2023 Doing Business in Cyprus (UK Edition)
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DOING BUSINESS C YPRUS<br />
18<br />
UNITED KINGDOM EDITION<br />
STRONG FDI FLOWS<br />
<strong>Cyprus</strong>’ FDI appeal has been on an upward trajectory thanks to a robust economy.<br />
Real GDP growth averaged 4.6% <strong>in</strong> 2018-2022 despite the Covid-19 pandemic.<br />
For the last several years, <strong>Cyprus</strong> has been a hive of activity with several notable<br />
projects already implemented or <strong>in</strong> the pipel<strong>in</strong>e, strengthen<strong>in</strong>g the country’s image<br />
and appeal. Foreign <strong>in</strong>vestment flows have been significant. In the ten-year period<br />
2013-2022, net <strong>in</strong>flows reached €13.5 billion. This <strong>in</strong>vestment was driven by equity,<br />
with real estate, communications and headquarter<strong>in</strong>g play<strong>in</strong>g a significant role.<br />
Ongo<strong>in</strong>g improvements <strong>in</strong> the macroeconomic and f<strong>in</strong>ancial environment have<br />
also revived <strong>in</strong>ternational <strong>in</strong>terest <strong>in</strong> around 30 major development projects on the<br />
island. Investment opportunities <strong>in</strong> <strong>Cyprus</strong>’ large-scale projects span various sectors,<br />
<strong>in</strong>clud<strong>in</strong>g high-value tourism and hous<strong>in</strong>g developments, projects with a special<br />
focus on golf courses and luxury mar<strong>in</strong>as, as well as education, energy, and more<br />
recently the <strong>in</strong>ternational film sector. The growth performance of <strong>Cyprus</strong> over the<br />
last five years has been exceptional and even exceeded <strong>in</strong>ternational expectations,<br />
while successive credit rat<strong>in</strong>g upgrades and new <strong>in</strong>centives have attracted billions<br />
<strong>in</strong> foreign <strong>in</strong>vestment, with significant <strong>in</strong>flows from the US, Asia, and the Middle<br />
East. <strong>Cyprus</strong>’ liberalised Foreign Direct Investment Policy, both for EU citizens and<br />
<strong>in</strong>vestors from third countries, along with its favourable tax regime makes it one of<br />
the most attractive centres for FDI <strong>in</strong> Europe.<br />
Parklane Limassol<br />
BUSINESS AND PLEASURE<br />
Offer<strong>in</strong>g a professional yet relaxed atmosphere that makes do<strong>in</strong>g bus<strong>in</strong>ess<br />
pleasurable as well as profitable, <strong>Cyprus</strong>’ Mediterranean lifestyle coexists happily<br />
with a cutt<strong>in</strong>g-edge <strong>in</strong>ternational bus<strong>in</strong>ess hub, allow<strong>in</strong>g <strong>in</strong>vestors to enjoy the best of<br />
both worlds: a safe and comfortable environment for family life and a sophisticated<br />
<strong>in</strong>frastructure from which to grow and develop bus<strong>in</strong>ess. <strong>Cyprus</strong> comb<strong>in</strong>es numerous<br />
advantages as a bus<strong>in</strong>ess base with its EU-approved tax regime, competitive 12.5%<br />
corporate tax rate and tax breaks for high earners, its pro-bus<strong>in</strong>ess government<br />
and highly skilled workforce – as well as promis<strong>in</strong>g growth and development across<br />
numerous economic sectors. With <strong>Cyprus</strong>’ prospects on the rise, the country has all the<br />
right elements firmly <strong>in</strong> place to strengthen its reputation as an <strong>in</strong>ternational centre of<br />
bus<strong>in</strong>ess excellence <strong>in</strong> one of Europe’s most <strong>in</strong>terest<strong>in</strong>g <strong>in</strong>vestment locations. n