2023-Cyprus-Country-Report

CYPRUSCOUNTRY REPORT 2023
Cyprus has enjoyed a strong reputation as an established international business
centre and influential global shipping hub for decades, but today the small island
nation is gaining traction as a hot headquartering (HQ) hub. The number of foreign
companies that relocated to Cyprus during 2022 increased by more than 50%, on an
annual basis, while the total number of jobs created increased by almost 80%, according
to the national investment promotion agency Invest Cyprus. The total impact of these
developments on the economy has been estimated at over €4 billion, which is no mean
feat for one of the smallest EU nations.
There are many factors that have contributed to this rise in interest in Cyprus. Its
geographical location, advantageous regulatory framework and EU membership
coupled with convenient EMEA access have already attracted many companies to set
up operations and regional headquarters on its shores. Another key factor often cited
by companies choosing Cyprus is the safe and relaxed Mediterranean lifestyle it offers
expat professionals and their families. However, the more recent boost has come from
the country’s strong focus on investing in and building up its communications and
technology infrastructure and the introduction of new incentives geared at facilitating
more non-EU companies.
IDEAL BUSINESS BASE
Doing business in and from Cyprus is simple and straightforward. The country has
modern infrastructure and telecommunications. A transparent regulatory and
legal framework and a strong financial and professional services base with decades
of solid international experience. Cyprus has more than 5,000 registered accountants
and 800 registered accounting firms – which include all major global firms – and more
than 4,000 registered lawyers and over 700 law firms. It has an advantageous EUapproved
tax regime with numerous incentives for corporations and individuals alike.
Another key attraction for companies to relocate strategic operations to the island
has been the fact that set-up and operational costs are comparatively low when looking
at more mature jurisdictions on mainland Europe – a big deciding factor for many
companies in today’s economic climate.
IThe Cyprus provides direct access to the EU number of foreign companies
Single Market of half a billion consumers
that relocated to Cyprus during
and its geostrategic location between
three continents provides efficient access 2022 increased by more than
to the wider EMEA region. Thanks to this,
50%, on an annual basis, while
Cyprus enjoys business-friendly time
zones, enabling international companies the total number of jobs created
to do business with the East in the morning,
increased by almost 80%
Europe throughout the day and with
the West in the afternoon. In addition, the island has good air connectivity through two
international airports with major cities in Europe and key destinations in Asia, North Africa
and the Middle East, as well as sophisticated ports to support operations.
As a secure EU environment in an often-turbulent region, Cyprus is especially ideal
for regional headquarters or ancillary and support services for investors with clients
in the wider Eastern Mediterranean and Middle East region. For example, prominent
news organisation AFP, has capitalised on this aspect and uses the island as their base
between Europe and the Middle East due to its security, convenient time zone and
travel times, and reliable communication infrastructure.
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