2022-2023 Cyprus Country Report

CYPRUSCOUNTRY REPORT 2022
The mission of the Ministry is to implement our integrated strategy for the transition
to a green and circular economy, through a mixture of targeted policies and measures
intended to promote energy efficiency, a smart and environmentally friendly industry,
the enhancement of commerce and exports and the sustainable development of our
hydrocarbon and RES resources.
To this end, our National Energy and Climate Plan (NECP), which provides a detailed
roadmap until 2030, is based on European values and strategies and, most importantly,
the EU Green Deal that calls for climate neutrality by 2050. Inter alia, Cyprus’ NECP
provides for the introduction of green taxation, the liberalisation of the electricity
market, the facilitation of energy renovations in buildings, the acceleration of electric
mobility, the connection of the electricity grids of Cyprus, Crete and Israel and the
operation of a one-stop-centre to simplify and accelerate the permitting procedures
for renewable energy projects. In addition, it includes energy efficiency and renewable
energy investments targeting households, businesses, municipalities, the wider public
sector and non-governmental organisations.
An important part of Cyprus’ energy strategy is our hydrocarbons sector, with the
discovery of significant natural gas reserves in the Exclusive Economic Zone of the
Republic; this calls for the optimum and sustainable development of the hydrocarbon
resources of Cyprus, in order to contribute towards maximising the relevant revenues
and boosting the country’s economy, as well as contributing to the energy sources of
EU countries. The establishment and
IThe development of the gas industry in Cyprus establishment and
has, in fact, attracted significant FDI to
development of the gas industry
the island, which will hopefully generate
the expected fiscal benefits and create in Cyprus has, in fact, attracted
substantial job opportunities throughout
significant FDI to the island.
the entire industry chain.
Another sector offering great opportunities for investment, is Cyprus’ industry. In
order to tackle both the green and digital transition, as well as the sharp increases and
volatility of energy prices and inflation, we are fully utilising the EU’s Recovery and Resilience
Facility and the European Investment and Structural Funds, for the implementation
of a series of measures targeting, for instance, digitalisation of activities and a
circular economy model. In this framework, we are optimistic that we can strengthen
the sector’s resilience and improve its competitiveness, increasing further its contribution
to GDP for the period 2022-2023, from around 9% where it stands now.
True to its business-orientated culture and constantly seeking to facilitate the ease of
doing business on the island, the Republic of Cyprus has launched, in 2022, the Business
Facilitation Unit (BFU), through which business set-up, licensing and permitting is
fast-tracked. The fast-growing number of registrations of foreign companies carried
out by the BFU during 2022 – over 1,200 in the first 10 months of the year, indicate the
successful implementation of the Government’s new strategy for attracting international
businesses and talent. Moreover, as the existing investment policy has been radically
reviewed and simplified, a series of policy measures have been adopted, such as improved
tax incentives and introduction of the digital nomad visa, which have encouraged many
companies to establish and scale their presence in Cyprus.
The trend of foreign companies’ registrations in the BFU clearly shows that most are
operating in the information and technology sector, as well in professional services.
The increase is expected to continue, contributing to Cyprus’ economic growth and
generating sustainable development in many areas of our economy and society. n
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