cityscapes 

and salt lakes teeming with flamingos in 

the winter, while Paphos – the legendary birthplace 

of Aphrodite – has more historical sites, 

beautiful beaches and hills, the Akamas Nature 

Reserve and banana plantations scattered along 

its coast. 

CONNECTIVITY AND INFRASTRUCTURE 

Cyprus’ advanced infrastructure is constantly 

being upgraded and offers road, air and sea 

transport solutions and services. The Republic of 

Cyprus has two multipurpose deep-sea ports and 

two international airports, Larnaca and Paphos, 

which are served by over 70 airlines, operating to 

120 destinations in 40 countries. Located at the 

crossroads of three continents, Cyprus is a short 

flight away from some of the most prominent 

transit hubs in the world. Direct flights are available 

to Cyprus from all the major cities of Western 

and Eastern Europe, as well as the Middle East 

and Gulf region. This is a key factor for productions 

with multiple locations in Europe and the 

Middle East. 

Due to its small size, internal distances are 

short between all cities, which are also all under 

100 km from one of the two international airports. 

For example, within an hour’s drive it is 

possible to go from a snow-capped mountain 

to a sunny beach. The island’s road network is 

well mapped and signposted in both Greek and 

English, and navigating across the country is easy 

and safe. There are multiple companies that rent 

Cyprus Filming 

Scheme Incentives: 

Cash rebate of up to 

35% 

on qualifying production 

expenditures 

Variety of tax 

incentives for 

corporates and 

individuals 

Attractive 

IP regime 


BENEFITS: 

Diverse landscapes never 

seen on screen 

Ideal weather conditions 

for year-round filming 

Short internal distances and 

good global air connectivity 

Modern infrastructure and 

advanced telecoms 

Centuries of history, art and culture 

Access to local talent pool 


The island’s natural beauty, local talent, great climate, and versatile locations that could 

double-up as various destinations from virtually anywhere in the world offer boundless 

creativity and opportunities for film directors, with only the imagination setting the limits. 

a variety of vehicles on both a short- or longterm 

basis, and thanks to the island’s status as a 

popular holiday destination Cyprus offers every 

conceivable type of accommodation – ranging 

from low-budget hotels and a growing number of 

five-star luxury resorts, to villas and agritourism 

houses. 

NURTURING OLIVEWOOD 

Although Cyprus made its official entrance onto 

the world stage only recently, the country has 

in fact attracted attention and interest over the 

decades from big producers and directors worldwide. 

Unfortunately, many of these prospective 

projects never came to fruition due to a lack of 

incentives and official single body to represent 

the industry and aid in tackling bureaucracy and 

permits. With a new government-backed framework 

in place, the country can now turn this interest 

into real action. 

The island’s natural beauty, local talent, great 

climate, and versatile locations that could double-up 

as various destinations from virtually anywhere 

in the world offer boundless creativity and 

opportunities for film directors, with only the imagination 

setting the limits. Cyprus offers a truly 

cinematic environment and has set the scene for 

those with vision. 

However, industry professionals and producers 

have warned Cyprus not to rest on its 

Olivewood laurels, as to develop the sector into a 

true international industry and economic driver 

more investment is needed in crucial infrastructure 

such as purpose-built studios, and in educating 

the professional crews and technicians to 

support the industry in the future. 

Knock-on effects of fostering this sector will 

create jobs, develop new infrastructure and 

equipment that will further support the industry, 

and indirectly also enhance complementary 

sectors such as cinema tourism, professional services, 

land development and investment funds 

related to film. 

Cyprus certainly has all the pieces of the 

puzzle to develop a thriving film sector, what is 

needed now is the right kind of investments and 

strategies to support the growth of the industry 

and attract major international players to captialise 

on the immense potential of this beautiful 

and versatile island. n 



Health 


STREAMLINING 

HEALTH 

The combination of a robust private health sector with internationally 

acclaimed medical research and health professionals, and the roll-out of a 

new national health system has brought Cyprus on par with its European 

peers. This crucial evolution has boosted Cyprus’ efforts to encourage more 

investments in areas such as e-health, medical tourism, rehabilitation 

services and medical schools to further develop its health sector. 

For decades, the Cyprus health sector 

has been primarily known for its 

excellent private healthcare with its 

highly trained and internationally 

experienced professionals, specialised 

medical services and globally renowned 

research. The majority of its 

medical professionals are educated at 

top-tier universities in the UK, Greece, Western 

Europe, the US and Russia, and international 

expertise and specialisation have been key 

factors in the development of Cyprus’ formidable 

private sector with 75 private hospitals and 

clinics, along with numerous smaller private 

practices. 

However, 2020 marks a milestone in this 

sector with the long-anticipated national health 

system (NHS) coming into full effect with the 

promise to modernise and upgrade healthcare 

into a more streamlined, transparent and costeffective 

system. 

International rankings further underline the 

strength of the health sector with Cyprus rated as 

the 21 st healthiest country in the world, according 

to Bloomberg’s 2019 edition of its Healthiest 

Country Index. Cyprus also has good access to 

quality health services, ranking 24 th out of 195 

countries in the Healthcare Access and Quality 

Index (HAQ) – a study funded by the Bill & 

Melinda Gates Foundation. In the index Cyprus 

ranks higher than Germany, Israel and the US, 

which rank 25 th , 28 th and 37 th respectively. With 

the new NHS, the aim is to offer the public equal 

access to a healthcare sector that boasts excellent 

professionals, technology and innovation. 


2020 has been a year scarred by the coronavirus 

pandemic and its effects on the global economy. 

Cyprus took staunch measures before several of 

its European partners, taking a proactive stance 

KEY 

contacts 

Ministry of Health 

www.moh.gov.cy 

The Health Insurance 

Organisation (HIO/GESY) 

www.gesy.org.cy 

State Health Services 

Organisation (SHSO) 

www.shso.org.cy 


Healthcare Tourism 

www.cyhealthservices.com 


Having managed to 

bring to Cyprus’ 

citizens a health system 

that gives universal and 

equal health coverage, 

we are now moving on 

to a holistic approach 

of healthcare via other 

major reforms. In the 

fight against cancer, 

Cyprus fully aligns 

with the EU strategy. 

The five pillars of the 

National Cancer Strategy 

allow us to provide a 

comprehensive treatment 

protocol, thus putting 

cancer patients in the 

centre of our attention. 

We aspire to achieve 

this, inter alia, through 

the establishment of 

the National Cancer 

Institute. Moreover, 

apart from normalising 

the new health system, 

we take actions to 

encourage investments 

in healthcare sector, in 

areas such as e-health, 

medical tourism, 

rehabilitation services, 

medical schools and 

pharmaceutical services. 

Constantinos Ioannou 

Minister of Health 

and carrying out some of the highest test rates 

in the world. Compared to many of its European 

counterparts, Cyprus fared much better with 

around 2% fatality rate, the lowest compared to 

Greece, UK, Germany, Spain and Italy. Cyprus 

had roughly a similar number of resources, compared 

to Italy and Spain. 

The island’s efforts were praised by the 

European Centre for Disease Prevention and 

Control while doctors from both the public and 

private sector joined forces to fight the spread 

of virus. Patients from Cyprus also took part in 

a global trial of Japanese antiviral influenza drug 

Avigan (favipiravir) while the governments of 

Cyprus and Israel worked together sharing expertise 

and training methods. Renowned Cyprusbased 

pharmaceutical manufacturer Remedica, 

imported five tons of chloroquine from India to 

be processed and subsequently sent to Israel in 

return for 50 ventilators. 

A vaccine is expected to be available by 

January 2021, which will be made available for 

free by the government, according to the Health 

Ministry. The government has specified it will 

need 1.2 million vaccines. Cyprus has dealt significantly 

better with the pandemic than other 

countries, as a result of the early adoption of 

measures and the lower density of its population. 

THE NATIONAL HEALTH SYSTEM 

The roll-out of the new NHS has been a painstaking 

yet crucial task in bringing Cyprus on 

par with its European peers in terms of public 

healthcare. The first phase concerning outpatient 

care provided by GPs, specialist doctors, pharmacies 

and labs was introduced in June 2019, while 

phase two concerning inpatient care was rolled 

out a year after that in June 2020. Two bodies 

have been set up in a bid to allow the NHS to 

materialise. The Health Insurance Organisation 

(HIO) – known locally as GESY, which is tasked 

with reimbursing healthcare expenses including 

pharmaceuticals and the State Health Services 

Organisation (SHSO), which will be responsible 

for the management, control, supervision and 

development of public hospitals and primary 

healthcare centres. 

The NHS was expected to have a surplus of 

€80 million in 2020 after a year of operations, 

though the unexpected Covid-19 pandemic may 

further increase the €969.6 million forecasted 

expenses. One of the many advantages the comprehensive 

NHS has brought about, is reduced 

waiting lists which have plagued the sector for 

years. The passing of the NHS bills in 2017 was 

an enormous victory for the government of 

President Nicos Anastasiades, who has likened 

this major development in the health sector to the 

adoption and introduction of the social insurance 

system in the 1960s. 

Health services in the public sector are provided 

by five district hospitals and one paediatric/ 

gynaecological hospital, three small rural hospitals 

and 38 health centres, along with 230 subcentres 

with a touring medical team. Additionally, 

the Ministry implements a sponsored patients’ 

abroad scheme under specific conditions and 

terms. Substantial investment in the state sector 

has meant that procedures such as kidney transplants 

and open-heart surgery, which once necessitated 

a journey overseas, are now routinely 

carried out within Cyprus. The private system is 

financed mostly by out-of-pocket payments and 

to some degree by voluntary health insurance 

(VHI). It largely consists of independent providers, 

and facilities are often physician-owned or 

private companies in which doctors are usually 

shareholders. 

ADOPTING TECH SOLUTIONS 

Part of its ambitious plans to upgrade the health 

sector, the Health Ministry is focused on digitising 

medical provision and developing an integrated 

e-health monitoring system. This involves 

the introduction of digitised health records, the 

expansion of medical services to remote areas 

via telemedicine and robotics, and access to international 

medical data banks. Also part of this 

evolution is to take actions to encourage further 

investments in areas such as e-health, medical 

tourism, rehabilitation services, medical schools 

and pharmaceutical services. A key organisation 

supporting investors and encouraging FDI is 

also the country’s investment promotion agency 

Invest Cyprus, who acts as the first point of 

contact for foreign investors looking to enter into 

the Cypriot market. 

Meanwhile, the advantages of blockchain 

technology have become obvious to the health 

sector with Mediterranean Hospital adopting 

a Cyprus-made blockchain. The first phase has 

already been implemented in the emergency department 

with blockchain-enabled medical data 

management. It allows patients to have a digital 

healthcare passport and an encrypted NFC card 

which allows patients to automatically identify 

themselves at the registration desk, check 

their queue using their mobile device and safely 

manage their medical records. Using blockchain 

allows hospitals to collect data on their efficiency 

and as such, the global healthcare market spending 

and investment on blockchain-based technologies 

is expected to hit $5.61 billion by 2025 

according to a report by BIS Research. 

Only a few weeks after the Covid-19 pandemic 

reached the island, top health and technology 



Health 


researchers came together to develop a series of 

apps and portals. The University of Cyprus along 

with the recently formed Deputy Ministry for 

Research, Innovation and Digital Policy, created a 

portal recording all reports of confirmed Covid- 

19 cases in real time, along with geographical data 

and risk assessment, which the Health Ministry 

utilised to make key decisions. 

Engineers also created the CovTracer app, allowing 

people to trace their location and contact 

history to notify people in case the user tests positive. 

Another app born from the corona crisis was 

WaitLess, which has the ability to show people realtime 

traffic in supermarkets, in a bid to avoid 

large groups of people and reduce the spread of 

the virus. 

Technology will also be at the forefront of 

helping forecast the needs of medical, nursing 

and paramedical personnel. The number of graduates 

from the top-tier medical schools in Cyprus 

are also expected to provide more medical personnel 

in the sector and fill the gap of potential 

shortages in the coming years. 

INTERNATIONAL COOPERATION 

Cyprus is signatory to multiple Memoranda of 

Understanding (MoU) with various countries to 

facilitate more cooperation in the medical field. For 

example, Cyprus and Israel have signed an MoU 

for cooperation in the field of kidney transplants. 

It will allow people who seek to donate kidneys to 

their loved ones to have a better opportunity to do 

so through paired donations, as it creates a larger 

pool of potential donors and increases the chances 

for successful organ exchange between donor-recipient 

pairs. The memorandum was the result of 

a joint effort between the specialists in the area of 

transplantations from the two countries, as well as 

of the Transplant Centre of the State of Israel and 

the Transplant Council of Cyprus. 

In addition, Cyprus and the Canadian 

Commercial Corporation (CCC) – a Crown 

Corporation of the Government of Canada – 

signed an MoU in 2017 on health to foster cooperation 

in the fields of medicine, research and 

education, and to develop projects of mutual 

benefit. In 2018, Cyprus and Jordan signed a 

number of bilateral agreements including one on 

public health and medical science, with a similar 

protocol also signed with Russia. 

Marking a significant role on an EU level, 

Cyprus has one of its own in the role of EU Health 

Commissioner, Stella Kyriakides with extensive 

experience working at the Health Ministry and 

working towards helping cancer patients. 

An important asset in the provision of highquality 

healthcare was the founding of the 

German Oncology Centre in Limassol in 2017. 

Established through private funding, the centre 

covers the whole spectrum of services from prevention 

and diagnosis, to treatment, rehabilitation 

and support for patients, offering modern 

radiotherapy techniques. Previously, the Bank 

of Cyprus Oncology Centre in the capital city of 

Nicosia was the sole provider of radiotherapy, but 

the new private radiology unit complementing 

state health services is a welcome addition catering 

to the needs of patients in both Limassol and 

Paphos regions. The German Oncology Centre, 

along with numerous other private hospitals, 

are in pending discussions with the Ministry of 

Health to join the new NHS. 

CROSS-BORDER MEDICAL SERVICES 

The presence of numerous prestigious private 

healthcare facilities significantly enhances the 

island’s reputation as a centre for medical excellence 

and highlights the opportunities available 

to foreign investors. The island has also opened 

more opportunities for foreign doctors to carry 

out procedures in the country, a move that is fostering 

greater cooperation in the international 

medical field. 

Doctors from Israel, the United States and 

other non-EU member states are now allowed to 

provide services in Cyprus, under certain conditions, 

with procedures overcoming bureaucracy 

and delays. This decision not only promotes 

medical tourism and generates income mainly for 

private hospitals, but also promotes further training 

and knowledge exchange for Cypriot doctors, 

with a number of hospitals becoming centres of 

excellence for the Eastern Mediterranean region, 

the Middle East and Europe. 

PRIVATE SECTOR 

75 

hospitals 

and clinics 

PUBLIC SECTOR 

5 

district 

hospitals 

1paediatric/ 

gynaecological 

hospital 

3small rural 

hospitals 

MEDICAL 

TOURISM 

Popular treatments in Cyprus: 

check-ups & 

diagnostic tests 

elective surgery 

dentistry 

cosmetic & 

plastic surgery 

fertility 

treatments 

eye surgery 

rehabilitation 

38 

health centres and 

230 sub-centres 

with a touring 

medical team 


Cyprus ranks 

24th 


for access to quality 

health services in 

Healthcare Access and 

Quality Index (HAQ) 

The majority of the 

doctors are educated 

at advanced and 

reputable universities 

both in Cyprus 

and abroad from 

countries such as 

the UK, Greece, 

Western Europe, 

Russia and the US 

Over the past three 

decades, Cyprus 

has made highly 

commendable 

achievements 

in the fields of 

medical research 

and innovation 

TAPPING INTO GLOBAL MEDICAL TOURISM 

Cyprus was one of the first entrants into the 

European medical tourism sector, and established 

a national initiative to promote medical tourism 

thanks to its extensive private healthcare offering 

and longstanding status as a tourism destination. 

The global medical tourism market is expected 

to reach US$179.6 billion by 2026, with positive 

future growth prospects according to a report by 

Grand View Research Inc – however the global 

Covid-19 pandemic is expected to affect these 

figures. 

Cyprus has excellent medical infrastructure, 

hospitals, laboratories and other diagnostic 

centres making it a prime destination for medical 

tourism. Services are affordable and easily accessible, 

and this coupled with its large pool of highly 

educated healthcare professionals and expert services, 

are positioning the island as a key centre 

for medical tourism in the Mediterranean region. 

A vast array of quality medical treatments 

for patients from all over the world are offered 

in Cyprus, from basic check-ups and diagnostic 

tests to major surgery, kidney haemodialysis, 

transplants and cardiothoracic surgery procedures, 

orthopaedic, musculoskeletal surgery 

and many more. In early 2018, the President of 

Cyprus inaugurated the new heart centre at the 

Mediterranean Hospital in Limassol saying it 

would contribute to the greater goal of making 

the island a regional hub for medical services. 

The country’s ideal year-round climatic conditions 

make it an attractive destination, where 

patients can combine treatment with a holiday, 

and recovery with relaxation. The majority of 

medical tourists come from the UK, Germany, 

the Netherlands, Russia and the Middle East and 

most seek either dental or cosmetic procedures. 

However, increasing numbers now visit Cyprus 

for fertility treatment, while the island is gaining 

a reputation for other specialist procedures. 

Prior to travel restrictions as a result of Covid- 

19, Cyprus was also fast becoming a popular wellness 

destination with new luxury spa resorts and 

rural retreats springing up across the island, with 

holistic therapies and beauty treatments readily 

available. Fresh and saltwater pools, whirlpools, 

saunas, steam rooms and hammams, are all 

present in abundance in hotels around the island 

for the growing number of wellness orientated 

and health-conscious tourists. 

Investment in both medical and wellness 

tourism continues to be a serious opportunity 

for investors, as this sector has been earmarked 

by the government as one with immense development 

potential with growing demand from 

European tourists. According to the state’s strategic 

report, the development of wellness centres 

should be considered an integral element of 

future new resorts or added to existing assets in a 

bid to upgrade and enhance their value proposition. 

This is also highlighted through TourInvest, 

a specialised unit operating under the auspices 

of Cyprus’ investment promotion agency Invest 

Cyprus, and aimed at promoting tourism-related 

investment opportunities on the island. 

MEDICAL CANNABIS 

An interesting initiative is Cyprus’ plans to introduce 

the cultivation and trade of medical cannabis. 

Apart from the benefits it would bring patients 

– a number-one priority – it can also boost 

the economic development of the island, as well 

as attract significant foreign investment for the 

entire production chain. 

In February 2019, Cyprus took a step forward 

and passed a law allowing for and regulating the 

cultivation and distribution of medical cannabis. 

Initial plans outlined three licenses will be 

granted to private companies at a cost of €500,000 

each for 15 years to grow medical cannabis and 

distribute it to pharmacies. The annual cost of 

renewing the license was €30,000 however there 

has been a call for re-examination of the fees with 

other options being touted such as a percentage 

of revenue due to the high profit margins the 

business is expected to yield. 

The law regulates the import of cannabis seeds 

and plants, the cultivation, production, import 

and export of pharmaceutical cannabis and its 

use for research for medical purposes. Before 

the NHS comes into full force in 2020, medical 

cannabis will be available in state pharmacies, 

however, once the ball is rolling with the health 

system it will also be available for distribution by 

private companies. The move is expected to put 

Cyprus on par with many other states such as 

Israel and Germany, where medical cannabis has 


258 

average number 

of people 

per doctor 

290 


of people per bed 

187 


of people 

per nurse 

114 


of people per 

ICU bed 


Health 


The New NHS 

Hospital autonomy will be the biggest step to the full NHS roll out and by the end of 2020, hospitals are 

expected to be 90% autonomous. Among the overall objectives is improving the quality of service and access 

to services for patients and delivering the financial stability the health service needs. Eventually, the State 

Health Services Organisation will replace the Health Ministry in providing services. Those eligible for the 

NHS are Cypriot and EU citizens, as well as third country nationals legally residing in Cyprus and refugees 

or persons with supplementary protection, legally residing in the Republic. The health system in Cyprus 

was exclusively financed by the state budget, with services provided through a network of hospitals and 

health centres directly controlled by the Ministry, but NHS contributions as a percentage of salary or pension 

started on 1 March 2019 and initially covered only outpatient care. This is set at 1.70% for employees and 

pensioners, 1.85% for employers, 1.65% for the state, and 2.55% for the self-employed. In 2020, contributions 

rose respectively to 2.65%, 2.90%, 4.70% and 4%, and cover both outpatient and inpatient care. 

been legalised and offers patients more options 

for treatment, though the law stipulates the 

drug can only be offered after all other available 

options have been exhausted. North Americanbased 

company Tilray has already announced it 

has been cleared for distribution of cannabinoid 

formulations for patients in Cyprus. 

We are 

optimistic 

that once the 

pandemic is 

over, tourism 

to Cyprus 

shall pick up very fast. Cyprus 

was one of the few countries 

that effectively faced the 

coronavirus pandemic, thanks 

to the prompt government 

action, but also the quality of 

its healthcare system and its 

climate. Health and wellness 

tourism shall benefit more, 

as people realise the need to 

boost their immune system 

to protect themselves or 

recover from the disease 

Nitsa Kiliari 

President 

Cyprus Healthcare Tourism 

MEDICAL RESEARCH AND EDUCATION 

The Cyprus education and research sector has had 

a significant boost over the last few years. The establishment 

of medical schools on the island was a 

strategic move in the ongoing process of improving 

the sector, as well as fostering international 

research and innovation. Today, Cyprus has three 

medical schools – one public and two private – all 

of which are affiliated with hospitals throughout 

Cyprus and with prestigious international 

medical institutions, such as St George’s Hospital 

(University of London), Barnsley Hospital NHS 

Foundation Trust as well as other medical centres 

and hospitals in Greece and Germany. 

Over the past three decades, Cyprus has made 

highly commendable achievements in the fields 

of medical research and innovation. Pioneering 

research work has been undertaken at the Cyprus 

Institute of Neurology and Genetics, which developed 

a ground-breaking, non-invasive prenatal 

test for Down Syndrome. And in 2017, doctors 

at the Institute discovered a genetic mutation, 

which is common only in Cypriot families, that 

is responsible for most cases of hereditary breast 

and ovarian cancers on the island. Research in 

the biomedical field has also had a remarkable increase, 

especially in the field of genetic diseases, 

hereditary cancer and biotechnology. These ambitious 

research projects, funded by both local 

and foreign sources, but mostly through the EU, 

resulted in data and new knowledge benefitting 

both the local and international community. 

In 2017 a new strategy was also drawn up to 

deal with diabetes, another growing disease on 

the island. The strategy plans for the development 

of a central research body on health issues and 

a central research database connected with other 

European international centres. 

This kind of top-quality academic work in 

Cyprus is evidenced by the securing of important 

European funding such as Horizon 2020, 

hundreds of high-impact publications in international 

peer-reviewed journals and invitations to 

present their work at major medical conferences 

around the world. 

A HEALTHY FUTURE 

Cyprus’ formidable private healthcare sector now 

complemented by a new and streamlined national 

health system is sure to bring much-needed 

modernisation to the overall sector. This upgrade 

and razor sharp focus from the government in 

achieving an efficient and productive industry 

will ensure equal competition between private 

and public health providers and attract new investment 

in the health sector – be it in tech solutions, 

research or world-class medical facilities. 

As with most countries in the world, the coronavirus 

pandemic will inevitably have an impact 

on progress as the global economy grapples with 

this new reality. However, Cyprus is well equipped 

to tackle challenges thanks to its vast pool of 

medical professionals and facilities as well as its 

education and research institutions. There continues 

to be much untapped potential in Cyprus and 

investors and innovators should keep a keen eye 

on the country to capitalise on opportunities in the 

health and medical landscape. n 


Legal 

cannabis is 

one of the 

fastest upand-coming 

growth 

sectors for Cyprus. The 

necessary legislation is in place 

allowing for the production of 

industrial hemp and medical 

cannabis. It is apparent from 

the high level of activity and 

serious interest expressed 

locally and internationally by 

foreign investors that Cyprus 

has a massive opportunity 

to position itself as a centre 

of excellence in production, 

research, genetics, and 

intellectual property in 

the legal cannabis sector, 

which combined with a 

transparent regulatory and 

compliance framework make 

it an attractive country for 

the industry to flourish. 

Andria Andreou 

President 

Cyprus Cannabis Association 


Insurance 


MITIGATING 

RISK 

The Cyprus insurance sector remains strong and resilient with 

companies registering another year of growth in 2019. The highly 

developed sector has been on an upward trajectory for three years 

expanding its range of services and products, but now faces new 

challenges and opportunities as a result of the coronavirus pandemic. 

The Cyprus insurance industry has 

shown strong growth over the last 

few years with revenues surpassing 

even pre-banking crisis levels. 2019 

was no different in this respect, with 

companies posting healthy figures 

across all insurance classes, highlighting 

consistent growth in the sector. 

The insurance industry, which is one of the 

largest institutional investors in Cyprus managing 

assets well over €2.5 billion, has successfully 

tackled challenges and expanded its services and 

product offering, while adapting to a new reality 

of digitalisation and the ever-increasing burden 

of regulation. 

Cyprus’ economy is predicted to shrink in 

2020 due to the coronavirus pandemic, with the 

hit bearing some resemblance to the 2013 Cyprus 

banking crisis, throughout which the local in- 

surance sector remained remarkably resilient. 

However, a worst case scenario could potentially 

have serious repercussions for insurance companies. 

The coronavirus is not expected to have a 

serious impact on insurance undertakings from 

a claims perspective, as most products usually 

exclude pandemics and public health threats 

from insurance coverage. However, companies in 

France and the UK, for example, are now working 

with governments to explore solutions for providing 

at least some cover for exceptional events such 

as the Covid-19 pandemic. 

Although the domestic insurance market 

in Cyprus is small and has faced challenges, 

the sector is highly developed and has a proven 

ability to overcome external shocks and quickly 

adapt to new market realities. As a jurisdiction, 

Cyprus continues to offer international insurance 

firms many opportunities as a cost-effective 

KEY 

contacts 

Government: 



Regulator: 


Insurance Companies Control 

Service (ICCS) - Supervisor 


Industry Association: 

Insurance Association 

of Cyprus (IAC) 

www.iac.org.cy 


We are 

confident 

that the 

insurance 

industry will 

once again 

prove its resilience in the 

face of the strong headwinds 

caused by the Covid-19 pandemic. 

Although a contraction 

is highly likely for 2020, 

we expect this to be smaller 

than that of the general 

economy and succeeded by 

a return to growth in 2021. 

Andreas Stylianou 

Chairman 

Insurance Association 

of Cyprus (IAC) 

and business-friendly base to launch and manage 

products, services and operations in international 

markets. A number of foreign insurance 

operators have been successfully operating in 

Cyprus for many years, attracted by the island’s 

EU member status, its straightforward legal 

framework, ease of doing business and advantageous 

tax regulation. EU passporting has attracted 

major international industry players to 

the country, and Cyprus is particularly well positioned 

as a centre for companies doing business 

in the EU and Middle East region. 

The over 30 insurance companies operating 

on the island account for more than 99% of the 

annual gross premiums written in the domestic 

market, with a handful of these companies 

dominating the industry. A continuously evolving 

market and increasingly specialised demand 

have opened up new opportunities in creating 

innovative services and products, and using the 

country as a launchpad to expand business into 

new regional markets. 

CONSISTENT GROWTH 

The insurance sector has seen steady growth in 

the last three years bouncing back to pre-crisis 

level revenues, which is evidence of a strong recovery 

from the downturn of the 2013 financial 

crisis. Insurance was a major financial sector in 

Cyprus that managed to safeguard its employment 

numbers and contribution to the labour 

market. In 2019, the growth momentum continued, 

with premiums on the life side increasing 

0.7%, compared to 8.8% in 2018. On the 

general side (non-life), 2019 saw a 6.1% increase 

compared to 5.8% in 2018, according to figures 

released by the Insurance Association of Cyprus 

(IAC). 

Today, the domestic insurance sector is considered 

to be highly competitive due to the large 

number of insurance suppliers on the island in 

relation to the size of the population. There are 

currently 32 insurance undertakings in Cyprus 

that are licensed and supervised by the Insurance 

Companies Control Service (ICCS), which is 

part of the Ministry of Finance. In addition, eight 

companies are operating under the freedom of 

establishment (FOE) and well over 500 EU insurance 

companies have exercised their freedom to 

provide services (FOS) right by registering with 

ICCS to carry out business in Cyprus. Leading 

figures from the industry estimate that this type 

of business will see further expansion in the 

coming years. 

SHARPENING THE COMPETITIVE EDGE 

Continuously improving its offering and upgrading 

its services, Cyprus is on par with international 

industry standards. The insurance sector 

in Cyprus is market driven and although perhaps 

moving at a somewhat slower pace than the rest 

of Europe due to its size, demand for more sophisticated 

products is rising. The slower pace 

also offers the benefit of learning from the experience 

of bigger and faster moving markets 

that lead the way in development. Furthermore, 

numerous Cypriot insurance firms are partnerships 

with international heavyweights, enabling 

them to tap into the in-house expertise of these 

powerhouses and use it to adapt products for the 

Cypriot market. 

For example, products such as director and 

officer liability, are now offered and sought out 

and new products, such as cyber and drone insurance, 

are emerging as new tech rolls out into 

the market. In addition, the wave of cutting-edge 


500+ 

European insurance/reinsurance 

undertakings operating under the 

freedom to provide services (FOS) 

32 

Insurance Companies 


Insurance 


fintech coming into the market is diversifying 

insurance covers into products, such as the employment 

of telematic devices, for instance. As 

demand has been rising for these and other types 

of policies, the Cyprus insurance industry has 

been quick to broaden the spectrum of services. 

The industry is also experiencing fresh momentum 

in the provision of second pillar occupational 

pension schemes as a result of a change in 

the law that enabled life companies to offer these 

types of products and clarified that the associated 

contributions are tax deductible. There has 

also been a resurgence in demand for insurance 

investment products. Insurance firms have been 

offering pillar II occupational pension schemes, 

known as Class 7 schemes, which are similar to the 

traditional provident funds but with more benefits, 

according to the IAC. These new schemes were introduced 

in Cyprus for the first time in 2016, and 

are growing to be a very promising alternative for 

pension-related saving and investing. The Class 7 

funds resemble classic provident funds set up by 

associations of professionals, unions and companies 

for their employees, but are managed by insurance 

companies and are governed by the legal 

framework regulating insurance companies. They 

can be flexible and more cost-effective products, 

suitable to all types of organisations regardless of 

size and sector. The evolution of class 7 products 

has brought drastic changes to Cyprus’ occupational 

pensions sector and is set to make an even 

bigger impact in the future, as they offer a convenient 

and hassle-free way to complement future 

social insurance pensions and constitute a taxadvantageous 

investment vehicle at a time when 

having money in the bank could prove to be costly. 

Another developing segment that is currently 

being refined is insurance coverage for high-rise 

developments, which requires more specialisation 

particularly now as Cyprus is experiencing 

a construction boom of skyscrapers, new luxury 

marinas, and big hotels. Insurance has an important 

role in these types of complicated projects 

with multiple phases and subcontractors, and 

insurers need to be involved in the entire process 

from start to finish to maintain the integrity of 

the cover and mitigate potential risks. 

ROBUST REGULATORY FRAMEWORK 

Cyprus is fully aligned with EU law as well as with 

legal frameworks stemming from other supranational 

organisations, such as the OECD, and 

offers a simple, straight-forward and transparent 

framework for business. However, increased 

pressure from new and complex regulation over 

the last several years has been a challenge faced 

by the financial services industry around the 

world. The surge of regulatory changes such as 

Solvency II, MiFID II, GDPR, PRIIPS Regulation 

and the Insurance Distribution Directive (IDD) 

meant that insurers had to use a great deal of their 

resources for regulatory compliance purposes. In 

addition, the immense task of the future implementation 

of IFRS17 by 2023, will place serious 

pressure on firms in terms of time, cost and 

human resources. 

The Solvency II 2020 review is on the agenda 

across the EU this year, pushed forward by the 

European Insurance and Occupational Pensions 

Authority (EIOPA). The Solvency II Directive 

is designed to face difficult situations of financial 

stress, by setting minimum solvency capital 

requirements and strict rules on the calculation 

of technical provisions. Although the industry 

in Cyprus is well equipped to appropriately 

transpose and implement new regulation to stay 

competitive in the EU market, the intense margin 

pressures and expense of regulatory burdens 

could give impetus to more consolidation in the 

market through mergers, acquisitions and strategic 

partnerships in the years ahead – especially 

due to the high number of companies competing 

in the local market. 


Just like in many other economic sectors, digitalisation 

is key to staying competitive in the 

cut-throat insurance landscape. Traditional insurance 

companies have already completed, or 

are in the process of completing, their digital 

transformation, as they face growing competition 

from online insurance providers. Similarly to 

other industries, traditional big firms are placing 

strong emphasis on streamlining processes and 

implementing more efficient systems. 

On a macro level, Cyprus insurance experts 

would like to see a more defined long-term vision 

from the government on how the sector could 

be developed in the future. This would help the 

industry focus on building more niche segments 

that could attract further business and investment 

to Cyprus and facilitate sustainable development 

in the future. For example, Cyprus has not made 

much progress in developing reinsurance business, 

perhaps most importantly because the legislative 

changes to reform the market structure 

and make it more competitive and appealing for 

reinsurers – such as cell company formation – 

have not yet taken place. Creating a reinsurance 

industry in Cyprus would have multiple positive 

outcomes for the economy since it would create 

jobs and keep millions of euros in reinsurance 

premiums in Cyprus, which are currently paid to 

reinsurers abroad. 

A challenge the insurance industry has faced 

over the last year is the ongoing implementa- 

0.7% 

2019 growth in 

life premiums 

Cyprus offers multiple 

fiscal benefits for 

international business, 

such as easy market 

access and the 

services of a vast 

pool of professionals 

in the insurance 

and financial 

services industry. 


The insurance 

industry, which is 

one of the largest 

institutional 

investors in Cyprus 

managing assets 

well over €2.5 billion, 

has successfully 

tackled challenges 

and expanded 

its services and 

product offering, 

while adapting to 

a new reality of 

digitalisation and 

the ever-increasing 

burden of regulation. 

6.1% 

2019 growth in 

non-life premiums 

tion of the new National Health System (NHS). 

The industry supported the introduction of the 

NHS, but advocated for an NHS that would also 

involve private insurers. However, the industry’s 

position was not accepted, and the legal framework 

voted through by Parliament is based on a 

single-payer system that excludes private insurers. 

The implementation presents challenges to 

the existing private health insurance business and 

especially group policies, which are an estimated 

46% of total health business. Some companies 

are cancelling or downsizing group health insurance 

policies for their employees in a bid to avoid 

paying for two covers, the obligatory employer 

NHS contribution and private health insurance 

premiums. This has essentially been a cost-cutting 

exercise for companies, however, on the flip 

side the number of new private health insurance 

policies has been growing over the last year. 

Cyprus’ fledgling oil and gas sector, and in 

particular its formidable shipping industry and 

developing ship financing business could also 

bring more marine insurance opportunities. Hull 

and cargo insurance is still not a very large part of 

insurance activity in Cyprus, but is a specialised 

area that has strong potential to see growth and 

further development in the future. Following the 

protracted uncertainty caused by Brexit, many 

UK companies looked abroad to set up subsidiaries 

or fully fledged offices to secure their future 

business – and for many, Cyprus proved an advantageous 

location. A prime example of this was 

the recent arrival of a new P&I Club member, 

Steamship Mutual Underwriting Association 

(Europe) Limited, which has decided to underwrite 

all of its European business through its 

Cypriot entity. 

Another development that will facilitate more 

opportunities, is the announcement from the 

Cyprus Ministry of Finance to reform the pension 

framework – a positive and welcome move. The 

reform includes a plan to merge the two separate 

authorities supervising insurance undertakings 

and occupational pension funds under a single 

independent supervisory authority, which will 

be based on the model of the Cyprus Securities 

and Exchange Commission (CySEC). This will 

facilitate better supervision within these sectors 

and help modernise and reboot the pension fund 

market in Cyprus. Although a legislative proposal 

has already been submitted to Parliament, negotiations 

are expected to be lengthy and the result 

is uncertain. 

LOCATION OF CHOICE 

Equally attractive to both EU and non-EU based 

insurance companies and managers, Cyprus’ 

insurance sector is an interesting area of the island’s 

diversified financial services industry. The 

jurisdiction offers multiple fiscal benefits for international 

business, such as easy market access 

and the services of a vast pool of professionals 

in the insurance and financial services industry. 

Another attractive aspect is Cyprus’ tax system 

and its network of double tax agreements, rendering 

it a serious contender as a location of choice 

for regional headquarters for cross-border insurance 

operations and as a launch pad into the EU 

and surrounding markets of the Mediterranean 

region. n 




International Financial Services 


TOWARDS A 

DIVERSIFIED 

FUTURE 

Cyprus’ re-emergence as a Mediterranean business champion 

has been marked by a rapidly diversifying financial services 

sector. Moving well beyond banking and corporate formation, the 

island is today positioning itself as a home for investment fund 

managers, crowdfunding platforms and fintech entrepreneurs. 

Cyprus is forging a reputation as a 

quality-efficient and cost-competitive 

choice for regional and global 

financial services firms and is gaining 

ground as a management hub in selected 

segments. With a strong trackrecord 

in cross-border finance and 

investment, Cyprus’ financial services 

sector has significantly expanded in recent 

years. The island has worked hard to regain the 

investor trust which was damaged during its 2013 

banking crisis. Regulatory reform, coupled with 

economic restructuring and the identification of 

new growth drivers, has radically transformed 

Cyprus’ financial market. 

Today, the country delivers world-class fund 

management and trust administration services 

in line with international best practices. From 

a regulatory point of view, the country has pioneered 

the foreign exchange sector and is positioning 

itself as a major player in the wealth 

management industry. Besides its longstanding 

ties with Russia and CIS countries, investment 

into Cyprus is increasingly coming from other 

regions of the world, including Asia, the Middle 

East and Africa, a trend that is expected to accelerate 

further in the coming years. 

Meanwhile, the island is developing new 

areas of opportunity. Fintech and digital finance 

are fast developing into thriving segments of the 

finance sector, while Cyprus has brought in a new 

crowdfunding law in order to position itself as an 

ideal EU jurisdiction in which crowdfunding 

platforms can be established. 

KEY 

contacts 


Exchange Commission 


Cyprus Bar Association 

www.cyprusbarassociation.org 

Institute of Certified Public 

Accountants of Cyprus (ICPAC) 

www.icpac.org.cy 

Association of Cyprus Banks 

www.acb.com.cy 

Cyprus Fiduciary Association 

www.cyfa.org.cy 

Association of 

Cyprus International 

Investment Firms 

www.aciif.org 


The financial 

services 

sector is a 

significant 

contributor 

to the Cypriot 

economy and has maintained 

its status as one of the most 

consistent growth sectors. I 

expect to see some mergers 

and acquisitions within the 

sector, and I certainly see 

further growth in the funds 

industry. We will also see more 

of fintech, blockchain technology, 

crowdfunding and other 

technology-based innovation in 

Cyprus. At CySEC, we are committed 

to promoting innovation 

and the benefits it generates, 

whilst simultaneously maintaining 

investor protection. 

Demetra Kalogerou 

Chairwoman 


Exchange Commission (CySEC) 

The 

professional 

services 

sector is 

currently 

facing 

multiple challenges as a result 

of the Covid-19 pandemic while 

new worldwide developments 

are affecting international 

business and foreign 

investment. To maintain its 

dynamic profile as a key pillar 

of economic growth, the sector 

should focus on providing 

quality services, driving 

innovation and leveraging 

the unlimited potential of 

digital and new technologies 

as well as on building the 

necessary skills for the future. 

Evgenios C Evgeniou 

CEO 

PwC Cyprus 

A REFORMED INDUSTRY 

Just six years ago, Cyprus’ financial sector was on 

the brink of collapse as a result of the European 

debt and banking crisis. The country experienced 

financial difficulties following the breakdown 

of the Greek economy, where Cypriot banks 

had huge investments. Cyprus became the fifth 

country after Greece, Ireland, Portugal and Spain 

to turn to the eurozone for financial help during 

the region’s debt crisis and was eventually bailed 

out to the tune of €10 billon by the European 

Commission, the European Central Bank and the 

International Monetary Fund. 

One condition of the bailout was a reform of 

Cyprus’ financial system, which in combination 

with other measures such as creating solid investment 

opportunities that attract foreign interest, 

led to a strong economic recovery in the years 

that followed. For many years, the sector focused 

on banking and corporate structing, particularly 

facilitating investments into Europe, the Middle 

East and Africa, as well as Russia and Eastern 

Europe due to a fiscally attractive tax regime and 

wide network of tax treaties. However, in the aftermath 

of the island’s debt crisis, Cyprus sought 

new economic drivers and placed greater emphasis 

on diversifying its financial industry by adding 

sectors such as investment funds, fintech and investment 

migration to its portfolio. 

WELL-ROUNDED SECTOR 

Cyprus’ financial services sector has grown significantly 

since its early days and has been growing 

at a commendable rate of 6.5% per annum. In 

2019, financial activities and professional services 

contributed 7.6% and 8.2% respectively to Gross 

Value Added (GVA). The Cyprus Securities and 

Exchange Commission (CySEC), the country’s 

financial services regulator, supervises more 

than 760 entities which employ together close 

to 20,000 people. Activities today centre around 

three strategic areas: corporate services, financial 

services and fintech/digital finance. 

Foreign businesses have long been attracted 

to Cyprus due to its cost-effective services and 

preferential access to high-growth markets. 

Corporate services and corporate structuring 

continue to play an important role. Investment 

funds, trust services and private wealth are today 

growing elements of the island’s financial sector, 

and all have potential for further expansion. 

Facilitating the next steps in the finance sector’s 

evolution, Cyprus has established an innovation 

hub that provides a safe space for fintech entrepreneurs 

who are developing the business models 

of the future. These initiatives show that Cyprus 

today has a well-rounded financial services sector 

that developed a diverse portfolio of services and 

bears little resemblance to the industry of just a 

few years ago. 

BASED IN CYPRUS 

Cyprus is today home to a unique blend of 

financial services firms. Key players in the 

banking scene are Bank of Cyprus, Hellenic 

Bank and RCB Bank. However, in addition, 

many foreign banks, which carry out international 

banking business, have a presence on the 

island. Cyprus’ booming fund sector has attracted 

a host of fund management companies, 

including Citigrade Capital, Hanseatic Capital 

Management, GMM and many more. Fund 

platforms such as KMG Capital Markets and 

Fortified Capital operate as third-party providers, 

while an array of fund administrators such 

as Alter Domus, IQ-EQ and Vistra complement 

the sector. 

Foreign exchange trading is probably one of 

the most active segments in Cyprus’ financial 

industry. CySEC issued its first forex brokerage 

licence to Windsor Brokers in 1988, but with 

the emergence of online retail trading interest 

in setting up in Cyprus intensified significantly. 

Today, some 40 forex firms are based on 

the island, including companies such as FXPro, 

OctaFX, FXTM and BDSwiss. The professional 

services segment is headed by the ‘Big Four’ as 

well as a range of top-tier legal, accounting and 

corporate services providers with plenty of international 

expertise. 

REGIONAL BUSINESS AND MANAGEMENT HUB 

Corporate formation remains one of Cyprus’ 

areas of specialisation. Blue-chip corporations 

and corporate planners continue to establish 

holding, trading and investment companies 

on the island to channel investments into key 

markets worldwide. Cyprus’ stable EU environment 

and neutral political stance, coupled with 

its low corporate tax rate at 12.5% and tax treaties 

with 65 countries, have made the island a prime 

destination for the structuring of investments 

into Europe, the Middle East and Africa, as well 

as Russia and Eastern Europe. 

More recently, Cyprus has also begun posting 

growth as a regional and international headquartering 

location. Over the last five to 10 years, the 

island’s advantages as a business hub became ever 

more ingrained, with many multinationals basing 

operational or corporate management functions 

on the island. Companies such as NCR, Kardex, 

Amdocs, Bernhard Schulte Shipmanagement 

and Wargaming have all established headquarters 

on the island. 





STRONG BANKING AND INSURANCE 

Cyprus’ banking sector is a symbol of the island’s 

reform process following the 2013 crisis. 

The industry was forced to restructure and 

consolidate; and today the country has a much 

stronger national banking sector than a few 

years ago. Cypriot banks enjoy strong capital 

ratios, and the rate of non-performing loans 

has been reduced by half. International banks 

continue to use the island as a launch pad into 

high-growth and emerging markets. More 

than 30 foreign banks are operating in Cyprus, 

which mainly carry out international banking 

business and have limited interaction with the 

domestic economy. 

Cyprus’ insurance sector is performing 

well; posting premium growth year-on-year. 

However, insurance in Cyprus focuses mostly 

on domestic business. While the island is home 

to 30 insurance companies, only a small number 

of them are writing business outside of Cyprus 

and taking advantage of EU passporting rights. 

Industry experts are of the opinion that this 

segment of the financial sector could be developed 

further, highlighting that Cyprus is particularly 

well positioned as a base for companies 

wishing to do business in the EU and the Middle 

East region. 

A EUROPEAN CONTENDER IN FUNDS 

Cyprus’ investment funds sector has surprised 

the global asset management community with 

its fast growth. A sector that was nearly nonexistent 

a few years ago, Cyprus catapulted itself 

into recognition by overhauling and modernising 

the sector’s regulatory framework. Assets 

under Management (AuM) have increased by 

200% from €2.7 billion in 2016 to €8.3 billion 

in 2019, demonstrating that Cyprus is able to 

compete with Europe’s longer established fund 

domiciles. Cyprus offers both EU-regulated 

Undertakings of Collective Investment in 

Transferable Securities (UCITS) and Alternative 

Investment Funds (AIFs), and has become a 

firm favourite of fund management companies 

and fund platforms. 

Cyprus has experienced growing interest 

from fund professionals around the world, but 

most notably from Europe, as well as Asia and 

the Middle East, whose fund managers are increasingly 

seeking access to the EU market. The 

island is positioning itself as a cost-effective alternative 

to the larger European fund centres, 

Luxembourg and Ireland, and many in Cyprus 

believe the sector has a great future ahead, estimating 

that AuM could reach €12 billion in the 

next five years. 

PRIVATE WEALTH HUB 

Cyprus is also rising to the fore as a wealth management 

and family office destination. There is 

little doubt that Cyprus’ wealth management 

sector benefited from the island’s longstanding 

and close relationship with Russia and 

other Eastern European countries. For decades, 

Cyprus has been a financial base for ultra-highnet-worth 

and high-net-worth individuals from 

those countries, but it is also increasingly on the 

radar of wealthy individuals from the Middle 

East and Asia. With an extensive banking 

network and the availability of a variety of investment 

vehicles, a growing fund industry as 

well as no taxation on capital gains or succession, 

Cyprus is a natural hub for wealth management 

firms and family offices. 

Another key reason for Cyprus’ appeal as 

a private wealth hub is the island’s modern 

trust regime, which is a unique combination of 

English and Cypriot law, and hence renders the 

island’s trust legislation very unique. A Cyprus 

Trust can be used in a range of international 

structures because it is flexible enough to accommodate 

the objectives of the most demanding 

client. The income of an international trust 

is tax exempt as long as it is earned outside of 

Cyprus. 

On the back of a comprehensive package 

of wealth management solutions, the island’s 

wealth and asset managers are optimistic that 

they will be able to maintain their robust growth 

in client numbers and assets in the years ahead. 

FOREX CAPITAL 

For more than 20 years, Cyprus has been the 

jurisdiction of choice for Foreign Exchange 

(Forex) and Contracts for Difference (CFD) 

brokers, and the country hosts a thriving industry 

and headquarters for many global giants 

in the field. Cyprus became popular due to low 

corporate tax rates, excellent infrastructure and 

an efficient regulatory framework under the supervision 

of CySEC, which is fully aligned with 

EU directives and European MiFID regulations. 

Cyprus was the first country in the EU to regulate 

the foreign exchange market, and CySEC is 

credited with attracting foreign companies to 

set up Cyprus Investment Firms (CIFs). With 

years of expertise and advanced infrastructure 

in electronic platforms, Cyprus offers strategic 

advantages that have positioned it among the 

most attractive destinations for international 

forex business. 

Volatility in 

the market 

will lead to 

increased 

demand for 

well-informed 

professional advice and reliable 

solutions. The professional 

services community will be 

called upon to support the 

economy on both sides of 

the spectrum – the private 

as well as the public sector. 

The accountancy profession 

and the Institute of Certified 

Public Accountants of Cyprus 

will continue to lead the effort 

for recovery and emergence 

of a stronger economy. 

Demetris Vakis 

President 

Institute of Certified Public 

Accountants of Cyprus (ICPAC) 

850+ 

accountancy 

firms including 

all major 

global firms 

2,700+ 

registered 

lawyers and 

160+ 

law firms 

provide a 

competitive 

market for 

legal services 


In light of 

increasing 

regulation 

for providers, 

and stricter 

compliance 

rules in an ever-changing 

international tax environment 

affecting the clients, I expect 

the sector to consolidate. On 

the flip side, in the aftermath 

of the pandemic there may 

be new opportunities arising 

from states increasing taxes 

to balance budgets. These 

opportunities may come in 

the form of new services 

or new markets. 

Chris Koutouroushis 

President 

Cyprus Fiduciary 

Association (CYFA) 

FINTECH & CROWDFUNDING 

DRIVING GROWTH 

The future of finance will be very much determined 

by financial technology. Cyprus’ 

Innovation Hub has attracted start-ups and entrepreneurs 

working on tools that are utilising 

technologies such as Internet of Things (IoT), 

Artificial Intelligence (AI), blockchain and cloud 

computing for fintech and regtech purposes. 

Other projects are involving big data and crypto 

assets. While the ‘Hub’ only reviews and provides 

non-binding feedback to the companies operating 

under its umbrella, the initiative indicates 

Cyprus’ ambition to become a key player in the 

digital finance field. In fact, Cyprus’ innovation 

agenda is wide-ranging, covering everything 

from tax incentives for fintech firms, a Startup 

Visa Scheme to attract and retain tech talent and 

the establishment of a €20 million fund with an 

emphasis on start-ups and innovative companies. 

The island is also assessing whether it needs to 

change existing legislation to account for the use 

of new technologies. 

Cyprus has also set out to attract crowdfunding 

service providers and platforms. Crowdfunding is 

increasingly seen as an alternative form of finance 

for small and medium-sized enterprises and startups 

which often find it difficult to access bank 

finance. There are plans for an EU-wide regulatory 

regime, which has yet to be realised. Similar to its 

decision to be a first-mover in regulating forex 

firms, in 2020, Cyprus introduced national rules 

for investment-based crowdfunding, which allow 

investment firms to offer crowdfunding services 

under their existing licence without compromising 

investor protection. The expectation is that 

Cyprus’ initiative will be met with significant interest 

from crowdfunding service providers wanting 

a head start in the European market. 

CYPRUS’ CREDENTIALS 

There are several compelling features about 

Cyprus as a business hub and service centre. The 

island is part of the EU, the eurozone and the 

Commonwealth and is strategically positioned 

between three continents – Europe, Africa and 

Asia – with regular flight connections, multicultural 

business etiquette and a stable political regime. It 

has an efficient and transparent tax system and its 

legal system is based on English common law. 





CySEC, the regulator for all financial services, 

has overhauled and improved many facets of its 

operations in recent years to ensure the smooth 

and safe operation of Cyprus’ financial sector. 

CySEC emphasises that financial crime has no 

place in Cyprus and that the island’s services 

sector and its business models have changed in 

recent years. Cyprus follows the International 

Financial Reporting Standards (IFRS), has a 

mandatory audit regime for all sizes and types of 

companies, and its legal system is fully compliant 

with the EU, the Financial Action Task Force 

on Money Laundering (FATF), OECD, FATCA, 

the Financial Stability Forum laws and regulations 

and EU AML directives. The MONEYVAL 

Committee of the Council of Europe also found 

Cyprus to be compliant or largely compliant with 

all its parameters, and CySEC highlights that it is 

committed to the continued global fight against 

financial crime. 


Despite the current challenges posed by the 

global coronavirus outbreak, Cyprus registers 

continued interest from local and foreign entrepreneurs 

and investors in setting up businesses 

in Cyprus, with CySEC reporting in July 2020 

it has some 100 applications for new investment 

entities in the pipeline. The investment 

funds and wealth management sector are poised 

for further growth, and many believe there is 

scope for more cluster activities. The success of 

the shipping sector, an industry which contributes 

approximately €1 billion each year to the 

economy, has attracted auxiliary services, including 

the set-up of investment funds specifically 

designed for the sector – a model that could 

be successfully replicated for other sectors, for 

instance for the oil and gas sector. Impact investing 

and sustainable finance are also on the 

country’s agenda and have been identified as 

future growth areas. 

However, in various segments, Cyprus positions 

itself as a place that helps small businesses 

grow into big companies. Currently, the island 

is home to many start-ups and smaller firms, all 

of whom are challenged by the costly introduction 

of new and complex regulation. The coming 

years will most likely see a series of mergers and 

acquisitions in the financial sector. Fintech firms 

might emerge as the big winner in this climate as 

financial technology can drive efficiency up and 

bring costs down. Cyprus should leave no stone 

unturned in welcoming these financial disruptors 

in order to benefit from the massive opportunities 

that fintech presents. 

IP PROTECTION 

A crucial element especially when it comes to attracting 

ICT and tech industry players is guarding 

Intellectual Property (IP), and Cyprus offers 

strong IP protection through domestic legislation 

and a network of EU and international agreements. 

The main feature of the Cyprus IP Box 

regime is the 80% deduction of revenue earned 

from the use of intangible assets. This four-fifths 

exemption from profits means that only 20% of 

IP income is taxed at the corporate tax rate of 

12.5%. After applying the calculations, Cyprusresident 

companies can see an effective tax rate 

as low as 2.5% – the lowest in Europe with tax 

rates for other IP Box regimes range from 2.5% to 

10%. The IP regime of Cyprus is largely responsible 

for the growing interest in the jurisdiction. 

Digital goods are increasingly more valuable, 

and the favourable tax and business environment 

in Cyprus has made it a hub for digital business 

goods, IT software, and related services. 

Corporate services and 

corporate structuring 

continue to play an important 

role, while investment 

funds, trust services and 

private wealth are growing 

elements with potential 

for further expansion 

TOWARDS FUTURE GROWTH 

There is no doubt that Cyprus’ financial sector 

will face a more challenging future than initially 

anticipated. The coronavirus crisis has affected 

markets worldwide and will certainly leave an 

impact on the island’s industry. However, the 

face of the global finance industry is changing as 

technologies play an ever more important role. 

Cyprus’ decision to gather experience and expertise 

in new opportunity areas should help it 

navigate more challenging times and find a way 

towards future growth. Meanwhile, the fact that 

confidence in Cyprus’ fund sector is increasing 

goes to show that the island can compete with 

other European finance hubs in more established 

industries. Cyprus’ finance industry is definitely 

one to watch. On the international scale, it is still 

small but there are opportunities aplenty. n 

The pandemic 

has affected 

the way 

we work, 

interact and 

source new 

clients. Closing a relationship 

usually required a due 

diligence visit to a client or 

from a client involving crossborder 

travel and sourcing 

of new business was via 

seminars and conferences, 

which are both no longer 

occurring. It is a challenging 

time with a reduction in 

business, with governments 

and companies tightening 

their belts to reduce costs. 

Paul Pavli 


Oneworld Plus Management 

Growth will 

come mainly 

from wealthy 

individuals 

who use 

Cyprus as 

their family office hub. Our 

services will need to be aligned 

with these needs and be in 

a position to serve clients 

globally. We estimate that over 

$15 trillion worth of assets 

are set to pass to the next 

generation over the next couple 

of decades, and Cyprus needs 

to participate in this wealth 

shift by enhancing its private 

wealth protection vehicles. 

Cyprus’ strategic location, 

business friendly environment, 

efficient tax system and 

professional human capital 

create an ideal environment for 

the set-up of family offices. 

Constantinos Meivatzis 


IQ EQ (Cyprus) Limited 



Investment Funds 


READY FOR 

BOLD 

MOVES 

Armed with a fully upgraded and modernised regulatory framework, 

Cyprus is ready to compete for big fund business in the alternative 

investment space even during the most unstable of times. 

Cyprus’ investment funds industry is 

dusting off its newcomer status as increasing 

numbers of medium-sized 

funds and top-tier fund managers 

decide to locate to the island. Assets 

under management (AuM) have increased 

by 200% from €2.7 billion in 

2016 to €8.3 billion in 2019, showing that it is 

not the sector’s size but its fast growth that has 

impressed, and is being recognised by, the global 

asset management and investor community. 

Although Cyprus has snatched up some 

UCITS business, it looks to specialise in the 

structuring of alternative assets in sectors where it 

already has a strong global presence such as shipping, 

energy, real estate and wealth management. 

The island’s cost-effectiveness, its flexible and recently 

updated legislation, as well as its proximity 

to the Middle East and Africa, and longstanding 

preferential access to Eastern Europe, post-Soviet 

states and Russia, are some of the key reasons 

why market players started turning to the island. 

In the short to medium-term future, it appears 

the sector will not be able to retain its previous 

performance level as the Covid-19 pandemic 

has presented it with a new level of challenge. 

Globally, the novel coronavirus has halted economic 

activity like no other event, and markets 

are only gradually reopening. While the pandemic 

will certainly be a test of Cyprus’ resolve 

and ambition, the outlook for the longer term 

remains positive as many believe the sector has 

not even begun to realise its full potential. 

LATE ON THE SCENE 

To understand where Cyprus stands today, it’s 

important to chart the last few years of the country’s 

evolution. Although the Cypriot investment 

funds sector dates back to the late 1990s, the 

country only saw substantial inflows in the past 

few years. Following the 2013 financial crisis, 

Cyprus sought to create new opportunities for investors 

by transforming a debt-driven economy 

into an investment-driven one – and the investment 

funds sector was identified as an economic 

driver of the future. 

Although Cyprus arrived somewhat late to the 

party, it gained considerable ground after government 

and industry began an extensive outreach 

campaign to attract funds-related business. The 

country updated and modernised its regulatory 

framework to bring it on par with those of other 

European fund domiciles and brought in new 

procedures and products designed to speed up 

time-to-market. 

KEY 

contacts 

Cyprus Securities 

and Exchange 

Commission (CySEC) 


Cyprus Investment Funds 

Association (CIFA) 

www.cifacyprus.org 


Cyprus funds 

have been a 

platform for 

investments, 

attracting FDI 

in all sectors 

of the economy. We expect 

that the introduction of tax 

and redomiciliation incentives 

for funds and fund managers 

and the modernisation of 

procedures will aid in boosting 

the fund sector to even higher 

growth rates. In addition, the 

empowerment of the fund 

ecosystem with the entrance of 

additional international players 

in the fund management 

and custody space are a vote 

of confidence and ratify the 

industry’s capabilities. 

Andreas J Yiasemides 

President 

Cyprus Investment Funds 

Association (CIFA) 

Assets under 

management 

(AuM) have 

increased by 200% 

from €2.7 billion 

in 2016 to €8.3 

billion in 2019 

Cyprus experienced 

the highest Net Asset 

Value (NAV) growth 

rate at a pan-European 

level in all fund 

categories during the 

fourth quarter of 2019 

Major market players quickly recognised and 

accepted Cyprus’ refined fund framework. As a 

result of growing client demand, international 

fund platforms, including Clearstream, Refinitiv 

and Bloomberg, began listing Cyprus funds in 

2018 and 2019, which makes them visible and 

easily accessible to global asset managers and 

fund professionals. 

EUROPEAN GROWTH LEADER 

Cyprus offers both EU-regulated Undertakings 

of Collective Investment in Transferable 

Securities (UCITS) and Alternative Investment 

Funds (AIFs). On the international scene, 

Cyprus still has a comparatively small funds 

industry. Europe’s cross-border fund market is 

firmly dominated by Luxembourg, with €4.7 

trillion AuM, and Dublin, which had €3 trillion 

AuM at the end of 2019. But there are other 

domiciles used within the European zone, including 

Malta, Gibraltar, the Isle of Man and increasingly 

Cyprus which are successfully competing 

for business. In fact, Cyprus experienced 

the highest Net Asset Value (NAV) growth rate 

at a pan-European level in all fund categories 

during the fourth quarter of 2019 according 

to the European Fund and Asset Management 

Association (EFAMA). 

A GROWING FUNDS CLUSTER 

Cyprus’ investment fund sector today is a vibrant 

cluster. The Cyprus Securities and Exchange 

Commission (CySEC) supervises more than 

200 companies, including collective investment 

schemes and fund managers. The majority 

of funds operate in the alternative space, with 

CySEC having around 100 externally managed 

AIF products and only some 10 UCITS on its 

books. The island is also maintaining a steady 

pipeline of new business. CySEC reported in June 

2020 that it is processing some 50 applications for 

various fund structures. 

Most notably, Cyprus succeeded in attracting 

Alternative Investment Fund Managers 

(AIFMs) and UCITS Management Companies. 

Companies such as BAO Capital Partners, 

Citigrade Capital, Blue Diagonal Capital, 

Fiduserve Asset Management, MFO Asset 

Management and Hanseatic Capital Management 

Ltd are all licensed AIFMs, while Easternmed 

Asset Management, GMM Global Money and 

Wealth Fund Services are active in the UCITS 

space. Fund platforms such as those of KMG 

Capital Markets and Fortified Capital are open to 

third parties, and fund hosting represents one of 

Cyprus’ fastest growing and most active segments 

of the industry. 

AIF SPECIALIST 

Although Cyprus attracted some UCITS management 

companies, many industry professionals 

expect UCITS to remain more of a niche market 

for Cyprus. However, foreign UCITS are widely 

marketed in Cyprus, including ones promoted by 

international heavyweights such as JP Morgan, 

Merrill Lynch, UBS and Julius Baer. 

The number of AIFs has seen consistent 

growth and will continue to dominate the 

Cypriot investment funds scene in the years to 

come. Following the modernisation of the island’s 

fund framework, today there are three types of 

AIFs that can be set up in Cyprus. In addition to 

the Alternative Investment Fund of Unlimited 

Number of Investors (AIFUNP), investments 

can be structured in the form of an Alternative 

Investment Fund of Limited Number of Investors 

(AIFLNP), which is promoted to family offices 

and high-net-worth individuals as an alternative 

to a group holding company. 

Then there is the Registered Alternative 

Investment Fund (RAIF), which has become a 

success story of its own. RAIFs, Cyprus’ version 

of Luxembourg’s popular Reserved Alternative 

Investment Fund, have truly taken off over the 

past 18 months. RAIFs do not require a licence 

from the industry regulator, the Cyprus Securities 

and Exchange Commission (CySEC), but need 

to be registered with CySEC by an already authorised 

Alternative Investment Fund Manager. 

There were already 26 RAIFs operating out of 

Cyprus at the end of April 2020 – with the first 

RAIFs only starting out in 2019. 

Cyprus is strategically positioning itself as a 

home for specialised alternative funds and investment 

boutiques, with many of them primarily 

dealing with private equity and investment in 

areas such as banking, real estate, hospitality, and, 

most prominently, in maritime and energy – two 

sectors in which Cyprus has an outsized influence 

on the European economy. For the shipping industry, 

Cyprus has become a major European flag 

state while it is hosting the EU’s largest shipmanagement 

centre. In the energy sector, Cyprus has 

attracted a lot of attention following the natural 

gas discoveries of recent years. Multinational oil 

and gas companies today have significant operations 

on the island and are investing at an unprecedented 

scale in the Eastern Mediterranean. 

A MATURING INDUSTRY 

Thus far fund sizes vary significantly ranging 

from €10 million to €1 billion, which goes to 

show the diversity of fund business in Cyprus. 

Currently Cyprus is ideal for regional players, 

start-up funds, alternative funds, as well as larger 



Investment Funds 


entities looking to diversify into new asset classes 

with minimum risk and cost. However, fund professionals 

report that they are seeing more medium-sized 

funds moving into Cyprus, and they 

believe the sector has significant scope to grow. 

In attracting new fund professionals to the 

island, the Cypriot government has set its sights 

on new markets, including Asia, particularly 

India and China, Israel, Africa and the Middle 

East, and the marketing initiatives of recent years 

have ensured a steady pipeline of new business. 

Asian fund managers are increasingly establishing 

funds or fund management companies in 

Cyprus in order to access the EU market. At the 

same time, the island registered growing interest 

from UK fund managers who set up in Cyprus to 

retain their access to the EU market after Brexit. 

PLATFORM PROVIDERS 

Cyprus is also home to a number of third-party 

management companies offering foreign fund 

promoters plug-and-play solutions and easy 

access to the European market. These fund 

platforms provide investment managers with a 

fully compliant UCITS/AIFM entity and thus a 

European passport to market their funds within 

the EU, without the need to establish their own 

fund and/or management company substance 

in an EU Member State. Platform solutions are 

traditionally structured as umbrella funds, and 

managers can benefit from the efficiencies provided 

by the pre-existing structure of the platform 

in terms of sharing costs, existing middle 

and back office operating models, tried and tested 

systems and speed to market. 

MORE REGULATORY UPDATES 

Although Cyprus has significantly enhanced its 

regulatory framework for the sector, the global 

asset management community can look forward 

to additional changes aimed at elevating the 

domicile’s attractiveness even further. The island 

is currently working on new legislation that will 

provide for effective supervision of all local fund 

administrators. The introduction of a fund administration 

law is seen as a significant development, 

which will add comfort to fund managers 

and investors alike. 

In addition, in June 2020, Cyprus finalised a 

new regime dubbed the Mini Manager, which 

governs a new type of fund manager and allows 

for the provision of fund management services 

to funds under the AIFMD thresholds. Mini 

Managers are allowed to manage AIFs whose 

assets do not exceed the threshold of €100 

million, with the use of leverage, or €500 million 

when unleveraged with a lock up of five years. 

There is widespread belief that this regime will 

appeal to fund managers who need a cost-effective 

vehicle that will undertake limited investment 

or to those fund managers who may wish to 

use it as a first step before committing to a more 

complex set-up. 

Discussions are also underway to tweak the island’s 

RAIF framework further. Currently RAIFs 

cannot be used for money market or loan origination 

funds. However, there are plans to open 

up this structure to loan origination funds. 

POSITIVE PERCEPTION 

Cyprus currently enjoys a positive market perception, 

which has been a key driver of new business. 

The island has impressed the world with its 

economic turnaround since its 2012-2013 financial 

crisis. The country has significantly strengthened 

its regulatory infrastructure and supervisory 

capabilities, instilling investor confidence in 

the process. 

CySEC, the regulator, has invested significant 

resources, including investment in additional 

staff, to ensure the application process is as efficient 

as possible. Technology and new tools are 

constantly being deployed, and CySEC is currently 

working on a platform to allow fund promoters 

to submit applications online. The regulator 

is committed to maintaining an open channel 

of communication with industry professionals 

and address any obstacles to the smooth operation 

of the funds industry without limiting its 

supervisory capability. 

Cost effectiveness also plays an important role 

in attracting new fund business. The set-up costs 

of a Cyprus fund are significantly lower than in 

the more mature fund centres and range from 

€20,000 to €30,000 – approximately one third of a 

similar set up in Luxembourg and Ireland. 

Besides, Cyprus offers one of the most attractive 

fund tax regimes in Europe – for the fund 

manager, investor and the fund. While the island’s 

advantageous tax regime, with double tax treaties 

with 65 countries, has long been an important 

element in investor attraction, Cyprus also introduced 

new provisions to further enhance the 

already competitive tax regime for fund managers 

in 2018. One of the provisions is a taxation of 

carried interest or performance fee for AIF and 

UCITS fund managers. This essentially means 

that executives of investment fund management 

companies or internally managed investment 

funds may opt for a new mode of personal taxation. 

Additional benefits of domiciling in Cyprus 

also include the country’s stable political environment 

and strong legal framework based on UK 

common law, which provides flexibility, transparency 

and reliability in business practices. 

The Cypriot 

investment 

fund market 

is a very 

dynamic 

market that 

has seen impressive growth 

in recent years. Between end 

2015 and end 2019, net assets 

of Cypriot domiciled UCITS 

and AIFs grew by 121%, the 

strongest asset growth of all 

European countries. Cyprus is 

also rapidly developing into a 

European cross-border fund 

centre, at end 2019, almost 

half of Cypriot domiciled funds 

were held by foreign investors. 

On average, Cypriot funds 

resisted well to the sharp 

market downturn in recent 

months. Net fund assets 

dropped by almost 8% in March 

2020, during the Covid-19 

related stock market drop, but 

bounced back strongly in April. 

Tanguy van de Werve 


EFAMA 

2019 was a 

good year for 

the markets. 

The mutual 

funds we 

manage 

have performed very well 

giving substantial returns 

to our investors. 2020 was a 

year of positive expectations, 

however, the pandemic has 

changed the landscape. 

Markets experienced a 

dramatic downfall in March, 

then we had a sustantial 

recovery, but uncertainty 

still prevails. We believe that 

the way the world will be 

affected by the coronavirus 

issue will also determine the 

way markets will move. 

Alexios Kartalis 

General Manager 

GMM Global Money 

Managers Ltd. 


Competitive 

Tax Regime for 

Fund Managers 

Subject to conditions, 

the variable employment 

remuneration, which is 

effectively connected to the 

carried interest of the fund 

managing entity, may be 

subject to Cyprus tax at a rate 

of 8%, with a minimum tax 

liability of €10,000 per annum. 

The new mode of taxation 

is available for a period of 

10 years in total, subject to 

the annual election of the 

individual. Also, according to 

the law, each compartment 

of an AIF or UCITS should 

be treated as a separate 

taxpayer. This further facilitates 

the effective operation of 

Cyprus investment funds via 

multiple compartments, in 

accordance with international 

fund industry norms. 

I see three 

areas of 

opportunity 

and growth 

in our sector. 

The increase 

of fund management and fund 

administration engagements, 

more head offices of 

international companies 

being set up in Cyprus and 

the provision of back and 

middle office services to them, 

and to already established 

international entities. In a 

shrinking corporate services 

market the above will be 

the future for our sector of 

business, in the middle of 

a consolidation of the local 

providers of such services. 

Alkis Kailos 

Country Executive Cyprus 

Alter Domus (Cyprus) Ltd 

FROM FRONT TO BACK OFFICE 

Cyprus’ main draw-card is the ease of doing business 

and a very large network of support companies 

and service providers. The country hosts 

a number of recognised fund service providers, 

ranging from global names to local independent 

operators servicing all types of funds at very competitive 

rates. Investment and risk advisors, analysts, 

distributors, brokerage houses and middle 

office providers all form part of Cyprus’ evolving 

fund ecosystem. The ‘Big Four’ accounting firms 

are well-established on the island, as are fund administrators 

with global expertise, such as Alter 

Domus, IQ-EQ and Vistra. 

A number of law offices have cooperation 

agreements with renowned international law 

firms, instilling confidence that the local industry 

can grow and create an attractive environment 

for the establishment of funds, fund management 

and servicing companies. Banking, custody 

and depositary services can be sourced locally as 

Cyprus-based banks have formed strategic relationships 

with renowned global custodians and 

international prime brokers in order to meet the 

needs of asset managers and funds. 

The Cyprus Investment Funds Association 

(CIFA) is the collective voice of the funds industry 

and is taking the lead in raising the 

industry’s profile. CIFA is a full member of 

the European Fund and Asset Management 

Association (EFAMA) and an associate member 

of the International Capital Markets Association 

(ICMA). The status of the jurisdiction was further 

bolstered in 2019 when Cyprus was awarded full 

membership of the International Investment 

Funds Association (IIFA), underlining the fact 

that the country operates within a rigorous legal 

framework that promotes transparency and protects 

investors. 

CHASING BIG NAMES 

As the market and fund sizes continue to grow, 

Cyprus is well on its way of becoming more attractive 

to big name international service providers 

such as custodians, fund administrators and 

distributors. The introduction of tax and redomiciliation 

incentives for funds and fund managers, 

the modernisation of procedures and the further 

reduction of bureaucracy are expected to help 

convince additional international players to join 

Cyprus’ booming funds industry. 

In addition, the island is increasingly on the 

radar of digital finance companies and could 

be picking up more investment in this space. 

In 2018, CySEC established an innovation hub 

to address and explore the rise of fintech and 

regtech developments. The Hub is a place where 

both supervised and non-supervised entities 

in new industries have ongoing access to the 

authority to better understand and implement 

their regulatory requirements. With increasing 

demand from start-up fintech companies, hedge 

funds and other financial services players, Cyprus 

is also making a name for itself in the cryptocurrency 

and blockchain arena. With a surge in the 

number of pioneering blockchain and crypto 

start-ups and a government supporting digital 

currency and infrastructure, the talent in this 

sector is positioning Cyprus as an ideal location 

for new initiatives in structuring crypto and techfocused 

investment funds. 

THRIVING IN UNCERTAIN TIMES 

Cyprus’ investment funds sector was doing well 

before the coronavirus pandemic challenged and 

affected countries and economies worldwide. The 

island recorded a strong increase in the number 

of funds managed and funds registered. If the 

growth of recent years can be sustained, AuM 

could well reach €12 billion in the next five years 

according to CIFA. The European investment 

fund industry held some €15 trillion in net assets 

at the end of March 2020 – a figure that goes a 

long way towards showing the size and potential 

of European fund business. 

However, the current volatile economic situation 

could delay the sector’s growth. Globally, 

investors pulled billions from the industry, and 

fund managers had to address the consequences 

arising from a decline in liquidity. Nevertheless, 

many in Cyprus are confident that the sector can 

come through this rough time and that there will 

be new fund formations in the third and fourth 

quarter of 2020. It’s likely that the fund industry 

will rebound more quickly than other industries 

as the recent market turbulences and the disruption 

in world trade have also created new investment 

opportunities, in particular for strategies 

that thrive in uncertain times. 

The hurdles for launching a fund are, 

however, higher today than they were in the past. 

Compliance, regulations and greater demand 

for transparency have increased the cost of 

running a fund. Amid the radically changed 

investment climate, Cyprus with its solid legislative 

framework, relatively low operating cost, 

EU passporting capability, professional service 

providers and efficient tax regime has all it takes 

to remain a relevant and attractive investment 

funds jurisdiction. n 




Manufacturing & Industry 


MODERNISING 

MANUFACTURING 

The manufacturing and industry sector in Cyprus is looking 

to the future with a strong focus on digital transformation 

and better access to export markets. With the support 

of government-backed initiatives and new tax incentives 

to attract foreign direct investment, the country is 

determined to create a more high-tech economy. 

KEY 

contacts 

Cyprus has a new vision to transform 

manufacturing and industry and to 

bring this sector on par with its other 

star-performers like tourism and 

professional services. The goal is to 

develop more high-value-added and 

innovative products and services that 

will contribute to the competitiveness 

of Cyprus – and increase productivity by strengthening 

the industrial ecosystem and investing in 

sustainability, innovation, digitalisation, infrastructure 

and skills. This ambitious new strategy 

is set to better connect traditional industry and 

manufacturing with other sectors and to transform 

Cyprus into a more tech-driven economy. 

The country has a solid foundation on which 

to build on as it already has many comparative 

advantages in place. The island has one of the EU’s 

lowest corporate tax rates at 12.5%, double taxation 

treaties with 65 countries across the globe, 

a highly educated workforce and a sophisticated 

transport and logistics infrastructure. Cyprus is 

also an attractive and affordable base for manufacturers 

in Europe and beyond, providing high 

connectivity to supply existing and emerging 

markets. As the EU and eurozone’s most eastern 

member, Cyprus’ geostrategic location provides 

a competitive edge for producers in the Middle 

East, Africa and Asia to access the European 

Union’s 500 million consumers. 




Cyprus Chamber of 


www.ccci.org.cy 

Cyprus Employers and 

Industrialists Federation (OEB) 

www.oeb.org.cy 

Cyprus Association of 

Research and Development 

Pharmaceutical 

Companies (KEFEA) 

www.kefea.org.cy 


A NEW VISION 

The backbone of the new industrial revolution 

Cyprus is embarking on is the gradual implementation 

of a new National Industrial Strategy 

Policy for 2019-2030. Together with the private 

sector, the Ministry of Energy, Commerce and 

Industry (MECI) has finalised the new strategy, 

which highlights digital transformation and 

envisions so-called smart factories increasingly 

powered by renewable energy producing high 

value-added and ‘green’ products – a principle 

already embraced by Cyprus’ leading manufacturers 

to compete globally. A key objective 

is also to improve access to finance and key 

export markets. There are already incentives in 

place for investments in fixed assets and industrial 

equipment, while innovation projects in 

manufacturing are supported by state funding 

to promote results-oriented research. 

Other incentives to boost the sector include 

a fast-track visa programme for start-up entrepreneurs 

from outside the EU to establish 

ventures with high growth potential, which will 

be in force until 2021. The establishment of the 

Deputy Ministry of Research, Innovation and 

Digital Policy, which has underlined the government’s 

recognition of research and innovation as 

a fundamental pillar of a new model for growth, 

will also help cut government bureaucracy and 

attract foreign direct investment in high-tech 

and knowledge-based industries. 

CORONVIRUS IMPACT 

Although Cyprus’ new long-term vision for the 

sector is full of promise, there is no doubt the 

coronavirus pandemic has taken its toll on the industry 

both in Cyprus and globally. The considerable 

repercussions of the crisis on normally topperforming 

sectors like tourism, where revenues 

have plummeted in 2020, has had a significant 

knock-on effect on other sectors such as manufacturing 

and industry. 

The manufacturing sector marked a decline of 

19.6% in May 2020 compared to May 2019 and 

compared to an annual reduction of 32.6% in 

April. The contribution to GDP from manufacturing 

in Cyprus decreased to €223.85 million in 

the second quarter of 2020 from €240.43 million 

in the first quarter of 2020. The contribution 

to GDP from manufacturing in Cyprus averaged 

€243.65 million from 1995 until 2020. 

Cyprus’ Industrial Turnover Index fell by 

almost 20% in May 2020 compared to May 2019, 

affected by measures to curb the spread of the 

pandemic. However, the index marked a steady 

improvement as containment measures were 

gradually lifted. 

By promptly taking 

decisive measures 

to tackle the Covid-19 

pandemic, the government 

of the Republic of Cyprus 

has protected public health, 

ensuring that the island 

remains a relatively safe 

destination for travel and, 

importantly, minimising 

the adverse impact on the 

country’s economy. The 

initial implementation 

of a comprehensive, €3 

billion, Economy Support 

Programme, is backed by 

efforts to further improve 

the conditions that make 

Cyprus an attractive 

investment and business 

jurisdiction. At the Ministry 

of Energy, Commerce and 

Industry we are introducing 

significant funding schemes 

in 2021 and implementing 

our new National Industrial 

Policy 2030, which aims to 

modernise the industrial 

sector through digitisation, 

skills development, 

improvement of the 

business environment and 

enhancement of access to 

finance and markets. To 

support businesses setting 

up or scaling in Cyprus, we 

are also planning to create a 

dedicated business service 

centre at our Ministry, 

tasked with facilitating 

licensing procedures and 

providing personalised 

guidance and advice. 




KEY PRODUCTS 

Cyprus embraced industrial development in the 

decade after independence in 1960, transforming 

the largely agricultural country into one where 

manufacturing accounted for 20% of GDP by 

the 1980s. An early success came in 1967 when 

a Cypriot company, Photos Photiades Breweries, 

secured a licence to brew Carlsberg, which is now 

done at a fully-automated brewery in Nicosia. 

It was the first time the Danish brewing giant 

allowed its famous beer to be produced outside 

Denmark. Further transformation produced 

an increasingly services-oriented economy. The 

once flourishing but protected textile, clothing 

and footwear industries faded after EU membership 

in 2004, giving rise to the manufacture 

of medium- and high-technology products and 

semi-customised small-batch products. 

The main growth areas have been in the ICT 

sector, manufacturing parts, instruments and 

electronics, as well as consumer products such 

as cosmetics. Production of pharmaceuticals, 

cement and fabricated metal items – all wellestablished 

export industries – is performing 

strongly. 

Industrial production contracted sharply 

following the 2013 banking crisis, but the traditionally 

resilient sector recovered faster than the 

general economy. Some 30,000 people – about 

6% of the workforce – are employed in manufacturing 

and industry. The main destination for 

Cypriot manufactured exports is the European 

Union, which constitutes over 50% of the market, 

while exports to the Middle East make up around 

15%. 

SMES LEADING THE WAY 

The clear majority of Cyprus’ over 5,000 manufacturers 

are small and medium-sized enterprises 

(SMEs), mostly family-owned and run. This 

makes the sector flexible and open to innovation, 

offsetting difficulties with economies of scale 

which will also be addressed by plans for clustering 

and improving the industrial infrastructure. 

The new national industrial strategy policy will 

encourage more private investment in research 

and innovation and capitalise on robust spending 

in this area by Cyprus’ public universities by 

improving synergies between academia and industry. 

Cyprus also ranks first per capita among EU 

members competing for funds from Europe’s 

largest research and innovation programme, 

Horizon 2020. Acquiring such funds has helped 

innovative Cypriot SMEs to become notable successes. 

One of these is Vitatrace Nutrition Ltd 

(VTN), which employs some 40 people at its 



Manufacturing & Industry 


Nicosia offices and factory, producing vitamin 

pre-mixes and pharmaceuticals for animal nutrition 

for export, particularly to the Middle East 

and Europe. Founded in 1978 and owned and 

operated by two families, it has won funding in 

cooperation with several British universities for 

the EU’s largest-ever research programme on 

animal nutrition. 

HOMEGROWN SUCCESS STORIES 

Quality and affordability are the hallmarks of 

Cypriot-made pharmaceuticals, which are sold in 

over 100 countries across the globe. The industry 

is led by Medochemie Ltd and Remedica Ltd, 

which invest heavily in research and innovation 

and spend significantly on continuously upskilling 

their workforces. 

A prime example of the sector’s significant potential 

for growth and foreign investment was the 

€260 million acquisition of Remedica by South 

Africa’s Ascendis Health Ltd in 2016. The South 

African corporation wanted a strategic platform 

within the EU for expansion and growth 

in the generic pharmaceutical industry in both 

European and emerging markets. The alliance 

has given Remedica the funding to embark on a 

new phase of development and the benefit of synergies 

with Ascendis. 

Medochemie, founded in 1976, develops, 

manufactures and distributes mostly generic 

pharmaceuticals and invests up to 7% of its turnover 

in research and innovation. The company has 

13 state-of-the-art manufacturing sites, of which 

nine are in Cyprus, one in the Netherlands and 

three in Vietnam. Its Cyprus factory can produce 

and pack 1.5 billion tablets and 300 million capsules 

per year. The company has expanded from 

its Cyprus base into promising markets across 

the world – to the Middle East and Africa, Far 

East and the Americas – and now operates in 107 

countries. Cyprus’ ideal location enables these 

two award-winning companies to distribute their 

products to markets in the region and far beyond. 

Their products bear ‘made in the EU’ labels – a 

badge of quality that assures consumers that what 

they are buying has met rigorous testing standards. 

Another major manufacturer and one of 

Cyprus’ biggest exporters is Vassiliko Cement 

Works, which boasts Europe’s largest single 

clinker production line and operates its own 

eponymous port. The company has an annual 

capacity of two million tons of cement, more 

than twice the island’s domestic needs. Its international 

customers are mostly Cyprus’ neighbours 

in the Eastern Mediterranean. Vassiliko 

has a variety of programmes to keep training and 

upgrading the skills of its 340-strong workforce, 

and a ‘talent academy’ that trains unemployed 

graduates for six months to a year, some of 

whom enter the workforce when vacancies arise. 

The company has embraced renewable energy 

sources as part of operations, which garnered it 

a ‘Gold Environmental Protector Award’ in 2019 

and a special honorary best performance distinction, 

and the Global CemFuels ‘Outstanding 

Alternative Fuels Project’ award in 2020. The 

company also launched an 8 MWp photovoltaic 

park in 2020. 

Cyprus has a 4,500-year-old history of copper 

mining, and today’s production methods are of 

the highest standard. Substantial investment 

in research, innovation and the latest mining 

technology has enabled Hellenic Copper Mines 

(HCM) to commercially exploit ores depleted 

by millennia of extraction. HCM set a European 

first in 1996 by introducing hydrometallurgy, 

a cost-effective and environmentally friendly 

way of exploiting low-grade ores, and it is a 

pioneer in bio-leaching. The high price of gold 

has also made it worthwhile for HCM to begin 

processing ores bearing the precious metal that 

it amassed while mining copper and to extract 

new ones, along with silver-bearing ores. HCM 

employs just under 100 people, nearly a third of 

them university graduates, and some 50 contractors 

daily, providing welcome employment 

in the rural Solea district and contributing to 

the rehabilitation of remote areas. HCM exports 

100% of its production to European destinations 

and its copper is classified among the top 

copper metal producers worldwide in terms 

of its purity (99.999% cu). Although currently 

the only operating mining company in Cyprus, 

some exploration companies are active because 

the island remains rich in low-grade mineral 

wealth. The mining of metals accounts for about 

5% of Cyprus’ industrial exports, a figure which 

would be far higher if industrial minerals and 

cement were included. 

Given the island’s small domestic market, 

manufacturers have adopted an international 

outlook to achieve growth. A good example of 

this is Elysée, an award-winning Nicosia-based 

company that designs and develops irrigation 

and piping systems that are sold in 65 countries 

from Europe and the Middle East to South Africa, 

Japan, Australia and New Zealand. Equally ambitious 

is Limassol-based Muskita Aluminium 

Industries Ltd, which designs and manufactures 

aluminium products and systems that are used 

across the globe in sectors ranging from aviation 

to agriculture. With 350 highly trained staff, 

the over 60-year old company was a forerunner 

in the European aluminium industry and holds 

many design patents and pioneered the use of robotics 

in Cypriot industry, both in its warehous- 

Manufacturing 

accounts for 5.4% 

of Cyprus’ GDP 

Industry 

accounts for 8.3% 


6% 

of the workforce 

employed in 

manufacturing 

and industry 

Quality and 

affordability 

are the hallmarks of Cypriotmade 

pharmaceuticals, 

which are sold in over 100 

countries across the globe. 

Main destination for 

Cypriot manufactured 

exports: European Union 

over 50% of the market, 

Middle East 15% 


The economy 

of Cyprus is 

expected to 

suffer in 2020 

due to the 

outbreak of 

the Covid-19 pandemic. Recent 

estimates project shrinking of 

the GDP by approximately 7% 

due to the sharp slowdown in 

domestic economic activity 

and the contraction of GDP 

both in Europe and the rest 

of the world. Measures taken 

by the government have 

temporarily prevented the 

loss of job positions, however 

the situation is still fluid while 

the Covid-19 continues. 

George Petrou 

Chairman 

Cyprus Employers and 

Industrialists Federation (OEB) 

Muskita Aluminium Industries 

ing and production, and prides itself on fostering 

green initiatives. In 2019, the electricity-intensive 

business set up 6,750 panels with 2.5 MW in total, 

constituting the biggest roof solar power system 

in the country, which will meet almost a third of 

the company’s demand. 

Today, Muskita is one of the most technologically 

advanced firms in its industry worldwide 

and the largest, most progressive factory of its 

kind in Cyprus. The company’s systems have 

been tested and certified to withstand the severe 

rain and snow of Northern Europe, the pounding 

cyclones of the Indian Ocean and the searing heat 

of the Middle East. Its products are used internationally, 

a testament to the cutting-edge technology, 

engineering, quality and skilled workforce 

that have been paramount to the company’s 

success. 


Access to financing has been a serious concern 

for small manufacturers because financial institutions 

have set stricter lending conditions in 

the wake of Cyprus’ 2013 bailout – and now with 

the challenges brought about with the coronavirus 

pandemic. Although the economic climate 

has improved substantially, the financing environment 

remains difficult for SMEs which have 

limited collateral available and many companies 

also remain indebted. In a bid to support SMEs, 

Cyprus is offering opportunities to make use of 

tax breaks for new export-oriented companies, 

access to training grants and soft loans, as well as 

funding opportunities for small start-up companies. 

Climate change remains a big issue and to 

address the common complaint by manufacturers 

about the high cost of electricity, the strategy 

will incentivise greater use and development of 

renewable energy resources (RES). Installing 

new, clean energy-powered heating and cooling 

systems in factories will be a priority. With the 

island’s aims to become a hub for solar innovation, 

technology transfer and start-ups, the clean 

energy industry is ripe for foreign investment. 

The future exploitation of significant natural gas 

reserves in Cyprus’ waters could also facilitate 

growth in the manufacturing sector, with prospects 

of using the island’s own energy supply to 

lower production costs in the future. The national 

strategy is undertaking a techno-economic study 

for industrial sustainable management of waste 

and assessing the capacity to generate electricity 

from better waste management in industrial 

zones. In addition, the study will examine 

the possibility of installing treatment plants for 

wastewater from food and wastewater industries. 

The results of the study will eventually create new 

grant schemes and other incentives to industries 

and SMEs. 

The new industrial strategy policy is designed 

to maximise the opportunities and address the 

challenges inherent in a sector where most enterprises 

are SMEs largely dependent on imported 

raw materials from distant markets. A major 

strength of the strategy is that it was formulated 

after lengthy consultations between the government 

and stakeholders, primarily the private 

sector’s two main representative and lobbying 

bodies, the Cyprus Chamber of Commerce and 

Industry (CCCI) and the Cyprus Employers and 

Industrialists Federation (OEB). All stakeholders 

are working together to make the strategy work. 

Most SMEs are entrepreneurial and have the advantage 

of being agile, flexible and innovative, but 

face difficulty in keeping the cost of imported raw 

materials down by buying in bulk. Now plans for 

clustering units of similar producers that can join 

in bulk orders will reduce costs. 

On another front, the new strategy has plans to 

boost competitiveness and productivity by ensuring 

that the sector’s labour force is continuously 

trained to capitalise on rapidly evolving technologies. 

This, together with further investment in 

modern tech solutions, will enable manufacturers 

to keep their advantage over competition from 

lower-wage producers in Eastern Europe. 

INNOVATING INDUSTRY 

Cyprus SMEs are increasingly following the 

pioneering lead of several large, innovative and 

export-oriented companies, and with renewed 

support and incentives in place, Cyprus will 

certainly see a revolution in this sector in the 

coming years. The foundations are there to 

further strengthen and expand a strong industrial 

base in Cyprus, and the island has a 

deep pool of well-educated human capital and 

a sophisticated infrastructure to help tackle 

future challenges. In addition, its strategic location 

with good connectivity makes it the ideal 

springboard for European manufacturers keen 

to expand into the markets of the East and vice 

versa. It may take a few years to see concrete 

results from the new industrial strategy policy, 

but Cyprus’ manufacturing and industrial sector 

is determined to realise its true potential. The 

guiding vision is to create a robust, flexible and 

technologically advanced industry with services 

that will substantially contribute to the development 

of the overall Cypriot economy. n 




Maritime & Shipping 


NAVIGATING 

HIGH SEAS 

A global success story for decades, the Cyprus shipping industry 

continues to stay focused and strong in the face of unprecedented 

challenges to global shipping due to the Coronavirus pandemic. 

Shipping is historically one of the 

most successful industries in Cyprus. 

The vibrant and resilient sector is the 

longest-serving generator of foreign 

direct investment and is primed for 

further growth. The country’s maritime 

industry contributes more than 

€1 billion to the economy annually, 

which translates to over 7% of GDP, a far higher 

figure than in other countries engaged in merchant 

shipping. Of this figure, shipmanagement 

alone accounts for 5%. 

Cyprus has the third largest merchant fleet 

in Europe and the 11 th largest in the world, the 

country is also the EU’s largest shipmanagement 

centre and amongst the top three in the 

world. With a sovereign flag of excellent quality, 

the country has become a preferred base for 

global shipping operations. Companies present 

in Cyprus today are some of the largest of their 

kind in the world and manage around 20% of the 

world’s third-party managed fleet, and the sector 

employs around 3% of Cyprus’ workforce. 

The country’s Shipping Deputy Ministry has 

had two years of successful operation since its 

inception in 2018, implementing new supportive 

measures and flexible mechanisms to upgrade 

Cyprus’ status as one of the most formidable maritime 

centres worldwide. A recent example was 

the reapproval of the specialised Cyprus Shipping 

Taxation System by the European Union, which 

was also unanimously approved locally by the 

House plenum in April 2020. This ensures the 

sustainability of the country’s shipping industry 

for the next decade – a factor crucial for the 

Cyprus economy. Also in 2020, Cyprus cemented 

its position on the Paris and Tokyo MoU ‘white 

lists’ in relation to the safety performance of flag 

administrations and joined the United States 

Coast Guard’s Qualship 21 list, which recognises 

the top performing flag states based on port state 

control performance. 

KEY 

contacts 

Shipping Deputy Ministry 

www.shipping.gov.cy 

Cyprus Shipping Chamber 

www.csc-cy.org 

Cyprus Union of Shipowners 

www.cus.com.cy 


GROWING APPEAL 

Cyprus has proven its consistent appeal as an 

attractive international shipping hub with the 

arrival of new shipping companies and businesses 

offering shipping related services – underlining 

the local industry’s enhanced competitiveness, 

stability and growth opportunities. The 

number of Cyprus-based companies has grown 

by 33% over the last two years. A prime example 

of this was the recent arrival of a new P&I Club, 

Steamship Mutual Underwriting Association 

(Europe) Limited, which has decided to underwrite 

all of its European business through its 

Cypriot entity. Also British shipping firm P&O 

Ferries decided to register its English Channel 

operating fleet under the Cyprus flag to take advantage 

of the benefits and security it provides. 

CORONA FACTOR 

Global shipping was one of the first sectors hit 

by the Coronavirus pandemic, as the majority of 

world trade is done with China and other Asian 

countries. Shipping companies were faced with 

difficult challenges in crewing and crew changes, 

approaching ports and implementing measures 

Our ultimate goal is to 

maintain and further 

enhance the competitive 

edge in shipping. In this 

context we are working 

towards the formulation of 

a comprehensive long-term 

national strategy for Cyprus 

Shipping, with vision and 

long-term objectives for 

the next two decades. We 

are also working on ways to 

provide further incentives 

to the shipping industry 

in its effort to meet the 

sustainability challenges 

and to cope with green and 

digital transformation of 

the sector. Cyprus is an 

established international 

maritime centre. This 

positive outlook in the 

global shipping world 

was a result of Cyprus’ 

strategic focus on shipping 

as a key sector of the 

economy. Providing top 

quality services is our 

highest priority and will 

be enhanced further 

through the continuous 

updating, simplification 

and modernization of 

procedures. The unique 

set of competitive 

advantages together with 

the excellent shipping 

know-how, coupled with 

the customer-oriented 24/7 

service provided by the 

Shipping Deputy Ministry 

are the foundations of the 

Cyprus maritime cluster 

which will assist us to face 

the current challenges. 

Vassilios Demetriades 

Shipping Deputy Minister 

to minimise exposure. With around 90% of 

global trade transported by commercial shipping, 

which moves food, energy and raw materials, 

as well as manufactured goods, components 

and vital medical supplies, it is crucial to keep 

supply chains going and the world’s ports open 

for commercial ships. 

The Cyprus shipping industry directly 

employs up to 60,000 seafarers from around the 

world and around 9,000 personnel onshore, more 

than half of whom are Cypriot graduates, attracted 

to the sector because of its professionalism 

and high salaries. With such a large number 

of crew on vessels facing the dangers 

of the Covid-19 virus, Cyprus 

also joined a global appeal to 

G20 leaders to facilitate crew 

changes and safeguard access 

to healthcare for these ‘unseen 

heroes’ and key workers of 

world trade. 

Although the financial 

impact of the pandemic is 

unavoidable, throughout this 

crisis the Cyprus Shipping Deputy 

Ministry (SDM) has remained fully operational, 

providing high-quality services and 24/7 support 

without any disruption to ensure all ships registered 

under the Cyprus flag will continue to 

operate in the most efficient way possible. 

ESTABLISHED MARITIME HUB 

A seafaring nation since antiquity, Cyprus began 

building its modern shipping industry in the 

early 1960s when it established its shipping registry 

and introduced legislation providing ship 

managers and owners with a competitive tax environment. 

Among the country’s other evident 

advantages are its strategic location at the crossroads 

of maritime transport lines between East 

and West, low operating costs, a highly educated, 

multilingual workforce and its sophisticated professional 

services industry. Cyprus is also signatory 

to all major international maritime conventions 

and has bilateral cooperation agreements 

with 25 countries, among them leading suppliers 

of labour. In 2019, Cyprus’ merchant fleet had 

1,734 ships with 24.6 million gross tonnage, the 

number of companies increased from 168 in 2017 

to 220 in 2019, with the number of shipmanagement 

operators rising to 50, placing Cyprus at the 

top of this category in the EU. 

The formidable Cyprus shipping industry 

has flourished without any state investment, although 

it enjoys strong state support. Cyprus’ 

two dynamic shipping associations – the Cyprus 

Shipping Chamber (CSC) and the Cyprus Union 

of Shipowners (CUS) – work closely with the 





state to constantly upgrade the maritime administration 

and to build up its competitive offering. 

Plans are now underway for the two associations 

to merge into one in a bid to create a more united 

front. The creation of a new and independent 

Shipping Deputy Ministry in 2018 made the 

sector even more efficient, autonomous and business 

focused. The timing of the launch allowed 

Cyprus to capitalise on new opportunities for the 

sector from a developing natural gas sector and 

Brexit. These factors coupled with the country’s 

competitive tax incentives, has led to the relocation 

of a number of shipping companies to 

Limassol, the country’s maritime capital. 

Limassol has undergone a major transformation 

in recent years. Bustling cafes and restaurants 

fill its revamped historic old town while its long 

coastal road is now flanked by cycle paths, pedestrian 

walkways and prestigious, high-rise residential 

developments. Foreign shipmanagement 

executives enjoy the renowned holiday country’s 

pleasant lifestyle and its safe and family-friendly 

environment. An added bonus for shipping executives 

comes from recent legislation providing 

tax incentives for high-earning expats. 

COMPETITIVE TONNAGE TAX 

A major driver of the shipping sector’s success 

was put in place in 2010 when, after more than 

10 years of negotiations with Brussels, Cyprus 

secured an agreement for an upgraded and competitive 

EU-approved tonnage tax (TT) system. 

In 2020, this agreement was reapproved by the 

EU, and also unanimously approved by the 

House plenum, ensuring the stability of the tax 

framework until 2030 and maintaining Cyprus’ 

prominent position in the shipping arena both 

on a European and international level. 

The main benefit of the TT regime is the certainty 

it provides companies on their annual tax 

obligations, enabling them to do their business 

planning accordingly. While other jurisdictions 

might have less expensive TT regimes, Cyprus’ 

incorporates all three types of maritime activities 

– ship owning, shipmanagement and chartering, 

making it unique in the EU where other 

jurisdictions might specialise in just one or two 

of these areas. The Cyprus flag is also considered 

one of the highest quality EU flags available today 

and ranks at the top of various Port State Control 

Agreement ‘White Lists’. 

COMPETITIVENESS AND EFFICIENCY 

The creation of an independent Shipping Deputy 

Ministry, whose head reports directly to the 

country’s President, was a major milestone for 

the industry’s development, serving to further 

attract quality shipping companies and tonnage 

to Cyprus. Based in Limassol, the Shipping 

Ministry is the first ministry outside the capital 

city of Nicosia and as such is ideally located to 

work with the CSC and the CUS. The expertise 

and proactive approach of maritime specialists in 

both the private and public sector have long been 

the driving force of the local maritime cluster, 

which has supported the development of Cyprus 

into the world-class maritime centre it is today. 

The SDM created a roadmap to ensure Cyprus 

maintains its competitive edge. Its mission is to 

consolidate Cyprus’ position as a world-class 

maritime centre, and to protect the stable and 

business-friendly framework provided to foreign 

investors in shipping by further expanding the 

country’s registry and maritime cluster, improving 

maritime safety and environmental protection, 

implementing a blueprint for blue development 

and upgrading available services. 

Key to hitting these targets is to reduce bureaucracy 

and human error and to launch a 

single service centre for shipping companies. In 

addition, Cyprus has plans to expand its presence 

in leading ports around the world and is looking 

5% 

of the world’s fleet 

and around 20% of 

global third-party 

shipmanagement 

activities are controlled 

from Cyprus. 

Cyprus employs around 

60,000 

seafarers from around 

the world and 

9,000 

personnel onshore 


2020 has been 

a challenging 

year for 

the Cyprus 

shipping 

industry 

due to the global pandemic 

causing a major impact. 

Cyprus shipping, whilst facing 

serious challenges, stands on 

solid ground with the recent 

re-approval of its Shipping 

Taxation System and being 

a proven resilient sector can 

emerge out of this crisis 

even stronger, if given the 

appropriate financial support 

from the Cyprus Government 

and the EU through the 

Recovery Plan. A joint effort 

of the whole industry and 

state is necessary, in order to 

maintain the leading role of 

Cyprus shipping internationally. 

Thomas Kazakos 


Cyprus Shipping Chamber 

There are a number 

of dedicated maritime 

institutes that promote 

research, technology 

and innovation, and 

contribute to shaping 

international policies 

for greener, smarter 

and safer shipping. 

at establishing a permanent representation in 

Asia due to the importance of China and Japan 

in world trade. The move would complement its 

current list of offices in Hamburg, Rotterdam, 

London, Piraeus, New York and its permanent 

representation in Brussels. 

The SDM is also rapidly embracing the use 

of new technology, including the digitisation of 

many services and offering them online to allow 

for ship owners and operators to save time. In 

addition, the Ministry and the industry strongly 

support innovation programmes that contribute 

to new shipping-related tech solutions. The 

country’s start-up and innovation sector has been 

growing in recent years, with many companies in 

Cyprus launching new technologies that could 

be integrated in the shipping industry, such as 

blockchain. 

A number of shipping companies based in 

Cyprus are already implementing blockchain 

technology during the development stage of 

their products and services, as it provides many 

practical solutions to daily business functions. 

Blockchain could help cut red tape and speed 

up prolonged procedures, such as waiting for 

certificates and authorisations from port authorities, 

and revolutionise the shipping industry with 

multiple benefits to importers, exporters, transporters, 

ship owners and governments by expediting 

document flows and making transactions 

more efficient and secure. The technology would 

also optimise costs, provide a more environmental 

way of doing business and help shipping companies 

avoid prolonged stays in ports that end up 

costing them a fortune. 

Another key objective for the SDM is to keep 

Cyprus visible on the world stage. The shipping 

industry is showcased internationally at the biennial 

‘Maritime Cyprus’ in Limassol, which attracts 

hundreds of shipping executives and professionals 

from around the world. Growing in prestige 

since it was first held in 1989, the event now 

serves as a leading global forum that influences 

maritime policy, regulation and shipping trends. 

The resident industry’s voice is also heard abroad 

through Cyprus’ active participation in various 

shipping-related fora, such as the International 

Maritime Organisation (IMO), the International 

Labour Organisation (ILO) and the European 

Commission, the International Chamber of 

Shipping (ICS) and the European Community 

Shipowners’ Association (ECSA). 

BLUE ECONOMY 

Cyprus is growing as a regional education and 

research hub, with maritime and marine education 

also gaining new momentum. There are a 

number of dedicated maritime institutes that 

promote research, technology and innovation, 

and contribute to shaping international policies 

for greener, smarter and safer shipping. 

The most recent launch is the Cyprus Marine 

and Maritime Institute (CMMI), an international, 

scientific and business Centre of Excellence 

for Marine and Maritime Research, Innovation 

and Technological Development that will 

be driven by the needs of the industry. The 

project received €15 million from the European 

Commission’s Horizon 2020 research and innovation 

programme, with another €15 million 

from the Cyprus government. The CMMI will 

focus on the ‘blue economy’ and cover a broad 

range of subjects. The research and innovation 

activities of the centre will be aligned with the 

Smart Specialisation Strategy of Cyprus (S3Cy), 

as well as with European Union and global priorities 

in blue economy sectors. CMMI should 

be operating as a self-financing organisation by 

2024. 

The Maritime Institute of Eastern 

Mediterranean (Mar.In.E.M.) is a Cyprusbased 

non-profit organisation founded in 2010 

to promote research, training and technology. 

Cyprus also hosts a DNV GL Maritime Academy, 

while Bernhard Schulte Shipmanagement has 

its own specialised maritime training centre in 

Limassol. In 2016, the University of Nicosia, an 

independent institution, launched the country’s 

first Maritime Academy, which offers training in 

nautical science and marine engineering in collaboration 

with renowned shipping companies. 

The Academy’s aim is to support the industry in 

Cyprus and globally by providing qualified officers 

for vessels. 

In 2019, the Cyprus Foundation of the Sea 

(CY-FOS) was initiated by the CSC. During its inaugural 

meeting a new board was elected consisting 

of leading personalities from all sectors and 

stakeholders of the Blue Economy from public, 

private, academia, civil society, research organisations 

and financial and other institutions. The 

purpose of CY-FOS is to shape the future of 

the country’s Blue Economy and a number of 

working committees have already been established 

to help fulfil its vision. 

In another landmark for the sector, classes 

began in 2018 at the new Faculty of Marine 

Sciences and Technology in Larnaca, which is 

part of the University of Cyprus, a prestigious 

Nicosia-based public institution. Instruction is 

in English and, according to Lloyd’s Register, the 

faculty is set to provide the local and global maritime 

industry with high-quality human capital 

and research capabilities. The private educational 

sector is also helping to build a workforce for 

an industry that is embracing rapid technological 

advances. 






The last few years have seen opportunities arise for 

Cyprus shipping in the wake of Brexit and natural 

gas exploration in the Eastern Mediterranean, 

however, the biggest trends that are already impacting 

the sector are rapid tech development, 

environmental challenges, dealing with decarbonisation 

and finding alternative fuel options to 

power global shipping in the future. Ship owners 

are also facing a predicament of whether to buy 

ships at this point, when in less than 10 years the 

tech and other spec requirements could be completely 

different – making it a costly and perhaps 

redundant investment. 

The next five years will be most exciting in 

terms of satellite communication developments 

and disruptive tech being introduced to improve 

safety and efficiency in the industry. Much of 

core tech being used by shipping companies will 

be replaced by new smart tech, such as smart 

weather foresight, smart performance analytics 

and report alarms. Digitalisation is key to staying 

competitive, but industry experts say tech and AI 

will not replace humans anytime soon. 

Speaking of the human element, shipping executives 

have voiced concerns that finding competent 

crew is a growing problem worldwide. It 

is increasingly difficult to attract young people of 

high calibre and ambition to choose a career at 

sea. Seafarers are both the heart and soul as well 

as the Achilles heel of the industry, and companies 

are acutely aware that all the tech in the world 

will never replace a well-trained and experienced 

crew. Shipmanagement giants such as Columbia 

Marlow have highlighted the industry’s need for 

more care and support of crew members whether 

on- or off-shore, to introduce more perks and 

better training opportunities and to create a safer 

working environment. 

Fintech is also set to bring new ways to raise 

capital in shipping and introduce better ways of 

risk profiling for both investors and investments, 

and growing ship financing possibilities available 

through Cyprus banks will support the future 

growth and diversification of the sector. 

Although the banks’ portfolios are still comparatively 

small, this development will not only 

increase the size and scope of the maritime 

cluster and create opportunities, but expand the 

expertise in this area within Cyprus’ financial services 

sector. Following the financial crisis of 2013, 

shipping finance virtually stalled in Cyprus, but 

there are signs of a revival. The gap left by the 

once-dominant foreign banks is being filled by 

local banks, Greek banks with subsidiaries, and/ 

or independent entities based in Cyprus. 

Due to the smaller size of these banks, their 

focus is on providing a close, relationship-based 

service and being carefully selective of the clients 

they onboard. For example, local banks consider 

how the prospective client behaved during the 

downturn and assess the quality of the clients’ 

so-called soft assets, such as management and 

ownership history, with equal precision to assessing 

the quality of the asset itself. The majority of 

owners that Cyprus banks deal with are small-tomedium 

companies with a limited fleet of vessels, 

as larger companies are well catered to by big US 

and European banks, or Chinese leasing companies. 

One improvement that shipping executives 

have been calling for to help Cyprus strengthen 

its maritime centre is to improve flight connectivity 

and establish more direct flights to other 

key hubs around the world. One historical challenge 

of significant impact remains for Cyprus. 

The size of the world fleet has doubled over the 

last two decades, but currently the Cyprus industry 

is prevented from realising its true potential 

by the Turkish embargo, which was unilaterally 

imposed in 1987 on Cyprus-flagged ships calling 

at Turkish ports. A settlement of the Cyprus 

problem would immediately resolve this and dramatically 

boost the size of the country’s commercial 

fleet. Pending a settlement, Cypriot officials 

continue to press for the lifting of the Turkish 

embargo to be included in any package of confidence-building 

measures in reunification talks. 

RIDING OUT THE STORM 

Although a small economy, Cyprus’ shipping 

sector punches well above its weight, expertly 

navigating through economic storms and market 

fluctuations and evolving with new tech coming 

on stream. Recognised for its competence, safety 

and multiple advantages, Cyprus is clearly capable 

of competing on a global scale. Although the fullscale 

impact of the Coronavirus pandemic is yet 

to be unveiled, what is certain is that global trade 

and shipping will not emerge unscathed. 

However, there is always a silver lining to 

every storm cloud. Maritime industry observers 

say these developments could also be a blessing in 

disguise for the Cyprus shipping sector, forcing it 

to fast-track reforms and speed up the introduction 

of advanced communications services, thus 

beefing up the cluster to become more efficient in 

a shorter period of time. With its growing registry 

and reformed procedures, Cyprus will emerge 

as a more competitive shipping hub once this 

storm passes – and quite rightfully stand strong 

as an EU jurisdiction and maritime centre full of 

potential and ambition. n 


Shipping accounts for 

7% 


1 in 5 

vessels under thirdparty 

management are 

controlled from Cyprus 

3rd largest merchant 

fleet in Europe 

11th largest merchant 

fleet in the world 

200+ shipping 

related companies 

based in Cyprus 

EU’s largest 

shipmanagement 

centre 


Research & Development 


A FUTURE OF 

INNOVATION 

Albeit one of the smallest EU member states, research and 

development is an area where Cyprus punches well above its weight. 

Unprecedented investment into the sector and ground-breaking 

projects are establishing this small island, not only as an innovation and 

research hub, but as a regional centre of excellence providing strong 

links with the global scientific and technical innovation community. 


Despite having significant numbers 

of highly qualified scientists and 

researchers across a wide range of 

disciplines and home to numerous 

pioneering research institutions, 

Cyprus has historically been slightly 

behind the curve when it has come 

to research and development across 

Europe. However, 2020 has been a milestone in 

reversing the tide with the establishment of the 

Deputy Ministry of Research, Innovation and 

Digital Policy, which has underlined the government’s 

recognition of research and innovation as 

a fundamental pillar of a new model for growth 

to expand the productive base of the Cyprus 

economy. 

Unprecedented government investment in the 

sector combined with an unparalleled per capita 

base of skills and expertise, mean that Cyprus is a 

rising star in this field producing world-class research 

and innovation with tangible benefits for 

society. Further evidence of the high calibre of 

research and development (R&D) being undertaken 

in Cyprus is the fact that the country ranks 

first among the EU member states in relation 

to the per capita absorption of funds from the 

biggest EU research and innovation programme, 

Horizon 2020, which has a budget of nearly €80 

billion. 

The strong focus placed on this sector today 

will further support applied sciences and basic 

research that have the potential to facilitate future 

innovations and disruptive tech – and truly establish 

Cyprus as an R&D powerhouse in the East 

Med. 

THE CORONA EFFECT 

The Covid-19 pandemic has without a doubt 

been the biggest upheaval of 2020 and spurred the 

need to find solutions on how to tackle the consequences 

of the virus. The challenges brought the 

R&D sector front and centre worldwide. Cyprus 

was fast to act with measures to limit the exposure 

and has fared well compared to many countries, 

but it also boosted the R&D sector and saw 

it as an opportunity to innovate and significantly 

accelerate digital transformation across several 

areas of society and business. 

Only a few weeks after the Covid-19 pandemic 

reached the island, top health and technology 

researchers came together to develop a series 

of apps and portals. The University of Cyprus 

along with the Deputy Ministry for Research, 

Innovation and Digital Policy, created a portal 

recording all reports of confirmed Covid-19 

Cyprus has embarked 

on an exciting 

journey towards its 

digital transformation 

and a knowledge-based, 

digital economy, driven 

by research, innovation 

and technological 

advancement. Technology 

is a key lever and enabler 

for this multi-faceted 

transformation, aiming 

to boost sustainable 

economic growth and 

social prosperity, as 

well as enhance our 

country’s international 

competitiveness and our 

people’s quality of life. 

Using the opportunities 

offered by the new 

digital environment, 

we aim to create a 

modern and efficient 

public sector, providing 

user-friendly, quality 

digital services to all 

citizens and businesses. 

Our greatest challenge 

is to build a strong 

culture of innovation 

and entrepreneurship 

in society, enabled by 

a digital and researchoriented 

mindset, 

forward-looking and 

able to facilitate an agile 

and swift response to 

today’s fast-changing 

environment. 

Kyriakos Kokkinos 

Deputy Minister of 

Research, Innovation 

and Digital Policy 

cases in real time, along with geographical data 

and risk assessment, which the Health Ministry 

utilised to make key decisions. Engineers also 

created the CovTracer app, allowing people to 

trace their location and contact history to notify 

people in case the user tests positive. Another 

app born from the corona crisis was WaitLess, 

which has the ability to show people real time 

traffic in supermarkets, in a bid to avoid large 

groups of people and reduce the spread of the 

virus. 

The Research and Innovation Foundation 

(RIF) – the national authority in charge of supporting 

and promoting research, technological 

development and innovation in Cyprus – acted 

swiftly launching a series of calls specifically targeting 

the pandemic and to develop local synergies 

while also taking into account regional, 

European and global initiatives, priorities and 

needs. Among the announced projects were 

SEED-COVID with the aim to develop internationally 

competitive products and services 

by start-ups, and INNOVATE-COVID with 

the remit of funding internationally innovative 

products and services by existing enterprises. 

Both programmes have a budget of €1 million 

and share the goal to provide Cyprus’ ecosystem 

with the tools and support needed to come up 

with solutions that may relate to the prevention, 

diagnosis, treatment or management of social 

and economic repercussions. 

A NEW FOCUS ON INNOVATION 

Cyprus has truly embraced R&D and its importance 

in the development of a robust and stable 

economy capable of meeting the needs of future 

generations. Equipped with a national strategy on 

research and innovation, the goal is to bring academic 

research to the market in order to release 

its economic potential, a process that involves 

building bridges between the worlds of academia 

and commerce. Brandishing the slogan ‘Innovate 

Cyprus’, a range of specific incentives were introduced, 

including the expansion of a pilot programme 

offering start-up visas to third-country 

nationals who want to establish and develop 

innovative start-ups in Cyprus. In addition, the 

government has committed to doubling its expenditure 

on developing technology, promising 

to assign €400 million to R&D infrastructure, 

matched by a corresponding injection of private 

finance. These funds are expected to bring the 

country’s total contribution to R&D up to 1.5% 

of GDP over the next five years – aligning it more 

closely with EU averages. 





Prominent 

R&D Projects 

KIOS DRIVING ICT INNOVATION 

One of the island’s biggest ongoing research 

projects involves the University of Cyprus’ KIOS 

Research and Innovation Centre of Excellence (KIOS CoE). 

In collaboration with Imperial College, London, it conducts 

cutting-edge multidisciplinary research and innovation in the 

area of Information and Communication Technologies (ICT) with 

emphasis on the monitoring, control, security and management of 

critical infrastructure systems. In 2019, the Centre was awarded three 

new EU-funded projects to address key research challenges related to 

cancer monitoring and therapy, security of health data, and border surveillance 

with technologies such as unmanned aircraft systems. New technology and 

pioneering methods will be developed and are expected to have significant 

economic and social impact in the region and globally. To ensure 

that its research has maximal applicability and impact, KIOS 

collaborates with a large network of national and international 

academic, industrial, and governmental organisations. 

KIOS also has an innovation hub to promote technology 

transfer and liaisons with industry, as well as an 

entrepreneurship network to facilitate startups 

and venture capital investments. 

CONSERVING HERITAGE ASSETS 

The Cyprus Institute’s Science and Technology in 

Archaeology and Culture Research Center (STARC) 

brings together researchers from a broad range of 

subjects, including art history and archaeology, computer 

science, chemistry and physics, to preserve and understand 

cultural heritage. STARC employs bio-chemical-physical techniques 

to analyse works of art, ancient artefacts and archaeological discoveries. 

It has also led the way in the 3D documentation of heritage assets and the 

development of digital libraries. The STARC team from Cyprus collaborated 

with the Antiquities Department of Israel on a 3D mapping project of 

the Cenacle in Jerusalem, the building that is believed to be the site 

of the Last Supper. Thanks to laser technology and advanced 

photographic techniques, the precise dimensions of the 

room and its architectural chronology could be carefully 

mapped, providing conservationists with invaluable 

insights into how the structure should be preserved. 

This technology, pioneered and developed in 

Cyprus, can be exported worldwide and 

map and record historical and cultural 

landmarks across the globe. 

BIOBANK FOR VITAL RESEARCH 

Another Cypriot centre of excellence to benefit from Horizon 2020 funding is the 

national biobank, a collection of medical records and biological material, including 

blood, DNA/RNA, plasma, serum, urine, tissue biopsies and genetic samples to 

support biomedical research. This builds on work begun in 2010 by the Molecular 

Medicine’s Research Centre (MMRC), under the auspices of the University 

of Cyprus, which established a small biobank of genetic material related 

to the study of hereditary kidney disease. This expanded repository 

will ultimately accommodate a vast collection of genetic samples 

from hundreds of thousands of individuals. The existence 

of a unique national biomedical resource on this scale 

will attract a critical mass of medical scientists and 

experts, keen to utilise the biobank’s genetic 

material for the development of their own 

cutting-edge research and innovation. 

MARITIME RESEARCH 

Cyprus is one of the most influential shipping hubs 

in the world and in 2019 created the Cyprus Marine and 

Maritime Institute (CMMI), thanks to European Commission 

Horizon 2020 Programme funding. Focusing on key priority 

sectors such as maritime transport, offshore energy, maritime 

and coastal tourism and aquaculture, the CMMI is forging partnering 

relationships with well-known European institutions and businesses, active 

in the fields of research, technology and innovation for the Blue Economy, thus 

contributing to the transfer of knowledge and the development of a critical mass 

of infrastructure and human capital in the Eastern Mediterranean region. In 2020, 

Cyprus took the lead in optimised shipping and port operations through an agreement 

between CMMI and two digital solutions companies, Tototheo Maritime and Marine Fields 

Holdings. This agreement will test the understanding that ship port calls and harbour 

services can be optimised through data sharing, using artificial intelligence (AI) and 

more efficient communications within the coastal ecosystem. In addition, the 

Institute also signed an MoU with Bernhard Schulte Shipmanagement to 

launch True North 72, an initiative that aims to encourage innovation across 

the maritime supply chain and logistics industries. In the education 

sector, Frederick University, based in Nicosia and Limassol, 

aims to become one of the world’s top providers of maritime 

education. In 2019 alone, the University had a budget of 

more than €28 million for 31 new research programmes, 

while in the past decade the university has been 

involved in over 200 research programmes. 

RISE OF EMERGING TECH 

A new kind of highly accessible research centre 

that aims to have a permanent and pivotal presence 

in the research and innovation ecosystem of Cyprus was 

established in 2017. Situated in the centre of old Nicosia, RISE 

(Research into Interactive Media, Smart Systems and Emerging 

Technologies) is an incubator and accelerator for both start-ups and 

established companies, with common working spaces and laboratories 

where innovative ideas can be tested. It is also a place for students and 

academics to develop their research in a user-friendly direction. The project is 

a joint venture between Cyprus’ three public universities and the municipality of 

Nicosia, along with the German Max Planck Institute for Informatics in Saarbrucken and 

University College London. RISE builds creative partnerships between local government, 

commerce and academic scientific research. The project has been very successful in 

competing for funds, so far securing €50 million, with €15 million from Horizon 

2020 – a figure matched by the Cyprus government that will be scheduled over 

15 years, and with PwC and Eurobank offering their services in kind. 


KEY 

contacts 

Deputy Ministry of Research, 

Innovation and Digital Policy 

www.dmrid.gov.cy 

The Research and 

Innovation Foundation 

www.research.org.cy 

Cyprus ranks 

first among the 

EU member 

states in relation 

to the per capita 

absorption 

of funds from 

the biggest 

EU research 

and innovation 

programme, 

Horizon 2020, 

which has a 

budget of nearly 

€80 billion. 

In addition, the RIF has developed extensive 

activities at both a national and international 

level towards supporting the local ecosystem. 

One of its most important activities is the development, 

launch and monitoring of research and 

innovation (R&I) funding programmes, such 

as the multiannual framework of programmes 

dubbed RESTART 2016-2020, with a total budget 

of approximately €100 million. The Foundation 

is also responsible for the coordination of the activities 

for the participation of Cyprus in Horizon 

2020, the biggest EU research and innovation 

programme. 

According to EU data, more than €245 million 

has so far been absorbed by members of the 

Cypriot academic, research and business community. 

Since the beginning of the programme in 

2014, a total of 5,059 Cypriot applications have 

been submitted. Of those, 3,876 were eligible and 

541 were approved for funding – ranking Cyprus 

first among the EU member states in relation to 

the per capita absorption of Horizon funds. With 

the Horizon 2020 programme closing at the end 

of the year, the EU is now launching its most 

ambitious R&I programme to date branded as 

Horizon Europe, which will run from 2021-2027 

with a budget of €105.7 billion keeping the EU – 

and Cyprus – at the forefront of global research 

and innovation. 

TACKLING CLIMATE CHANGE 

Climate change and environmental degradation 

has become a primary and existential threat to 

Europe and the world. To overcome these challenges, 

a new growth strategy is needed to transform 

the EU into a modern, resource-efficient 

and competitive economy. As a country seriously 

affected by climate change, Cyprus’ R&D landscape 

has taken a strong approach in finding solutions 

and introducing cutting-edge monitoring 

systems to gather vital data. 

Thanks to €15 million in Horizon 2020 

funding, one of Cyprus’ top-tier institutions for 

research and development, the Cyprus Institute 

(CyI), has expanded its vital work monitoring 

atmospheric pollution as an indicator of regional 

climate change and established the Centre 

of Excellence for Eastern Mediterranean and 

Middle East Climate and Atmosphere Research 

Centre (EMME-CARE). The EMME region has 

long been recognised as an area subject to rapid 

environmental change and increasing demand 

for dwindling resources such as water. The rate of 

temperature change in summer in the EMME for 

example, is more than twice the global average. 

Through continuous comprehensive measuring 

of levels of airborne atmospheric pollution, 

along with advanced computer modelling, the 

research centre is building up a unique database 

to develop a portfolio of regional-specific strategies 

for climate change mitigation. In time, the 

research will reduce dependency on know-how 

that has generally not been devised for the region’s 

particular needs. Meanwhile, the Institute’s 

Energy, Environment and Water Research Center 

(EEWRC) has carried out well-documented 

work on the development of solar power and on 

monitoring climate change. 

The CyI is a key player in developing Cyprus 

as a key R&D hub in the East Med with over 

1,000 partnerships with prominent universities 

and institutes in over 65 countries, and more 

than 50 MoUs with major partners around the 

world. Some of the more notable partnerships are 

with the Massachusetts Institute of Technology 

(MIT), the University of Illinois at Urbana- 

Champaign (UIUC), the Centre de Recherche 

et de Restauration des Musées de France and the 

Max Planck Society. 

The University of Cyprus (UCY) FOSS 

Research Centre for Sustainable Energy also 

carries out cutting-edge research in the field of 

renewable sources of energy, with emphasis on 

solar energy, smart grids, smart buildings, grid 

integration and enabling technologies. FOSS has 

been highly successful in competing for funds, so 

far securing €16 million from more than 50 EU, 

national and industrial-funded projects. Wellknown 

international players in the field of energy 

such as Honeywell, Hanwa Q Cells, Gantner 

Instruments and IBM amongst other leading international 

brands are already collaborating with 

FOSS and are testing their products in Cyprus. 

A key aim is to make Cyprus a hub for solar 

innovation, technology transfer, industry startups 

and job creation where ideas can grow and 

achieve their full potential. Cyprus was also a 

testing ground for an innovative community 

project delivered by a German electric utility 

company Autarsys, where 30 kW/50 kWh was 

connected to a conventional distribution substation 

in Nicosia. State-of-the-art high-voltage 

lithium-ion batteries were used, and the battery 

system provided services to the distribution 

network, such as power balancing, network 

and frequency support, as well as services that 

stabilise and protect the seamless operation of 

the network and are considered essential for 

modern power networks. The project received 

funding from the European Union’s Interreg 

Mediterranean research and innovation programme 

under the project StoRES – a €2 millioneuro 

project of the MED Programme of the EU’s 

European Regional Development Fund. 

In regional cooperation, Cyprus saw the creation 

of the Paphos Innovation Institute in 2020, 

which is a non-profit joint venture between one 





of Israel’s leading institutions 

IDC Hezliya and the city of 

Pafos. The learning and training 

institute has the aim to encourage 

intellectual and entrepreneurial 

cooperation to generate 

solutions to challenges of water, 

energy and food security. 

Cyprus’ climate research 

is also well aligned with the 

European Commission’s (EC) 

European Green Deal, an 

action plan to boost the efficient 

use of resources, cut pollution 

and restore biodiversity. 

The ultimate goal is for the EU 

to be climate neutral in 2050. 

Part of the action plan is investing in eco-friendly 

tech and green innovation, and it will mobilise 

funding of over €100 billion in 2021-2027 to the 

most affected regions. Cyprus has begun working 

in collaboration with key ministries towards the 

realignment of its projects and initiatives portfolio 

to be aligned with the EC Green Deal plan. 

Projects based on the Green Deal for Cyprus 

can focus on climate change, quality of water, 

soil exploitation, food and smart cities, energy, 

solar energy exploitation – and with the necessary 

technology and intellectual capital needed 

already in place, Cyprus is sure to accomplish its 

targets. 

The RIF has set 

up a Knowledge 

Transfer Office to 

operate as a central 

hub linking industry 

with research 

organisations and 

support high-level 

knowledge transfer 

activities such as 

patent protection 

and licensing. 

focuses on developing start-ups 

from early-stage to mature ventures, 

by assisting them in all 

the necessary steps and being 

with them throughout their 

journey. 

To better connect research 

talent with businesses and 

to support ways to commercialise 

novel solutions is of 

strategic importance to the 

aforementioned Research and 

Innovation Foundation (RIF). 

The Foundation has set up a 

Knowledge Transfer Office, 

which operates as a central hub 

linking industry with research 

organisations and support high-level knowledge 

transfer activities such as patent protection and 

licensing. Another project in the works is to 

set up an Innovation Factory to offer mentoring, 

coaching and assessment services as well as 

enable networking with investors. One of the core 

RIF activities is to also keep a record of expatriate 

Cypriot researchers on a central database, with 

the purpose of keeping them informed about R&I 

activities in Cyprus, updating them with available 

networking and financing opportunities and encouraging 

the development of new partnerships. 

A FUTURE OF TRANSFORMATION 

Three new Centres 

of Scientific 

Excellence in 2019 

➊ Marine and 

Maritime Research, 

Innovation and 

Technology Centre 

➋ Eastern 

Mediterranean 

and Middle East 

- Climate and 

Atmosphere 

Research Centre 

➌ Biobanking and 

the Cyprus Human 

Genome Project 

FOSTERING START-UPS 

Creating a vibrant community of start-ups is a key 

priority for Cyprus, and to achieve this, providing 

programmes and incentives specially-designed to 

respond to the needs of early stage entrepreneurship 

is essential. Cyprus already has high-quality 

human capital and world-class academic and research 

centres, however, it still needs to embrace 

creativity in order to fuel cutting-edge ideas and 

build a culture of innovation. A key challenge 

is to create better links between innovative academic 

research centres and businesses that excel 

in transforming ideas into commercially viable 

products and services. 

There are private R&D companies which are 

commercially driven, and a flagship example 

is the Cyprus Research and Innovation Center 

(CyRIC). Its core areas are mechanical engineering 

design and prototyping, electrical and 

electronics engineering, robotics and wearables, 

biomedical engineering and information communication 

technologies. CyRIC has been involved 

in more than 35 R&D projects – mostly 

funded by the EU and industry – worth over €40 

million. It also founded an international venture-building 

incubator branded Gravity, which 

With renewed focus from a government level to 

support and develop a thriving research and innovation 

sector, the country is diversifying into a 

more sustainable and knowledge-based economy. 

With a multitude of innovative projects up and 

running, new centres of excellence and cuttingedge 

multidisciplinary research being undertaken, 

Cyprus is well on its way to achieving its 

ambition of becoming a leading innovation hub. 

The vast pool of talent, experience and state-ofthe-art 

facilities are attracting bright minds from 

around the world and the growth in this area is 

also attracting those wanting to invest in emerging 

technologies and solutions of the future. 

Situated at the crossroads of three continents and 

already established as a solid EU business centre, 

Cyprus is the ideal location for research and innovation 

projects that can easily reach millions of 

potential customers. The future of Cyprus is one 

of transformation and the synergy between scientific 

research and industry is fundamental for the 

creation of a productive R&I environment with 

multiple benefits for the economy. n 


The 

government, 

banks and 

public 

organisations 

have been 

promoting Cyprus as a startups 

destination, offering 

tax incentives for innovative 

enterprises and start-ups. 

Recently, the government has 

also offered great incentives 

to the film industry and has 

managed to grab the attention 

of renowned American 

producers, which apart from 

being an asset to the economy 

of Cyprus, it will be a huge 

marketing tool for Cyprus on a 

global level, associating Cyprus 

with glamour and wealth. 

Yiannos G. Georgiades 

Co-founder and Director 

KV Kinisis Ventures Limited 


Technology & Start-Ups 


The technology space in 

Cyprus is seeing a fresh boost 

with more state support to 

the sector, the launch of new 

national strategies to integrate 

innovative tech, and incentives 

to attract more IT start-ups 

and regional headquarters. 

AN ERA OF 

DISRUPTION 

Promoting a digital economy, developing 

more secure and efficient 

global communications and launching 

incentives are top priorities for 

Cyprus to attract more business and 

investment into its technology sector. 

Already home to a number of international 

tech companies running 

their regional headquarters from the island and 

servicing clients in Europe, the Middle East and 

North Africa, Cyprus is also seeing increasing 

numbers of innovative start-ups on its shores. 

The growing interest and activity in this 

sphere has also spurred the country to make unprecedented 

moves and shift its focus to this area 

of the economy, underlining the importance of 

Information and Communications Technology 

(ICT) as a catalyst to increase productivity and 

economic growth. In 2019, the government 

pledged to double expenditure on developing 

technology and increase private contribution as 

part of a 2019-2023 national strategy on Research 

and Innovation. The proposal envisions the future 

of the country as a dynamic and competitive 

economy with technological development, scientific 

excellence, innovation and entrepreneurship 

at its core. Another big reform in 2020 was the 

official establishment of a Deputy Ministry for 

Research, Innovation and Digital Policy to guide 

the country through its digital transformation. 

These moves highlight Cyprus’ efforts to 

finally take bold steps to be a part of the ongoing 

Fourth Industrial Revolution (4IR), which is accelerating 

at a rapid pace with the growing utilisation 

of new technologies such as artificial intelligence, 

cloud computing, robotics, 3D printing, 

the Internet of Things, and advanced wireless 

technologies. These developments have ushered 

in a new era of economic disruption, and Cyprus 

is ready to boost investment in this sector to 

secure its future as both an established international 

business centre and an emerging tech hub. 

TECH HQ LOCATION 

Several major international ICT companies have 

long operated regional headquarters in Cyprus, 

using the island as a hub for software development, 

system integration, testing services, R&D 

activities, project management, marketing and 

sales. Among these are NCR, a world leader 

in consumer transaction solutions, including 

ATM teller machines, and Amdocs, a leading 

multinational software and services provider to 

global communications and media companies. 

Others who have their global headquarters in 

KEY 

contacts 

The Research and 

Innovation Foundation 

www.research.org.cy 


Cyprus is 

ready to boost 

investment in the 

sector to secure 

its future as both 

an established 

international 

business centre 

and an emerging 

tech hub. 

Cyprus include Wargaming, a world-renowned 

video game developer, international VoIP IPBX 

software developer 3CX, and Viber, the popular 

online communications platform. Viber’s success 

in Cyprus is a good advertisement for the island 

as it seeks to attract more tech entrepreneurs. 

Viber was started in 2010 by a team of foreign 

nationals who needed an EU base with favourable 

taxation, so they set up their headquarters 

in Limassol. Viber grew rapidly and in 2014 

was bought by the Japanese e-commerce giant 

Rakuten for US$900 million. 

International heavyweights such as Microsoft, 

SAP, Oracle and IBM have been present in 

Cyprus for many years, and the island has long 

been a prime location for the fintech industry as 

it is home to hundreds of the world’s biggest forex 

brokers and online-trading platforms. But there 

is room for further development and growth in 

the sector for smaller innovative enterprises, such 

as Whipper, a ‘chat and play’ gamified digital 

messaging platform which opened its headquarters 

in Limassol in June 2017. Its founding team 

includes executives, investors and advisors from 

Netflix, Riot Games, Amazon, Swiftkey, Expedia, 

and Viber. The number of fintech and regtech 

firms, such as Spotware Systems and Point Nine, 

is also growing and taking advantage of Cyprus 

as a gateway into and out of the EU for various 

corporate services. 

DIVERSIFY OR DIE 

With its new focus on long-term development 

outcomes, Cyprus is determined to diversify 

and harness growth with a technology-driven 

economy. The biggest spender by far on IT in 

Cyprus is the financial sector, followed by the telecoms 

providers and the public service. Support 

and training services form the largest primary 

market in Cyprus, followed by project and outsourcing 

services. There is currently big demand 

for support services and skills training in ICT, 

especially as communications are increasingly 

moving to 3rd Platform technologies, such as 

mobile, cloud and big data systems. Services and 

software are expected to be the top-performing 

segments of the Cypriot IT market in the coming 

years, due to continuing demand for quality endto-end 

solutions that focus on enhanced user 

experience. Innovation and specialisation will be 

key elements to succeed in the Cypriot market. 

For Cyprus to remain competitive largely 

depends on how it adapts to new realities like 

virtual banking, e-governance, agritech, new 

and renewable energies, as well as smart cities. 

Business success will depend on how new technological 

capabilities will be utilised, and education 

and retraining will be absolutely crucial. In 

the next five years, there is significant potential 

in further developing medical and financial technology, 

and Artificial Intelligence (AI) is also 

set to significantly change the way companies 

conduct their business. 

NEW AI STRATEGY 

Whether it sparks excitement or fear, there is no 

denying that AI has already become an important 

part of our world by enhancing key business 

processes to help drive value. Today, companies 

are racing to adjust their operations to be able 

to capitalise on its transformational potential. 

Cyprus has taken a firm stance in establishing 

AI as a driving force for growth and increased 

productivity, and an opportunity to transform its 

economy. 

Considerable progress has already been 

achieved in Cyprus by developing blockchain 

technology and a National Strategy for 

Decentralised Technologies has already been 

adopted. In January 2020, the Council of 

Ministers approved a new National Artificial 

Intelligence strategy with plans to establish applications 

to support the technological development 

of AI in domains such as universities, public and 

private sectors. The aim is to create an ethical and 

trustworthy foundation for AI development and 

to build an international cooperation network 

through Cyprus’ participation in EU initiatives. 

The strategy also serves as a tool to better engage 

with high-tech and start-up companies present 

on the island and to attract more players to help 

develop this segment. 

Cyprus-based companies are already being 

noticed internationally in the AI sphere. For 

example, in its first outside investment fundraising, 

machine-learning company Omilia secured 

$20 million in funding from Grafton Capital to 

continue expanding its conversational AI technology 

built for customer care needs of global 

enterprises. The Cypriot company has built a 

virtual assistant and customer dialogue management 

system, where customers can experience 

human-level intelligence and machine-level efficiency 

when contacting a company, whether 

by phone, web chat, social media, SMS, email, 

or mobile app. The AI consists of proprietary 

speech-recognition software, voice biometrics, 

dialogue technology and machine learning, 

which the company claims has trained on billions 

of interactions since its founding in 2002. 

Now the service is fluent in 21 languages, serving 

clients such as global banks, mobile operators 

and insurance firms. The fresh capital will fuel 

go-to-market efforts in Western Europe and 

North America, where the company already has 

a lucrative customer base. 



Technology & Start-Ups 


CORONA IMPACT 

Although the coronavirus pandemic has had 

devastating consequences on the world economy, 

with Cyprus also feeling its effects, there has been 

a silver lining in the situation speeding up digital 

and technological advancements. 

In Cyprus the pandemic forced the government 

to spin into action and adapt to the needs 

and imperatives imposed by crisis management 

in the post-corona era. The long-term action plan 

to automate public services was sped up with 

the urgency to deliver these priorities faster for 

the benefit of individuals and businesses. What 

would have taken a few years to achieve has been 

pushed to the top of the agenda with the aim to 

complete the targets in a matter of months. 

Substantial government funds are now allocated 

to support the rapid development of e-government. 

Thanks to around €350 million made 

available, Cyprus will be able to implement 160 

e-government services – considerably more than 

the 50 deemed essential. 

Even before the pandemic crisis, the government 

had already set in motion plans to reinforce 

the tech sector in Cyprus, by creating a unique 

visa to host services from abroad and in attracting 

skilled Cypriots from the diaspora to return 

to Cyprus, and to bring in new technology and 

know-how that may not be found on the island. 

DEEPENING THE TALENT POOL 

Cyprus already has an extensive and internationally 

recognised pool of skilled professionals in financial 

and business services, but where this pool 

still remains relatively shallow is in the tech sector 

– a gap the country urgently needs to bridge if it 

wants to develop its IT landscape. Cyprus has attracted 

more than 7,000 IT pros, the majority of 

whom are seasoned and older professionals, not 

young graduates and execs who are a crucial demographic 

to secure the future of the sector. 

Statistics on this subject are formidable. For 

example, although Cyprus has the second-highest 

tertiary educational attainment rate in the EU, 

it has one of the lowest proportions of Science, 

Technology, Engineering, and Mathematics 

(STEM) graduates at a time when nearly 46% of 

new jobs created in the EU require STEM skills, 

according to the EU Education and Training 

Monitor for 2019. There are many unskilled 

workers in the local labour force. Specifically, 

these are individuals aged 25-64 who are employees, 

self-employed or family workers. The proportions 

of those with low digital skills (32%) or 

only basic digital skills (34%) are higher than the 

EU average of 25% and 30% respectively. Those 

reporting above-basic digital skills are fewer in 

Cyprus (22%) than across the EU (36%). 

The tech-talent shortage is a growing issue 

and challenge worldwide. The Cyprus government 

has recognised this as a key concern given 

the growing importance of digital technologies 

and artificial intelligence in the workplace. An 

ever-increasing sector, the field of information 

technology has a definite shortage in the supply 

of those who can work in the field, such as coders. 

Despite Cyprus already being a tech hub, industry 

experts note the need to increase the supply 

of competent employees to meet the demands of 

tech companies relocating to the island. 

The education sector has adapted to this reality 

introducing curricula to supply more skilled 

graduates to the labour market. The local universities 

provide excellent bachelor and masters programmes 

in computer sciences and technology, 

consistently producing tech-savvy candidates 

to join the ranks of some of the world’s leading 

ICT companies. For example, the University of 

Nicosia (UNIC) broke new ground in university 

adoption of blockchain technology and offers the 

first certified online blockchain course (MOOC) 

and the world’s first master’s degree for digital 

currencies. More than 25,000 students have taken 

the MOOC and over 500 students have enrolled 

in the MSc in digital currencies. 

Cyprus has also established several Digital 

Innovation Hubs (DIHs) such as the CYRIC 

Digital Innovation Hub, the KIOS Innovation 

Hub, the Robotics Control and Decision 

Systems (RCDS) Lab at the Cyprus University of 

Technology, and the Entrepreneurship Centre at 

the University of Cyprus. These DIHs are active 

in various market segments, such as agriculture, 

health, construction, transport, manufacturing 

and energy, and in a wide range of technological 

areas, including AI, Big Data, cloud computing 

and cybersecurity. The AI Expert Group considers 

the creation of a (virtual) AI DIH with dedicated 

AI research programs that could serve as a 

platform where the scientific and business community 

could access and share knowledge. 

To entice more 

international talent from 

non-EU countries to launch 

innovative ventures, Cyprus 

has extended its Start-Up 

Visa scheme until May 2021. 

Cyprus has taken 

a firm stance 

in establishing 

AI as a driving 

force for growth 

and increased 

productivity, and 

an opportunity 

to transform 

its economy. 


Also the country’s investment promotion 

agency, Invest Cyprus, announced in 2018 a 

collaboration with Singapore-based blockchain 

platform VeChain and the American organisation 

CREAM, which provides advisory services 

for projects and investments in the blockchain 

area. The objective is to create a new framework 

of cooperation, recommend policy reforms and 

establish the necessary legal framework to regulate 

the application of blockchain technology 

in Cyprus’ financial sector. Another non-profit 

organisation supporting the research of blockchain 

technologies is called Cyprus Blockchain 

Technologies (CBT), which is a consortium including 

the University College London, the Bank 

of Cyprus and KPMG. 

FOSTERING START-UPS 

Attracting more innovation and talent is key to 

Cyprus’ efforts to secure a digital future, which is 

why the country has introduced financial incentives 

for innovative SMEs and start-ups launching 

on the island. To entice more international talent 

from non-EU countries to launch innovative 

ventures in and from Cyprus, a pilot programme 

called the Start-Up Visa scheme was set up in 

2017, which has been extended until May 2021. 

The move is expected to further boost entrepreneurship 

with the goal to create new jobs, 

promote innovation and research, and diversify 

the country’s business ecosystem. Approved applicants 

will initially get the right to live and work 

in Cyprus for at least a year, and if successful in 

launching their start-up and creating jobs, the 

visas can be extended indefinitely. So far, most 

interest has come from the Middle East, and 

given Cyprus’ proximity to the area it makes the 

island an attractive option for innovators from 

the region to stay close to home while working in 

a competitive and business-friendly environment 

with access to EU markets. 

Attracting more tech pros to Cyprus will ultimately 

lead to cross-fertilisation among professionals 

and an increase in local start-ups. As 

the country’s tech eco-system grows, it will also 

bring venture capital through its SME Equity 

Fund. The government has allocated €20 million 

to this fund, and it will be used in combination 

with other lenders. These lenders will commit 

their own funds in combination with state 

money – without the expectation of any return. 

Distribution through banks will ensure that projects 

are vetted properly for viability before receiving 

funding. 

Start-up accelerators like the Cyprus Business 

Angels Network (CYBAN), Cypriot Enterprise 

Link, Chrysalis Leap and Repower Cyprus have 

all boosted the environment, along with events 

such as Hack Cyprus Hackathons, the Clean 

Launchpad Competition, as well as Startup 

Weekend and Startup Live. Home-grown talent 

and a burgeoning tech landscape are launching 

inspirational success stories, and a new research 

centre on interactive media, smart systems and 

emerging technologies (RISE) was inaugurated 

in Nicosia in 2017. The project is a joint venture 

between the three public universities – University 

of Cyprus, Cyprus University of Technology, and 

the Open University of Cyprus – the Municipality 

of Nicosia, and two international partners, the 

German Max Planck Institute for Informatics 

and University College London. 

As part of the new National AI Strategy, 

a vibrant start-up ecosystem will also be fostered 

through the development of an accelerator 

program to support the successful launch 

and survival of new AI business ventures. This 

program will provide expertise in developing AI 

solutions, and help firms access expert communities. 

Apart from creating opportunities to team 

up with other firms and research institutions, and 

facilitating the access to flexible and effective financial 

funding, this program will also provide 

dedicated support to testing and open data environments 

– including regulatory sandboxes. 

The growth of the AI start-up ecosystem will be 

encouraged through national funding programs 

and state incentives, which will be complemented 

with European funding programs such as 

Horizon 2020. 

GOING DIGITAL 

In a bid to catch up to the rest of the EU in digital 

transformation and innovation, Cyprus is now 

taking huge strides and is determined to succeed 

in developing the sector for both companies and 

the state to better capitalise on innovative ideas 

and products. The country’s tech landscape is 

sure to see substantial growth in the coming 

years also thanks to its top-tier universities and 

research institutes providing increasing numbers 

of highly qualified staff and carrying out groundbreaking 

and technologically innovative projects. 

Automating public services, upgrading networks, 

and promoting entrepreneurship are key goals 

for Cyprus to strengthen its global competitiveness 

amidst the Fourth Industrial Revolution. 

An increasing number of technology companies 

are choosing to locate their operations to Cyprus 

because of its cost-effective services, favourable tax 

and business environment, and with new incentives 

and digital strategies in place it is no wonder 

the island is also emerging as a start-up hotspot for 

entrepreneurs to kick-off new ventures. n 




Telecoms & Satellite Communications 


BUILDING A 

GIGABIT FUTURE 

Developing high-end networks and 

advanced satellite communications 

are part of Cyprus’ efforts to build the 

foundations of a sustainable digital 

future and to strengthen its status as 

an international services hub and investment 

destination. Local telecom 

operators have started implementing 

Fibre-to-the-Home connections and have 

upgraded their cellular networks to provide 4G+ 

coverage services, with fifth generation telecom 

technologies next on the agenda. 

The island already has a fully digital network 

with reliable high-speed international connectivity 

via eight fibre-optic submarine cables, including 

the world’s longest optical submarine telecommunications 

cable, SEA-MEWE-3, which 

links directly with Southeast Asia, the Middle 

East and Western Europe. Cyprus also has dedicated 

fibre links to major international Points of 

Presence and Connectivity, as well as top-tier satellite 

services ensuring all the right connections 

are in place. The strategic geographical location of 

Cyprus, its established framework for technology 

and research initiatives, and skilled workforce are 

all key aspects in the efforts to upgrade its telecoms 

landscape in line with Europe’s common 

digital agenda. 

Cyprus ranks 24 th in the European 

Commission’s 2020 Digital Economy and Society 

Index (DESI), and although still scoring below 

EU average, it is gradually closing the gap. The 

country has improved in the areas of connectivity, 

use of internet services, integration of digital 

technology and digital public services. Cyprus 

performs well in fixed and fast broadband coverage 

and in fixed and mobile broadband takeup, 

in which its scores above the EU average. In 

fact, fixed network coverage is among the main 

factors boosting Cyprus’ ability to benefit from 

the digital economy. 

MOBILE AND BROADBAND 

Cyprus’ mobile network already covers almost 

100% of the population, and with high-speed 

broadband coverage available to around 90% 

of households, the country has been performing 

better than the EU average over the last few 

years. The target of the government’s National 

Broadband Plan 2016-2020 is to reach full coverage 

and speeds of at least 100 Mbps by the end 

of 2020. The strategy has since been updated to 

align with the 5G action plan which is fundamental 

to achieving the targets of the European 

gigabit society by 2025. By the end of this year, 

Already a strategic 

communications 

base, Cyprus now 

aims to become 

part of the European 

gigabit society by 

2025 and rolling 

out advanced nextgeneration 

services 

that are set to 

revolutionise all 

aspects of daily life. 

KEY 

contacts 

Ministry of Transport, 


www.mcw.gov.cy 


Telecom 

operators are 

being faced 

with unprecedented 

challenges 

in 2020 due to the Covid pandemic, 

which brought an everincreasing 

demand for data 

communications for remote 

working – and Cyta’s network 

is coping extremely well. We 

continue to introduce new 

products and services, such 

as cloud, 5G and IoT services, 

as well as high-value video 

content in the local market. 

Internationally, we leverage 

on our strategic geographical 

position and extensive 

optical submarine and satellite 

networks to strengthen our 

role as a regional wholesale 

provider of connectivity, serving 

other telecom operators and 

providers in the greater Middle 

Eastern region and beyond. 

Costas Psillides 

Manager, International 

Wholesale Market - Cytaglobal 

With digital 

transformation 

now more 

urgent, Epic 

provides a 

state-of-theart 

mobile network enhancing 

the consumer’s experience. Our 

investments on our network to 

be ready for all future customer 

needs have been fruitful, as 

the simultaneous distinctions 

by top organisations Ookla 

and Umlaut prove. Beyond the 

achievement of being the #1 

mobile network in Cyprus, we 

are also working towards the 

implementation of a privatelyowned 

fibre optic network for 

households that will deliver 

unbelievably fast bandwidth 

and a unique experience but 

will also upgrade the country’s 

infrastructure as a whole. 

Thanos Chronopoulos 

CEO - Epic 

Cyprus will draft a new broadband plan which 

will include projects on infrastructure development, 

information and awareness raising, digital 

skills and entrepreneurship, and security as well 

as projects for increasing the demand for ultrafast 

connections – an area in which the country has 

been lagging behind its EU peers. 

In addition, Cyprus has secured EU structural 

funds for the deployment of step-change technology, 

for the roll-out of Fibre-To-The-Home 

(FTTH) networks. By the end of 2020, FTTH 

networks are expected to extend to every private 

residence. Also, over 30 Cypriot communities 

have received EU funding to cover the cost of installing 

Wi-Fi hotspots in public spaces, including 

town halls, public libraries, museums, public 

parks or squares. The WiFi4EU initiative is part 

of the ambitious overhaul of EU telecoms rules, 

including new measures to meet Europeans’ 

growing connectivity needs and to boost Europe’s 

competitiveness. 

Competition among various operators has resulted 

in a good offering of high-speed broadband 

access services throughout the island. However, 

according to the European Commission, prices 

for mobile broadband in Cyprus are more expensive 

than the EU average. 

State-owned operator Cyta continues to dominate 

the market offering a full range of telecommunications 

services. Following a government 

decision, Cyta is now required to denationalise 

its business to transform it into a more flexible 

and competitive telecoms firm, which presents 

an opportunity for foreign investors. The guidelines 

demand the company explore all options to 

achieve the end goal, whether it be through selling 

shares, creating privately owned subsidiaries or to 

privatise through a strategic partner or investor. 

The second largest operator is Epic, formerly 

MTN which was rebranded after a Monaco 

Telecom S.A. buy-out for €260 million in 2018. 

Other key players with a prominent role in the 

telecoms landscape are PrimeTel and Cablenet, a 

subsidiary of Maltese Go Plc which has increased 

its profits and expanded its customer base over 

the last year. 

THE ERA OF 5G 

Cyprus operators are constantly updating and 

evolving their networks and are currently updating 

their investment plans to embrace 5G infrastructure 

along with other European nations. 

Preparations for official 5G licensing have begun 

and are expected to finish in 2020, a goal set by 

the EU. Cyprus is set to allocate 5G frequency 

platforms to the top four bidders before the end 

of the year while authorities see 5G going live in 

2021. 

Telecom companies Cyta, Epic, and PrimeTel 

have been licensed to run pilot 5G programs. 

The 5G network will not replace the existing 4G 

technology but complement it, and is expected 

to have 10 to 100 times higher data transmission 

rates than today’s networks, 1,000 times more 

data volume, five times lower network delay, optimised 

battery life of connected devices and significantly 

improved geographical coverage. These 

advanced next-generation services are poised 

to radically change all aspects of daily life, from 

work to healthcare, and to the development of 

smart cities and homes. 

However, just like in other countries many 

in Cyprus have raised concerns over health risks 

connected with 5G systems and there has been 

some resistance to these developments. The state 

Electronic Communications Department has 

reassured the public that their health is not in 

danger from antennas to be installed, and argued 

that the more antennas, the lower the electromagnetic 

fields will be. The Deputy Ministry of 

Innovation is also currently preparing a campaign 

to inform people on what 5G really is and 

what changes it may bring about. The government 

has urged people to weigh the benefits of 

the technological advancements, as the reduction 

in latency will mean a more reliable network. 

Besides public resistance, another potential 

challenge that could delay 5G implementation 

in Cyprus is the international controversy surrounding 

Chinese telecom giant Huawei, and 

the US sanctions against the Chinese company. 

At the moment more than 90% of local consumers 

in Cyprus are served in one way or another 

by Huawei products. The Chinese tech giant has 

a 10-year presence in Cyprus and has developed 

extensive partnerships with all telecom providers 

in the country to provide high-level IT and 

communications services – and is currently the 

only company which produces equipment for all 

stages of implementing 5G technologies by using 

existing 4G equipment. 

SATELLITE COMMUNICATIONS 

Cyprus offers optimal conditions for satellite 

communications thanks to its ideal climate and 

access to the geostationary arc from the Atlantic 

to the Indian Ocean. Due to its strategic geographical 

position in the most south-eastern part 

of Europe, Cyprus can also ‘see’ satellites located 

above Asia and Australia and gather data where 

other European ground stations have no communication. 

This has resulted in multimillion investments 

into Cyprus from satellite companies, 

which has supported the creation of an extensive 

and growing satellite network, as well as teleport 

sites and major satellite earth stations, to supple- 



Telecoms & Satellite Communications 


ment the country’s efficient fibre-optic connections 

and provide integrated solutions for a reliable 

worldwide 24/7 connection. 

A key player in the fibre-optic cable and satellite 

networks is Cytaglobal, which is a semiautonomous 

Strategic Business Unit under stateowned 

operator Cyta and specialises in providing 

global electronic communication products and 

services. Through its global network, Cytaglobal 

also provides a wide range of international telecommunications 

products. In 2020, the company 

announced its Makarios Teleport was certified 

and ranked as Tier 4 – the highest degree of excellence 

– by the World Teleport Association 

(WTA). The Cyprus teleport site is one of only 

16 fully certified teleports worldwide to achieve 

a Tier 4 certification, and distinguishes it from 

other teleports in the Eastern Mediterranean 

region. 

Another major player in satellite services is 

Greek-Cypriot consortium Hellas Sat, which 

was formed in 2001. This agreement helped put 

Cyprus on the global satellite map and was an 

important step in strengthening the country’s position 

as a successful regional satellite communications 

centre. In 2019, the company successfully 

launched its third satellite, Hellas Sat 4, into orbit. 

The launch started a new chapter in the space 

history of Cyprus and Greece with its mission to 

provide innovative satellite services and expand 

the operations of Hellas Sat in Europe, the Middle 

East and Africa – which will bring further geopolitical, 

technological and commercial benefits to 

both countries. 

The new satellite will extend capacity and 

geographical reach to meet the growing demand 

for applications that include video, internet and 

mobile phone services, maritime connectivity, 

cellular backhaul, corporate networks and government 

services. It is also the most advanced 

commercial communications satellite ever built 

by Lockheed Martin. 

Cyprus has been gaining ground in the field of 

space-tech services and has so far granted 10 licences 

to organisations to launch telecommunication 

satellites using space that Cyprus has secured 

through the International Telecommunications 

Union (ITU). The number of licences is substantial, 

as many countries in the world have issued 

only one license. The country’s economic benefit 

from these services is expected to multiply as 

more satellites are launched. This type of activity 

also boosts the prestige of Cyprus as a country 

engaged in space technology services, and its 

strategic advantages are increasingly promoted in 

a bid to attract infrastructure to Cyprus from the 

European Space Agency. 

The growing sector has also inspired new 

endeavours on the academic front, such as the 

Eratosthenes Centre of Excellence (ECoE), 

created by the Cyprus University of Technology 

in 2018, to conduct research into space technologies. 

Its Excelsior project is motivated by the big 

European space programmes like Galileo and 

Copernicus and their downstream effects on 

European economy and science. The project’s 

vision is to establish the ECoE as a world-class 

Digital Innovation Hub (DIH) for earth observation 

and geospatial information in the next few 

years and becoming the reference centre in the 

Eastern Mediterranean, Middle East and North 

Africa (EMMENA). 

INVESTING IN DIGITAL 

Cyprus has already successfully capitalised on 

its location at the crossroads of Europe, Asia and 

Africa on many economic fronts, and can continue 

to strengthen its role as a convenient regional 

communications base of strategic importance. 

Developing digital policies that attract further 

investment are absolutely crucial in opening new 

avenues to take advantage of the numerous economic 

opportunities provided by the dynamic 

digital era. 

Global demand for bandwidth is accelerating, 

with the rise in cloud computing, data transfer 

and storage, as well as the Internet of Things 

(IoT). Data centre IP traffic is also growing as 

more companies begin utilising data centres 

to cut costs and streamline workflows. This in 

turn will increase the demand on networks to 

ensure seamless and secure transfers between 

data centres and business locations. Privacy and 

security are the buzz words of the day with these 

developments and Cyprus will have to ramp up 

its efforts to meet these demands. With its infrastructure 

the country is well-placed to boost its 

competitiveness and realise its vision of a digital 

future if it stays on track and keeps up with the 

rapid evolution of the global communication and 

tech industry. 

According to the European Commission, 

if the proposed measures to roll out 5G across 

Europe are implemented by 2020-2025, the EU 

could gain an estimated €113 billion every year, 

creating up to 2.4 million new jobs. This would 

also allow Cyprus to use all the available 2021- 

2027 funding tools to resolve main issues in its 

digital transformation – such as ultrafast coverage 

and take-up, high pricing and low digital literacy. 

The combined use of digital technologies with 

other emerging technologies will certainly bring 

new and innovative business models, generating 

competitiveness, jobs and growth for Cyprus. n 


Digital Boost 

from Coronavirus 

Pandemic 

Cyprus has taken a large 

number of targeted digital 

measures to deal with the 

Covid-19 crisis. Initiatives to 

minimise contagion and to 

support e-health solutions 

for patients and healthcare 

service providers include 

among others a dedicated call 

centre (1420), interactive voice 

response and text messaging 

for any movement of citizens. 

Cyprus also launched a data 

register for tracking confirmed 

Covid-19 cases (Covid-19 

platform), a location tracker 

of citizens/suspected cases 

(COVTRACKER) and a platform 

illustrating the spread of the 

virus (WEBGIS Covid-19). 

In the area of education, 

various online activities were 

developed to facilitate the 

provision of the best possible 

education to students of all 

levels. Supportive educational 

materials have been uploaded 

to the Ministry of Education and 

Culture and individual school 

webpages, for all students 

of all grades. Digitisation of 

the public administration 

is also being accelerated, 

enabling citizens to use their 

e-banking credentials to 

engage with e-government 

services. Teleworking has 

also been promoted for civil 

servants through the use of 

services supporting remote 

access and teleconferencing. 

Key Players 

Cyta 

Cytaglobal 

Epic 

Cablenet 

PrimeTel 

Hellas Sat 


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Tourism 


THE NEW AGE OF 

TOURISM 

Efforts to upgrade and diversify Cyprus’ tourism 

product have paid dividends as the country 

has seen record-breaking tourism figures and 

attracted millions in infrastructure and hotel 

investment over the last few years. Despite 

the current global clampdown on tourism, 

Cyprus opened up early after successfully 

containing its exposure to the coronavirus 

pandemic and launching industry incentives 

and support measures to welcome visitors. 

136 

Country Report CYPRUS 2020

KEY 

players 

Deputy Ministry of Tourism 

www.visitcyprus.com 

TourInvest Cyprus 

www.tourinvestcyprus.org.cy 

Cyprus Sustainable Tourism 

Initiative (CSTI) 

www.csti-cyprus.org 

Cyprus Hotel Association (CHA) 

www.cyprushotelassociation.org 

Association of Cyprus Tourist 

Enterprises (ACTE) 

www.acte.com.cy 

Association of Cyprus 

Travel Agents (ACTA) 

www.acta.org.cy 

Cyprus Agrotourism Company 

www.agrotourism.com.cy 

We are going through 

tough times, 

experiencing drastic 

effects compared to other 

industries. Consumer 

behaviour is changing. 

People are cautious about 

travelling overseas and 

Cyprus is not immune to 

this. There is a shift away 

from mass tourism and 

overcrowded venues, 

towards individually 

tailored experiences 

and slow tourism. Our 

mild climate conditions, 

outdoor lifestyle, clean 

air, high levels of bathing 

water purity are ideal for 

medical and wellness 

tourism, which are 

currently on the rise. 

Despite the inevitably 

large losses in 2020, 

we are focused on our 

multifaceted strategy and 

are optimistic that tourist 

arrivals will rebound in 

the next couple of years, 

positioning the sector 

again as the locomotive 

of the Cypriot economy. 

Savvas Perdios 

Deputy Minister 

of Tourism 

Tourism has been one of Cyprus’ top 

economic performers for decades, and 

the last five years have been record 

breaking in both the number of arrivals 

and revenue thanks to reforms and 

upgrades. In 2019 the country welcomed 

almost 4 million visitors with 

total revenue estimated at €2.7 billion, 

proving the long-standing appeal of Cyprus as a 

top European holiday destination. 

Over the last few years, the country has 

focused on diversifying its traditional beachholiday 

image to show the world it has a lot more 

to offer than just the sun and sea. By extending 

its season with the aim to welcome tourists all 

year round, Cyprus is promoting its mild and 

green winters with snow-capped peaks and its 

other lesser known attractions such as forests and 

mountain regions, its wine country and agritourism, 

as well as its many historical and religious 

sites. Following global trends, a key part of the 

strategy is to develop and refine niche segments 

like health and wellness tourism, sports, nautical 

and cultural tourism, which all represent more 

diversified thematic areas that also foster investment 


sector. 

As well as growing numbers of visitors, 

Cyprus has attracted millions in FDI into tourism-related 

projects. World-renowned hotel 

chains like Radisson and Sofitel are establishing 

themselves on the island, luxurious yacht 

marinas are beginning to spring up in every 

coastal region, and in 2021 Cyprus will be home 

to Europe’s largest integrated casino resort led 

by entertainment giant Melco. Income from 

tourism accounts for more than 20% directly 

and indirectly of the country’s GDP, but according 

to latest estimates the sector has the 

long-term potential to contribute around 25% 

to the country’s economy – making tourism a 

key pillar of the economy with vast potential for 

further sustainable development. 


Though Cyprus had high expectations for its 

tourism sector in 2020, its ambitions were cut 

short when the dangers surrounding the pandemic 

became truly evident. Cyprus acted swiftly, 

closing its borders as it prioritised the health of its 

citizens. With air traffic a fraction of what it used 

to be, the island managed to use its decisiveness 

to its favour. Hailed as one of the safest countries 

in the world in its handling of the pandemic, 

the government felt confident it would reap the 

rewards of its tough and fast measures. 

By June 2020, when the borders reopened 

after almost three months of lockdown, travel 



137

Tourism 


agents had already classed the island as a safe 

destination with many countries eyeing Cyprus 

as a corona-free holiday haven. Meanwhile, 

Cyprus ensured only countries with similar 

epidemiological data could have flights to the 

island, thus balancing tourism and the overall 

health and safety of citizens, hospitality workers 

and visitors alike. The list of approved countries 

will be updated regularly based on how the coronavirus 

situation evolves. 

The year started off well with an annual 

increase of 2% in tourist arrivals for the first 

two months, but a sharp drop was recorded 

in March 2020 due to the lockdown and entry 

ban. Cyprus has shown strong leadership in its 

handling of the pandemic, but it will be hard to 

judge what the long-term impact on tourism 

will be with so many other countries – and crucially 

countries like the UK that constitute key 

markets for Cyprus – still struggling to manage 

their infection rates. 

Cyprus has had to revise its high expectations 

for 2020 and has set a new target of attracting at 

least 20-25% of the 2019 arrival figures, which 

translates to bringing roughly 0.8-1 million 

tourists. To achieve this target, the government 

has taken a proactive approach by targeting 

several European countries to promote Cyprus 

as an ideal travel destination this year. To secure 

its safe-haven status the government introduced 

rigorous travel and health protocols for anyone 

looking to visit the island. All these measures are 

constantly assessed and updated based on global 

developments. 

SUPPORT MEASURES AND INCENTIVES 

With the harsh realities of the global pandemic 

continuing until the foreseeable future, Cyprus 

has sprung into action to support its tourism industry. 

In early June 2020, the country launched a 

new scheme to support aviation to stimulate passenger 

traffic by providing incentives for airlines 

to conduct flights even with low occupancy rates. 

The scheme, which will run for six months with 

a budget of €6.3 million, will see the government 

subsidising airlines based on their occupancy rate 

index, with sums to be pumped out for flights 

conducted with occupancy rates between 40% 

and 70%. The goal is to promote direct connectivity 

between Cyprus and other countries and 

motivate airlines to operate flights to the island 

until the end of the year. 

In this new post-corona reality discounting 

is going to be the prime factor for people determining 

their choice of holiday destinations, 

and tourism experts predict the lower price tags 

will result in a significant increase in travel and 

tourism. With the Cyprus government subsidy 

assuring a large part of a flight’s capacity, airlines 

would be able to offer substantial discounts to 

other passengers to fill up the plane. In addition, 

Cyprus reduced the value-added tax (VAT) rate 

for tourism accommodation and catering sector 

services from 9% to 5% for the period from July 

1 to January 10, 2021, and the government is 

doubling its air and sea connectivity resources to 

€15.7 million by the end of the year. 

Our hotel 

industry 

continues 

to receive 

a huge 

blow, due 

to Covid-19, at a time when it 

was predicted that this strong 

pillar of our economy, would 

continue its good course. 

Traditional markets, such as 

the United Kingdom, Russia 

and Israel, were lost and 

the only injection is the local 

tourism, which, however, 

is impossible to justify the 

reopening of all the hotels 

in Cyprus. Reviewing our 

forecasts, we believe that 

the full recovery of our hotel 

industry will take at least 

two years. Nevertheless, 

we continue with hard work 

and creativity to return our 

industry where it deserves. 

Haris Loizides 

President 

Cyprus Hotel Association 

340 

Days of sunshine 

Tourism 

accounts for over 

20% 

of GDP, directly 

and indirectly 



2020 has 

taken an 

unexpected 

turn due to 

the Covid-19 

pandemic. 

Tourism, however, is resilient. 

It will come back. It is a great 

opportunity to change and 

start seeing tourists not as 

numbers with a dollar sign 

on their head, but as guests 

we welcome into our homes 

and whose visit will be an 

experience for both host and 

guest. The tourism comeback 

must choose a more sustainable 

and responsible route 

to tackle the climate crisis. 

Philippos Drousiotis 

Chairman 

Cyprus Sustainable 

Tourism Initiative (CSTI) 

3.97 

million tourists 

in 2019 

€2.683bn 

in revenue 

DIVERSE OFFERING 

Although Cyprus is rebranding its image, there is 

no doubt a key element of Cyprus’ appeal remains 

its ideal weather of 340 days of sunshine and its 

pristine beaches – which are consistently ranked 

as some of the best in Europe for their high environmental 

and quality standards. Cyprus has 

66 Blue Flag beaches and one Blue Flag Marina, 

renowned eco-labels awarded to beaches and 

marinas across the globe that meet specific standards. 

In 2019, Cyprus was lauded with the title of 

having the best bathing water quality in the EU, 

according to the European Commission and the 

European Environment Agency (EEA). Over the 

years, the island has consistently ranked at the top 

of this list for excellent water quality. 

The Mediterranean lifestyle and expanding 

tourism offering of Cyprus have strengthened its 

status in the global tourism market as a destination 

of choice for travellers of all budgets – with 

accommodation ranging from rustic retreats and 

vast Airbnb options to bespoke hotels and luxury 

resorts. With further development of its niche 

segments, Cyprus is set to also attract a more 

diverse demographic of tourists interested in experiencing 

authentic island life and exploring the 

country’s gastronomy and history. Cyprus boasts 

world-renowned archaeological sites, such as the 

ruins of the ancient city-kingdom of Kourion and 

the famous Paphos mosaics. In 2018, the Cyprus 

antiquities department announced that it would 

be collaborating with the Getty Conservation 

Institute in Los Angeles to look at better conservation 

management of the World Heritage sites 

of Nea Pafos and the Tombs of the Kings, and to 

find ways of improving the visitor experience at 

these sites – a move that has been welcomed by 

both tourism officials and tourists. 

Cyprus has also long been a popular winter 

training venue for international sports groups 

and athletes, as well as a destination for various 

sports events, ranging from rallies to cycling and 

sailing. The island attracts thousands of athletes 

and hundreds of teams every year – mainly in 

the winter season – proving that this niche area 

of tourism still has considerable growth potential 

if developed properly. The country’s Tourism 

Ministry has identified sports as an integral part 

of Cyprus’ tourism product and is currently drafting 

new incentive schemes to attract more events, 

teams and athletes to the island. An estimated 

50,000 divers visit the island each year, many 

attracted by the opportunity to discover one of 

the top five dive sites in the world, the Swedish 

cargo vessel Zenobia, which sank off the coast of 

Larnaca in 1980. The island is creating more artificial 

diving reefs off the coasts of major tourist 

areas across the island to attract more divers. In 

addition, golf tourism is growing steadily thanks 

to the island’s year-round good weather and four 

18-hole international standard courses and exceptional 

facilities. 

LOVE AND WELLBEING 

Renowned as the mythical birthplace of 

Aphrodite, the goddess of love, Cyprus has 

become a popular destination for wedding 

tourism, which contributes up to €100 million 

a year to the economy. The number of destination 

weddings to Cyprus is around 8,000 per year, 

of which the majority are from the UK market, 

followed by neighbouring Israel and Lebanon. 

Russia, Poland, Ukraine and the UAE/MEA 

countries constitute growing markets and efforts 

are underway to also promote Cyprus as the ideal 

location for destination weddings and events 


Tourism 


not just to the above-mentioned existing and 

growing markets, but also to new markets such 

as India and the Far East. The growing appeal 

of tying the knot in Cyprus is largely due to the 

availability of civil marriages, making it an attractive 

wedding venue for mixed-faith and secular 

couples. Cyprus is also looking at opening new 

inroads into the billion-dollar global market of 

honeymoon tourism, renewal of vows, celebrations, 

romantic and special events. 

Capitalising on its ideal climate and clean 

waters, health and wellbeing holidays to Cyprus 

are also on the rise. The recent creation of several 

exclusive spa retreats to pamper the visitor, as 

well as a number of large-scale projects open 

for investment in the fields of rehabilitation and 

other wellness services, have all driven interest in 

this niche areas. The wellness segment has been 

identified as one of the key growth areas and FDI 

targets by the government. These plans are perfectly 

aligned with global trends, as the wellness 

market has seen tremendous growth of over 6% 

annually. Medical tourism is also experiencing 

some growth due to Cyprus’ world-class reputation 

for high-quality private healthcare in a technologically 

advanced environment. Cosmetic 

surgery, diagnostic tests and fertility treatment 

top the list as the most popular procedures for 

medical tourists from the UK, Germany, the 

Netherlands, Middle East and Russia. 

EXPANDING CONNECTIVITY 

With continuous efforts to open new markets, 

connectivity is a key aspect of ensuring growth 

in this sector. In the long-term and in a bid to 

decrease its dependency on a handful of traditional 

markets, like the UK, Russia and Germany, 

Cyprus is focused on diversifying and opening 

new markets, such as the Middle East and 

other central and northern European countries. 

Another target is to attract visitors from long-distance 

destinations such as the US, Canada, Korea, 

Japan and China, who are likely to travel in the 

wider region visiting more than one country 

during their holiday. 

Over 80 airlines fly from Cyprus to around 40 

countries and 120 destinations, and the two international 

airports handle around 11 million passengers 

annually. Cyprus has managed to improve 

its connectivity to the rest of Europe even amidst 

the corona crisis with Hungary’s Wizz Air announcing 

its plans to make Larnaca its 28th base 

from July 2020 and to launch 11 new destinations 

to seven European countries from Larnaca. 

Stationing two Airbus A320 aircraft will provide 

one million seats on sale from Larnaca this year, 

underlining the fact that the airline sees the potential 

and the demand for low-cost travel in 

Cyprus as a rapidly developing tourist destination. 

IDEAL PORT OF CALL & HOMEPORTING HUB 

Prior to the pandemic, Cyprus was gaining a 

steady momentum in reviving its status as an attractive 

port of call for cruise ships exploring the 

Eastern Mediterranean region. Evidence of this 

was the fact that cruise line companies have been 

increasing the capacity and frequency of their calls 

to the island and Cyprus has regained its position 

in their East Med itinerary planning. Moreover, 

a British operator TUI (Marella Cruises) has im- 

Visiting 

Cyprus during 

Corona 

To facilitate travel 

arrangements to Cyprus 

and to ensure all necessary 

information required by 

the health authorities are 

submitted, the Cyprus 

government has created a 

constantly updated online 

portal where you can 

complete all the necessary 

formalities in a quick and 

easy way and receive your 

authorisation to fly. For 

more information and to 

plan your journey visit 

www.cyprusflightpass.gov.cy 


We are 

currently experiencing 

a disastrous 

year 

for world 

tourism, yet in view of the 

very effective and quick response 

of Cyprus in response 

to Covid-19, which provides a 

sense of safety to international 

patients, we are looking 

forward to positive developments 

during 2021. We 

expect these developments 

will be especially focused on 

outdoor activities that our 

members are engaged in, 

such as agrotourism, hiking, 

biking, diving, gastronomy 

and wine tours, cultural and 

religious tours and organisation 

of outdoor events which 

are becoming more and 

more popular in Cyprus. 

George Michaelides 

President 

Cyprus Association of 

Cultural and Special 

Interest Tourism 

plemented its winter 2020 plans for homeporting 

from Limassol Port to 13 destinations, a factor 

which has contributed to the boost of tourism 

numbers. Although many of the cruises follow 

the familiar Mediterranean formula, more exotic 

routes were also launched such as a sail from 

Barbados to Limassol. To strengthen Cyprus’ 

maritime tourism, a new passenger terminal was 

inaugurated in 2018 by port operator DP World 

Limassol, with plans to increase passenger traffic 

of the port by 35%. Naturally, the coronavirus 

pandemic has grounded cruise liner traffic to a 

halt and expectations are that cruise visits will 

not resume before 2021. Of the 123 cruise ship 

arrivals that were expected in 2020 to the Ports 

of Limassol, Paphos and Larnaca, more than half 

have been cancelled or rescheduled for the end 

of the year. 

Despite the current difficulties in the cruise 

sector, the decision of a leading international 

cruise company to anchor its liners in Cyprus 

has come as a welcome boost. Six advanced 

passenger ships of cruise operator Carnival are 

laying up with crew on board in Moni anchorage, 

east of Limassol, for the duration of the 

Covid-19 imposed restrictions that have halted 

cruises worldwide. The ships include Bahamasflagged 

Seabourn Encore and the brand-new Sky 

Princess flying the Bermuda flag. This followed 

an official announcement by the Cyprus shipping 

authorities in May offering facilities for cruise 

ships to dock in its ports for refuelling, with 

operators and shipowners also allowed to bring 

their vessels to the island for a ‘hot lay-up’, which 

means the vessel is idle but can be mobilised 

back into service at short notice. The decision by 

Carnival presents significant financial benefits for 

the country, and other cruise operators have also 

expressed an interest to follow suit. 

FOCUS ON THE FUTURE 

Cyprus is actively targeting new markets and 

reassessing existing ones with a sharp focus on 

creating a richer holiday experience emphasising 

culture, nature and indigenous heritage. The 

country has honed a high-quality hospitality 

industry which has been reinforced by the fact 

that for decades tourism has consistently been 

one of the most formidable economic sectors. 

Current efforts to upgrade the country’s image 

and further develop various niche areas, such 

as rural, health and wellbeing, maritime, cultural, 

conference, sports and wedding tourism, 

are paving the way towards a more sustainable 

future. And these efforts have not gone unnoticed 

beyond its borders. FDI has been pouring 

in over the last five years with foreign investors 

closing multimillion-euro deals – cementing the 

fact that tourism-related real estate and infrastructure 

continues to be one of the most attractive 

investment opportunities in Cyprus. Due to 

the interest, the country’s investment promotion 

authority Invest Cyprus has set up a dedicated 

and specialised unit, TourInvest, to promote investment 


sector. In cooperation with the Deputy 

Ministry of Tourism and other stakeholders, the 

unit focuses on attracting multi-million investment 

into large-scale infrastructure projects that 

exist in diversified thematic areas. 

Cyprus’ vision is to reposition itself in the 

global holiday market to provide a more diversified 

and ultimately more sustainable product. 

The new 2030 National Strategy for Tourism 

– which represents the most comprehensive restructuring 

of the sector since 1960 – is certain 

to bring profound results in diversification and 

to keep the sector on its growth trajectory for the 

next decades. The goal is to reach 5.15 million 

visitor arrivals and 4.4 billion euros revenue 

from tourism (including domestic tourism). 

Additionally, the strategy aims to improve seasonality 

and the regional distribution of tourists, 

with the objective of reaching 39% of overnights 

during November-April and tripling overnights 

in rural areas, by 2030. As the current global 

pandemic crisis has revealed, external shocks 

can cause severe delays in plans, but Cyprus has 

proven its resilience and ability to adapt and 

is well placed to achieve its targets and turn its 

vision into a reality. n 




Interview 

Interview: Invest Cyprus CEO George Campanellas 

Attracting 

Tourism 

Investment 

Despite the 

tourism uncertainty 

prevailing globally, 

the TourInvest 

unit’s efforts are 

currently focusing 

on supporting the 

sector through 

adjusting the 

right measures 

and facilitating 

regulations under 

the objective to lay 

the foundations 

for investment 

and to regenerate 

the sector. 

What is TourInvest 

and what is its goal? 

The TourInvest unit is a dedicated and specialised 

unit within Invest Cyprus which aims to 

promote Cyprus’ investment opportunities in the 

tourism and hospitality sector. The establishment 

of the unit falls in line with our National Tourism 

Strategy to establish the country as a quality, yearround 

destination and be one of the most competitive 

tourist destinations by 2030. The vision 

of the Cyprus Tourism Strategy is to turn Cyprus 

into a sustainable and technology-smart destination, 

increase the number of arrivals by 2030 

by diversifying into other tourism thematic segments 

and fighting seasonality by attracting more 

tourists within winter months. 

In order to contribute to the achievement of 

these targets, the TourInvest unit focuses on attracting 

multimillion investment into large-scale 

infrastructure projects that exist in diversified 

thematic areas such as nautical tourism, cultural 

tourism, sports, conference, health and 

wellness, as well as agritourism in cooperation 

with the Deputy Ministry of Tourism and other 

stakeholders. TourInvest acts as the first point of 

contact to international investors, and provides 

valid and useful information on projects of their 

interest. The unit is also actively involved in the 

facilitation of the investment process and assisting 

investors to overcome any legal, regulatory, 

and other time-consuming procedures. 

What kind of projects are 

you currently focusing on? 

With the target to diversify the Cyprus tourism 

product and showcase the country as a quality 

year-round destination, our focus is on attracting 

investment into thematic tourism segments, and 

to showcase the potential of Cyprus, not only as 

a ‘sun and sea’ destination but also as a destination 

with the potential to develop other forms 

of tourism such as medical, health and wellness, 

sports and conference tourism. Large-scale infrastructure 

projects and mixed-use developments, 

such as new hotel projects, rehabilitation centres, 

conference and sports centres would attract a considerable 

amount of investment as well as specific 

groups of tourists that would visit the Cyprus not 

only during summer months but also for other 

business and medical purposes. Emphasis is also 

given to the importance to extend the benefits of 

tourism from the coastal areas to mountainous 

and rural areas, and give boost and value to the 

agritourism product. Invest Cyprus is currently 

examining incentives and mechanism schemes to 

improve and make the investment environment 

and procedures even more attractive to entice 

more interest in the country. 


“Investing in 

sustainable tourism 

is decidedly 

important to make a 

positive contribution 

to the sector, to 

attract multimillion 

investment into 

large-scale 

infrastructure 

projects and to 

offer an exceptional 

tourism experience 

and service to those 

visiting Cyprus.” 

How do you identify 

the available investment 

opportunities in the 

market? How can 

project owners work 

with TourInvest to 

attract investment 

for their projects? 

Part of the TourInvest initiative is to create a 

Project Bank with all investment opportunities 

that are available in the hospitality and tourism 

sector, under the objective to attract investor interest 

in Cyprus. To achieve this, we have been 

maintaining close communication with project 

owners and business associates, from where we 

could derive information on the available opportunities. 

All projects received are going through 

an evaluation process by our team, taking into 

consideration specific criteria and ensuring that 

all information is valid and reliable and aligned 

with our strategy. We encourage those who are 

directly involved with market opportunities to 

contact us and send us sufficient information on 

projects through projects@investcyprus.org.cy. 

How will TourInvest be 

promoting investment 

projects to international 

investors? 

The TourInvest unit aims to build its own 

network of international investors, which will 

look into Cyprus as a long-term investment hub 

and to whom we would always provide the right 

information based on their interests. To grow 

and manage this network of both existing and 

new investors, we maintain a well-managed calendar 

of inhouse international events and missions 

to present the sector-specific investment 

opportunities and provide valuable information 

about the economic outlook of Cyprus. We also 

participate in targeted events with focus on the 

tourism and hospitality sector with the objective 

to promote Cyprus and to achieve effective lead 

generation. 

In addition, we have proceeded with the creation 

of a new website dedicated to tourism and 

hospitality sector opportunities, and have incorporated 

a specific section dedicated on available 

projects linked to the unit’s Project Bank (www. 

tourinvestcyprus.org.cy) with the available and 

reliable support materials. Due to the impact of 

Covid-19 on travelling, we have adopted the right 

technological tools to facilitate us to reach out to 

our foreign investor network, maintain the communication 

and monitor investment community 

appetite. 

The Covid-19 outbreak 

has been devastating for 

the tourism sector globally. 

How can TourInvest 

help Cyprus tourism 

get back on its feet? 

Undeniably, international tourism faces its worst 

crisis with the predictions showing a huge decline 

in international arrivals for this year. Despite 

the tourism uncertainty prevailing globally, 

TourInvest unit’s efforts are currently focusing on 

supporting the sector through adjusting the right 

measures and facilitating regulations under the 

objective to lay the foundations for investment 

and to regenerate the sector. 

Cyprus is an established tourism destination 

with a long history and experience in the tourism 

and hospitality sector, and we have seen a number 

of international hotel chain groups investing 

in the island and expanding their brand name. 

I am confident that we will manage to emerge 

from this crisis into a more resilient future and 

that there will always be the right opportunities 

that will lead to the mobilisation of the economy 

again. Given our role as the investment authority 

of the Government, with the mandate to identify 

and attract the right investors, we have placed 

great emphasis on targeting the goals set by the 

National Tourism Strategy which make our offering 

even more attractive and aim to achieve a differentiated 

and diversified tourism model. 

In addition, we have been focusing on improving 

and achieving sufficient air connectivity 

between Cyprus and the rest of the world 

in the post Covid-19 era, which is considered a 

key priority and a critical factor for the sector. 

Furthermore, the TourInvest unit has identified 

the increasing potential of sustainable tourism, 

establishing as key strategic priorities the promotion 

of sustainable tourism investment projects 

targeting the revitalisation of rural areas, sports 

tourism growth, health tourism enrichment 

and conference tourism exploitation. Investing 

in sustainable tourism is decidedly important 

to make a positive contribution to the sector, to 

attract multimillion investment into large-scale 

infrastructure projects and to offer an exceptional 

tourism experience and service to those visiting 

Cyprus. n 

Interview 


Transport & Logistics 


Thanks to its strategic 

geographical location and 

modern infrastructure, 

Cyprus has developed into 

a convenient transhipment 

centre for Europe-Far East 

trade and has strengthened 

its position as a key EU 

outpost in the Eastern 

Mediterranean region. 

EAST MED 

TRANSPORT HUB 

As an island nation, Cyprus relies 

heavily on its transport links via 

extensive air connections and its 

sophisticated multipurpose ports 

crucial to export and import activities. 

Conveniently located at the intersection 

between Asia, Europe and 

Africa, and along the trade routes to the Levant, 

North Adriatic and Black Sea, Cyprus is easily 

accessed with minimum diversion from main 

arterial routes. This coupled with the country’s 

good infrastructure and pro-business stance has 

boosted its status as a prominent regional base 

for cost-effective cargo transport and processing. 

Cyprus’ potential as a transhipment hub is also 

becoming evident, as manufacturers and distributors 

realise that while the island economy itself 

may be small it is only an hour’s flying time from 

200 million potential customers, and four hours’ 

flight time from over 2 billion people. 

In addition to cargo transport, Cyprus is a 

top-tier destination port for some of the biggest 

cruise ships in the world and has two international 

airports with around 80 airlines connecting the 

island with hundreds of destinations around the 

globe. Following natural gas discoveries in its 

waters, the island has attracted some major global 

players like ExxonMobil, ENI, Shell and Total 

who have chosen the island as the natural service 

centre for their regional operations, taking advantage 

of Cyprus’ specialised logistics and port 

services for this growing industry. 

Although the coronavirus pandemic has had 

a severe impact on many economies and sectors 

such as aviation, global supply lines and cargo 

traffic have kept moving despite the challenges, 

distributing crucial supplies around the world. 

Cyprus took early action in response to the outbreak 

implementing strict safety protocols and 

ramping up support to its transport sector allowing 

companies and industry players to keep 

operations going, underlining its credentials as 

an efficient and sophisticated regional transport 

hub. 

KEY 

contacts 

Ministry of Transport, 


www.mcw.gov.cy 

Cyprus Ports Authority 

www.cpa.gov.cy 

DP World Limassol 

www.dpworldlimassol.com 

Eurogate Terminals 

www1.eurogate.de/en 

Hermes Airports 

www.hermesairports.com 



Following the Covid-19 

pandemic, which has 

created an unprecedented 

strain on both inbound 

and outbound traffic, 

Cyprus’ goal is to reach a 

new form of normality. In 

this respect, the Cyprus 

government inaugurated 

a uniquely innovative 

and revolutionary, for 

European standards, web 

electronic platform called 

the Cyprus Flight Pass, 

in which all the relevant 

passenger information 

is gathered in an active 

effort to prevent the 

spread of the coronavirus 

disease. Additionally, 

we are supporting the 

airlines which conduct 

flights to and from Cyprus 

by providing them with 

incentives so as to continue 

their flight schedule. Our 

vision is to expand further 

Cyprus’ connectivity 

through new destinations, 

attracting tourists from 

countries that were 

previously untapped. 

PORT EXPANSION 

The key ports of Cyprus are Limassol and Larnaca, 

with the addition of bulk ports and oil terminals at 

Vassiliko, Dekelia and Moni. Limassol is the main 

port handling 90% of export and import volumes 

with an annual handling capacity of 500,000 

TEUs. Cyprus has an outstanding reputation as a 

maritime centre and has built on that experience 

to develop Limassol port into a state-of-the art 

facility, equipped to compete with regional rivals 

such as Piraeus and Haifa. DP World Limassol, 

in partnership with G.A.P. Vassilopoulos Ltd, 

operates three core areas of the port: oil and gas, 

the cruise sector and domestic cargo. DP World 

Limassol has been pouring investment into all 

aspects of the port, including offshore oil and gas, 

multipurpose general cargo, roll-on and roll-off, 

and further development of the new cruise terminal 

inaugurated in 2018, which enabled the largest 

cruise ships in the world to visit the country 

for the first time. Furthermore, in line with its 

ongoing commitment to upgrade and modernise 

the infrastructure of Limassol port, DP World 

Limassol has recently acquired new equipment 

in an effort to increase its handling capacity and 

improve operational efficiency. Despite the challenges 

brought on by the Covid-19 pandemic, 

the company is following through with its investment 

strategy, delivering on its pledge to support 

the maritime sector and help build resilience in 

Cyprus’ supply chain. 

Operating the container port is Germany’s 

Eurogate International GmBH, in partnership 

with Interorient Navigation Company Ltd and 

East Med Holdings SA, who have invested almost 

€20 million in a state-of-the-art IT system, 

which processes information flow at high speed 

between customs, clearance and customer. It 

also enables the latter to locate a container at any 

time during the clearance process and take possession 

of it just 20 minutes after the ship carrying 

it has berthed. The acquisition of two bigger, 

super-post-Panamax cranes, capable of servicing 

vessels 23 or more containers wide, has further 

enhanced the terminal’s efficiency, enabling it 

to attract the larger transhipment vessels now 

in use. 2020 will be all about Eurogate’s second 

phase of investments which include two more 

super-post-Panamax cranes and expansion of the 

storage area to maximum capacity, enabling it to 

handle 1.1 million containers per year. 

The operators of Limassol’s redeveloped port 

have capitalised on the increased importance 

of the region in world shipping. This increase 

was due to enhanced trade, regional port expansions, 

the discovery of natural gas deposits 

in East Med waters and the expansion of the 

Suez Canal, which currently handles over 10% 

of global maritime trade. The investment in 

expanding and modernising Limassol port has 

boosted competitiveness and will help generate 

around €2 billion for state coffers over the next 

25 years. 

Yiannis Karousos 

Minister of Transport, 

Communications 

and Works 

DP World Limassol New Passenger Terminal 




Cyprus’ second-largest port is in Larnaca, just 

2km from the town centre and 6km from the island’s 

largest airport, handling a variety of loads 

– unpacked, conventional and oil products. Its 

326-metre North Quay is equipped with a crane 

on rails, while the 340-metre South Quay has a 

similar crane and a ramp suitable for ro-ro ships. 

In 2020, Cyprus finally reached an agreement with 

Israeli investors for the long-awaited €1.2 billion 

redevelopment of Larnaca port and marina, the 

island’s largest infrastructure project of its kind. 

The tender-winning Cypriot-Israeli consortium 

Kition Ocean Holdings has eco-viable plans to 

restructure Larnaca marina, the port and surrounding 

land. As part of the marina development, 

there will be a yacht club with a retail park, 

a passenger terminal at the port as well as hotels, 

a private island and residential properties. As for 

the port, the ambition is to have the best state-ofthe-art 

port in the Eastern Mediterranean which 

will also offer services for gas exploration and 

facilitate military ships. Plans include deepening 

and expanding the port so that large cruise 

ships can dock and to attract more transport and 

energy companies to base operations at the port. 

The build-operate-transfer (BOT) project 

involves UK-based Prosperity Group, a Cypriotowned 

company with extensive experience in international 

large-scale mixed-use developments 

and Israel’s REM International which is part of the 

group that owns and manages the port and marina 

of Eilat in Israel. Under the proposed venture, it 

is estimated that the state will receive more than 

€19.6 billion during the lifetime of the project. The 

BOT project will see the government receiving a 

fixed rent and a percentage of the revenue generated 

through a concession agreement with the 

port/marina operated on a 40-year lease and the 

real estate acquired on a 125-year lease. 

the United Kingdom that send pharmaceuticals 

and cosmetics to Cyprus for processing and then 

have them sent back home. Even with transportation 

costs, it is still cheaper for such companies 

to process their products in Cyprus, thanks to 

tax savings. Among other projects, Eurofreight 

helps a client in China export its products to 

the Middle East in a fraction of the time it previously 

took. It used to take the Chinese firm 30 

days to send its goods by ship, it now flies these to 

Larnaca, where Eurofreight Logistics handles the 

order, paperwork and labelling before forwarding 

them to another aircraft. Delivery time has been 

slashed to less than a week. 

Another major transport and logistics 

company is G.A.P. Vassilopoulos Group, which 

handles the multipurpose terminal at Limassol 

port with DP World Limassol, and marine services 

there with P&O Maritime. The group provides 

sea freight, air freight and land forwarding services 

through its representation of DB Schenker, 

as well as specialising in freight forwarding by air 

and land, warehousing and distribution throughout 

Cyprus and worldwide. 

July 2020 also saw Emirates SkyCargo expanding 

to Larnaca, adding it to its scheduled 

cargo flights to 100 destinations across six continents. 

The network expansion is in response to 

the growing economic activity and demand for 

air cargo capacity from markets across the world 

along with Emirates’ increased passenger flight 

operations. By offering multiple daily or weekly 

cargo flight frequencies to major production and 

consumer markets, the carrier is helping facilitate 

supplies of goods required for combatting the 

current pandemic as well as machinery and equipment 

required for manufacturing and several key 

economic sectors across global trade lanes. 

Limassol Port 

is equipped to 

compete with 

regional rivals 

and will boost 

state coffers by 

€2 billion 

in the next 25 years 

RE-EXPORTS AND TRANSHIPMENT 

The rapid modernisation and expansion witnessed 

at Cyprus’ main port at Limassol and its 

two airports, at Larnaca and Paphos, have coincided 

with growth of logistics services companies. 

They are investing heavily in technology, 

equipment and warehousing, in response to 

growing demand for transhipment, processing 

and re-export services. 

A leading company in this field is Eurofreight 

Logistics. Around 40% of its focus is on consumer 

products logistics, providing warehousing and 

distribution services, with additional expertise in 

temperature-controlled and frozen food logistics. 

Pharma logistics account for around 20% of 

Eurofreight’s business. As well as facilitating trade 

between East and West, the company has clients 

in countries such as Germany, Switzerland and 

DP World Limassol Terminal Oil and Gas logistics base 


The unprecedented 

coronavirus 

pandemic 

and the subsequent 

lockdowns 

around the world have 

sped up digitisation. The crisis 

will have implications for business 

globally for the next 12 to 

72 months mainly on service 

providing sectors such as aviation, 

cruise, and hospitalities. 

New and more productive 

ways of working will eventually 

evolve and the faster we adapt, 

the better the recovery. While 

automation was already a big 

part of DP World’s business 

model, digital technologies 

are a big part of the solution 

in maintaining a productive 

workflow within our ports. 

Nawaf Abdulla 

CEO 

DP World Limassol 

THE HYDROCARBONS EFFECT 

Cyprus’ transport and logistics sector has already 

seen big benefits from the discovery of natural 

gas in Cypriot, Israeli and Egyptian waters – even 

before all these resources have been extracted and 

monetised. Cyprus-based logistics companies 

have been able to capitalise on the island’s geographical 

advantages to offer specialised support 

to oil and gas companies such as ExxonMobil and 

ENI as they operate both in Cyprus’ own offshore 

gas fields and those of its regional neighbours. 

The operations of ENI in Egypt’s giant Zohr gas 

field for instance, have been underpinned by facilities 

provided by Limassol port. Gas pipelines 

destined for Zohr were stored at Limassol before 

being shipped to Egypt and the field’s pipelaying 

vessel was also mobilised from the port. 

As the search for offshore natural gas accelerates, 

Limassol port enjoys a strong competitive 

advantage as the logistics base for the increasing 

number of multinational oil and gas giants 

and service companies drawn to the island. 

International port operator DP World Limassol 

has already provided Cyprus with significant 

added muscle as the island strives to become the 

region’s pre-eminent energy services and trading 

hub. An onsite oil and gas logistics base has also 

been established at Limassol port. It is a multi-user 

area that includes a 430-metre dedicated berth 

to oil and gas activities, mobilisation/demobilisation 

operations, open bonded and covered storages 

and warehouses, offices and drilling liquid 

production facilities to support oil and gas operations 

and offshore explorations in the Eastern 

Mediterranean. In 2019, DP World Limassol acquired 

a range of state-of the-art vessel-loading 

equipment for the handling of general cargo and 

for use in its dedicated 430-metre oil and gas 

berth. Its new mobile harbour crane with heavylifting 

capabilities will speed up the process of 

loading and unloading, resulting in a significant 

reduction in vessel turnaround time. The new 

crane will help maximise the multipurpose port’s 

potential and will lead to a higher turnover at all 

its berths. 

KEY FUEL TERMINAL 

The island’s reputation as a leading logistics and 

support provider for the oil and gas industry in 

the East Med is complemented by its emerging 

role as a centre for the processing, storage and 

re-export of fuel. This is largely due to the development 

of a sophisticated €300-million fuel 

distillation terminal at Vassilikos. It is operated 

by VTTV, the Cyprus subsidiary of Dutch multinational 

VTTI, and processes so-called ‘white’ 

or ‘clean’ products that have already been refined, 

such as diesel or middle distillates. These are 

shipped to Vassilikos from producers in the Gulf 

and the former soviet states and are then blended 

or modified to meet the specifications of the 

European market. 

VTTV is the first energy terminal of its kind 

in the Eastern Mediterranean which connects 

Europe and the Black Sea with markets in the 

Middle East and Asia. Product fuel oil from the 

Black Sea area heading to markets in Asia must 

first be transported in small ships because of 

shallow waters in the Bosporus. At Vassilikos, 

VTTV helps to ‘build bulk’ and processes the 

cargo to the correct specifications for it to be exported 

economically via much larger vessels to 

the more distant markets of Asia. 

The existing VTTV terminal consists of 28 

tanks and has a capacity of 544,000 cubic metres, 

a 1.5km long deep-water marine jetty and four 

berths, capable of accommodating vessels from 

5,000 to 160,000 DWT. These facilities mean that 

it is ideally placed to benefit from the growth 

in ship-to-ship cargo transfer operations in the 

region. Most transfers take place offshore, saving 

on port fees but this can be difficult and dangerous 

in bad weather and can lead to environmentally 

damaging oil spills. VTTV’s purpose-built 

jetty provides a safer, less environmentally hazardous 

alternative. 

In 2020, the oldest Cyprus petroleum 

company Petrolina joined international energy 

trader VTTV in Vassilikos, inaugurating a new 

€80 million liquid fuels storage facility. The stock 

exchange-listed company has tripled its capacity, 

by installing 18 storage tanks holding 113,000 

cubic metres, up from the 36,000 at the old terminal 

in Larnaca. The Vassilikos area is being developed 

as Cyprus’ new energy centre and dedicated 

port, with multimillion-euro plans underway to 

also build a liquified natural gas (LNG) import 

terminal. 

ATTRACTIVE CRUISE PORT 

Before the pandemic, Cyprus was gaining momentum 

in reviving its status as an attractive 

port of call for cruise ships exploring the Eastern 

Mediterranean region. Evidence of this was 

British operator TUI announcing 13 new destinations 

leaving from Limassol Port for the winter 

season 2019-20, which was expected to boost 

tourism numbers. Although many of the cruises 

follow the familiar Mediterranean formula, more 

exotic routes were also launched such as a sail 

from Barbados to Limassol. To strengthen Cyprus’ 

maritime tourism, a new passenger terminal was 

inaugurated in 2018 by port operator DP World 

Limassol, with plans to increase passenger traffic 

of the port by 35%. Even before the establishment 





of the new passenger terminal, Cyprus was in a 

favourable position to act as a stop for cruise ships 

in the Eastern Mediterranean, being a single day’s 

sailing from such destinations as Rhodes, Crete, 

Alexandria and Port Said. Naturally, the coronavirus 

pandemic has ground cruise liner traffic to 

a halt and expectations are that cruise visits will 

not resume before 2021. Of the 72 cruise ship 

arrivals that were expected in 2020, some 55 of 

which were scheduled for October-November, 

have been cancelled. 

Despite the current difficulties in the cruise 

sector, the decision of a leading international 

cruise company to anchor its liners in Cyprus 

came as a welcome boost. Six advanced passenger 

ships operated by cruise giant Carnival are 

laying up with crew on board in Moni anchorage, 

east of Limassol, for the duration of the 

Covid-19 imposed restrictions that have halted 

cruises worldwide. The ships include Bahamasflagged 

Seabourn Encore and the brand-new Sky 

Princess flying the Bermuda flag. This followed 

an official announcement by the Cyprus shipping 

authorities in May offering facilities for cruise 

and cargo ships to dock in its ports for refuelling 

during the global lockdown, with operators and 

shipowners also allowed to bring their vessels 

to the island for a ‘hot lay-up’, which means the 

vessel is idle but can be mobilised back into 

service at short notice. As commercial air traffic 

gradually resumes, crews stuck on board ships 

beyond their contractual obligations, will be able 

to return home with relief crews coming in. The 

decision by Carnival presents significant financial 

benefits for Cyprus, and other cruise operators 

and companies with oil platforms have also 

expressed an interest to follow suit. 

AIR CONNECTIVITY 

Cyprus’ two international airports broke records 

in 2019, with Larnaka (LCA) and Pafos (PFO) together 

handling an unprecedented 11 million 

passengers, constituting a 60% increase in passenger 

traffic from 2013. The smooth operation 

of these airports is vital to the island’s economic 

prosperity, built on a flourishing tourism industry 

and an expanding centre for international 

trade and global business. Over 70 airlines fly 

from Cyprus to around 40 countries and 120 destinations. 

Through their operations, Larnaka and 

Pafos contribute approximately 4% to the country’s 

GDP whilst it is estimated that over 18,000 

jobs are sustained at the two airports and in the 

wider tourism industry of Cyprus. 

With the harsh realities of the global pandemic 

continuing until the foreseeable future, Cyprus 

sprang into action to support aviation and its 

tourism industry. In June 2020, the country 

launched a new scheme to support aviation to 

stimulate passenger traffic by providing incentives 

for airlines to conduct flights even with low 

occupancy rates. The European Commissionapproved 

scheme, which will run for six months 

with a budget of €6.3 million, will see the government 

subsidising airlines based on their occupancy 

rate index, with sums to be rolled out for 

flights conducted with occupancy rates between 

40% and 70%. The goal is to promote direct connectivity 

between Cyprus and other countries 

and motivate airlines to operate flights to the 

island until the end of the year. 

Cyprus has also managed to improve its 

connectivity to the rest of Europe even amidst 

the corona crisis with Hungary’s Wizz Air announcing 

its plans to make Larnaca its 28th base 

from July 2020 and to launch 11 new destinations 

to seven European countries from Larnaca. 

Stationing two Airbus A320 aircraft will provide 

one million seats on sale from Larnaca this year, 

underlining the fact that the airline sees the potential 

and the demand for low-cost travel in 

Cyprus as a rapidly developing tourist destination. 

Wizz’s Larnaca operation seeks to create 

over 100 new direct jobs with the airline plus 

more in associated industries. 

GROWING TRANSPORT AND 

LOGISTICS CENTRE 

Cyprus has developed an efficient business environment 

and can draw on a deep pool of highly 

qualified human talent. With a pro-business 

government committed to safeguarding the 

island’s attractive, EU-approved tax regime, 

Cyprus is attracting more players and investors 

to support the expansion of its transport 

and logistics sector – with enormous potential 

in attracting more transhipment cargo. Despite 

the global challenges due to the coronavirus, 

Cyprus has been fast to act to solidify its status 

as a key East Med transport hub and vowed to 

double its air and sea connectivity resources to 

€15.7 million by the end of the year. Ports are 

continuing to operate normally with cargo, and 

flights are resuming with all the required safety 

measures and protocols in place. The island 

nation has truly leveraged its strategic location 

and is investing heavily to further develop its 

infrastructure to become a major transport and 

logistics centre for sea and air traffic. n 


If there is 

one thing the 

pandemic 

has taught 

us, it’s the 

fact that we 

should take the chance to 

follow the path less known, 

to explore the potential of 

new markets, to look into 

new tourism segments and 

promote Cyprus as a sustainable 

destination. Whatever 

assumptions we may make 

now about passenger 

numbers for the year ahead, 

would be premature. However, 

we expect that 2021 will be 

a significantly better year 

with a scope of improvement 

over the next three years. 

Eleni Kaloyirou 

Chief Executive Officer 

Hermes Airports 

The €1.2 billion 

redevelopment of 

Larnaca port and 

marina is the island’s 

largest infrastructure 

project of its kind 

Two international airports 

Pafos (PFO) and Larnaka 

(LCA) and 70+ airlines 

Logistics companies 

are investing heavily in 

technology, equipment 

and warehousing, in 

response to growing 

demand for transhipment, 

processing and reexport 

services 


Business Operating Environment 

BUSINESS 

OPERATING 

ENVIRONMENT 

Cyprus’ business-friendly infrastructure and can-do attitude has 

brought it worldwide recognition as an international business centre. The 

country offers a winning package for both international entrepreneurs 

and investors with its sophisticated business environment, highly 

skilled workforce and cost-effective, yet high quality of life. 

Business Culture 

Respect, hospitality and personal trust are 

the cornerstones of the Cypriot business 

environment. An island nation with a long 

history of dealing with foreign traders and 

businesses, Cypriot businesspeople are 

international in their outlook and astute 

and knowledgeable in their negotiations. 

Punctuality is expected, business dress is 

formal for both men and women, especially 

at the beginning of a business relationship, 

and even in warm weather. Most Cypriots 

prefer face-to-face meetings to telephone 

conferences or written communications, 

which are regarded as too impersonal, 

and place great importance on building 

personal relationships with business 

partners or connections. Trust is the key to 

successful business dealings in Cyprus. 

Language 

Greek and Turkish are the 

official languages of Cyprus. 

However, English, the legacy 

of the British who ruled 

Cyprus from 1878 to 1960, 

is widely spoken and is the 

language of business. Many 

Cypriots also speak French, 

German or Russian. 

Business Hours 

Office hours are generally 

8.30am to 1.00pm and 2.00pm 

to 5.30pm, Monday to Friday. 

Although in summer some 

offices take a longer lunch 

break or finish early. 

Business Costs 

An EU base within the eurozone, Cyprus remains one of the few international 

business centres offering low operational costs and a high standard of living. Office 

space and residential property in Nicosia, the capital and major business centre, 

is relatively inexpensive when compared to other European capitals. In terms of 

cost of living, Cyprus remains one of the most advantageous places to live, with 

cost of living lower than in most Western European countries. At the same time, 

residents of Cyprus enjoy a high standard of living and exceptional quality of life, 

as the balmy climate and low crime rate offer both comfort and peace of mind. 

Business Incentives 

The government has introduced a 

variety of incentives aimed at attracting 

investment in industries that will enhance 

the development of the economy. These 

incentives are intended to: encourage the 

development of new high-tech industries 

and skill-intensive products, reconstruct 

Cyprus’ traditional economic sectors, 

improve productivity and labour skills, and 

attract capital intensive foreign investment. 

The following incentives are available: 

• low taxation at 12.5% with zero tax 

on certain types of income 

• industrial free zone and exemption 

from customs and excise charges for 

operations in the industrial free zone 

• industrial training schemes 

• subsidised industrial estates 

• grants and other financial assistance 

to investors, particularly in the areas 

of energy, the environment, industrial 

development, technology, research 

and innovation, trade and services 

For more information, contact Invest Cyprus 

www.investcyprus.org.cy 

Business Costs 


EU27 Average 

Labour (business sector) €15.30 €27.80 

Telecommunications (Local) €0.18 for a 10-minute local call €0.41 

Telecommunications (overseas) €0.65 €1.71 

Electricity (households) €0.2236/kWh €0.2160/kWh 

Electricity (non-households) €0.1800/kWh €0.1200/kWh 

*Source: Eurostat (May 2020) 


COMMERCIAL AND RESIDENTIAL PROPERTY 

Cyprus offers a full range of properties for both commercial and residential use situated in key 

locations across the island. While the exclusive, top-level market is currently the most sought after, 

the island has a good stock of properties available, from townhouses and apartments, to villas and 

seaside bungalows in five-star gated developments. Nicosia and Limassol are the main business 

centres. Office space is available in purpose-built office blocks, in converted houses or flats. A number 

of business centres also offer ready-to-move-into offices. They usually include fully equipped offices 

that are available on demand with flexible terms, meeting rooms and a receptionist service. Overall, 

rentals are around two-thirds of those charged for comparable commercial spaces in continental 

Europe, and offices, retail or other commercial space is widely available for purchase or for rent. 

Office Rent 

Average Rent Per 

Monthly Rent Square Metre 

Cyprus €1,447 €13.00 

Nicosia €2,521 €15.00 

Limassol €1,710 €18.00 

Larnaca €1,268 €12.00 

Paphos €1,053 €12.00 

Famagusta €685 €10.00 

Cyprus Residential Property Rent 

Average Rent per m 2 

Monthly Rent per month 

Apartments €515.66 €5.33 

Houses €839.00 €3.00 

Retail €1,834.80 €15.06 

Warehouse €4,686.66 €2.26 

Office €1,852.54 €8.95 


Nicosia 

Residential Average Rent 

Property Monthly per m 2 

Rent Monthly 


Houses €864.06 €3.46 

Retail €2,566.22 €22.00 

Warehouse €5,770.58 €2.89 

Office €3,327.09 €16.64 

Nicosia 

Famagusta 

Paralimni 

Larnaca 

Larnaca 

Famagusta - Paralimni 

Paphos 





Paphos 



Rent Monthly 


Houses €648.49 €2.59 

Retail €1,318.08 €11.30 

Warehouse €3,590.65 €1.80 

Office €1,158.03 €5.79 

Limassol 

Limassol 



Rent Monthly 


Houses €938.18 €3.75 

Retail €2,521.58 €21.61 

Warehouse €4,885.86 €2.44 

Office €2,156.17 €10.78 

Rent Monthly 


Houses €684.68 €2.74 

Retail €1,495.96 €12.82 

Warehouse €4,186.99 €2.09 

Office €1,552.46 €7.76 

Rent Monthly 


Houses €610.51 €2.44 

Retail €885.57 €7.59 

Warehouse €4,206.82 €2.10 

Office €755.77 €3.78 

Sources: RICS 2019 Q4 / Danos International Property Consultants and Valuers 



Cyprus Job Positions: Annual Base Salary 

(€) Low (€) Mid (€) High 

Management 

CEO 60,000 100,000 150,000 

Executive Director 60,000 90,000 120,000 

CFO 50,000 80,000 110,000 

Finance Department 

Financial Controller 45,000 57,000 70,000 

Finance Manager/ Senior Accountant 40,000 45,000 70,000 

Accountant/Auditor (Qualified) 30,000 38,000 45,000 

Accountant/Auditor (Part Qualified or QBE) 20,000 26,000 32,000 

Account Assistant 15,000 20,000 24,000 

HR Department 

Head of HR/Group HRM 60,000 80,000 120,000 

HR Manager 35,000 50,000 65,000 

HR Executive 16,000 20,000 24,000 

Legal Department 

Head of Legal/ Group Legal Head 60,000 90,000 130,000 

Legal Advisor (Qualified Lawyer) 20,000 37,500 55,000 

Legal Assistant / Paralegal / Non Qualified Lawyer 15,000 18,000 22,000 

Compliance, Anti-Money Laundering (AML), Counter-Terrorist Financing (CTF) 

Head of Compliance 50,000 62,500 75,000 

Compliance/AML/CTF Manager 40,000 45,000 50,000 

Compliance/AML/CTF Officer 25,000 32,000 40,000 

Dealing Room 

Chief Dealer 44,000 52,000 60,000 

Dealer 24,000 33,000 42,000 

Junior Dealer 17,000 19,500 22,000 

IT Department 

Head of IT / CTO 50,000 70,000 120,000 

IT Manager / Development Manager 35,000 50,000 65,000 

Quality Assurance (QA) / Tester 24,000 32,000 45,000 

IT Technician 18,000 24,000 30,000 

Developer 25,000 40,000 60,000 

Marketing Department 

Head of Marketing 40,000 50,000 70,000 

Marketing Officer 24,000 28,000 35,000 

Digital Marketing Specialist (Social, PPC/SEO) 24,000 32,000 40,000 

Marketing Executive 15,000 19,000 24,000 

Sales Department 

Head of Sales 36,000 51,000 66,000 

FX Sales 18,000 22,000 30,000 

Sales Executive (Industries other than FX/Fintech) 14,000 18,000 22,000 

Administration 

Office Manager / Personal Assistant 16,000 25,000 36,000 

Administrator / Receptionist 15,000 18,000 24,000 

Corporate Administrator 22,000 30,000 40,000 

Graphic Designer 35,000 40,000 45,000 

Human Resources 

Well-trained and versatile, the Cypriot 

workforce is one of the island’s most 

valuable resources, offering high standards 

of productivity, technical expertise and 

professional excellence at reasonable 

costs to businesses. The island’s labour 

force numbers some 416,500 persons in 

the Republic of Cyprus, with some 78.3% 

working in the services sector, 19.1% in 

industry and only 2.6% in agriculture. 

Since Cyprus’ accession to the EU, the 

European Union’s legislation framework 

regarding labour regulations has been 

adopted. The Cypriot labour market has 

a tradition of social dialogue and a welldeveloped 

institution of free collective 

bargaining. Terms and conditions 

of employment are negotiated either 

directly between the employer and the 

employee or through collective bargaining 

between trade unions and employers’ 

organisations. Approximately 65-70% 

of the labour force is unionised and/ 

or is covered by collective agreements. 

Collective agreements regulate employment 

conditions such as remuneration, 

working hours, health and safety, annual 

holidays and contributions to the national 

retirement fund (provident fund). 

Various branches of industry are 

represented by registered employers’ 

associations, the purpose of which is to 

promote and safeguard the interests of their 

members. Most of these associations belong 

to the Cyprus Employers and Industrialists 

Federation (OEB), a body established to 

provide information to its members on 

labour, collective bargaining, and social and 

economic problems, as well as representing 

members and their viewpoints to the 

government, the trade unions and the public. 

The Cyprus Chamber of Commerce and 

Industry (CCCI) is a strong voice for the 

island’s business community, representing 

over 8,000 enterprises and their interests. 

With about 120 professional associations 

under their wing ranging from the services 

industry to education and business 

associations with other countries, the CCCI’s 

views are highly regarded by the government. 

www.ccci.org.cy 

www.oeb.org.cy 

Source: GRS Professional Recruitment Services Ltd. June 2020 


Expat Employees and Immigration 

Cypriot laws on immigration have been 

amended to conform to the European Union’s 

acquis communautaire and thus visa obligations 

for foreign nationals reflect EU regulations and 

obligations. While Cyprus is a signatory to the 

Schengen agreement, it has not implemented 

the agreement yet and is not expected to do so 

before the Cyprus Problem has been resolved. 

EU-Nationals: EU-Nationals are free to 

live in Cyprus. They can enter the Republic 

without a work contract and search for 

work for a period of three months. 

Non-EU Nationals: Non-EU nationals wishing 

to work in Cyprus require an employment visa, 

issued by the Immigration Office. Non-EU nationals 

employed at the top level of management by 

international companies with operations in Cyprus 

are generally granted employment visas with 

no problems, however professional and clerical 

staff are only granted employment visas if no 

suitably qualified Cypriot candidate is available. 

ICT and 

Communications 

Cyprus has invested 

heavily in state-of-the-art 

systems to serve the needs 

of international business. 

The country has a fully 

digital national network, 

along with reliable, highspeed 

connectivity to 

other modern economies 

via satellite and fibre optic 

submarine cable systems. 

With its advanced 

telecoms network and 

excellent regional and 

global connectivity, 

Cyprus is fast being 

recognised as a leading 

telecommunications 

hub in the Eastern 

Mediterranean. 

Professional Services 

With around 80% of Cyprus’ economy based 

on the provision of services, this sector is 

one of the most important in the country. 

Professional services are a cornerstone of the 

economy and continue to show growth year 

on year. Manned by an experienced and highly 

qualified contingent of professionals, this sector 

underpins many of the most rapidly growing 

areas of Cypriot business, from company 

registration, to finance, insurance, investment 

funds, ship management and others. The 

expertise of the country’s lawyers, accountants, 

auditors and other specialists, often European or 

US trained, offer full and efficient services in all 

aspects of company law and tax planning, and 

the world’s leading accountancy and consultancy 

firms are all present on the island, as are all the 

leading insurance, ship management and trust 

companies. While professional services costs 

are generally lower than in Western European 

locations, the level and quality of service is not. 


Financial Support Services 

Cyprus has a sophisticated and advanced financial 

services sector, which is expanding year on 

year. Banking is the largest component of the 

sector and is regulated by the Central Bank of 

Cyprus. The banking system is fully harmonised 

with EU legislation and directives. Commercial 

banking arrangements and practices follow the 

British model and there are currently over 30 

Cypriot and international banks operating in 

Cyprus. All banks maintain correspondent networks 

around the world and are able to carry out 

both traditional and specialised financial transactions. 

Short and long-term borrowing is available 

from the Cyprus banking system and from the 

other financial institutions. Companies locating 

in Cyprus typically find that the financial institutions 

offer a tailored package drawn from a wide 

range of basic financing products. For eligible 

companies, capital funding can also be raised 

through the Cyprus Stock Exchange (CSE). There 

are no restrictions on foreign investors’ access to 

financing in Cyprus and borrowing from foreign 

sources is not restricted. 

www.centralbank.gov.cy 

www.cse.com.cy 

Market Access 

As an EU member state within the eurozone, Cyprus offers instant access to the 

EU’s internal market of over 500 million people. Following Cyprus’ accession 

to the European Union in 2004, Cypriot companies have been able to establish 

their business or provide their services in any of the other EEA states through 

the European Single Passport. In addition, the country’s strategic location, good 

relationships with neighbouring countries and the Middle East and its strong 

ties to Russia and the CIS countries make it an advantageous jurisdiction to 

work in or through. It also allows for neutral ground where businesses coming 

from complex political backgrounds, such as Israel and Lebanon, can work 

together regardless of religious or political positioning. 

The island’s pivotal position as the eastern-most country of the EU means it 

is naturally placed as a gateway between East and West, and it is rapidly emerging 

as one of the most important business centres in the region. Cyprus also 

has a vast network of double taxation treaties with 65 countries, which offers 

attractive tax planning opportunities. The country also lies in a convenient time 

zone for doing business across the world, two hours ahead of GMT, meaning 

office hours coincide with Asia in the morning, Europe throughout the day 

and the US in the afternoon. Cyprus’ ability to bridge the cultural and business 

divide between North Africa, the Middle East and Europe is helping to pave the 

way for the country’s future prosperity. The island has now become a key trading 

post for the EU in the eastern Mediterranean, acting as the ideal hub for goods 

and services exchange between Europe, Africa and Asia. A growing transhipment 

centre, Cyprus has become a key distribution point for goods travelling 

into and out of the EU. 

Transport and Logistics 

Cyprus is well connected to the rest of the world through air and sea links. With two international airports, Larnaca and Paphos, served 

by over 70 international airlines, a wide network of air routes connects Cyprus with continental Europe, Africa, the Middle East and 

Asia. The island is an established international transit station for commercial air transportation with excellent connection with the entire 

region. Cyprus is also one of the leading maritime centres of the world. Three main ports, the multi-purpose ports of Limassol and 

Larnaca and the industrial port of Vassiliko, as well as three specialised oil terminals situated at Larnaca, Dhekelia and Moni, ensure that 

Cyprus is well connected via sea links to all five continents. Thousands of ships call at Cypriot ports every year, which are served by some 

70 shipping lines. The country’s road network is also well maintained and sophisticated, making it easy to get around the island and ensuring 

commuting distances are relatively short and stress-free compared to mainland Europe. 



Legal and Regulatory Framework 

Cyprus’ legal framework is particularly strong, due in part to mandatory compliance 

with European Union regulations. The legislation governing Cyprus’ financial services 

sector underpins the island’s ambition to become a leading international financial 

centre. As a former British colony, Cyprus law is based on English Common Law 

and was amended in recent years to meet European Union requirements. Offering 

foreign businesses a familiar and reliable framework within which to operate, the 

island’s legal and regulatory system is considered to be one of the most favourable 

in Europe, whilst at the same time being fully compliant with the EU, the Financial 

Action Task Force on Money Laundering (FATF), the Organization for Economic 

Co-operation and Development (OECD) and the Financial Stability Forum. 

Regulators 

and Authorities 

Financial institutions are 

regulated and supervised by 

three authorities in Cyprus: 

the Central Bank of Cyprus 

(CBC), which is responsible for 

the supervision of commercial 

banks and the cooperative 

credit institutions; the 

Superintendent for Insurance 

Control (SI); and the Cyprus 

Securities and Exchange 

Commission (CySEC). 

However, changes introduced 

by the EU’s Single Supervisory 

Mechanism (SSM) in 2014, 

saw the transfer of supervision 

of all the eurozone’s largest 

banks to the European Central 

Bank (ECB). For Cyprus, 

this meant that Bank of 

Cyprus, Hellenic Bank and 

RCB Bank were transferred 

from the supervision of 

the CBC to the ECB. 

Taxation 

Cyprus offers one of the 

most attractive tax regimes 

in Europe. A member of the 

European Union since 2004, 

Cyprus’ regulatory regime is 

in full compliance with the 

requirements of the EU and 

OECD. Cyprus has one of 

the lowest EU corporate tax 

rates at 12.5%. The island’s 

advantageous tax rate coupled 

with an extensive list of double 

tax treaties places it high on the 

list of preferred jurisdictions 

for international tax planners. 

Anti-Money Laundering 

Cyprus has put in place all necessary 

mechanisms for the prevention and suppression 

of money laundering and terrorist financing 

activities. Cypriot authorities cooperate with 

foreign supervisory authorities in compliance 

with the Financial Action Task Force (FATF) 

recommendations to ensure financial sector 

legislation and practices are aligned with 

international standards. The national AML 

law is fully aligned with the 4th EU Anti- 

Money Laundering Directive, and Cyprus is 

in full adherence with sanctions issued by the 

European Union, the United Nations, and also 

the US Treasury OFAC. The transposition 

of the 5th EU AML Directive into Law took 

place in September 2019, whereas the full 

functionality of the Ultimate Beneficial 

Owner (UBO) registries will be available 

from March 2020. All individuals and legal 

entities that perform financial and other 

business activities, are obliged to protect 

themselves, their companies and the financial 

system of Cyprus from money laundering by 

setting standard procedures and adhering to 

strict protocols for maintaining records. 

Corporation Tax 

The Corporation Tax Rate: 12.5%. 

Basis of taxation 

All companies that are tax residents of 

Cyprus are taxed on their income accrued 

or derived from all sources in Cyprus and 

abroad. A non-Cyprus tax resident company 

is taxed on income accrued or derived 

from a business activity which is carried 

out through a permanent establishment 

in Cyprus and on certain income arising 

from sources in Cyprus. A company is 

considered tax resident of Cyprus if it is 

managed and controlled from Cyprus. 

Special Types of Companies 

SHIPPING COMPANIES 

The Merchant Shipping Legislation, fully 

approved by the EU, provides for an 

exemption from all direct taxes and taxation 

under tonnage tax regime. The merchant 

shipping legislation applies to qualifying 

shipowners, charterers and ship managers, 

which are involved with the operation of 

qualifying community ships (ships under 

a CY flag or a flag of an EU member state 

or of a country in the European Economic 

Area) and foreign (non-community) ships 

(under conditions) and provided that they 

engage in qualifying activities. The legislation 

allows non community vessels to enter 

the tonnage tax regime provided the fleet 

is composed of at least 60% community 

vessels. If this requirement is not met, then 

non-community vessels can still qualify 

if certain criteria are met. Exemption is 

also given in relation to the salaries of 

officers and crew aboard a Cyprus ship. 

INSURANCE COMPANIES 

Profits of insurance companies are liable 

to corporation tax similar to all other 

companies except in the case where the 

corporation tax payable on taxable profit of 

life insurance business is less than 1.5% of 

the gross premium. In this case the difference 

is paid as additional corporation tax. 


Administration and 

Compliance 

Tax Year: The tax year is the 

calendar year. The accounts 

of a company may be closed 

on a date different from 

31st of December, in which 

case taxable profits are 

apportioned on a time basis 

relevant to the tax years. 

Consolidated Returns: 

Taxation on a consolidated 

basis is not permitted and 

each company is required to 

submit a separate standalone 

tax return. A set-off of group 

losses is possible provided 

there is a 75% parent 

subsidiary relationship, 

including subsidiaries under 

75% control of a common 

parent company. Group 

loss relief is available only 

between resident companies 

(and EU-based companies/ 

companies with which 

Cyprus has concluded a 

double tax treaty, provided 

that they have exhausted all 

options to utilise the losses in 

their country of residence). 

Filing Requirements: 

Corporate tax returns must 

be filed electronically by 

the 31st of March of the 

year following the year 

under consideration (i.e. 15 

months from the year-end). 

Companies are required to 

pay provisional tax in two 

equal instalments by 31st of 

July and 31st of December of 

the year under consideration. 

Any underpayment is due to 

be settled via self-assessment 

by 1st of August of the 

following year. If the income 

declared for the payment 

of the provisional tax is 

lower than 75% of the actual 

income as finally determined, 

an additional tax equal to 

10% of the difference between 

the final and provisional tax 

is payable. between the final 

and provisional tax is payable. 

Personal Income Tax 

BASIS OF TAXATION 

All Cyprus tax residents are taxed in Cyprus on all income accrued or derived from all sources 

in Cyprus and abroad such as employment income, rental income etc. (i.e. worldwide income). 

Individuals who are not tax residents of Cyprus are taxed on income accrued or derived from 

sources in Cyprus. An individual is tax resident in Cyprus if one of the following conditions are met: 

• he/she spends physically in Cyprus over 183 days during the relevant tax year, or; 

• he/she does not remain in any other state for one or more periods which altogether 

exceed 183 days in the same tax year and he/she is not tax resident in any other state 

for the same tax year and all the following conditions are cumulatively met: 

• he/she should remain in Cyprus for at least 60 days during the tax year; 

• he/she should pursue any business in Cyprus and/or to work in Cyprus and/or to be 

a director in a company tax resident in Cyprus at any time during the tax year; 

• he/she should maintain a permanent residence in Cyprus, 

which can be either owned or rented by him/her 

PERSONAL TAX RATES 

The following income tax rates apply to individuals: 

Taxable Income TaxRate (%) Tax (€) Cumulative Tax (€) 

0-19,500 0 0 0 

19,501- 28,000 20 1,700 1,700 

28,001-36,300 25 2,075 3,775 

36,301-60,000 30 7,110 10,885 

60,001 and over 35 

*Foreign pension is taxed at the rate of 5%. An annual exemption of €3,417 is granted. 

TAX INCENTIVES FOR EXPATRIATE EMPLOYEES 

TAKING UP EMPLOYMENT IN CYPRUS: 

The individuals who were non-Cypriot tax residents 

prior to the commencement of their employment, 

but become Cypriot tax residents afterwards, 

are eligible for a 50% exemption from income 

tax if all the following conditions are met: 

• their remuneration from the employment exercised 

in Cyprus is over €100,000 per annum; and 

• they were not tax residents of Cyprus for any three 

out of the last five years prior to the commencement 

of their employment and they were not tax residents 

of Cyprus in the year preceding their employment 

The exemption is available from the first year of 

employment and can be enjoyed for a period of 

ten years. Individuals with annual remuneration 

below €100,000 who were non-Cypriot tax 

residents in the year preceding their employment, 

but become Cypriot tax residents afterwards, are 

eligible for a 20% exemption from income tax 

for every year until the end of 2020 (maximum 

exempt amount is €8,550 per year). The exemption 

is available from the 1st January following the 

year of commencement of the employment. 

Value Added Tax 

Imposition of Value Added Tax 

(VAT) is imposed on the supply of 

all goods and services in Cyprus, 

on the acquisition of goods from 

other Member States and on the 

importation of goods from third 

countries. The standard rate of 19% 

applies to the supplies of all goods 

and services in Cyprus which are 

not subject to the zero rate, the 

reduced rates (5% and 9%) or are 

not exempt. Cyprus constitutes 

an attractive EU VAT jurisdiction 

applying several options permissible 

by the EU Directive among others 

a flexible VAT Grouping. As long as 

the pre-requisite links are satisfied, 

and governmental revenues are not 

put into jeopardy, related entities 

can form a VAT group disregarding 

intra-group transactions and having 

a representative member submitting 

a single VAT return. Even such 

entities not incorporated in Cyprus 

can form a VAT Group in case 

they are tax resident or possessing 

an establishment in Cyprus. 




Key Features of the Cyprus Tax System 

w Simple, transparent and EU harmonised tax system 

following recommended OECD practices 

w Enjoys the tax benefits of EU Directives (Parent 

– Subsidiary Directive, Merger Directive 

and Interest and Royalties Directive) 

w Extensive Tax Treaty network with 65 countries 

w A corporate income tax rate of 12.5%, one of the lowest within 

the EU with possibility to enjoy a much lower effective tax rate 

w Availability of a Notional Interest Deduction for companies 

receiving new equity funding. The tax deduction can reach 

up to 80% of the taxable income generated by the new equity 

w IP Box regime based on the nexus approach which 

allows 80% deemed deduction on qualifying 

profits from the business use of qualifying IP 

w Attractive Tonnage Tax (TT) regime for ship 

owners, managers and charterers 

w Attractive tax jurisdiction for funds and 

attractive tax regime for fund managers 

w Capital gains are exempt from tax (except 

for capital gains arising from the disposal of 

immovable property located in Cyprus) 

w Profits of a foreign Permanent Establishment exempt from tax 

w Gains from trading in securities (shares, bonds and certain 

other financial instruments) are exempt from tax 

w Unilateral credit relief for foreign taxes 

w No withholding tax on dividend, interest or royalty payments 

(for use of royalties outside of Cyprus) made abroad 

w No taxes on entry and on qualifying reorganisations 

w Carry forward of tax losses for five years 

w Tax incentives for expatriate employees taking up 

employment in Cyprus (20%/50% exemption) 

w Dividend income and interest income are 

exempt from SDC for non-domiciled individuals 

taking up tax residency in Cyprus 

w Possibility to obtain Cyprus tax residency by spending 

only 60-days in Cyprus (subject to conditions) 

w No inheritance tax 

w No immovable property tax 

Special contribution for defence 

Special contribution for defence (“SDC”) is imposed on the dividend, 

interest and rental income earned by Cypriot tax resident 

and domiciled individuals. Non-domiciled Cypriot tax residents 

are exempt from SDC. 

Submission of tax returns 

The tax year is the calendar year. Tax on employment income is 

withheld by the employer under the PAYE system and remitted to 

the tax authorities. Self-employed individuals pay tax through the 

provisional and self-assessment systems. Tax returns must be filed 

electronically by 31st of July following the tax year for employees, 

30th of September for self-employed persons who are not required 

to file audited accounts and 31st of March of the year following 

the year under consideration (i.e. 15 months from the year-end) 

for self-employed persons whose returns are accompanied by 

audited accounts. Sole proprietors with an annual turnover more 

than €70,000 are obliged to prepare audited financial statements. 

Double Tax Treaties 

Cyprus has concluded Double Taxation Treaties (DTTs) with 

65 countries, which provide important tax advantages. 

Andorra 

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Finland 

France 

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Germany 

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Hungary 

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India 

Iran 

Ireland 

Italy 

Jersey 

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Kingdom of Bahrain 

Kuwait 

Kyrgyzstan 

Latvia 

Lebanon 

Lithuania 

Luxembourg 

Malta 

Mauritius 

Moldova 

Montenegro 

Norway 

Poland 

Portugal 

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Romania 

Russia 

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CyprusProfile 

EVERYTHING YOU NEED 

& EVERYONE YOU NEED 

TO DO BUSINESS IN CYPRUS 


Country | Economy | Trade & Investment | Sectors | Doing Business | Who’s Who

Travel & Living 


Essential 

Expat Guide 

Cyprus is a top tourist destination for all 

seasons, and one of Europe’s hot spots 

for expats thanks to its thriving economy 

and relaxed Mediterranean lifestyle. 

COUNTRY 

Located in the Eastern Mediterranean at the crossroads of Europe, 

the Middle East, Asia and Africa, Cyprus’ strategic position has 

played a key role in shaping its history and in developing the 

island into a centre for trade and international business. Cyprus 

enjoys around 340 days of glorious sunshine a year and boasts a 

coastline teeming with endless stretches of golden sands, secluded 

bays and rocky coves. Surrounded by the crystal-clear waters of 

the Mediterranean Sea, the island is dotted with the fascinating 

remains of history from Neolithic settlements and ancient citykingdoms 

to exquisite Byzantine art and magnificent Venetian architecture. 

Cyprus is known for its hospitality – filoxenia – a fact 

reflected in the Greek word xenos which is used for both guest and 

stranger. Life is meant to be enjoyed in Cyprus, where emphasis is 

put on working to live, as opposed to living for work. Café culture 

predominates, with both business and social meetings taking place 

over a leisurely iced coffee frappé in the numerous cafes in every 

town and city. 

HISTORY 

Cyprus has been coveted, conquered and colonised numerous 

times during its 10,000-year history. The island attracted the interest 

of a succession of dominant powers in the region, which battled 

for it through the millennia. The first of these are believed to have 

been the Achaean Greeks who arrived in around 1200 BC introducing 

their language, religion and customs to the island. Cyprus 

was subsequently colonised by the Phoenicians, the Assyrians, 

the Egyptians and the Persians. In the 4th century BC Alexander 

the Great claimed the island, which remained part of the Greek- 

Egyptian kingdom until 30 BC, when the Romans arrived, and 

Cyprus became a senatorial province. It was during this period 

that Saint Paul was said to have visited the island and converted 

the Roman governor to Christianity. Cyprus remained a Roman 

possession until the empire began to disintegrate in 330AD, when 

it became part of the Eastern Roman or Byzantine Empire. 

In 1191, Cyprus was conquered by the English king, Richard 

the Lionheart, while on his way to take part in the Third Crusade. 

He later sold the island to the Knights Templar, who consequently 

sold it on to the Franks or Lusignans, a dynasty which went on to 

rule Cyprus for almost 300 years, until the last of the Lusignans 

ceded the island to Venice in 1489. Despite building heavy fortifications 

around the island’s major cities of Famagusta and Nicosia, 

the Venetians were not able to withstand the invading Ottoman 

troops who conquered the island in 1571. Cyprus remained under 

Ottoman rule until the arrival of the British in 1878. 

The island’s long history offers visitors a journey of discovery 

paved with ancient archaeological treasures. The ancient citykingdoms 

of Kourion and Amathus, and the Mosaics of Paphos, 

are considered among the finest mosaic floors in the Eastern 

Mediterranean. Other must-see historic sites include the Neolithic 

settlements of Choirokoitia and Kalavasos-Tenta, the Tombs of 

the Kings and the famous Sanctuary of Aphrodite, the Goddess of 

Love, who legend claims was born on this island. 

In more recent times, Cyprus gained independence from 

Britain in 1960, however a Greek sponsored coup d’état in 1974 was 

swiftly followed by an invasion of Turkish forces which occupied 

the northern one-third of the island. Despite numerous efforts over 

the intervening decades, the island remains de facto divided, and 

the self-declared Turkish Republic of Northern Cyprus (TRNC) 

remains unrecognised by the international community. The Greek 

Cypriot and Turkish Cypriot leaders continue to look for a solution 

to end the division of the island, but while negotiations have 

been slow, some progress is being made. The capital city, Nicosia, 

is still split between the two sides, though visitors can access either 

side from checkpoints at Ledra Palace and Ledra Street, and today 

Nicosia is the last remaining divided capital city in the world. 



CLIMATE 

Cyprus enjoys a Mediterranean climate, with long, warm, dry 

summers from May to October and mild winters with occasional 

rain, lasting from December to February. Summer and winter in 

Cyprus are separated by short autumn and spring seasons. The 

average daytime temperatures during summer range from +21C to 

+34C, although in high summer temperatures can reach as high as 

+40C. During the cooler months, temperatures can range between 

+7C and +15C although even during the height of winter there are 

generally six hours of bright sunshine during the day. 

LANGUAGE 

Cypriots are highly educated and multilingual. The official languages 

of Cyprus are Greek and Turkish, however English is widely spoken 

and written and is the language of international business. German, 

French and Russian are also widely spoken in commerce, due both to 

the number of Cypriot graduates from overseas universities and the 

island’s commercial ties with the global business community. 

GETTING THERE 

Popular since the early 1980s with British and other European 

holidaymakers, Cyprus is well connected to Europe’s main cities, as 

well as to Asia and the Middle East. Flights from mainland Europe 

are quick, frequent and increasingly low cost. By air, Cyprus is 

1.5hrs away from Athens, 4hrs from Frankfurt, 3.5hrs from Dubai 

and 5hrs from London. 

HOTELS / ACCOMMODATION 

When it comes to a place to stay, Cyprus offers every conceivable 

type of accommodation, from budget-priced two and three-star 

hotels to a large range of upmarket and boutique hotels with four 

and five-star status. Agritourism houses are available for rent all over 

the island, often in the most picturesque villages, and give the traveller 

a unique opportunity to experience authentic Cyprus village life. 

CULTURE & ENTERTAINMENT 

More than a place just for lounging in the sun, there are lots of 

things happening in Cyprus all year round. From music concerts 

and cultural performances with big name stars, sports events, religious 

festivals with all the pomp and circumstance of the Greek 

Orthodox Church, to informative conferences where you can 

meet like minds. The Cyprus Rally has been held every year since 

1970 and forms part of the World Rally Championship and the 

FIA Middle East Rally Championship, and attracts hordes of car 

enthusiasts, while the annual Historic Cyprus Rally draws crowds 

of vintage car enthusiasts. Cultural events such as the Pharos 

Chamber Music Festival, the Kypria International Festival, which 

comprises music, dance and performance arts. 

The Pharos Arts Foundation has established a world-wide reputation 

for its commitment to excellence and for promoting classical 

music in Cyprus, having presented more than 500 concerts over 

the past 15 years. Outstanding musicians are hosted in the Pharos 

Arts Foundation’s Concert Series and the annual International 

Chamber Music Festival, with programmes ranging from ancient 

to contemporary. 

The Pharos Centre for Contemporary Art (PCCA) presents 

the work of major international artists. A variety of contemporary 

art forms are included in the Centre’s programme - visual, performance, 

photography, video - as well as lectures and discussions. 

Exhibitions are in many cases individually curated by internationally 

recognised curators from all over Europe. 

The Pafos Aphrodite Festival Cyprus organises and hosts 

an annual opera performance at the end of August or early 

September and has over the years invited a variety of internationally 

acclaimed companies and performances to the festival. 

Showcasing the rich viticulture of the island, Cyprus has created 

a wine trail project, offering six different organised routes for visitors 

to tour the island’s wine-producing regions. The reputation 

of the annual Limassol Wine Festival, launched in 1961, attracts 

over 100,000 visitors every August to the city’s municipal gardens 

to discover the wine portfolios of one of the oldest wine-producing 

countries in the world. 



SHOPPING 

In Cyprus you can shop till you drop. The island is supplied with 

stores catering for all tastes and requirements. Most major British 

and European chains are represented on the island and there 

is a plethora of fashionable boutiques and big malls in Nicosia, 

Limassol and Paphos, selling designer brands including Louis 

Vuitton, Chanel, Dolce & Gabbana, Gucci, Roberto Cavalli, Calvin 

Klein, Kenzo, Gianfranco Ferre and many more. For those looking 

for something more unique, you can find traditional and handmade 

items that are quintessentially Cypriot in the old towns of 

the bigger cities, as well as in the many villages in the countryside. 

SPORTS & OUTDOOR ACTIVITIES 

Cyprus offers a host of energetic pursuits to engage the visitor. 

Becoming increasingly popular as a destination for golfers, Cyprus 

offers first-class facilities with four professional courses in magnificent 

locations, and the development of several new courses in 

the pipeline. Spectacular pine-clad mountains in the centre of the 

island offer walkers and cyclists welcome respite from the heat. 

Breathe in the bracing pine scented air, whilst admiring the series 

of Venetian stone bridges and waterfalls that pepper various hiking 

trails in scenery that looks as if it has been lifted from a book of 

fairy tales. In winter months, skiers can test the slopes on Troodos 

whilst the rest of the island wear short sleeves and bask in winter 

sun. The island provides excellent opportunities for water sports, 

such as windsurfing and kitesurfing. There are also excellent dive 

sites and facilities, with one of the best wreck dives in the world, the 

Zenobia, situated off Larnaca. Other popular dive sites include Ayia 

Napa, Paphos and the Akamas Peninsula, where divers are often 

able to see artefacts such as Roman pottery on the seabed. 

CUISINE 

It is of course impossible to talk about Cyprus without mentioning the 

food. As with most Mediterranean countries, food plays an important 

role and is to be enjoyed at a leisurely pace with friends and family. 

One of the first Greek phrases to learn in Cyprus is siga siga, which 

means ‘slowly’, and is a mantra one will hear almost daily. The fabulous 

Cypriot food is to be savoured unhurriedly, usually al fresco with 

friends and family. Even a cup of coffee can be a two hour past time. 

Cypriot food bears a distinct resemblance to Greek cooking, but 

also has Turkish and Lebanese influences. As in other Mediterranean 

countries, eating is an activity to be savoured and enjoyed and is certainly 

not to be rushed in any way. Which is a good job as a traditional 

Cypriot meze – a meal of small plates similar to tapas – can consist 

of up to 30 dishes. Cypriot cuisine features lots of fresh fish, meat, 

beans, pulses and vegetables flavoured with lemon, fresh herbs and 

spices. Cyprus is also one of the world’s oldest grape-growing and 

winemaking regions, with its fruits of the grape ranging from delicate 

whites and full-bodied reds to the rich sweet amber-coloured 

dessert nectar known as Commandaria. This is one of the oldest 

wines in the world, representing an ancient wine style documented 

in Cyprus back to 800 BC and has the distinction of being the world’s 

oldest named wine still in production, with the name Commandaria 

dating back to the crusades in the 12th century. 


Skylink Services Ltd is part of the Skylink Group of Companies. The company is well-established and provides 

ground handling services for General Aviation Aircraft in Cyprus. We began operations in 1992, filling the gap in 

the Executive Aircraft ground handling market, at both international airports of Cyprus, Larnaca and Pafos. 

Larnaca International Airport 

P.O.Box 43012, CY 6650 Larnaca - Cyprus 

T: +357 24 84 09 00 • F: +357 24 66 58 05 

24hr Operations 

T: +357 24 64 33 34 • F: +357 24 64 35 99


PUBLIC TRANSPORT 

Within urban areas, buses run on fixed routes roughly every half 

hour, with services ending in the evenings at about 18:00 Monday 

to Friday and earlier on Saturdays. Some routes have no service 

on Sundays. Hours are extended until midnight during the tourist 

season and some urban routes now offer a night bus service on 

Fridays and Saturdays. Timetables are available from tourist offices 

or directly from the bus companies. Rural buses connect towns 

and villages and make frequent stops. The service is infrequent 

with schedules limited to one or two routes per day. These buses 

can often be smaller mini-buses. There are also buses providing a 

service linking all major towns. These are generally very regular 

and all buses are modern and comply with European standards. A 

private company, Kapnos, provides a regular daily airport shuttle 

service between the major towns and cities and both of the island’s 

airports. There are no trains in Cyprus. 

www.cyprusbybus.com 

www.intercity-buses.com 

www.kapnosairportshuttle.com 

CAR HIRE & TAXIS 

Car and motorcycle rental firms have offices in all towns, as well 

as at Larnaca and Paphos International Airports. Their rates vary 

according to the rental period, season of the year and extras. They 

usually offer unlimited mileage and their cars can be delivered and 

collected at the airports by prior arrangement. Rental cars and bikes 

are usually delivered to the customer with a full tank of fuel paid for 

by the customer. When the car is returned, the customer receives a 

refund for any remaining fuel, unless stated otherwise in the contract. 

Drivers under 25 years of age holding a driving license for less 

than three years must inform the car rental company so special insurance 

cover can be provided. Foreign visitors are strongly advised 

to read the rental agreement carefully and demand fulfilment of 

all their rights. Taxis are also very common, but before setting off 

on your journey discuss the pricing with the driver and ensure the 

meter is functioning. TravelExpress is another good option, as a 

private company, which provides a shared taxi service between 

cities in Cyprus. Taxi service app Bolt (formerly Taxify), which was 

created in Estonia, has also successfully launched in Cyprus operating 

in Nicosia and Limassol. The app allows users to set their 

location and see where the nearest partner taxi is and order it. The 

taxi can be tracked heading to the customer’s location and indicates 

how far away it is and how long it will take to arrive. Customers can 

also track their routes while inside the cab, preventing drivers from 

taking longer routes and overcharging for trips. Customers can also 

pay via their phones. 

www.travelexpress.com.cy 

www.bolt.eu 

DRIVING 

Roads are well maintained in and between the main towns, and 

there are four-lane motorways connecting Nicosia with Limassol 

and Larnaca. Driving is on the left in Cyprus and the maximum 

speed limit on motorways is 100 kph (60 mph). Cyprus accepts the 

driving licences of all EU Member States and any person with a valid 

licence may drive legally in Cyprus. According to EU rulings, driving 

licences issued before 1996 do not have to be exchanged for the new 

Community Model and remain valid until their expiration. Non-EU 

citizens may drive on valid foreign licences for a certain period (for 

those with a US licence the period is six months). Relevant Consular 

authorities can provide further information. 

Important Numbers 

Cyprus Dialling Code: +357 

Emergency (medical, fire, police): 112 

Emergency Air and Sea Rescue: 1441 

Hospital information: 1400 

Directory Enquiries: 11892 



BUSINESS HOURS 

Office hours are generally 8:30am-1:00pm and 2:00pm-5:30pm, 

though in summer some offices take a long lunch break or finish 

early. Government offices are generally open from 7:30am-2:30pm, 

from Mondays to Fridays and until 6pm on Thursdays. Banks 

typically open at 8:30am and close at 1:30pm. International banks 

are open from 8:30am to 5:30pm. Shops are generally open from 

Mondays to Saturdays from 9am- 7pm, with larger supermarkets, 

malls and tourist areas open all day on Sundays as well. 

BUYING & RENTING PROPERTY 

Cyprus offers a full range of properties for both commercial and 

residential use, situated in key locations across the island. While 

the exclusive, top-level market is currently the most sought after, 

the island has a good stock of properties available, from townhouses 

and apartments, to villas and sea-side bungalows in five-star developments. 

Nicosia and Limassol are the main business centres. 

Office space is available in purpose-built office blocks, in converted 

houses or flats. A number of business centres also offer ready-tomove 

into serviced offices. They usually include fully-equipped 

offices that are available on demand with flexible terms, meeting 

rooms and a receptionist service. Overall, rentals are around twothirds 

of those charged for comparable commercial spaces in continental 

Europe, and offices, retail or other commercial space is 

widely available for purchase or for rent. 

EDUCATION 

There is a wealth of excellent private schools on the island, the 

majority of which are English speaking, but there are also French, 

Russian and Greek-speaking private schools. Fees are generally 

less than for the equivalent education in the UK. Public schools 

are free, and teaching is conducted in Greek. Tertiary education is 

provided by the six universities in Cyprus as well as several other 

colleges that offer a variety of vocational and academic courses. 

HEALTHCARE 

Ranked by the World Health Organisation as one of the healthiest 

countries in the Mediterranean, Cyprus has an excellent healthcare 

system provided through both the private and public sector. 

Cyprus has recently introduced an island-wide NHS, which covers 

both inpatient and outpatient care and is available to all citizens 

and permanent residents. EU citizens who are visiting Cyprus can 

receive free outpatient or inpatient treatment with a European 

Health Card, which is issued by the health authority in their 

home country. However, this covers only essential treatment and 

not routine treatment. Non-EU visitors must pay for healthcare. 

Cyprus boasts internationally educated specialists with top-notch 

facilities and a plethora of medical insurance options available. 

www.gesy.org.cy 

RELIGION 

Religious freedom is written into the Cypriot constitution and Greek 

Orthodox, Muslims, Catholics, Jews, Armenians and Maronites 

coexist peacefully on the island. However, the overwhelming majority 

of Cypriots are members of the Greek Orthodox Church, an 

institution that plays an important role in both personal and public 

life on the island. 

PETS 

Cyprus is a member of the Pet Travel Scheme which allows pets 

from any of the countries covered by the scheme to enter Cyprus 

without quarantine provided they meet specified anti-rabies, blood 

sampling and anti-worm/anti-tick hygiene requirements. The pet 

must be micro-chipped, vaccinated against rabies and blood tested, 

and can be brought into Cyprus only after six months have elapsed 

following a satisfactory blood test. 



COMMUNICATIONS 

Cyprus has an efficient and reliable postal service as well as an excellent 

telecommunications network. Telecommunications costs 

are among the cheapest in Europe. Cyta, remains the main provider, 

offering a full range of telecommunications services. Other 

main providers are Epic, Primetel and Cablenet. Cyprus’ network 

boasts 100% broadband coverage. 

MEDIA AND TV 

A number of daily and weekly newspapers are published in Cyprus, 

some of which are in the English language, including the Cyprus 

Mail. Many UK, European, Russian and Arabic newspapers can be 

bought in Cyprus a day or two after publication. Several terrestrial 

TV stations in Cyprus broadcasting locally produced programmes 

as well as international films, dramas and TV series. Cable and satellite 

television is widely available. 

TAXATION 

Cyprus offers one of the most attractive tax regimes in Europe. A 

member of the European Union since 2004, Cyprus’ regulatory 

regime is in full compliance with the requirements of the EU and 

OECD. Cyprus has one of the lowest corporate tax rates in the 

European Union at 12.5%, while the maximum personal tax rate is 

35%, those earning less than €19,500 are tax exempt. 

PERSONAL FINANCIAL SERVICES 

HOME HELP 

Many expatriates find they can afford domestic help that they could 

not have afforded at home and often choose to employ a helper for 

cleaning, cooking, general household chores and child minding. 

UTILITIES 

Electricity = 240V 50Hz, 5 amp or 13 amp square three-pin Britishstyle 

plugs. Electricity is provided by the Electricity Authority of 

Cyprus (EAC) and water is provided by the water board of the 

nearest main town. Many properties have solar water heating 

systems. Cyprus has no piped gas, but bottled gas is widely available 

in supermarkets. Cyprus makes use of the BS 1363, British 

3-pin, 13A, 240V, 50Hz earthed and fused plug. The BS 1363 plug, 

also known as a ‘13 amp plug’, is a large plug that has 3 rectangular 

prongs forming a triangle. Live and neutral are 4Χ6Χ18mm spaced 

22mm apart. 9mm of insulation over the base of the pins prevents 

people from touching a bare connector while the plug is partly inserted. 

Earth is 4Χ8Χ23mm. On plugs for Class II appliances that 

do not require an earth, the pin is often plastic. 

CRIME 

Cyprus is the 5th safest country in the world, according to recent 

statistics, and one of the safest countries in the EU. It is safe to walk 

around all towns and villages whether day or night. Few locations 

in the world can offer the same level of security and stability that 

Cyprus does. 

Cyprus has a well-developed banking system modelled on the 

British banking system. The Central Bank of Cyprus has the responsibility 

for monetary and credit policy. There are currently a 

number of domestic banks operating in Cyprus, including commercial 

banks and specialised financial institutions. Standard 

branch opening hours are usually from 8:30am-1:30pm Mondays 

to Fridays and from 3:15pm to 4:45pm on Monday afternoons only. 

International banks are open from 8:30am to 5:30pm. 


VISAS & EMBASSIES 

As a member of the EU, under community laws EU nationals have the right to enter 

the country with an identity card or valid passport and to seek work. For non-EU 

nationals, employment permits have to be obtained before entering Cyprus. The nationals 

of many non-EU countries do not require a visa to enter Cyprus for a stay 

not exceeding three months. Details of visa-exempt countries and visa application 

procedures are available on the Ministry of Foreign Affairs website. 

COST OF LIVING: 

AVERAGE PRICES 


www.mfa.gov.cy 

VISITING THE OCCUPIED AREA 

Following the Turkish occupation of the north of the island in 1974, the island has 

been divided. In 2003 checkpoints opened for the first time allowing both sides to 

cross over with a passport or valid ID. It is perfectly safe to visit and explore the area. 

If travelling by car, insurance has to be purchased at the checkpoint. Various policies 

are available covering vehicles from three days to a full year. Cigarettes and alcohol 

cannot be taken from the north to the Republic of Cyprus and there are restrictions 

on certain foodstuffs, such as meat and dairy produce. There is a maximum limit 

of €260 of goods per person allowed to be brought across the UN-controlled buffer 

zone. 

Milk (1ltr) 

€1.38 

Tomatoes (1 kg) 

€1.99 

STANDARD OF LIVING 

Other factors that contribute to the enviable lifestyle of Cyprus include a superb road 

system with signs in both Greek and English, a reliable and efficient postal service, 

a large choice of schools, clubs, restaurants, gyms, theatres, cinemas, museums and 

art galleries. The local infrastructure is ideally suited for business people who need 

to get things done. Thanks to its modern road network, extensive port facilities and 

two international airports, travel and transport in and beyond Cyprus is fast, efficient 

and economical. 

Loaf of fresh white 

bread (500g) 

€1.58 

Bottle of midrange 

wine 

€7.00 

LARGE EXPAT COMMUNITY 

A notable British presence remains to this day and Cyprus has become home to a 

large expat community. Today, Cyprus has the second highest percentage of foreign 

citizens in the European Union, with 13% of the total population from other EU 

member states, and around 7% from non-EU countries according to a survey of the 

EU’s statistical office. The biggest group of expats living in Cyprus consists of British 

nationals, but there are also large communities of Americans, Russians and other 

Eastern European nationals. n 

Domestic Beer (0.5 l) 

€1.18 

Imported Beer (0.33ltr) 

€2.03 

Three-course meal 

for two in midrange 

restaurant 

€46.00 

AVERAGE RENT PER MONTH (€) AYIA NAPA LARNACA LIMASSOL NICOSIA PAPHOS 

Apartment (1 bedroom) in City Centre 500.00 516.67 801.85 514.83 404.67 

Apartment (1 bedroom) Outside of Centre 375.00 420.83 675.58 450.67 331.15 

Apartment (3 bedrooms) in City Centre 1,000.00 869.71 1,408.33 884.48 688.46 

Apartment (3 bedrooms) Outside of Centre 850.00 718.38 1,155.36 740.52 583.93 

AVERAGE BUY APARTMENT PRICE (€/SQM) 

Apartment in City Centre 1,500.00 1,575.00 2,721.43 1,616.67 1,700.00 

Apartment Outside of Centre 1,230.00 1,066.67 2,017.65 1,226.36 1,466.67 

Source: Numbeo, September 2020 



Key Tourist Areas in Cyprus 

➍ Paphos 

Limassol 

➋ 

Nicosia 

➊ 

Larnaca ➌ 

Famagusta ➎ 

➋ 

LIMASSOL 

➌ 

LARNACA is the 

➍ 

PAPHOS is a 

is the second largest 

third largest city in 

popular coastal town. 

city, situated between 

Cyprus and is known 

Visitors can enjoy ➎ 

archaeological sites, the ancient for its palm-tree seafront spectacular scenery and some 

kingdoms of Amathous, Kourion promenade. It is home to the of Cyprus’ finest beaches, as 

and Kolossi. The coastal town 

is also home to the famous 

Limassol Marina and the city’s 

geographical location provides 

easy access to mountainous 

villages and Troodos mountain. 

The city is a business centre 

attracting business executives, 

as well as couples, families and 

young people. It has developed 

significantly in recent years, 

emerging as a business hub 

as well as a party town with 

reputable beach bars, Carnival 

and Wine Festivals. Limassol 

has the largest port in Cyprus. 

country’s primary airport, a 

seaport and a marina. It has a 

picturesque old town, salt lakes 

with flamingos in the winter, 

and a large marina. There is a 

wealth of historical interests 

around the town including 

the St Lazarus church, the 

Hala Sultan Tekke Muslim 

shrine, the historical Kiti 

church and the monastery of 

Stavrovouni. The city mostly 

attracts couples and families. 

well as ancient historical sites. 

Tourist attractions in Paphos 

include the Paphos mosaics, 

the Tombs of the Kings, 

which are UNESCO Heritage 

sites, the Venetian fortressed 

harbour and the Pillar of St 

Paul. The Akamas peninsula 

is one of the island’s residual 

unspoilt wildernesses and is 

home to endemic flora and 

fauna species. Paphos mostly 

attracts couples and families. 

➊ 

NICOSIA is the 

capital of Cyprus and 

the main commercial 

and business centre and 

the seat of government. 

It boasts a world-famous 

archaeological museum, a 

thriving old city surrounded 

by fortified Venetian walls 

and a labyrinth of traditional 

streets. It is also the last 

remaining divided capital 

city in the world following 

the fall of the Berlin Wall. 

Visitors are usually couples, 

families and business people. 

The FAMAGUSTA 

REGION consists of 

Ayia Napa, Protaras, 

and Paralimni, and has many 

of the best beaches on the 

island. Ayia Napa in particular 

is a reputable party town 

for twenty-somethings and 

prime site for nightlife. The 

area mostly attracts young 

people, couples and families. 


WHO’S 

Who’s Who - Cyprus Business Directory 

WHOCYPRUS 

BUSINESS 

DIRECTORY 

The definitive guide to Cyprus’ leading companies, 

executives and professional advisers. 



WHO’S 

BUSINESS 

DIRECTORY 

WHOCYPRUS 

Auditing & Accounting 

Baker Tilly South East Europe 171 

EY Cyprus 176 

HLB Cyprus Limited 177 

KPMG 178 

Nexia Poyiadjis Chartered Accountants 180 

PwC Cyprus 181 

ServPRO Accountants & Consultants 182 

Banking 

Alpha Bank Cyprus Ltd 170 

Bank of Cyprus 171 

cdbbank (The Cyprus Development Bank Public Company Ltd) 172 

EFG Bank (Luxembourg) S.A., Cyprus Branch 175 

Eurobank Cyprus Ltd 176 

RCB Bank Ltd 181 

Consulting 

Afxentis Zemenides Financial Services Ltd 170 

E-CNHC − E-C Natural Hydrocarbons Company Ltd 175 

Corporate & Fiduciary Services 

Alter Domus (Cyprus) Ltd 170 

Aspen Trust Group 170 

Athos HQ Group Business Services (Cyprus) Ltd 171 

IQ EQ (Cyprus) Ltd 178 

Oneworld Ltd 180 

Trident Trust Company (Cyprus) Ltd 184 

Vistra (Cyprus) Ltd 184 

Economic Analysis 

MEES 179 

Sapienta Economics Ltd 182 

Energy 

Electricity Authority of Cyprus 175 

Natural Gas Public Company (DEFA) 179 

Executive Education 

European Institute of Management and Finance 176 

Financial Advisory 

MAP S.Platis Group 179 

Fund & Asset Management 

GMM Global Money Managers Ltd 177 

Oneworld Plus Management 180 

Wealth Fund Services Ltd 184 

Insurance 

Royal Crown Insurance Co Ltd 181 

Investment Promotion Agency 

Invest Cyprus 178 

Investment Services 

One Plus Capital Ltd 180 


Law Firms 

A.G.Paphitis & Co. LLC 170 

Elias Neocleous & Co LLC 176 

George Y. Yiangou LLC 177 

L Papaphilippou & Co LLC 178 

M. Eliades & Partners LLC 179 

Patrikios Pavlou & Associates LLC 181 

Polakis Sarris & Co LLC 181 

Stelios Americanos & Co LLC 183 

Stelios Ieronymides & Associates LLC 183 

Tassos Papadopoulos & Associates LLC 183 

Y. Georgiades & Associates LLC 184 

Professional Bodies & 

Industry Associations 

Association of Cyprus Banks 171 

Cyprus Cannabis Association 172 

Cyprus Chamber of Commerce and Industry 172 

Cyprus Employers & Industrialists Federation (OEB) 173 

Cyprus Fiduciary Association 173 

Cyprus Healthcare Tourism 173 

Cyprus Hotel Association 173 

Cyprus International Business Association 174 

Cyprus Investment Funds Association 174 

Cyprus Shipping Chamber 174 

Cyprus Union of Shipowners 174 

Insurance Association of Cyprus 178 

Society of Trust and Estate Practitioners 182 

The Institute of Certified Public Accountants of Cyprus 183 

Real Estate & Property 

Cybarco Development Ltd 172 

Cyfield Group 172 

Pafilia Property Developers Ltd 180 

Trilogy Limassol Seafront 184 

Recruitment 

CareerFinders Recruitment Services Limited 171 

GRS Professional Recruitment Services Ltd 177 

Research Institutions 

Cyprus Institute 173 

Shipping 

Shipping Deputy Ministry 182 

Software & IT Services 

NETinfo Plc 179 

Telecoms & Internet 

Cyta 174 

Cytaglobal 175 

Epic 176 


WHO’S 

BUSINESS 

DIRECTORY 

WHOCYPRUS 

DP World Limassol 175 

Skylink Services Ltd 182 

Swissport (Cyprus) Ltd 183 


Web Development 

IdeaSeven Digital Solutions 177 



ANGELOS G. PAPHITIS 

MANAGING PARTNER 

AFXENTIS ZEMENIDES 

MANAGING DIRECTOR 

A.G.PAPHITIS & CO. LLC 

AGP & Co is a highly reputable, leading, dynamic and award winning Law Firm. 

Our reputation for excellence is recognized worldwide. Based in Cyprus with 

strong international presence, we serve our clients as a team, with a common 

focus on innovation, efficiency and agility. We provide full service Legal, 

Corporate, FS Advisory & Regulatory Compliance/AML, Tax, Immigration and 

Real Estate services. AGP & Co consists of the following main departments: 

Dispute Resolution; Corporate/Commercial; FS Advisory & Regulatory 

Compliance; Real Estate & Immigration; Tax-Accounting-Audit. Delivering 

excellent client service that benefits from long and lasting relationships, we 

are dedicated to providing our clients with superior results. 

AFXENTIS ZEMENIDES FINANCIAL SERVICES LTD 

Afxentis Zemenides Financial Services Ltd is a boutique firm of accountants, 

financial advisors and business consultants providing its services to both 

local and international clients. We do have an edge in negotiating with the 

banks for finding solutions to non-performing loans and assisting clients for 

achieving debt reorganisation or obtaining fresh loans. In addition, we provide 

company incorporation and fiduciary services. Our advisory services are based 

on giving innovative and independence advice. Through our international 

network of associates we provide services such as international tax planning, 

incorporation of companies in various jurisdictions and opening of bank 

accounts. Our aim is to provide our services in a professional manner and of 

the highest standards. 

“AGP Chambers”, 84 Spyrou Kyprianou Avenue, 

4004 Limassol - Cyprus 

Postal Address: P.O.Box 58419, 


T: (+357) 25 731 000 

Contact: Angelos G. Paphitis - Managing Partner 

E: angelos.paphitis@agplaw.com 

W: www.agplaw.com 

61, Omirou Street, Joanna Court, 

3rd floor, Limassol, 3091 - Cyprus 

T: (+357) 25 745 800 

Contact: Afxentis Zemenides - Managing Director 

E: azemenides@zemenides.com.cy 

W: www.zemenides.com.cy 

KONSTANTINOS D. 

KOUTENTAKIS 


ALPHA BANK CYPRUS LTD 

Alpha Bank Cyprus Ltd is part of the Alpha Bank Group one of Greece’s largest 

banking groups. Alpha Bank Cyprus Ltd was established in 1998 and offers 

a wide range of high quality products and services covering retail, SMEs, 

corporate and international banking, through a modern network of branches 

and points of service in all cities of Cyprus as well as via alternative electronic 

channels. Corporate Social Responsibility fulfils the Bank’s business activity. 

Through remarkable actions, Alpha Bank Cyprus Ltd supports environment, 

society and culture, aiming to contribute towards a better and more sustainable 

future. 

3, Lemesou Avenue, 2112 Aglantzia 

P.O.Box 21661, 1596 Nicosia - Cyprus 

T: (+357) 22 888 888 

E: GeneralManagement@alphabank.com.cy 

W: www.alphabank.com.cy 

ALKIS KAILOS 

COUNTRY EXECUTIVE CYPRUS 

ALTER DOMUS (CYPRUS) LTD 

Alter Domus is a fully integrated service provider dedicated to private equity 

and infrastructure, real estate, and debt capital markets sectors. Our 2,500 

employees across 44 locations provide end-to-end solutions to alternative 

investment managers, freeing up time for them to focus on their core activities 

of sourcing capital and executing deals. Our local team in Cyprus works 

diligently to help clients meet their growing regulatory obligations and keep 

up with increasing investor demands. Offering fund administration, corporate 

services, transfer pricing, and domiciliation services, you can rely on our onthe-ground 

expertise to help you take advantage of opportunities as they arise. 

11 Limassol Avenue, Galatariotis Building, 2112, 

PO Box 27282,1643 Nicosia - Cyprus 

T: (+357) 22 465 151 

Contact: Alkis Kailos - Country Executive Cyprus 

E: alkis.kailos@alterdomus.com 

W: www.alterdomus.com 

MARINA ZEVEDEOU 

CO-FOUNDER AND CEO 

ASPEN TRUST GROUP 

The Aspen Trust Group is a leading corporate service provider; established in 

1998 and licensed by ICPAC, our Group provides International Tax Management 

solutions to Corporates and High Net Worth Individuals. Specific services 

include setup and management of entities globally, legal and administration 

services, banking and tax compliance, financial management and restructuring, 

re-domiciliation, patent registration, immigration and residency, cross border 

mergers, family office services and headquartering. We build long term 

trusted relationships with clients and associates aiming to add value to their 

businesses. Our team consists of qualified accountants, lawyers and MBAholders 

who undergo rigorous training to provide tailor-made solutions. Our 

vision is to be part of every client’s success story. 

77 Limassol Avenue 

Elia House, Nicosia 2121 - Cyprus 

T: (+357) 22 418 730 

Contact: Marina Zevedeou - 

Co-founder and CEO 

E: marina.zevedeou@aspentrust.com 

W: www.aspentrust.com 


DR. MICHAEL KAMMAS 

DIRECTOR GENERAL 

ANDRIA ANDREOU 


ASSOCIATION OF CYPRUS BANKS 

Through its representation of ten member banks that hold more than 90% market 

share, the Association of Cyprus Banks (ACB) is the voice of the local banking 

system. Its primary aim is to promote best practices for the interest of the banking 

sector and the local economy. The ACB is a non-profit organization through which 

common positions are formulated and promoted on banking and financial issues 

when local legislative and governmental policies are determined. Through its 

more than 50 years of operations, the ACB has gained the reputation of a prudent, 

reliable and consistent partner for various policy makers, organizations, media, 

institutions and the local society. 

ATHOS HQ GROUP BUSINESS SERVICES (CYPRUS) LTD 

Athos Group is a multi-disciplinary family office headquartered in Switzerland 

and operating also from key locations in Anguilla, Cyprus, Liechtenstein, 

Luxemburg, Malta, Monaco, and the Netherlands. It is set up as an independent 

partnership to guarantee continuity and long-term client commitment. 

On behalf of private clients; internationally active entrepreneurs; wealthy 

families and their businesses, we specialize in the setting up and ongoing 

management of multi-jurisdictional asset protection; succession and estate 

planning structures; exit structures; investment funds as well as provision 

of immigration and relocation services. Our top-class personnel are made 

up of internationally experienced and networked tax, legal and accounting 

professionals with careers in leading legal, trust company and banking 

institutions. 

15 Demetriou Karatasou Str, Office 401, 

P.O. Box 16113, 2086 Nicosia - Cyprus 

T: (+357) 22 664 293 

Contact: Dr. Michael Kammas 

- Director General 

E: info@acb.com.cy 

W: www.acb.com.cy 

Q-Merito Building, Kalimnou 1, Office 601 

6037 Larnaca - Cyprus 

(+357) 22 422 232 

Contact: Andria Andreou - Managing Partner 

E: andria.andreou@athos-group.com 

W: www.athos-group.com 


MARIOS A. KLITOU 

CHIEF EXECUTIVE OFFICER 

BAKER TILLY SOUTH EAST EUROPE 

Baker Tilly South East Europe is a full-service accounting and advisory firm, 

that offers industry specialised services in assurance, tax and advisory. Every 

day, 430 professionals located in seven offices throughout South East Europe 

(Cyprus, Greece, Romania, Bulgaria and Moldova) share their expertise to 

accelerate your business growth, by operating under a unified structure, 

directed by a single, central management team of 27 directors. At Baker Tilly, 

we are ready now, for tomorrow’s challenges. We believe in the power of great 

relationships, by leading and listening to great conversations. Baker Tilly South 

East Europe is an independent member of Baker Tilly International, one of the 

world’s leading networks, uniting independent companies to provide top-quality 

professional services in both international and regional markets. 

Corner C Hatzopoulou & 30 

Griva Digheni Avenue, 

1066 Nicosia, Cyprus P.O.Box 

27783, 2433 Nicosia - Cyprus 

T: (+357) 22 458 500 

Contact: Marios A. Klitou - 

Chief Executive Officer 

E: info@bakertilly.com.cy 

W: www.bakertilly.com.cy 

PANICOS NICOLAOU 

CEO 

BANK OF CYPRUS 

Established in 1899, Bank of Cyprus is currently the leading banking and financial 

services Group in Cyprus, operating 99 branches in Cyprus and representative 

offices in Russia, Ukraine and China. Since September 2014, high-quality 

institutional investors have become shareholders, strengthening the Group’s 

share capital. The Group is the only corporation in the region fully complying with 

the UK Corporate Governance Code, the Cyprus Stock Exchange Code, and the 

Central Bank of Cyprus Directive on governance and management arrangements 

in credit institutions. Since early 2014, the Bank has engaged in a very demanding 

and rigorous anti-financial crime remediation programme which has successfully 

been implemented since the end of 2015. The Bank is listed on the London Stock 

Exchange, which has the most demanding and strict corporate governance codes 

internationally. 

51 Stassinou, 2002 Strovolos, Nicosia - Cyprus 

T: (+357) 22 128 000 

E: info@bankofcyprus.com 

W: www.bankofcyprus.com 

SOPHIE ARISTODEMOU 

CO-FOUNDER 

CAREERFINDERS RECRUITMENT SERVICES LIMITED 

CareerFinders Recruitment Services Limited is one of Cyprus’ most wellrespected 

and established providers of tailor-made recruitment solutions to 

many of the largest and most well-known local and international companies 

operating across the Island. With offices in both Nicosia and Limassol, our 

highly experienced team of recruitment professionals have the knowledge and 

expertise to ensure that our clients receive the most suitable and well-qualified 

candidates to suit their recruitment needs. The industry sectors we service 

include Accounting/Audit, Legal, Corporate/Fiduciary, Information Technology, 

Shipping, Oil & Gas, Banking/Finance and many more. If you are a company 

seeking to recruit the very best talent in Cyprus, please contact us today. 

Head Office: 6th Floor, Athlos Building, 

28 Nikis Avenue, Nicosia 1086 - Cyprus 

T: (+357) 22 002 285 

Contact: Sophie Aristodemou, Director 

E: jobs@careerfinders.com.cy 

W: www.careerfinders.com.cy 



COSTAS ARGYRIDES 

CEO 

MICHALIS 

HADJIPANAYIOTOU 

CEO 

CDBBANK (THE CYPRUS DEVELOPMENT BANK PUBLIC COMPANY LTD) 

Founded in 1963, cdbbank (formerly Cyprus Development Bank) is today one 

of the country’s niche financial institutions dedicated to satisfying the needs of 

domestic and international clients. cdbbank offers a wide range of specialised 

financial services and innovative products, designed to accommodate the 

sophisticated requirements of its clientele which consists of corporate and 

institutional clients and high net worth individuals. The Bank’s vision is to be the 

reference Bank for premier business. Relying on its long-term experience and 

high level of expertise, cdbbank aspires to establish a long-term relationship of 

trust with its clients, always delivering excellence and value. 

CYBARCO DEVELOPMENT LTD 

Cybarco is the leading luxury property developer in Cyprus. Part of the 

prestigious Lanitis Group, Cybarco is behind many of the island’s landmark 

projects, including the world-class Aphrodite Hills Golf Resort, Akamas Bay 

Villas, Sea Gallery Villas, The Oval and Limassol Marina, the first residential 

marina project in the whole of Cyprus. Cybarco is responsible for the upcoming 

development of Trilogy Limassol Seafront and the exclusive sales of its luxury 

properties. With over 70 years’ experience at the top of its industry, Cybarco has 

earned its reputation for outstanding quality and dedicated customer care by 

consistently delivering projects to the highest standards. 

50 Arch. Makarios III Ave., 1065 Nicosia - Cyprus 

T: (+357) 22 846 500 

Contact: Liza Philippou - Network 

Business and Communication Manager 

E: marketing@cdb.com.cy 

W: www.cdb.com.cy 

10 Tefkrou Anthia Street, 

Dali Industrial Zone, 2540 Nicosia - Cyprus 

T: (+357) 22 741 300 

Contact: Michalis Hadjipanayiotou - CEO 

E: info@cybarco.com 

W: www.cybarco.com 

GEORGE CHRYSOCHOS 

CEO 

CYFIELD GROUP 

Cyfield Group is one of the leading real estate developers, general contracting and 

construction groups in Cyprus. The Group operates in all areas of the construction 

industry: land development; contracting of public and private infrastructure 

projects; production and trading of specialized building materials; and energy 

production. With 30 years of experience and know-how, Cyfield designs, 

manufactures, and sells all types of high quality residential and commercial 

properties in Cyprus and Greece. The Group’s advancement, success and 

excellent reputation is the result of its reliability in the delivery of the high-quality 

projects, the transfer of title deeds as well as the focused business strategies, 

high ethical standards and strong financial base. 

Cyfield Tower, 132 Limassol Avenue, 

2015 Nicosia - Cyprus 

T: (+357) 22 427 230 

E: info@cyfieldgroup.com 

W: www.cyfieldgroup.com 

ANDRIA ANDREOU 

PRESIDENT 

CYPRUS CANNABIS ASSOCIATION (CYCA) 

CYCA was formed in October 2019 under the auspices of Cyprus Chamber of 

Commerce & Industry. We are leading the collective of individuals and businesses 

that will build the legal Cannabis Eco-system in Cyprus, and advancing the 

interests of a responsible, compliant, transparent and high-quality industry. As 

global recognition of the benefits of legal Cannabis increases with governments 

around the world steadily moving to full legalization, there is a burgeoning 

need for high-quality products with known components; cultivated at large 

scale for consistent, reliable supply to users. Cyprus is primely positioned 

as an attractive center of excellence for production; research; genetics, and 

intellectual property from which the legal Cannabis industry can flourish. 

38 Grivas Dhigenis Ave. & 3 Deligiogis 


T: (+357) 99 672 366 

Contact: Andria Andreou - President 

E: a.andreou@cy-ca.org 

W: www.cy-ca.org 

CHRISTODOULOS E. 

ANGASTINIOTIS 

CHAIRMAN 

CYPRUS CHAMBER OF COMMERCE AND INDUSTRY 

The Cyprus Chamber of Commerce and Industry (CCCI) membership exceeds 

10.000 enterprises representing over 95% of the local business community. 

151 Professional Associations are affiliated to the CCCI including 38 Bilateral 

Associations. Its wide range of services include advisory, provision of business 

information, foreign trade exhibitions, trade missions & business fora abroad, 

business training courses & seminars, advice on European Union issues, 

labour relations matters, issue of Certificates of Origin and ATA-CARNETS 

and participation in EU programmes. CCCI is a full member of 12 International 

organizations including Eurochambers, the International Chamber of 

Commerce, SME United, Eurocommerce, GS1 and many other international 

organisations. Follow us on twitter @ccci_cyprus 

38, Grivas Digenis Ave. & 

3 Deligiorgis Str. Chamber Building - Cyprus 

T: (+357) 22 660 066 

Contact: Marios Tsiakkis, Secretary General 

E: secgen@ccci.org.cy 

W: www.ccci.org.cy 


GEORGE PETROU 

CHAIRMAN 

CHRISTOPHOROS 

KOUTOUROUSSIS 

PRESIDENT 

CYPRUS EMPLOYERS AND INDUSTRIALISTS FEDERATION (OEB) 

The Cyprus Employers and Industrialists Federation (OEB) was founded in 1960. 

Today, its members are active in all sectors of the economy and employ more 

than 60% of the private sector’s workforce. OEB is a pancyprian independent 

organisation comprising of 75 of the main professional / sectoral Associations, 

as well as hundreds of companies from the Manufacturing, Services, 

Commercial, Construction and Agricultural Sectors. In total, OEB has more than 

10.000 Members / Enterprises. OEB is established as a dynamic force in Cyprus’ 

socio - economic development and welfare and acts as the main advocate and 

representative of the business community. 

CYPRUS FIDUCIARY ASSOCIATION 

The Cyprus Fiduciary Association (CYFA), established in 2011, is the 

representative body of regulated Administrative Service Providers (ASP’s) in 

Cyprus. With a vision to assist in forming a solid international business sector 

in Cyprus operating on high professional standards, ethics and integrity, the 

Association aims to serve industry providers by promoting their interests, 

raising sector awareness, supporting their operations, contributing to new 

legislations and delivering valuable training to professionals. The Association’s 

commitment to its purpose has established it among the most reputable and 

recognised organisations within the country, before public and regulatory 

authorities, other associations, as well as the business community in Cyprus 

and overseas. 

2, Acropoleos Ave. & Glafkou, Strovolos, 2000 

Nicosia / P.O.Box 21657, 1511 Nicosia - Cyprus 

T: (+357) 22 665 102 

Contact: Michalis Antoniou - Director General 

E: info@oeb.org.cy 

W: www.oeb.org.cy 

1, Menandrou Street, Frosia House, 

4th floor, Office 401, 1066, Nicosia - Cyprus 

T: +357 22 256 263 

E: info@cyfa.org.cy 

W: www.cyfa.org.cy 


DR NITSA KILIARI 

PRESIDENT 

CYPRUS HEALTHCARE TOURISM (CHT) 

The Cyprus Healthcare Tourism (CHT) is a non-profit organization that was 

founded in November 2006 after an initiative taken by the Cyprus Chamber of 

Commerce and Industry (CCCI) aiming to develop and promote Cyprus as a 

Health Tourism destination. The CHΤ currently has more than 80 members who 

are actively involved in the Cyprus Health Tourism Industry. These vary from 

state-of-the-art hospitals and clinics to specialized travel agencies, wellness 

and rehabilitation centres as well as consulting firms. Most of the largest and 

best equipped hospitals are members of the CHΤ and they are all licensed by the 

Cyprus Government and comply with EU regulations. Some of them have moved a 

step ahead towards gaining international accreditations. 

38 Grivas Dighenis & 3 Deligiorgis 

Street, Nicosia - Cyprus 

T: (+357) 22 889 744 

Contact: Polis Peratikos - Executive Secretary 

E: cyprushealth@ccci.org.cy 

W: www.cyhealthservices.com 

HARIS LOIZIDES 

PRESIDENT 

CYPRUS HOTEL ASSOCIATION 

The Cyprus Hotel Association is the Hoteliers National Trade Union. The history of 

its foundation goes back to the beginning of the 1930s. Today the vast majority of 

all hotel establishments and other licensed tourist accommodation units, all over 

Cyprus, are members of the Cyprus Hotel Association. The most important aims 

of the Association are as follows: The protection and promotion of the interests 

of the hoteliers as employers and as professionals, as well as of the interests 

of Cyprus in general; The promotion and upgrading of the Cyprus tourism 

development; The upgrading and development of the hotel establishments 

in Cyprus and the improvement of the professional level of the hoteliers; The 

solidarity between its members. 

Andreas Araouzos Str., No 12, 

Hesperides Building, 1076 Nicosia - Cyprus 

T: (+357) 22 452 820 

Contact: Philokypros Roussounides 

- Director General 

E: cha@cyprushotelassociation.org 

W: www.cyprushotelassociation.org 

PROF. COSTAS N. 

PAPANICOLAS 

PRESIDENT 

THE CYPRUS INSTITUTE (CYI) 

The Cyprus Institute (CyI - www.cyi.ac.cy) is a research and educational 

organization, which supports the knowledge economy on the island. CyI is a 

science, technology and innovation hub for the Eastern Mediterranean, and a 

gateway between Europe and the Middle East. It has cutting-edge research 

infrastructures geared towards regional research challenges, based on the 

principles of open access, and recognized at the European level. CyI excels in 

the following research fields: Solar Thermal Energy/Energy Storage, Climate 

and Environmental Research, Technologies for Archaeology/Cultural Heritage, 

and High-Performance Computing, simulation and hyper-infrastructures. CyI 

offers Doctoral and Master’s programs in its areas of competence, designed 

for educating tomorrow’s scientific and technological leadership, in partnership 

with renowned international universities. 

20 Konstantinou Kavafi 

2121 Aglantzia - Cyprus 

T: (+357) 22 208 678 

Contact: Dr. Nicolas Jarraud - 

Assistant Vice-President for Institute Affairs 

E: international.relations@cyi.ac.cy 

W: www.cyi.ac.cy 



DOXIA NIKIA 

HADJIVASSILIOU 

PRESIDENT 

ANDREAS YIASEMIDES 

PRESIDENT 

CYPRUS INTERNATIONAL BUSINESSES ASSOCIATION 

CIBA is a non-governmental, fully independent association, financed by membership 

fees only. Its activities and initiatives are organised and carried out by its General 

Secretary and Executive Committee of (max.) 12 persons. CIBA represents and 

safeguards the interests of the international businesses, their shareholders, 

managers and staff. The authorities recognize that CIBA represents the whole 

of the international business community in Cyprus and that it is instrumental in 

finding compromises between the required EU-driven legislation and international 

business requirements. CIBA annually awards the prestigious CIBA Excellence 

award to a member company that fulfils the specific criteria as set out by the 

Association. 

CYPRUS INVESTMENT FUNDS ASSOCIATION (CIFA) 

CIFA is the Association of professionals, businesses and organizations involved in 

the Investment Funds and Asset Management Sector in Cyprus. CIFA addresses 

the broad range of needs and issues faced by service providers and businesses 

involved in the sector. The Mission of CIFA is to: Help its members capitalize on 

industry trends; Shape regulation; Enhance professionalism, integrity and quality 

and Promote the Cyprus Investments Fund Industry. The Board is comprised of 

highly reputable industry professionals experienced in all aspects of the industry, 

including fund management, advisory, banking, audit and legal. CIFA is a full 

member of the European Funds and Asset Management Association and the 

International Investment Funds Association). It is also an Associate member of 

International Capital Markets Association . 

10 Pikionis Street, Highsight House 


T: (+357) 25 583 400 

Contact: Andreas Pishias - General Secretary 

E: ciba@ciba-cy.org 

W: www.ciba-cy.org 

Severis Building, 9 Makarios III Ave., 

4th Floor, Lefkosia 1065 - Cyprus 

T: (+357) 22 441 133 

Contact: Maria Panayiotou - Board Secretary 

E: info@cifacyprus.org 

W: www.cifacyprus.org 

THOMAS A. KAZAKOS 

DIRECTOR GENERAL 

CYPRUS SHIPPING CHAMBER 

The Cyprus Shipping Chamber is the trade association of the Shipping Industry 

in Cyprus. The main purpose of the Chamber is to promote the interests of 

Cyprus Shipping and to further the reputation of the Cyprus flag. The Chamber 

also acts as a lobbying group for the promotion and safeguard of the legitimate 

interests of its Member-companies, at national and international level. On 

the local front, the Chamber co-operates very closely with the Government 

in all shipping related matters. Moreover, the Chamber operates as a roving 

ambassador of Cyprus Shipping through its membership and active participation 

at the International Chamber of Shipping (ICS) and the European Community 

Shipowners’ Associations (ECSA). 

City Chambers, 6 Regas Fereos Str. 

P.O.Box 56607, 3309, Limassol - Cyprus 

T: (+357) 25 360 717 

Contact: Thomas A. Kazakos – Director General 

E: csc@csc-cy.org 

W: www.csc-cy.org 

MICHAEL FILIPPOU 

CEO 

CYPRUS UNION OF SHIPOWNERS (CUS) 

Cyprus Union of Shipowners, as the major representative Organization of the 

Cyprus Flag vessels, is committed to the firm growth of our National Registry 

and the establishment of Limassol as a world-class Maritime Centre. The 

cooperation between our Union, the Shipping Deputy Ministry and the Ministry of 

Finance resulted to an exceptional Framework that induced prominent Shipping 

Companies, P&I Clubs and other Shipping related Service Providers to establish 

management offices in Cyprus. Moreover, the solidification of the global reach 

of our Union and its institutional status has curved our participation in IMO 

Committees, as Government Consultants, both mandatory and effective. 

17, Gordonos Str., Suite 301, 


T: (+357) 25 818 161 

Contact: Katerina Michael - PR Manager 

E: cus@cus.com.cy 

W: www.cus.com.cy 

ANDREAS NEOCLEOUS 

CEO 

CYTA 

Cyta, is the leading company in the Cyprus telecommunications sector, providing 

integrated electronic communication solutions. Over the course of 60 years, 

Cyta has succeeded in making Cyprus a regional telecommunications hub and, 

thanks to its firm commitment to quality, has earned the trust and confidence of 

its customers. Since February 2004, Cyta has been Vodafone’s exclusive partner 

in Cyprus and, consequently, a member of the largest mobile communications 

network in the world. By taking timely advantage of technological developments 

and the convergence of telecommunications and IT, Cyta is now the pioneer in 

quadruple play in Cyprus, offering a broad range of innovative services and ICT 

solutions, meeting the ever-increasing demands of its residential and business 

customers. 

Telecommunications Street, 


T: (+357) 22 701 000 

E: cytapressoffice@cyta.com.cy 

W: www.cyta.com.cy 


COSTAS PSILLIDES 

MANAGER - INTERNATIONAL 

WHOLESALE MARKET 

NAWAF ABDULLA 

CEO 

CYTAGLOBAL 

Cyta, the primary telecommunications provider in Cyprus, covers the whole 

spectrum of electronic communications ranging from fixed and mobile voice and 

data communications, internet, IPTV and broadband services. Taking advantage 

of the island’s strategic geographical position, Cytaglobal, a strategic business 

unit of Cyta, has developed an extensive subsea fibre optic cable network, 

which connects Cyprus with its neighbouring countries and thereafter with 

the rest of the world. Cytaglobal also operates an extensive satellite network 

with three teleport sites, providing connectivity with major satellite systems. 

Through its global network, Cytaglobal provides a wide range of international 

telecommunications products, services and total solutions, making Cyprus a 

major telecommunications hub in the Eastern Mediterranean and an excellent 

international electronic communications centre. 

DP WORLD LIMASSOL 

In April 2016 DP World Limassol was awarded a 25-year concession to 

exclusively operate the multi-purpose and Cruise terminal in Limassol 

commencing February 2017. The terminal’s activities, comprising of three 

multi-purpose quays, include break-bulk, general cargo, Ro-Ro, Oil & Gas 

services and the brand-new passenger terminal. DP World Limassol port is 

the main cruise port of the island located on the Southern coast of Cyprus and 

is the island’s principal logistics support base for the offshore energy sector. 

Telecommunications Str, 

PO Box 24929, 1396 Nicosia - Cyprus 

T: (+357) 22 701 498 

Contact: Costas Psillides - Manager, 

International Wholesale Market 

E: global@cyta.com.cy 

W: www.cytaglobal.com 

Old Passenger Terminal 

North Quay, Port of Limassol - Cyprus 

T: (+357) 25 858 700 

Contact: Nawaf Abdulla - CEO 

E: info@dpworldlimassol.com 

W: www.dpworldlimassol.com 


E-CNHC – E-C NATURAL HYDROCARBONS COMPANY LTD 

The company provides advisory, project management and consultancy services 

in the oil & gas and energy sectors and aims to contribute to the successful 

development of these Sectors for the future of Cyprus. The CEO has over 

35-years international experience in promoting and developing oil & gas 

business and projects spanning Europe, Asia and Africa. We can assist our 

clients in developing their business in Cyprus, evaluating opportunities and 

providing in depth professional advice and support. 

CHARLES ELLINAS 

CEO 

11 Tyrtaiou Street, 1087 Nicosia - Cyprus 

T: (+357) 97 705 060 

Contact: Dr Charles Ellinas - CEO 

E: Charles.ellinas@yahoo.com 

W: www.e-cnhc.com 

COSTAS STYLIANOU 

DIRECTOR BUSINESS 

DEVELOPMENT & 

BRANCH MANAGER 

EFG BANK (LUXEMBOURG) S.A. - CYPRUS BRANCH 

EFG Bank (Luxembourg) S.A. - Cyprus Branch is part of EFG International, 

a global private banking and asset management group headquartered in 

Zurich, Switzerland, with operations in around 40 locations worldwide. EFG 

International’s registered shares (EFGN) are listed on the SIX Swiss Exchange 

and is currently rated by Moody’s with an A3 rating and by Fitch with an A 

rating. Our Cyprus based office is the gateway providing you access to all 

jurisdictions where EFG has presence including Zurich, London, Luxemburg, 

Monaco, Singapore, Hong Kong etc. In addition to private banking services the 

Cyprus Branch, by capitalizing on the experience, systems and processes of EFG 

Group, is licensed and offers AIFMD compliant Depositary services to Cyprus 

Alternative Investment Funds. 

Cyprus Branch, 23 Kennedy Avenue 

Globe House, 1075 Nicosia - Cyprus 

T: (+357) 22 025 903 

Contact: Costas Stylianou - Director 

Business Development & Branch Manager 

E: cyprusbranch@efgbank.com 

W: www.efginternational.com 

PANAYIOTIS OLYMPIOS 

GENERAL MANAGER 

ELECTRICITY AUTHORITY OF CYPRUS 

The Electricity Authority of Cyprus is an independent, Public Corporate 

corporation established under the Electricity Development Law Cap.171 of 1952 

to exercise and perform functions relating to the generation, transmission, 

distribution and supply of electric energy in Cyprus. The above definition is 

used in Cyprus for corporations which are independent, and established in 

accordance with the relevant Law, to render services in the utility field. In the 

case of the EAC, the government, through the Minister of Energy, Commerce, 

Industry and Tourism, is empowered to give directives to the Authority on 

matters appertaining to the general interest of the Republic. 

11 Amfipoleos Street, 

Strovolos 2025, Nicosia, Cyprus 

(+357) 22 201 000 

Contact: Christina Papadopoulou - Press Officer 

E: eac@eac.com.cy 

W: www.eac.com.cy 



ELIAS NEOCLEOUS 


THANOS CHRONOPOULOS 


ELIAS NEOCLEOUS & CO LLC 

Award-winning Elias Neocleous & Co LLC is the largest law firm in Cyprus 

and one of the top law firms in south east Europe. With more than 150 lawyers 

and other professionals based in offices in Cyprus, Brussels, Budapest, Kiev 

and Prague we offer a value-added service which is second to none. We are 

dedicated to diversity in recruitment and to retaining experienced specialists 

in every practice area. Combined with our investment in IT and knowledge 

management infrastructure, this means we are able to tackle the largest and 

most demanding national and cross-border assignments. Elias Neocleous and 

Co LLC is professional, responsive, innovative, and represents the legal practice 

of the future. 

EPIC 

Epic is one of the largest telecommunication providers in Cyprus, providing 

integrated mobile and fixed telephony, internet and pay-TV services, as well 

as specialized ICT solutions for businesses. In 2019, it proceeded with the 

implementation of the biggest investment ever made for a super-fast network, 

with 10 times more capacity compared to the past and a wide broadband 

coverage. In 2020, Epic received two awards in a row; the “Best Mobile Network 

in Test” award by umlaut and the “Fastest Mobile Network in Cyprus” award by 

Ookla, establishing Epic as the No. 1 mobile network in Cyprus. Epic belongs 

to Monaco Telecom, the telecom provider of the Principality of Monaco, and is 

a member of a dynamic European telecoms’ family, which operates in France, 

Italy, Switzerland, Malta and Ireland. 

Neocleous House, 195 Makarios Avenue, 

P O Box 50613, Limassol CY 3608 - Cyprus 

T: (+357) 25 110 110 

Contact: Elias Neocleous - Managing Partner 

E: info@neo.law 

W: www.neo.law 

87, Kennedy Avenue, 1077 Nicosia - Cyprus 

T: (+357) 96 222 222 

E: info@epic.com.cy 

W: www.epic.com.cy 

MICHALIS LOUIS 

CEO 

EUROBANK CYPRUS LTD 

Eurobank Cyprus, has been operating in Cyprus since 2007. Focusing on the 

wholesale side of business, specifically in the areas of Corporate and Investment 

Banking, Wealth Management, International Business Banking, Affluent Banking 

and Treasury Sales, its operating model is distinct from the rest of the banking 

industry in Cyprus. Its strong capital base, substantial liquidity, and solid financial 

results allow Eurobank Cyprus to continue its dynamic growth and its ongoing 

support of the Cyprus economy. Eurobank Cyprus Ltd is a Cyprus registered 

company founded in 2007, operates autonomously and is subject to all laws and 

regulations of the Republic of Cyprus. 

28, Spyrou Kyprianou Avenue, 

1075 Nicosia, P.O Box 27236, 


T: (+357) 22 208 000 

E: info@eurobank.com.cy 

W: www.eurobank.com.cy 

MARIOS SIATHAS 


EUROPEAN INSTITUTE OF MANAGEMENT AND FINANCE (EIMF) 

The European Institute of Management and Finance (EIMF) is an accredited 

and licensed training provider offering Global Qualifications and partnering 

with International Professional Associations, including the CISI, ACAMS, AAT, 

CMI, IAPP, EXIN, PMI, IoD, CAIA, ICAEW and the Blockchain Training Alliance. 

Specialised professional training is delivered through classroom, online 

and tailored learning solutions with a strong emphasis on governance, risk, 

compliance, management and finance. A presence in over 10 countries, over 7 

thousand students per year, 250+ seminars, 100+ eLearning programmes, 60+ 

instructors with international experience and expertise, and 15 international 

certifications, make the EIMF a leader in the field of executive education in the 

wider region. 

25 Megaron Street, 2032 Strovolos 

Nicosia - Cyprus 

T: (+357) 22 274 470 

Contact: Marios Siathas - Chief Executive Officer 

E: msiathas@eimf.eu 

W: www.eimf.eu 

DAVID BARKER 

COUNTRY MANAGING PARTNER 

EY CYPRUS 

EY is a global leader in assurance, tax, strategy, transactions and consulting 

services with about 300,000 people in over 150 countries. It is the most globally 

integrated professional services organisation, working with businesses, 

entrepreneurs and governments around the world to solve their most pressing 

challenges. EY distils everything it does down to a single, unified purpose: 

building a better working world. For over 80 years, the Cyprus practice has been 

a trusted business advisor and auditor to a broad range of clients and is ideally 

placed to cater to the needs of our clients in a wider geographic span. 

6 Stasinou Avenue, 1060 Nicosia 


T: (+357) 22 209 999 

E: info@cy.ey.com 

W: www.ey.com/cy 


CHRIS YIANGOU 

PARTNER | CORPORATE 

- BANKING & FINANCE 

DEPARTMENT 

ALEXIOS KARTALIS 


GEORGE Y. YIANGOU LLC 

George Y. Yiangou LLC is one of the largest law firms in Cyprus aiming at providing 

superb quality services to its clients. The firm offers a full range of legal and 

consulting services specialising in the areas of Corporate & Commercial Law, 

Banking & Finance, Litigation, Commercial Arbitration and International Debt 

Recovery. The firm’s team consists of more than 20 qualified lawyers supported by 

a large number of paralegal and administrators. In recognition of the effectiveness 

of the firm, George Y. Yiangou LLC has been ranked top tier in international 

legal directories and several of its members have been designated as leading 

professionals in their fields. 

GMM GLOBAL MONEY MANAGERS LTD 

GMM Global Money Managers Ltd is the first Cyprus-based Fund Management 

Company, holding UCITS Manager License No.2/13. It operates in the 

financial sector, setting up, running and managing UCITS Mutual Funds as 

well as Alternative Investment Funds (AIFs) in line with the most recent EU 

directives. The Company through an extensive range of potential investment 

options, is seeking to provide effective geographical coverage and achieve 

diversification of investment risk in international money and capital markets. 

GMM’s management team and associates are well reputed with many years 

of experience and their primary aim is to safeguard invested capital and 

generate optimal yields for the small, medium and large portfolios of both 

private individuals and institutional investors. 

12 Kennedy Avenue, 2nd floor, 


T: (+357) 22 653 333 

Contact: Chris Yiangou - Partner | Corporate - 

Banking & Finance Department 

E: chris@yiangou.com.cy 

W: www.yiangou.com.cy 

36 Stasinou Str., Strovolos 


T: (+357) 22 205 858 

Contact: Alexios Kartalis - General Manager 

E: info@global-mm.com 

W: www.global-mm.com 


STEVE SLOCOMBE 

FOUNDER 

GRS PROFESSIONAL RECRUITMENT SERVICES LTD 

GRS Global Recruitment Solutions is the leading international Recruitment and 

Payroll Consultancy specialising in the provision of human capital resourcing 

solutions. As Cyprus’ largest and most successful recruitment agency, GRS 

has 15 years of experience recruiting for jobs in Cyprus and Malta. The GRS 

team, possess in-depth knowledge and expertise of the market, as well as 

the networking skills required to source the most talented candidates. GRS, 

is renowned island-wide for its professional, precise recruitment and payroll 

services that deliver exceptional results. 

Head office: Agathangelou Business Centre, 

101 Gladstonos Street, Limassol, 3032 - Cyprus 

T: (+357) 25 342 720 

Contact: Steve Slocombe - Director 

E: jobs@grsrecruitment.com 

W: www.grsrecruitment.com 

COSTAS AFXENTIOU 

CEO 

HLB CYPRUS LIMITED 

HLB Cyprus is among the largest accounting and financial consulting firms in 

Cyprus with specialized departments providing services in audit & assurance, 

accounting, financial advisory, transaction services, tax compliance and 

planning to a wide range of businesses from the small owner-managed business 

to multinational groups and listed companies. Our firm provides services to a 

diversity of clients in a wide range of operations, both locally and internationally. 

No matter the size of our client’s business, our professional staff provides the 

guidance needed for successful and well-considered decisions. 

Palaceview House, Corner of Prodromos & 

Zinonos Kitieos 2, CY-2064 Nicosia - Cyprus 

T: (+357) 22 002 700 

Contact: Costas Afxentiou – CEO 

E: nicosia@hlb.com.cy 

W: www.hlb.com.cy 

ALEX CONSTANTI 


IDEASEVEN DIGITAL SOLUTIONS 

Ideaseven are a dynamic, enthusiastic online digital agency with over 15 years 

of experience. We focus on providing global solutions in digital marketing, web 

& app development. At ideaseven, we understand that design and development 

requires continuous mutual communication with our clients. Together, we can 

provide a constantly productive and evolving project. We can help visualize 

even the craziest ideas, converting them into elegant, awesome experiences 

and catchy products. We have worked with a lot of prestigious brands and have 

delivered award winning projects. We are now a full stack, turnkey partner with 

specialists in all fields required for the development and creative process. We 

look forward to your call. 

Pentadactylou 2, office 104, 

6060, Larnaca - Cyprus 

T: (+357) 24 823 832 

Contact: Alex Constanti – Managing Director 

E: info@ideaseven.com 

W: www.ideaseven.com 



ANDREAS STYLIANOU 

CHAIRMAN 

MICHALIS P. MICHAEL 

CHAIRMAN 

INSURANCE ASSOCIATION OF CYPRUS 

The Insurance Association of Cyprus is the accredited and representative 

body of the Cypriot insurance industry, with 29 member insurance companies 

operating in Cyprus, accounting for approximately 98% of total gross written 

premiums. As the leading and united voice of the Cyprus insurance market 

its mission is to promote the industry’s views and positions to policymakers 

and legislators. It is also particularly active with respect to work aiming at the 

modernization of the sector, the continuous improvement of the level and quality 

of service to the public, the enhancement of consumers’ trust and confidence in 

insurance products and their providers, and the strengthening of the institution 

of insurance. 

INVEST CYPRUS 

Invest Cyprus (Cyprus Investment Promotion Agency) is the investment 

authority of the Government of Cyprus dedicated to attract and facilitate foreign 

direct investment into the country. In close collaboration with all governmental 

authorities and public institutions, as well as the private sector, Invest Cyprus 

is the country’s lead agent in establishing Cyprus as a world-class destination 

for international business activity and investments. Invest Cyprus’ mandate is to 

raise awareness of Cyprus as a destination for FDI across the globe, providing 

certainty around all aspects of operating a business in Cyprus and supporting 

potential investors in developing their business case for investment into the 

country. 

23, Zenon Sozos str., 1st floor 


T: (+357) 22 452 990 

Contact: Andreas Athanasiades 

– Director General 

E: info@iac.org.cy 

W: www.iac.org.cy 

9 Makariou III Avenue, 

4th Floor, 1065 Nicosia - Cyprus 

T: (+357) 22 441 133 

E: info@investcyprus.org.cy 

W: www.investcyprus.org.cy 

CONSTANTINOS 

MEIVATZIS 


IQ EQ (CYPRUS) LIMITED 

A leading global investor services group, IQ-EQ is present in 23 jurisdictions 

employing over 2,800+ people across four continents with assets under 

administration (AUA) exceeding US$400 billion. Our experienced and wellqualified 

teams specialise in trust establishment and administration, company 

incorporation and management, accounting and financial reporting, transaction 

support services, fund administration services, escrow services and more. 

The combination of our professional service breadth, global reach and depth 

of experience has assisted us in attracting new clients from all over the world 

and allowed us to actively promote Cyprus through the quality of our services. 

20 Spyrou Kyprianou Avenue, Chapo Central, 

3rd floor, 1075 Nicosia - Cyprus 

T: (+357) 22 749 000 

Contact: Constantinos Meivatzis 

- Managing Director 

E: Constantinos.Meivatzis@iqeq.com 

W: iqeq.com 

CHRISTOS V. VASILIOU 


KPMG 

KPMG is a global network of professional service firms providing Audit, Tax and 

Advisory services, operating in 147 countries and territories and have 219.000 

people working in member firms around the world. KPMG operates in Cyprus 

since 1948 employing more than 900 persons in 6 offices (Nicosia, Limassol, 

Larnaka, Paralimni, Pafos, Polis Chrysochous). By utilising the whole spectrum 

of KPMG International services and the deep knowledge and expertise in all 

major industries, it provides its clients with solutions which address their unique 

characteristics. KPMG offers its clients a consistent standard of service based 

on high order professional capabilities, industry insight and local knowledge. 

14 Esperidon Street, 1087, Nicosia - Cyprus 

T: (+357) 22 209 000 

Contact: Demetris S. Vakis - Board 

Member, Head of Sales and Markets 

E: demetris.vakis@kpmg.com.cy 

W: www.kpmg.com.cy 

LEANDROS 

PAPAPHILIPPOU 


L PAPAPHILIPPOU & CO LLC 

L Papaphilippou & Co LLC was founded in 1963. Through constant and consistent 

work, it is now one of the leading and most respectable law firms in Cyprus. The 

firm quickly established strong presence in the fields of corporate and shipping 

law, litigation, banking and finance, wealth management and immigration, 

thus achieving good cross-border reputation, which led to the development 

of a concrete international professional network and client base. Our list of 

clients includes regulatory bodies, local and international banking and financial 

institutions, insurance, shipping and listed companies, multinationals and high 

net worth individuals. 

17 Ifigenias Street, 2007 Strovolos, 


T: (+357) 22 271 000 

Contact: Leandros Papaphilippou 

- Managing Partner 

E: info@papaphilippou.eu 

W: www.papaphilippou.eu 


MARIOS ELIADES 

FOUNDER 

DEMETRIS TAXITARIS 


M. ELIADES & PARTNERS LLC 

At Eliades & Partners, trust is our company’s most valuable asset. It is the 

principle on which we establish our business relationships whose mutual benefits 

we reap well into the future. Our personal approach enables us to access our 

clients’ needs effectively and maintain a commercial approach which optimizes 

efficiency and implementation. We value others just as we value ourselves. 

Furthermore, we strive to put a meaningful purpose behind what people want to 

achieve. We will find the real problem and turn it into an opportunity. Meeting your 

goals is our primary aim. We are dedicated to our clients and their business; our 

experienced team of professionals will assist you navigate the complex world of 

international business. 

MAP S.PLATIS GROUP 

MAP S.Platis is the leading financial services consulting group in Cyprus with 

clients that include regulators, banks, funds and fund managers, investment 

firms, insurance companies, and payment and electronic money institutions. 

Our expert team provides unique and tailored solutions in licensing, regulatory 

compliance, risk management, internal audit, human resources, regulatory 

technology, executive training and innovation consulting to financial institutions 

in Cyprus and the EU. Thanks to our vast regulatory compliance experience 

supporting local and international financial services institutions, continued 

interaction with regulatory authorities, multidisciplinary and diverse team of 

professionals, unparalleled track record, global network of associates and wealth 

of resources, our internationally recognised and award-winning team can support 

any client’s regulatory needs efficiently and effectively. 

4 Menandrou, Gala Tower, 2nd floor, 

office 201, 1066 Nicosia - Cyprus 

T: (+357) 22 667 730 

Contact: Georgios Papadopoulos - Advocate 

E: gpapadopoulos@eliades.eu 

W: www.eliades.eu 

74 Archiepiskopou Makariou C, 3rd Floor, 

Mesa Geitonia, 4003, Limassol - Cyprus 

T: (+357) 25 351 335 

Contact: Herodotos Michael - Head of the 

financial services registration department 

E: info@mapsplatis.com 

W: www.mapsplatis.com 


FADI ABOUALFA 


MEES 

MEES now in its 65 years of publishing has pivoted its models from primarily 

news to data-driven analysis for the oil & gas industry. Focusing on the OPEC and 

its members, MEES provides its institutional readership with forward outlook 

that is vital to energy security supplies. The organization has now opened 

offices in London in order to tap into talent that will propel the business into 

a consultancy and advisory for a region that remains fraught with geopolitical 

and economic risk. 

Alkeos 23, Office 502, 

Engomi 2404, Nicosia - Cyprus 

T: (+357) 22 675 479 

Contact: Fadi Aboualfa - Managing Director 

E: faboualfa@mees.com 

W: www.mees.com 

DR. SYMEON 

KASSIANIDES 

CHAIRMAN DEFA BOARD 

OF DIRECTORS 

NATURAL GAS PUBLIC COMPANY (DEFA) 

DEFA has the exclusive right to import and supply natural gas to all consumers 

in Cyprus. DEFA will develop and manage the gas network infrastructure. It will 

construct gas transmission lines and support a virtual network, provide bunkering 

services for ships and also natural gas for transportation. DEFA also owns 70% 

of ETYFA (30% owned by EAC), a special purpose subsidiary company that will 

own and manage the LNG Import Terminal (comprising an FSRU, Jetty, pipelines 

and onshore facilities). The Terminal’s EPCOM contract with the international 

consortium was signed in December 2019. Completion is expected in 2022. 

13 Limassol Ave, Demetra Tower, 4th Floor, 

2112 Nicosia | P. O. Box 24954, 


T: (+357) 22 761 761 

Contact: Maria Theocharidou - 

Secretary/PA to the Executive Chairman 

E: info@defa.com.cy 

W: www.defa.com.cy 

VASSOS ARISTODEMOU 

CHAIRMAN & CEO 

NETINFO PLC 

NETinfo is a versatile and innovative technology company that has been enabling 

digital transformation strategies for banks and financial institutions since 2000. 

NETinfo’s flagship products, NETinfo Digital Banking Platform and NETinfo 

Mobile Financial Services (MFS), have successfully been part of the digital 

transformation process of banks and financial institutions, in more than 30 

countries worldwide. NETinfo focuses on retail, corporate and private banking. 

We support banks and financial institutions of all sizes across all geographies, 

helping them to harness the latest technologies, and we fully embrace the 

needs of today’s digital consumers. Industry analysts recognise NETinfo as one 

of the global leaders for omnichannel design and delivery. 

23 Aglantzias Ave., 2108 Nicosia 

P.O. Box 22658, 1523 Nicosia - Cyprus 

T: (+357) 22 753 636 

E: mail@netinfo.eu 

W: www.netinfo.eu 



SUSANA POYIADJIS 

SENIOR PARTNER 

KIKIS LAGOS 


NEXIA POYIADJIS CHARTERED ACCOUNTANTS 

As a prominent partner-led firm established in 1969, Nexia Poyiadjis enjoys 

a proven track record of offering one of the highest standards of professional 

services to local and international clients. Nexia Poyiadjis is the exclusive Cyprus 

member firm of Nexia International, a leading global network of independent 

firms, providing clients with audit and assurance, taxation, business advisory, 

financial outsourcing, turnaround restructuring and insolvency advice. The firm 

operates in various industries such as financial services, professional practices, 

technology, real estate, manufacturing, pharmaceutical, agriculture, retail 

and hospitality with a strong history in providing services to investment firms, 

e-money and payment institutions, alternative investment fund managers and 

regulated funds. 

ONE PLUS CAPITAL LTD 

One Plus Capital (OPC) is as a licensed boutique investment firm based in Nicosia. 

OPC is licensed by CySEC to offer the full spectrum of investment services. Its core 

services include portfolio management, investment advisory, global brokerage, 

corporate finance, custody and safekeeping. OPC is also a trading member of 

the Athens and Cyprus Stock Exchange (ASE, CSE). Over the past few years, OPC 

has weighed in on its expertise and years of presence in the industry to broaden 

the range of services offered. Specifically, OPC has been active in the field of 

fund management for a number of Cyprus licensed funds with multi-asset class 

strategies and compartments for both retail and professional investors. 

Sophouli 2 Str., The Chanteclair House, 

8th floor, 1096 Nicosia - Cyprus 

T: (+357) 22 456 111 

Contact: Susana Poyiadjis - Senior Partner 

E: susana.poyiadjis@nexia.com.cy 

W: www.nexia.com.cy 

75 Prodromou Avenue, 

Oneworld Parkview House, 

2063 Strovolos, Nicosia - Cyprus 

T: (+357) 22 873 760 

Contact: Kikis Lagos - Managing Director 

E: info@onepluscapital.net 

W: www.onepluscapital.net 

SAVVAS SHIATIS 


ONEWORLD LTD 

Oneworld Ltd is a leading advisory, corporate and business services firm in 

Cyprus and Dubai with associated offices in key global centres. We provide 

company incorporation, management, banking, redomiciliation services as 

well as setting up and administering private funds and trusts. We advise on 

international tax planning, family succession, incorporate offshore companies 

in zero and low tax jurisdictions and provide other boutique services including 

licensing of various operations and structures. We bring a depth of experience 

to our work and dealings with our clients, which range from dynamic young 

enterprises to global corporations and high net worth individuals, their families 

and consultants. 

75 Prodromou Avenue, Oneworld House, 

POBox 25207, Nicosia 1307 - Cyprus 

T: (+357) 22 496 000 

Contact: Savvas Shiatis - Managing Director 

E: SShiatis@oneworldweb.net 

W: www.oneworldweb.net 

PAUL PAVLI 


ONEWORLD PLUS MANAGEMENT 

Oneworld Plus Management is a dedicated third party Alternative Investment 

Fund Manager (AIFM) providing AIFM services to fund initiators, promoters and 

fund managers of private equity, real estate, infrastructure, debt, fund of funds, 

transferable securities as well as other alternative asset classes. Our experience 

encompasses funds and assets in Ireland, Luxembourg, UK, Cyprus, Greece, Middle 

East, Asia, Cayman Islands and various other jurisdictions. We offer full fund setup 

services or we can provide services to existing funds. Oneworld Plus Management 

is authorised and regulated by the Cyprus Securities and Exchange Commission 

AIFM35/56/2013. 

E U L I C E N S E D A I F M 

Oneworld House 

75 Prodromou Avenue, Level 2, 

Nicosia 1307 - Cyprus 

T: (+357) 22 507 723 

Contact: Paul Pavli - Managing Director 

E: ppavli@oneworldaifm.com 

W: www.oneworldaifm.com 

EVANGELIA ELIADOU 

EXECUTIVE DIRECTOR 

PAFILIA PROPERTY DEVELOPERS LTD 

Founded in 1977, Pafilia is the largest privately-owned residential developer 

in Cyprus, dedicated to delivering the best in concept, design, quality and 

service. Pafilia specialises in prime developments with proven appreciation, 

rental returns and resale potential. Our €3 billion property portfolio includes 

a diverse and innovative collection of properties ranging from modern houses 

and apartments to integrated leisure resorts, towers, seafront properties and 

rare communities, all in prime locations. While our portfolio presents diversity 

in types and price points, every property shares the same high standards of 

quality that attract the savvy investor. Pafilia also operates a collection of 

subsidiary companies, services and enterprises that cover all aspects of 

property ownership. With offices in Cyprus, Greece, Russia, China and Vietnam, 

and representatives across the globe, Pafilia offers unrivalled support to clients 

whatever their needs. 

Pafilia House, 33 Nicodemou 

Mylona Street - Cyprus 

T: (+357) 26 848 800 

Contact: Michelle Taliotou - Marketing Manager 

E: m.taliotou@pafilia.com 

W: www.pafilia.com 


STAVROS PAVLOU 

SENIOR AND MANAGING 

PARTNER 

POLAKIS SARRIS 


PATRIKIOS PAVLOU & ASSOCIATES LLC 

Patrikios Pavlou & Associates LLC is a leading law firm in Cyprus. With more 

than 58 years of experience in the local and international legal market, the 

Firm has developed distinguished expertise in dispute resolution and ADR 

and a renowned legal consulting department. The legal teams are constantly 

involved in some of the largest cross-border banking, financial and corporate 

transactions and handle complex litigation, arbitration and mediation matters. 

In close cooperation with the associated Pagecorp Group, the Firm provides its 

clients with a comprehensive range of corporate and other related services. The 

Firm is highly recommended by prestigious legal directories worldwide for its 

distinctive legal services. 

POLAKIS SARRIS & CO LLC 

Polakis Sarris & Co LLC was established in 1971 by its founder and Managing 

Partner Polakis Sarris and has since grown into a sizeable and versatile 

law firm. The firm currently consists of over 30 Lawyers, including lawyers, 

accountants, corporate managers, paralegals and assistants. The firm and its 

lawyers are members of the following associations: Cyprus Bar Association 

(CBA), International Bar Association (IBA), International Lawyers Group (ilg), 

Women’s International Shipping and Trading Association (WISTA), International 

Tax Planning Association (ITPA), Society of Trust and Estate Practitioners (STEP), 

Chartered Institute of Arbitrators (CIArb). We strive to maintain an excellent 

standard of service, by being accessible, responsive and effective, and establish 

and maintain first-class and long-standing relationships with our clients. 

Patrician Chambers, 332 Agiou Andreou Street, 


T: (+357) 25 871 599 

Contact: Stavros Pavlou - Senior 

and Managing Partner 

E: spavlou@pavlaw.com 

W: www.pavlaw.com 

Ovo House, 22 Lefkonos, 2064, Nicosia - Cyprus 

T: (+357) 22 456 000 

Contact: Christina Sarris - Senior Partner 

E: info@polakissarris.com 

W: www.polakissarris.com 


EVGENIOS C EVGENIOU 

CEO, PwC CYPRUS 

PwC CYPRUS 

We support you to create the value you are looking for by providing specialised 

solutions based on quality. Together we build relationships based on trust and we 

say things as they are, to assist you to deal with issues that tomorrow will prove 

important. We adapt the expertise of more than 1000 professionals in Cyprus and 

the power of our global network of more than 276,000 experts in 157 countries 

to your specific needs, helping you make the difference. In a demanding and 

challenging business environment, our diverse teams of experts are sharing deep 

knowledge and experience. We provide a broad range of services to meet your 

increasingly complex needs. 

PricewaterhouseCoopers Ltd 

PwC Central, 43 Demostheni Severi Avenue, 

CY-1080 Nicosia - Cyprus 

T: (+357) 22 555 000 

Contact: Konstantina Logotheti - 

Director, Marketing & Communications 

E: konstantina.logotheti@pwc.com 

W: www.pwc.com.cy 

RCB BANK LTD 

RCB Bank Ltd was established on August 1st 1995 and celebrates its 25th 

anniversary this year. It is one of the largest banks in Cyprus and among the 

European significant banks, which are under the direct supervision of the 

European Central Bank through the SSM mechanism. The Bank operates 

branches in Nicosia, Limassol, Larnaca, Pafos and Luxembourg. 

DR. KIRILL ZIMARIN 


2, Amathountos Street, P.O. Box 56868, 


T: (+357) 25 837 300 

E: rcb@rcbcy.com 

W: www.rcbcy.com 

PHILIOS ZACHARIADES 


ROYAL CROWN INSURANCE CO LTD 

RCI is a non-life insurance company that has been active in the Cyprus 

market for more than forty years. Initially RCI was the local agent for Royal & 

SunAlliance, of which it is still part of the global network, and since 1999, RCI 

has been licensed as a purely Cypriot private insurance company. RCI’s mission 

has always been to operate on the principles of absolute integrity, transparency 

and to provide the best possible services to its clients. RCI’s practices and 

procedures have been awarded the quality certification ISO9001-2015 by Lloyd’s 

Register. Insurance, for RCI, is not a product to be sold, but a service provided 

and a commitment created. 

16-20 Mnasiadou Street 

P.O.Box: 24690 1302 Nicosia - Cyprus 

T: (+357) 22 885 555 

Contact: Anthie Zachariadou 

– Executive Director 

E: info@royalcrowninsurance.com 

W: www.royalcrowninsurance.com 



FIONA MULLEN 

DIRECTOR 

PETROS THEODOTOU 

DIRECTOR & CEO 

SAPIENTA ECONOMICS LTD 

Sapienta Economics is a Nicosia-based economic consultancy producing top-level 

analysis primarily on Cyprus for a range of prestigious clients, including oil/gas 

majors, big four firms and over a dozen embassies. Our services include bespoke 

consultancy and the monthly Sapienta Country Analysis Cyprus. Each month we 

take an in-depth look at prospects for political stability, government effectiveness, 

a resolution of the Cyprus problem, structural policies including natural gas, fiscal 

performance, debt sustainability, banking sector stability and the latest economic 

trends. No other organization offers such breadth and depth of inter-related issues. 

Sapienta Economics and its Director Fiona Mullen are independent, with no political 

ties in Cyprus or abroad and no investment in Cyprus shares or bonds. 

SERVPRO ACCOUNTANTS & CONSULTANTS 

ServPRO is a well established firm of accountants, advocates and business 

consultants having local and international expertise to provide clients with a 

comprehensive range of high quality services that exceed expectations. Our 

office offers a wide range of services such as International Tax Planning, 

Company Formation, Corporate & Legal, Formation of Trust & Trustee Services, 

Accounting & Financial Reporting, Auditing & Assurance, Industry Expert 

Advice, Advisory & Consulting, Information Technology, Immigration related 

services, Immovable Property/Real Estate, Dispute Resolution/ Litigation. 

ServPRO is a member of ACCA and ICPAC, an Approved ACCA Employer and ISO 

9001:2015 Certified company. 

Tenedou 7, No 401, Lykavitos, 

CY1055 Nicosia - Cyprus 

T: (+357) 99 338 224 

Contact: Fiona Mullen - Director 

E: fiona.mullen@sapientaeconomics.com 

W: www.sapientaeconomics.com 

1 Kinyra Street, Kinyras Tower, 

3rd Floor, 1102 Nicosia - Cyprus 

T: (+357) 22 021 100 

Contact: Petros Theodotou - Director & CEO 

E: info@servpro.com.cy 

W: www.servpro.com.cy 

VASSILIOS DEMETRIADES 

SHIPPING DEPUTY MINISTER 

TO THE PRESIDENT 

SHIPPING DEPUTY MINISTRY 

The Shipping Deputy Ministry was established on 1st March 2018 as an 

autonomous Deputy Ministry reporting directly to the President, dedicated 

entirely to the Cyprus Maritime Industry. It is responsible for the development 

of a comprehensive national shipping strategy for the expansion of the Cyprus 

Register of Ships and the Cyprus shipping cluster. The Deputy Ministry is split 

into three main Directorates, the Ship Registry, Competitiveness and Regulation 

Directorate, the Flag State Directorate, and the Port State and Coastal State 

Directorate. More than 160 maritime specialists provide top quality services to 

shipping companies on a 24/7 basis from the Shipping Deputy Ministry’s offices 

in Cyprus, London, New York, Athens, Rotterdam and Hamburg. 

1 Kyllinis street, Mesa Geitonia, 


T: (+357) 25 848 100 

Contact: Permanent Secretary of 

the Shipping Deputy Ministry 

E: maritimeadmin@dms.gov.cy 

W: www.shipping.gov.cy 

GEORGE MAVROS 


SKYLINK SERVICES LTD 

Skylink Services Ltd is a provider of ground handling services for Executive 

Aviation Aircraft in Cyprus. We began operations in 1998, filling the gap in 

the Executive Aircraft ground handling market at both International Airports 

of Cyprus, Larnaca and Paphos. Skylink Services now owns and operates the 

only FBO facility at Larnaka Airport offering around-the-clock professional 

VIP aircraft and passenger handling services. Currently representing over 400 

companies that own or operate executive aircraft worldwide. Skylink Services 

also manages and operates the new Heads of State Lounge facility at Larnaka 

International Airport. This Lounge is used by all Heads of State visiting the 

Republic of Cyprus as well as a host of other visiting dignitaries. 

P.O. Box 43012, Larnaca Airport, 

6650 Larnaca - Cyprus 

T: (+357) 24 840 900 

T: (+357) 24 643 334 24hr Operation 

E: flightops@skylink.com.cy 

W: www.skylink.com.cy 

SPYROS EVANGELOU 

STEP CYPRUS CHAIRMAN 

SOCIETY OF TRUST AND ESTATE PRACTITIONERS (STEP) 

STEP is the global professional association for practitioners who specialise 

in family inheritance and succession planning. STEP works to improve public 

understanding of the issues families face in this area and promotes education 

and high professional standards among its members. STEP members help 

families plan for their futures, from drafting a will to advising on issues 

concerning international families, protection of the vulnerable, family businesses 

and philanthropic giving. Today STEP has more than 20,000 members across 

96 countries from a range of professions, including lawyers, accountants and 

other specialists. The Cyprus branch of STEP numbers over 185 experienced 

professionals from all over Cyprus, and is active in the spread of industry related 

knowledge, through regular conferences and presentations. 

PO Box 22037, Nicosia, CY1516 - Cyprus 

T: (+357) 22 559 999 

Contact: Spyros Evangelou- 

STEP Cyprus Chairman 

E: chairman@stepcyprus.com 

W: www.step.org 


STELIOS AMERICANOS 


STELIOS IERONYMIDES 


STELIOS AMERICANOS & CO LLC 

Stelios Americanos & Co LLC is a full services, highly innovative law firm with 

headquarters based in Nicosia, Cyprus and a branch in Athens, Greece. It 

specializes in corporate, commercial and banking law, corporate and commercial 

litigation, real estate, financial advisory & regulation and blockchain legal 

advisory. Stelios Americanos & Co LLC provides its services to governmental 

organizations, international banking institutions, public companies and 

multinational corporations. Moreover Stelios Americanos & Co LLC has created 

close relationships with reputable international legal and consulting firms and is, 

thus, able to assist clients with their cross-border transactions and needs. Today, 

Stelios Americanos & Co LLC is considered one of the leading law firms in Cyprus 

in the areas of its specialty. 

STELIOS IERONYMIDES & ASSOCIATES LLC 

Stelios Ieronymides & Associates LLC is a Law Office, established over thirty 

years ago, in Cyprus. It provides legal assistance and representation, at 

all levels and also, it is one of the largest service providers, offering among 

others, registration, fiduciary and trustee services, to local and foreign clientele 

including corporations, Banks, Airlines, Shipping companies, as well as 

prominent customers with focus on quality, professionalism, effectiveness and 

efficiency. The Law Office maintains a wide network of associates and agents 

in Cyprus and abroad, for matters pertaining to litigation, company and ship 

registration, trusts, tax planning, immigration & residency and real estate. The 

Law Office also maintains a number of Business Centers, providing to its clients 

fully fledged offices in Cyprus, for their business needs and requirements. 

12, Demostheni Severi Av. 

Office 601, 6th Floor 1080 Nicosia - Cyprus 

T: (+357) 22 465 500 

Contact: Stelios Americanos 

- Managing Partner 

E: stelios@americanoslaw.com 

W: www.americanoslaw.com 

Stasinou 1, Mitsi Building 1, 1st Floor, Office 4, 

Plateia Eleftherias, 1060, Nicosia - Cyprus 

T: (+357) 22 674 949 

Contact: Stelios Ieronymides 

– Managing Director 

E: info@silaw.com.cy 

W: www.silaw.com.cy 


ANTONIS VASSILIADES 


SWISSPORT CYPRUS LIMITED 

Swissport has been present in Cyprus since January 2006 providing Passenger, 

Ramp, Ticketing, cargo, and executive aviation services at both the island’s 

airports. It is a subsidiary of Swissport International, the words largest Airport 

provider of ground and air cargo services, active at over 300 airports in 50 

countries across all five continents. With more than 850 client-companies, 

Swissport provides airport ground services for 282 million passengers, and 

4.8 million tons of cargo at 122 warehouses world-wide per annum, with a 

workforce of 68,000. In Cyprus Swissport employs over 850 people, trained at 

the highest level and in line with industry standards and procedures. 

Office 2, Larnaka International Airport 

T: (+357) 24 008 781 

Contact: Michael Kokkinos - 

Commercial Manager 

E: Michael.kokkinos@swissport.com 

W: www.swissport.com 

NICOS PAPAEFSTATHIOU 


TASSOS PAPADOPOULOS & ASSOCIATES LLC 

Tassos Papadopoulos & Associates LLC is one of the oldest law firms 

established in Cyprus, providing legal services in all areas of the law. We have 

been providing bespoke support to HNWIs, both local and foreign, in their 

Cypriot ventures for many years, throughout legislative and regulatory changes. 

Equipped with experience, knowledge, sophistication and discretion we have 

gained the trust and confidence of our clients by providing multifaceted legal 

hands-on support in their activities in Cyprus and overseas. 

10, Iasonos Street, Jason Building, 


T: (+357) 22 889 999 

Contact: Nicos Papaefstathiou – 

Managing Partner 

E: npapaefstathiou@tplaw.com.cy 

W: www.tplaw.com.cy 

KYRIAKOS IORDANOU 


THE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF CYPRUS (ICPAC) 

The Institute of Certified Public Accountants of Cyprus (ICPAC) is the competent 

authority for regulating the accounting profession and the sole recognised 

body of Auditors by the state in Cyprus. Established in 1961, ICPAC currently 

has more than 5.000 professional accountants as members and 3.500 students. 

ICPAC houses all professional accountants, supports and promotes the 

activities and interests of the accountancy profession, safeguards the reputation 

of the profession and adherence to the Code of Ethics, as well as provides for 

the continuous professional development and updating of members. In addition, 

ICPAC is also a competent authority under the Anti-Money Laundering law, the 

laws on the Regulation of Enterprises Providing Administrative Services and the 

Insolvency Practitioners Law. 

11 Byron Avenue, CY-1096, Nicosia - Cyprus 

T: (+357) 22 870 030 

Contact: Kyriakos Iordanou – General Manager 

E: info@icpac.org.cy 

W: www.icpac.org.cy 



ANDREAS MERCOURI 


MICHALIS 

HADJIPANAYIOTOU 

EXECUTIVE DIRECTOR 

TRIDENT TRUST COMPANY (CYPRUS) LIMITED 

Founded in 1978, the Trident Trust Group is one of the largest independent 

providers of corporate and fiduciary services, employing more than 900 staff 

in over 25 jurisdictions. Trident Trust Cyprus is one of the Group’s leading 

offices established in 1996 and is today one of the main members of the local 

financial services industry, employing just over 80 employees. Trident Cyprus is 

regulated by the Cyprus Securities and Exchange Commission and provides a 

full range of services on Cyprus companies, funds and trusts, principally to law 

firms, accountants and tax advisors, as well as financial institutions and large 

international organizations. 

TRILOGY LIMASSOL SEAFRONT 

Brought to life by a world-class collaboration of architects, designers and 

developers, Trilogy is an exciting new high-rise development in the heart of 

Limassol. A trio of shimmering beachfront towers surrounding a bustling inner 

plaza, Trilogy is a place to live, work and play. Its luxury apartments blend the 

aspirational dream of high-end living, with the sophistication of urban cool. Stateof-the-art 

offices also enjoy first-class services and uninterrupted sea views from 

every window. Three distinct social areas offer resident-only facilities for secluded 

leisure and relaxation, as well as a lively public plaza that can be enjoyed and 

experienced by everyone. Your story begins here… 

Griva Digeni 115, Trident Centre 


T; (+357) 25 820 650 

Contact: Christina Economou – 

Business Development Director 

E: cyprus@tridenttrust.com 

W: www.tridenttrust.com 

341, 28th October Avenue 


T: (+357) 25 362 800 

Contact: Yiorgos Georghiou - Sales Director 

E: info@trilogylimassol.com 

W: www.trilogylimassol.com 

NICK TERRY 


VISTRA (CYPRUS) LIMITED 

Vistra Group is a leading fund, trust and corporate services provider. Ranked 

among the top three in our industry, we have 81 offices across 45 countries, 

and employ over 4.500 professionals globally. In Cyprus, our team of forty 

professionals provides a uniquely broad range of services and solutions for a 

wide client-base of high net worth entrepreneurs, international investment 

funds and multinational groups. Certainly, in these challenging times, and with 

the regulatory and financial environment constantly changing, many clients 

seek comfort in working with a world leader such as Vistra; its wide group 

network and professionalism being an invaluable asset. 

2nd Floor Sotiri Tofini 4 

Agios Athanasios, 4102 Limassol - Cyprus 

T: (+357) 25 817 411 

Contact: Nick Terry - Managing Director 

E: Nick.Terry@vistra.com 

W: www.vistra.com 

GEORGE W. SAMS 

CEO 

WEALTH FUND SERVICES LTD 

Wealth Fund Services Ltd was established in 2016 as a UCITS management company 

based in Nicosia and licensed by CySEC. It offers a wide range of investment 

options like investments in funds under Wealth Fund Services umbrella, set-up of 

a personal Mutual Fund and set up and management of all types of AIFs. Apart 

from the core services of UCITS and AIF management, the company also provides 

Discretionary Asset Management and Advisory Services with High standards and 

personal customer care. Every investor shall receive tailor-made solutions based 

on proven fundamental and quantitative research. 

Kennedy 12-14, Kennedy Business Center 

Office 305, 1087, Nicosia - Cyprus 

T: (+357) 22 755 506-07 

Contact: George Sams - CEO 

E: info@wealthfs.com.cy 

W: www.wealthfs.com.cy 

YIANNOS GEORGIADES 


Y. GEORGIADES & ASSOCIATES LLC 

Y. Georgiades & Associates LLC was established in 1992 by Yiannos Georgiades. 

It has a firm foothold in the domestic market, providing a range of legal 

consultancy services to its Cypriot clients, to local councils and charitable 

organizations, and to multinational clientele. The firm has established a 

network of contacts and associates in countries around the world and focuses 

on providing a first-class service to its clients worldwide. The firm specialises in 

M&A, investments, trusts, intellectual property, corporate and commercial law, 

real estate, medical malpractice, dispute resolution and corporate litigation. 

The firm is a Nominated Advisor of the Cyprus Stock Exchange for the Emerging 

Companies Market, and Mr Georgiades is the Chairman of the European Court 

of Arbitration for Commercial Disputes in Cyprus. 

2, Ayios Pavlos & Kadmos Street 

Wisdom Tower, 3rd Floor, 1105, Nicosia - Cyprus 

T: (+357) 22 819 292 

Contact: Yiannos Georgiades Managing Partner 

E: yiannos.georgiades@gmadvocates.com 

W: www.gmadvocates.com 


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2020 Cyprus Country Report

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