2023 Doing Business in Cyprus (UK Edition)

DOING BUSINESS C YPRUS
18
UNITED KINGDOM EDITION
STRONG FDI FLOWS
Cyprus’ FDI appeal has been on an upward trajectory thanks to a robust economy.
Real GDP growth averaged 4.6% in 2018-2022 despite the Covid-19 pandemic.
For the last several years, Cyprus has been a hive of activity with several notable
projects already implemented or in the pipeline, strengthening the country’s image
and appeal. Foreign investment flows have been significant. In the ten-year period
2013-2022, net inflows reached €13.5 billion. This investment was driven by equity,
with real estate, communications and headquartering playing a significant role.
Ongoing improvements in the macroeconomic and financial environment have
also revived international interest in around 30 major development projects on the
island. Investment opportunities in Cyprus’ large-scale projects span various sectors,
including high-value tourism and housing developments, projects with a special
focus on golf courses and luxury marinas, as well as education, energy, and more
recently the international film sector. The growth performance of Cyprus over the
last five years has been exceptional and even exceeded international expectations,
while successive credit rating upgrades and new incentives have attracted billions
in foreign investment, with significant inflows from the US, Asia, and the Middle
East. Cyprus’ liberalised Foreign Direct Investment Policy, both for EU citizens and
investors from third countries, along with its favourable tax regime makes it one of
the most attractive centres for FDI in Europe.
Parklane Limassol
BUSINESS AND PLEASURE
Offering a professional yet relaxed atmosphere that makes doing business
pleasurable as well as profitable, Cyprus’ Mediterranean lifestyle coexists happily
with a cutting-edge international business hub, allowing investors to enjoy the best of
both worlds: a safe and comfortable environment for family life and a sophisticated
infrastructure from which to grow and develop business. Cyprus combines numerous
advantages as a business base with its EU-approved tax regime, competitive 12.5%
corporate tax rate and tax breaks for high earners, its pro-business government
and highly skilled workforce – as well as promising growth and development across
numerous economic sectors. With Cyprus’ prospects on the rise, the country has all the
right elements firmly in place to strengthen its reputation as an international centre of
business excellence in one of Europe’s most interesting investment locations. n