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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Expat Employees and Immigration<br />
Cypriot laws on immigration have been<br />
amended to conform to the European Union’s<br />
acquis communautaire and thus visa obligations<br />
for foreign nationals reflect EU regulations and<br />
obligations. While <strong>Cyprus</strong> is a signatory to the<br />
Schengen agreement, it has not implemented<br />
the agreement yet and is not expected to do so<br />
before the <strong>Cyprus</strong> Problem has been resolved.<br />
EU-Nationals: EU-Nationals are free to<br />
live in <strong>Cyprus</strong>. They can enter the Republic<br />
without a work contract and search for<br />
work for a period of three months.<br />
Non-EU Nationals: Non-EU nationals wishing<br />
to work in <strong>Cyprus</strong> require an employment visa,<br />
issued by the Immigration Office. Non-EU nationals<br />
employed at the top level of management by<br />
international companies with operations in <strong>Cyprus</strong><br />
are generally granted employment visas with<br />
no problems, however professional and clerical<br />
staff are only granted employment visas if no<br />
suitably qualified Cypriot candidate is available.<br />
ICT and<br />
Communications<br />
<strong>Cyprus</strong> has invested<br />
heavily in state-of-the-art<br />
systems to serve the needs<br />
of international business.<br />
The country has a fully<br />
digital national network,<br />
along with reliable, highspeed<br />
connectivity to<br />
other modern economies<br />
via satellite and fibre optic<br />
submarine cable systems.<br />
With its advanced<br />
telecoms network and<br />
excellent regional and<br />
global connectivity,<br />
<strong>Cyprus</strong> is fast being<br />
recognised as a leading<br />
telecommunications<br />
hub in the Eastern<br />
Mediterranean.<br />
Professional Services<br />
With around 80% of <strong>Cyprus</strong>’ economy based<br />
on the provision of services, this sector is<br />
one of the most important in the country.<br />
Professional services are a cornerstone of the<br />
economy and continue to show growth year<br />
on year. Manned by an experienced and highly<br />
qualified contingent of professionals, this sector<br />
underpins many of the most rapidly growing<br />
areas of Cypriot business, from company<br />
registration, to finance, insurance, investment<br />
funds, ship management and others. The<br />
expertise of the country’s lawyers, accountants,<br />
auditors and other specialists, often European or<br />
US trained, offer full and efficient services in all<br />
aspects of company law and tax planning, and<br />
the world’s leading accountancy and consultancy<br />
firms are all present on the island, as are all the<br />
leading insurance, ship management and trust<br />
companies. While professional services costs<br />
are generally lower than in Western European<br />
locations, the level and quality of service is not.<br />
Business Operating Environment<br />
Financial Support Services<br />
<strong>Cyprus</strong> has a sophisticated and advanced financial<br />
services sector, which is expanding year on<br />
year. Banking is the largest component of the<br />
sector and is regulated by the Central Bank of<br />
<strong>Cyprus</strong>. The banking system is fully harmonised<br />
with EU legislation and directives. Commercial<br />
banking arrangements and practices follow the<br />
British model and there are currently over 30<br />
Cypriot and international banks operating in<br />
<strong>Cyprus</strong>. All banks maintain correspondent networks<br />
around the world and are able to carry out<br />
both traditional and specialised financial transactions.<br />
Short and long-term borrowing is available<br />
from the <strong>Cyprus</strong> banking system and from the<br />
other financial institutions. Companies locating<br />
in <strong>Cyprus</strong> typically find that the financial institutions<br />
offer a tailored package drawn from a wide<br />
range of basic financing products. For eligible<br />
companies, capital funding can also be raised<br />
through the <strong>Cyprus</strong> Stock Exchange (CSE). There<br />
are no restrictions on foreign investors’ access to<br />
financing in <strong>Cyprus</strong> and borrowing from foreign<br />
sources is not restricted.<br />
www.centralbank.gov.cy<br />
www.cse.com.cy<br />
Market Access<br />
As an EU member state within the eurozone, <strong>Cyprus</strong> offers instant access to the<br />
EU’s internal market of over 500 million people. Following <strong>Cyprus</strong>’ accession<br />
to the European Union in 2004, Cypriot companies have been able to establish<br />
their business or provide their services in any of the other EEA states through<br />
the European Single Passport. In addition, the country’s strategic location, good<br />
relationships with neighbouring countries and the Middle East and its strong<br />
ties to Russia and the CIS countries make it an advantageous jurisdiction to<br />
work in or through. It also allows for neutral ground where businesses coming<br />
from complex political backgrounds, such as Israel and Lebanon, can work<br />
together regardless of religious or political positioning.<br />
The island’s pivotal position as the eastern-most country of the EU means it<br />
is naturally placed as a gateway between East and West, and it is rapidly emerging<br />
as one of the most important business centres in the region. <strong>Cyprus</strong> also<br />
has a vast network of double taxation treaties with 65 countries, which offers<br />
attractive tax planning opportunities. The country also lies in a convenient time<br />
zone for doing business across the world, two hours ahead of GMT, meaning<br />
office hours coincide with Asia in the morning, Europe throughout the day<br />
and the US in the afternoon. <strong>Cyprus</strong>’ ability to bridge the cultural and business<br />
divide between North Africa, the Middle East and Europe is helping to pave the<br />
way for the country’s future prosperity. The island has now become a key trading<br />
post for the EU in the eastern Mediterranean, acting as the ideal hub for goods<br />
and services exchange between Europe, Africa and Asia. A growing transhipment<br />
centre, <strong>Cyprus</strong> has become a key distribution point for goods travelling<br />
into and out of the EU.<br />
Transport and Logistics<br />
<strong>Cyprus</strong> is well connected to the rest of the world through air and sea links. With two international airports, Larnaca and Paphos, served<br />
by over 70 international airlines, a wide network of air routes connects <strong>Cyprus</strong> with continental Europe, Africa, the Middle East and<br />
Asia. The island is an established international transit station for commercial air transportation with excellent connection with the entire<br />
region. <strong>Cyprus</strong> is also one of the leading maritime centres of the world. Three main ports, the multi-purpose ports of Limassol and<br />
Larnaca and the industrial port of Vassiliko, as well as three specialised oil terminals situated at Larnaca, Dhekelia and Moni, ensure that<br />
<strong>Cyprus</strong> is well connected via sea links to all five continents. Thousands of ships call at Cypriot ports every year, which are served by some<br />
70 shipping lines. The country’s road network is also well maintained and sophisticated, making it easy to get around the island and ensuring<br />
commuting distances are relatively short and stress-free compared to mainland Europe.<br />
<strong>Country</strong> <strong>Report</strong> CYPRUS <strong>2020</strong> 153