2020 Cyprus Country Report

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
Cyprus
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)
150 Country Report CYPRUS 2020