The Business Framework in Cyprus
Cyprus is an open-market economy with a highly skilled workforce and a commitment to facilitating business in a simplified cost effective manner. The country was ranked 64th in the world for ease of doing business in 2015 according to the World Bank. Being a full Member State of the European Union since May 2004, Cyprus retains a role of increasing importance, serving as a business bridge between the EU and the Middle East.
The small but vigorous Mediterranean island, recognised for the sunny weather and golden beaches, has transformed itself into one of the world’s most attractive jurisdictions to establish a business and promote foreign investments. In order to enhance economic prosperity in Cyprus, the government liberalised foreign direct investment policy for both EU and non-EU nationals.Foreign investors no longer need approval from the CBC and may invest and do business in Cyprus on equal terms with local investors.
The World Bank has also classified Cyprus among the high-income countries in terms of per capita income, while the United Nations placed Cyprus 31st in its Index of Human Development for 2013.
The government's economic policy is aimed at promoting and maintaining favourable investment conditions and supporting private initiatives. Foreign participation in the economy has been officially encouraged and liberalised for some time. Administrative procedures have been simplified and in all but a few strategic or specifically regulated industries such as banking there are no limits on foreign investment.
Citizenship is available for significant investors. There is a growing awareness among foreign corporations and individuals of the particular advantages of using Cyprus as a business base for both inward and outward investment. More than 20% of residents of the government-controlled area are non-Cypriots. Almost two-thirds of these are EU nationals.
The country's two international airports, situated near Larnaca and Paphos, which serve numerous international airlines, were reconstructed and upgraded in the past few years.