2022-2023 Cyprus Country Report

CYPRUSCOUNTRY REPORT 2022
FDI APPEAL
Cyprus’ FDI appeal has been on an upward trajectory thanks to a robust economy.
Real GDP growth averaged 4.6% in 2015-19 and in 2021 the economy showed
strong performance with 5.5% growth, regaining lost ground from the height of the
Covid-19 pandemic. For the last several years, Cyprus has been a hive of activity with
several notable projects already implemented or in the pipeline, strengthening the
country’s image and appeal. Foreign investment flows have been significant. In the
ten-year period 2011-2020, cumulative net FDI reached €22.2 billion. This investment
was driven by equity, with the shipping/shipping finance and real estate sectors
playing a significant role, while investment in communications is now also beginning
to gain importance. Ongoing improvements in the macroeconomic and financial
environment have also revived international interest in around 30 major development
projects on the island. Investment opportunities in Cyprus’ large-scale projects span
various sectors, including high-value tourism and housing developments, projects with
a special focus on golf courses and luxury marinas, as well as education, energy, and
more recently the international film sector. The growth performance of Cyprus over
the last five years has been exceptional and even exceeded international expectations,
while successive credit rating upgrades and new incentives have attracted billions in
foreign investment since 2015, with significant inflows from the US, Asia, Russia and the
Middle East. Cyprus’ liberalised Foreign Direct Investment Policy, both for EU citizens
and investors from third countries, along with its favourable tax regime makes it one of
the most attractive centres for FDI in Europe.
Parklane Limassol
A DIVERSIFIED FUTURE
Offering a professional yet relaxed atmosphere that makes doing business
pleasurable as well as profitable, Cyprus’ Mediterranean lifestyle coexists happily
with a cutting-edge international business hub, allowing investors to enjoy the best of
both worlds: a safe and comfortable environment for family life and a sophisticated
infrastructure from which to grow and develop business. Cyprus combines numerous
advantages as a business base with its EU-approved tax regime, competitive 12.5%
corporate tax rate and tax breaks for high earners, its pro-business government
and highly skilled workforce – as well as promising growth and development across
numerous economic sectors. With Cyprus’ prospects on the rise, the country has all the
right elements firmly in place to strengthen its reputation as an international centre of
business excellence in one of Europe’s most interesting investment locations. n
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