2020 Cyprus Country Report
The 2020 Cyprus Country Report features in-depth articles on the economy, foreign direct investment, international trade and headquartering as well as detailed sector profiles and insights from Cyprus’ 100 most influential political, economic and business leaders shaping the future of their country and its industries.
The 2020 Cyprus Country Report features in-depth articles on the economy, foreign direct investment, international trade and headquartering as well as detailed sector profiles and insights from Cyprus’ 100 most influential political, economic and business leaders shaping the future of their country and its industries.
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Business Operating Environment<br />
BUSINESS<br />
OPERATING<br />
ENVIRONMENT<br />
<strong>Cyprus</strong>’ business-friendly infrastructure and can-do attitude has<br />
brought it worldwide recognition as an international business centre. The<br />
country offers a winning package for both international entrepreneurs<br />
and investors with its sophisticated business environment, highly<br />
skilled workforce and cost-effective, yet high quality of life.<br />
Business Culture<br />
Respect, hospitality and personal trust are<br />
the cornerstones of the Cypriot business<br />
environment. An island nation with a long<br />
history of dealing with foreign traders and<br />
businesses, Cypriot businesspeople are<br />
international in their outlook and astute<br />
and knowledgeable in their negotiations.<br />
Punctuality is expected, business dress is<br />
formal for both men and women, especially<br />
at the beginning of a business relationship,<br />
and even in warm weather. Most Cypriots<br />
prefer face-to-face meetings to telephone<br />
conferences or written communications,<br />
which are regarded as too impersonal,<br />
and place great importance on building<br />
personal relationships with business<br />
partners or connections. Trust is the key to<br />
successful business dealings in <strong>Cyprus</strong>.<br />
Language<br />
Greek and Turkish are the<br />
official languages of <strong>Cyprus</strong>.<br />
However, English, the legacy<br />
of the British who ruled<br />
<strong>Cyprus</strong> from 1878 to 1960,<br />
is widely spoken and is the<br />
language of business. Many<br />
Cypriots also speak French,<br />
German or Russian.<br />
Business Hours<br />
Office hours are generally<br />
8.30am to 1.00pm and 2.00pm<br />
to 5.30pm, Monday to Friday.<br />
Although in summer some<br />
offices take a longer lunch<br />
break or finish early.<br />
Business Costs<br />
An EU base within the eurozone, <strong>Cyprus</strong> remains one of the few international<br />
business centres offering low operational costs and a high standard of living. Office<br />
space and residential property in Nicosia, the capital and major business centre,<br />
is relatively inexpensive when compared to other European capitals. In terms of<br />
cost of living, <strong>Cyprus</strong> remains one of the most advantageous places to live, with<br />
cost of living lower than in most Western European countries. At the same time,<br />
residents of <strong>Cyprus</strong> enjoy a high standard of living and exceptional quality of life,<br />
as the balmy climate and low crime rate offer both comfort and peace of mind.<br />
Business Incentives<br />
The government has introduced a<br />
variety of incentives aimed at attracting<br />
investment in industries that will enhance<br />
the development of the economy. These<br />
incentives are intended to: encourage the<br />
development of new high-tech industries<br />
and skill-intensive products, reconstruct<br />
<strong>Cyprus</strong>’ traditional economic sectors,<br />
improve productivity and labour skills, and<br />
attract capital intensive foreign investment.<br />
The following incentives are available:<br />
• low taxation at 12.5% with zero tax<br />
on certain types of income<br />
• industrial free zone and exemption<br />
from customs and excise charges for<br />
operations in the industrial free zone<br />
• industrial training schemes<br />
• subsidised industrial estates<br />
• grants and other financial assistance<br />
to investors, particularly in the areas<br />
of energy, the environment, industrial<br />
development, technology, research<br />
and innovation, trade and services<br />
For more information, contact Invest <strong>Cyprus</strong><br />
www.investcyprus.org.cy<br />
Business Costs<br />
<strong>Cyprus</strong><br />
EU27 Average<br />
Labour (business sector) €15.30 €27.80<br />
Telecommunications (Local) €0.18 for a 10-minute local call €0.41<br />
Telecommunications (overseas) €0.65 €1.71<br />
Electricity (households) €0.2236/kWh €0.2160/kWh<br />
Electricity (non-households) €0.1800/kWh €0.1200/kWh<br />
*Source: Eurostat (May <strong>2020</strong>)<br />
150 <strong>Country</strong> <strong>Report</strong> CYPRUS <strong>2020</strong>