INTERNATIONAL BUSINESS & INVESTMENT

The last two decades have witnessed the gradual transformation of Cyprus into a reputable international business and financial centre. Cyprus’ attractiveness as a business and investment location is based on the following advantages:

• Strategic geographical location at the crossroads of three continents.
• Stable business environment, based on the free market philosophy with emphasis on promoting private initiative.
• Macroeconomic stability, reflected in stable prices and currency.
• Favourable tax regime.
• Wide network of agreements for avoidance of double taxation.
• High educational level of manpower.
• Highly skilled and flexible labour force, conversant with the use of new technology
• Competitive level of wages and other costs.
• Compliance with the European Union Code of Conduct for Business Taxation and with the commitment to OECD for the elimination of harmful tax practices.
• Simple administrative procedures.
• Well developed commercial infrastructure.
• Easy access to international markets.

International business and financial centre
The numerous comparative advantages have rendered Cyprus a major international business and investment centre. Around 40% of international companies based on the Island are engaged in trade and marketing activities, serving predominantly the markets of Central and Eastern Europe as well as Middle East. Around 30 international banking units are currently present in Cyprus, a development attributed to the modern and transparent legal framework governing the operation of foreign banks. International banks are obliged to operate as fully-fledged and fully staffed units and not merely as "brass plate entities".

Shipping
Cyprus has also developed into an international shipping centre for the conduct of maritime activities and the rendering of shipping services. The Island ranks seventh on the list of the leading maritime nations. It should be emphasized that Cyprus is not a flag of convenience. Cyprus has ratified the major international conventions on maritime safety, prevention of sea pollution, training and certification of seafarers.
 

Ship Management
Furthermore, Cyprus has been transformed into one of the world's largest shipping management centres. Today, more than 150 international business companies with fully-fledged offices are engaged in ship management and other maritime operations. Most of them are of British, German, Greek and Scandinavian ownership, using their offices in Cyprus to manage a large number of vessels under Cypriot or foreign flags.
 
Transit Trade
Cyprus has been established as one of the main transit trade centres in the Eastern Mediterranean. This development is attributed, among other factors, to the strategic location of the Island at the crossroads of three continents, the efficient customs formalities and the reliable handling and delivery system.

Investment in Real Estate
The Island's convenient location, the pleasant climate, the hospitality of Cypriot people and the relatively low cost of properties and cost of living, are among the factors which have contributed to the rapid development of Cyprus as a major venue for foreign investors, retirees and expatriates. Properties in Cyprus are less costly than in other similar destinations and construction is of top quality. The land registration system provides security of title and protection of ownership for foreign investors. Following Cyprus' accession to the European Union, all exchange control restrictions in relation to the acquisition and sale of immovable property have been abolished.

A bridge of cooperation
Cyprus is a dynamic, flexible and adaptive economy, which has seriously taken up the challenge of intensified competition, emanating from its accession to the European Union and the worldwide trend towards globalisation. The implementation of wide-ranging structural reforms have enhanced macroeconomic stability and lead to the creation of new business opportunities for dynamic investors. As Europe's easternmost outpost, Cyprus is ideally placed to serve as a hub for business with Eastern Europe, the former Soviet Union, the Middle East and North Africa and is determined to see this role fulfilled.