Is Cyprus Safe to Invest? Investing in Cyprus

The Republic of Cyprus became a full member of the EU on May 1st, 2004. Accession to the EU was a natural choice for Cyprus, driven by its culture, civilization and history, as well as its unwavering commitment to the values of democracy, freedom and justice. At the beginning of 2008, Cyprus joined the European Monetary Union (Eurozone), thus launching a new era of commitment to quality and growth. Cyprus is Europe’s eastern outpost at the crossroads of three continents - Europe, Africa and Asia – providing a gateway to and from each one of them. The country’s geographical location has been considered of strategic importance in global trade for thousands of years. Recently, the discovery of natural gas resources and possibly oil has further upgraded the strategic importance of the island, which is also considered to be a stabilising factor in the region’s political developments.

The Cyprus financial services sector is diverse, comprising domestic banks, International Banking Units (IBUs), insurance companies, Forex and other companies that offer financial intermediation services. Cyprus’ banking & financial services sector legislation is in line with international best practices and has a simplified, effective and transparent tax system, which is fully EU, OECD, FATF and FSF compliant. Investors in Cyprus also enjoy the attractive network of double taxation agreements with more than 50 countries. In line with business changes, Cyprus’ banking infrastructure has rapidly evolved and adopted the use of advanced technology systems; implemented measures to reduce risk management along with the acquisition of highly trained personnel. Even after the Eurogroup’s decision (March 2013), Cyprus retains its competitive advantage as a financial center and has shown an exceptional financial improvement by announcing a growth rate since the first quarter of 2015. The following recent economic statistics reflect the improvement of Cyprus economy, and indicate the prospects for a flourishing economy much sooner than expected. Today, Cyprus actively participates in EU programmes, focusing on strengthening growth in various economic sectors, as well as entrepreneurship and innovation across sectors and processes. Furthermore, the country continues to encourage Foreign Direct Investment opportunities in priority economic growth sectors. 

Cyprus is a dynamic business centre that offers relatively lower operating costs while also providing high level and top quality professional services, including accounting, auditing, tax, business administration, investment, funds management and most importantly real estate. Cyprus has a comprehensive, modern and forward-looking legal and regulatory framework based on the principles of English Common Law. The country's legal framework is widely recognized as a business-friendly and effective system that allows reliable and transparent business practices. Human talent is probably Cyprus' most compelling competitive advantage. Cypriots are highly educated, qualified and almost all are multilingual. Nevertheless, business is still done with a personal touch. 

The local infrastructure is ideally suited for businesspeople that need to get things done. Thanks to its modern road network, extensive port facilities and two new international airports, travel and transport in and beyond Cyprus is fast, efficient and economical. Considerable investment has been made into transforming the island into a major telecommunications hub in the wider region. By building upon its technologically advanced infrastructure, Cyprus has established an extensive telecommunications network, both in terms of cable and satellite, which ranks amongst the best in the world. 

Interestingly, given the above facts & trends of Cypriot economy and also the existing business and physical infrastructures, the property market is deemed to be the centre of investment attention. This is because prices are in the stage of stabilization, after they have undergone a sharp correction of -41% between the period of 2010 to 2015 thus now indicating a very promising outlook for the long-term. This matter constitutes Cyprus as an ideal place for property investors to diversify their existing property portfolio from Asia, UK or US to Cyprus, thus taking advantage the upcoming property price expansion from its beginning. 

As investment and business comes with lifestyle, Cyprus offers an enviable lifestyle in a clean and healthy environment with a high standard of living and high standard of medical care. Living and working in Cyprus are directly related to fabulous weather, pure nature, art and culture, safety, security, and above all, hospitable and warm people. It is the combination of all these factors that makes the experience of living in the island extremely desirable and attractive. The balance between work and family part of everyday life is unique and truly difficult to match. The UNDP Human Development Index Report (2013) ranked Cyprus 31st out of 187 countries for the quality of life. The Knight Frank Report ranked Cyprus on the fall of 2013 as the 5th better place for Lifestyle among major European Cities and other competitive destinations. The report was also published in the Financial Times on October 2013.