2023 Doing Business in Cyprus (UK Edition)

DOING BUSINESS C YPRUS
14
UNITED KINGDOM EDITION
Following the country’s financial crisis
in 2013, Cyprus undertook a major
reform agenda and while still facing
some economic challenges, the small
EU nation has demonstrated resilience
and an ability to bounce back to growth.
The year 2015 signalled a sooner-thanexpected
exit from recession and a rapid
economic turnaround followed, with 2017
recording almost 4% growth – earning
Cyprus praise as an economic success
story. Cyprus’ resilience in the face of the
pandemic was once again evident with
GDP growth reaching a strong 5.6% in
2022, although the European Commission
forecasts a downturn to 2.2% growth in
2023. Consistent credit rating upgrades
have further boosted confidence and
foreign direct investment has been
flowing into all key sectors. Cyprus has
retained and strengthened its status
as an attractive investment gateway to
the EU and other high-growth markets,
as well as a secure base to tap into
opportunities in the Middle East. Offering
a tax-efficient EU company domicile, the
country is emerging as an increasingly
attractive location for fund managers and
promoters, and a compelling destination
for regional headquarters and a base for
tech companies.
GROWING TECH CLUSTER
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 fresh incentives to attract
more digital nomads, IT start-ups and
regional headquarters. 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. Albeit one of the
smallest EU member states, research and
EU Member since 2004,
Eurozone member since 2008
Cyprus is the EU’s largest
shipmanagement centre and
amongst the top three in the world
Cyprus is an established
international business and service
centre for shipping, financial
services and commerce, and
is classified by the World Bank
as a high-income country
With its new focus on longterm
development outcomes,
Cyprus is determined to diversify
and harness growth with a
technology-driven economy.