Attracting foreign investments is among the primary objectives of the Cyprus development policy, since this contributes to the transfer of know-how, the introduction of high technology and facilitates further the expansion of exports. Foreign companies can benefit from the numerous incentives and low tax regime by using Cyprus as a base for their investments.
Cyprus’ investment policy is completely liberal allowing 100% foreign participation in most sectors of the economy, not only for EU citizens but also investors from third countries. Restrictions concerning maximum allowable percentage of foreign participation, as well as minimum level of foreign investment, have been lifted as of January 2000 for EU citizens and October 1, 2004 for non-EU citizens.
The comparative advantages Cyprus offers as an international business center derive mainly from the favorable business climate, which is directly related to the prevalence of conditions of macroeconomic stability. The economic policy approach in Cyprus is based on the free market philosophy, attaching emphasis on promoting private initiative and is characterized by continuity. Internal and external stability is reflected in the relatively stable prices and stable currency.
In order to foster the infusion of foreign investments, the Foreign Investors Service Center has been established under the auspices of the Ministry of Commerce, Industry and Tourism.
The Center operates as a full service “One Stop Shop” for foreign based companies interested in investigating investment opportunities in Cyprus, and constitutes the central agency of information, support, and foreign investor’s relations.
The Government of Cyprus, taking into account the numerous challenges that arise daily because of the economy, has applied a far-reaching and bold new industrial policy. This policy includes schemes and incentives which aim at the following:
- Attraction and development of new high-tech industries and skill intensive products.
- Technological upgrading of the traditional manufacturing industries.
- Productivity and labor skills improvement.
- Attraction of capital-intensive foreign investment.