2023 Doing Business in Cyprus (UK Edition)
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
DOING BUSINESS C YPRUS<br />
69<br />
UNITED KINGDOM EDITION<br />
How would you describe the current trade<br />
relations between <strong>Cyprus</strong> and the <strong>UK</strong>?<br />
The trade relations between the two countries are quite high, reflect<strong>in</strong>g the two<br />
countries’ long historical ties, which date back to the 19 th century. Accord<strong>in</strong>g to data,<br />
the total trade <strong>in</strong> goods and services, exports and imports, between the <strong>UK</strong> and <strong>Cyprus</strong><br />
was a bit over €4 billion <strong>in</strong> the four quarters to the end of Q2 <strong>2023</strong> – an <strong>in</strong>crease of 25.4%<br />
from the four quarters to the end of Q2 2022. In addition, the <strong>UK</strong> is <strong>Cyprus</strong>’ second most<br />
significant trad<strong>in</strong>g partner.<br />
It should be noted that the <strong>UK</strong> and the EU reached a Trade and Cooperation<br />
Agreement, that came <strong>in</strong>to effect on 1 January 2021, cover<strong>in</strong>g various aspects of their<br />
relationship, <strong>in</strong>clud<strong>in</strong>g trade. While the <strong>UK</strong> is no longer part of the EU’s S<strong>in</strong>gle Market<br />
and Customs Union, the agreement aims to ma<strong>in</strong>ta<strong>in</strong> trade between the <strong>UK</strong> and the EU<br />
member states, <strong>in</strong>clud<strong>in</strong>g <strong>Cyprus</strong>, with reduced trade barriers.<br />
What economic sectors <strong>in</strong> <strong>Cyprus</strong> have seen<br />
significant <strong>in</strong>vestment and participation from the<br />
<strong>UK</strong>, and <strong>in</strong> what type of projects and activity?<br />
<strong>Cyprus</strong> has historically attracted significant <strong>in</strong>vestment and participation from the<br />
<strong>UK</strong> <strong>in</strong> various economic sectors. Some of the sectors that have seen notable <strong>UK</strong><br />
<strong>in</strong>volvement <strong>in</strong>clude tourism and hospitality, real estate, f<strong>in</strong>ancial services, shipp<strong>in</strong>g,<br />
education, and technology and <strong>in</strong>novation.<br />
The tourism <strong>in</strong>dustry <strong>in</strong> <strong>Cyprus</strong> has been a major focus for British <strong>in</strong>vestors. Many<br />
<strong>UK</strong> tourists visit <strong>Cyprus</strong> each year, and British companies have <strong>in</strong>vested <strong>in</strong> hotels,<br />
resorts, and other tourism-related ventures on the island. British citizens have been<br />
active buyers of real estate <strong>in</strong> <strong>Cyprus</strong>, particularly <strong>in</strong> the coastal areas. The appeal of a<br />
Mediterranean climate, beautiful landscapes, and a relatively low cost of liv<strong>in</strong>g has led<br />
to substantial <strong>in</strong>vestment <strong>in</strong> residential and commercial properties.<br />
In terms of f<strong>in</strong>ancial services, <strong>Cyprus</strong><br />
has been a popular dest<strong>in</strong>ation for <strong>UK</strong><br />
companies seek<strong>in</strong>g to establish a presence<br />
with<strong>in</strong> the European Union. The f<strong>in</strong>ancial<br />
services sector, <strong>in</strong>clud<strong>in</strong>g bank<strong>in</strong>g and<br />
<strong>in</strong>surance, has attracted British firms<br />
<strong>in</strong>terested <strong>in</strong> serv<strong>in</strong>g both Cypriot and EU<br />
markets. In addition, <strong>Cyprus</strong> has a wellestablished<br />
shipp<strong>in</strong>g <strong>in</strong>dustry, and the <strong>UK</strong><br />
has been <strong>in</strong>volved <strong>in</strong> this sector, <strong>in</strong>clud<strong>in</strong>g<br />
<strong>in</strong> ship management, maritime services,<br />
and ship registration.<br />
IPerhaps the biggest advantage<br />
that <strong>Cyprus</strong> can offer to <strong>UK</strong><br />
companies and <strong>in</strong>vestors is the<br />
comb<strong>in</strong>ation of a familiar legal<br />
system and an abundance of <strong>UK</strong><br />
graduates and English-speak<strong>in</strong>g<br />
people <strong>in</strong> the talent pool.