Cyprus Remains a Stable, Safe, Business-Friendly Jurisdiction

Finance Minister Harris Georgiades spoke at the Cyprus Economic & Investment Summit in New York on September 22 about Cyprus’ recovery. “A recovery which confirms that even during the height of its troubles, the economy of Cyprus had never lost its potential. In fact, it has demonstrated resilience and adaptability.”

According to Georgiades, “Cyprus remains a stable, safe, business-friendly jurisdiction, operating with a restored reputation.” For the current year, Cyprus will enjoy one of the highest growth rates in the EU, just short of 3% of the GDP, whilst medium-term prospects are in the same range of 2.5-3.0% annually.

“Cyprus banks now operate under the supervision of the European Central Bank and there is a strong presence of new foreign investors, primarily from the US and Europe. In short, the banking sector has healed to a very large extent,” the Minister said and continued, “We have also been very clear and forthcoming on issues of transparency. Here the line is clear: full compliance, without any reservations.”

Harris Georgiades further emphasised the budget has been balanced without raising a single new tax. “Corporate tax remains at an attractive 12.5% and a number of significant tax breaks and incentives have been offered recently to both individuals and corporates.”

He also made reference to the fact that key industries like business services and shipping continue to perform strongly. “Cyprus remains an excellent base for international business with a skilled workforce and wide network of double-tax treaties.”

“Coming soon is also an ambitious reform of the legal framework regarding investment funds and pension funds, which is expected to give a boost to those specific sectors,” the Minister added and mentioned that “significant foreign direct investment is underway in sectors like Sea Ports and Marinas.”