Please update your Flash Player to view content.
About Cyprus

The Republic of Cyprus


Cyprus is a 9,251 sq km island in the Mediterranean Sea south-east of Greece. Situated at the crossroads of Europe, Asia and Africa - forms a bridge between Europe, the oil-rich Arab states and the rest of the Middle East.

  • Climate: ~ 300 days per year of sunshine. Mediterranean, with mild, wet winters and hot, dry summers
  • Population: ~ 850,000 - Labor force: ~ 397,000
  • Official languages: Greek and Turkish. English is spoken by the majority of the population, and is universally used in commerce, industry and administration
  • Legal system: based on English Common Law. The UK Companies Act of 1948 forms the basis of the Cyprus Company Law, Cap 113 (recently has been amended to meet the European Union requirements)
  • Safe environment: crime rate is 6.44 crimes per 1,000 inhabitants
  • Member of the European Union, United Nations, and the British Commonwealth

The Economy

  • National currency: € / Euro
  • Cyprus has an open, free-market economy dominated by the service sector
  • Important sectors: Tourism, financial services, transportation, communications, real estate
  • In 2010 Cyprus attracted €578 million in Foreign Direct Investment (FDI).
  • Lowest corporate tax in EU: Companies are subject to a uniform tax rate of 10%
  • Cyprus resident companies are taxed on their worldwide income
  • Zero tax on Dividends: Companies resident in Cyprus are exempt from income tax in respect of dividends received from other Cyprus resident companies
  • Zero tax on profits from the sale of shares and other securities
  • Zero withholding tax on dividends, interest or royalties paid to non-residents
  • Foreign investors can invest up to 100% in any Cypriot enterprise, without a minimum level of capital  investment
  • Tax treatment of Losses: Tax losses can be carried forward and set off against future profits indefinitely. Group relief has been introduced
  • Double Taxation Treaties with 40 countries including the US, Russia, Germany and France and Bilateral Investment Agreements with 17 countries

Infrastructure

  • A wide network of air- and sea-routes connects Cyprus with Europe, Africa and Asia
  • Two modern international airports, in Larnaka and Pafos
  • Multi-purpose sea-ports in Limassol and Larnaka, industrial port in Vassiliko
  • Cyprus has one of the most advanced telecommunications systems in the world, based on the latest technology

Developments to watch

  • Natural Gas Exploration project: The field off the coast of Cyprus holds as much as 8 trillion cubic feet of natural gas
  • Larnaca Cargo Village: Best-in-class cargo terminal (to be completed in Q4 2013)
  • Chinese Products Commercial Showroom and Logistics  Center – Old Larnaca International Airport area (Opening in Q4 of 2013)
    • 455,000 sq meters
    • Over $ 1 billion investment
    • Signed MoU
  • Submarine Electricity Cable between Israel, Cyprus and Greece (Operational by Q3 of 2016)
    • $660 million  investment
    • 287 kilometers long
    • 2,000 megawatts
  • New marinas in Limassol and Larnaka (in progress)