2023 Doing Business in Cyprus (UK Edition)

DOING BUSINESS C YPRUS
69
UNITED KINGDOM EDITION
How would you describe the current trade
relations between Cyprus and the UK?
The trade relations between the two countries are quite high, reflecting the two
countries’ long historical ties, which date back to the 19 th century. According to data,
the total trade in goods and services, exports and imports, between the UK and Cyprus
was a bit over €4 billion in the four quarters to the end of Q2 2023 – an increase of 25.4%
from the four quarters to the end of Q2 2022. In addition, the UK is Cyprus’ second most
significant trading partner.
It should be noted that the UK and the EU reached a Trade and Cooperation
Agreement, that came into effect on 1 January 2021, covering various aspects of their
relationship, including trade. While the UK is no longer part of the EU’s Single Market
and Customs Union, the agreement aims to maintain trade between the UK and the EU
member states, including Cyprus, with reduced trade barriers.
What economic sectors in Cyprus have seen
significant investment and participation from the
UK, and in what type of projects and activity?
Cyprus has historically attracted significant investment and participation from the
UK in various economic sectors. Some of the sectors that have seen notable UK
involvement include tourism and hospitality, real estate, financial services, shipping,
education, and technology and innovation.
The tourism industry in Cyprus has been a major focus for British investors. Many
UK tourists visit Cyprus each year, and British companies have invested in hotels,
resorts, and other tourism-related ventures on the island. British citizens have been
active buyers of real estate in Cyprus, particularly in the coastal areas. The appeal of a
Mediterranean climate, beautiful landscapes, and a relatively low cost of living has led
to substantial investment in residential and commercial properties.
In terms of financial services, Cyprus
has been a popular destination for UK
companies seeking to establish a presence
within the European Union. The financial
services sector, including banking and
insurance, has attracted British firms
interested in serving both Cypriot and EU
markets. In addition, Cyprus has a wellestablished
shipping industry, and the UK
has been involved in this sector, including
in ship management, maritime services,
and ship registration.
IPerhaps the biggest advantage
that Cyprus can offer to UK
companies and investors is the
combination of a familiar legal
system and an abundance of UK
graduates and English-speaking
people in the talent pool.