2020 Cyprus Country Report

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.
Business Operating Environment
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.
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