Investment across a wide range of sectors
Cyprus is a modern, cosmopolitan, transparent business centre offering opportunities for investment across a wide range of sectors. Invest Cyprus maintains a dynamic portfolio of all available projects in sectors of strategic importance for the Government such as hospitality & tourism, healthcare, education, renewable energy, while the country also provides incentives and policies that attract businesses and investors to choose Cyprus as their preferred place to do business.
Investment Funds
Cyprus, being one of the first EU countries to transpose the Alternative Investment Fund Managers Directive into national legislation and along with the ratification of the Cyprus Alternative Investment Funds Law, is fast becoming a leading investment fund centre in Europe for investment funds and asset management companies, offering direct access to key markets.
According to the latest available data published by the Cyprus Securities and Exchange Commission, the number of investment funds increased to 298 in the third quarter of 2021, while there was also an increase in the assets under their management, which totaled €11.6bn. As an EU member country, Cyprus is compliant with all the EU Directives and Regulations, giving to fund managers who wish to establish or register with the Cyprus Securities and Exchange Commission, the opportunity to take advantage of the full spectrum of the EU passporting rights.
Entrepreneurship & Innovation
Innovative research, a rapidly growing startup ecosystem, a highly educated and experienced pool of human talent and a range of incentives and development programs and grants render Cyprus a perfect choice to start and scale companies. The strong IP Box Regime and the Cyprus Startup Visa Scheme which allows talented entrepreneurs from countries outside the EU and the European Economic Area to be granted working permission to establish startups in the country, attract world-class innovation-based ideas and successful startups. Startups and SMEs promoting entrepreneurship and innovation can also be benefited by the tax incentives provided by the Government for those individuals investing in those companies.
Tourism and Hospitality
Cyprus’ tourism sector has always been a major contributor to the country’ s economy. The tourism and hospitality industry is one of the largest economic sectors in Cyprus, with a GDP contribution close to 15%. Being an established and resilient tourist destination, Cyprus has maintained the interest of leading investment groups and hotel chains to expand their footprint and invest in the island. There are major projects underway such as marinas, golf resorts, hotels and luxury resorts and the new integrated Casino Resort have marked a considerable development into tourism related investment.
Shipping
Cyprus shipping is taking advantage of its strategic location, the country’s attractive legislative and operational shipping infrastructure, a solid and efficient tax framework and an excellent communications network. As a result, Cyprus has successfully built a diversified and robust maritime industry, which offers a unique set of competitive advantages. Cyprus is considered one of the most reliable and competitive shipping centres in the world in terms of services, registration fees and taxes.
Higher Education
Cyprus offers a large variety of advanced and fully accredited undergraduate and postgraduate programs, at affordable costs. With a booming Higher Education sector comprised of three public and seven private universities and more than 40 public and private higher education institutions enjoying international academic and scientific recognition, the island attracts thousands of international students every year. Research is widely supported within academic institutions, with Cyprus holding the highest absorption rate of EU research grants.
ICT
Cyprus has been growing as a technology hub over the recent years, with an increasing number of ICT companies setting up their regional headquarters in the country or treating Cyprus as their hub for software development, systems integration, testing services, research and development and back offices. With a strong local talent pool and access to the EU and global workforce, Cyprus has seen an increase in the number of ICT employees.
The government in its effort to promote and support the technology sector has introduced several key initiatives and is constantly upgrading the regulatory framework in line with international best practices, while swiftly adapting to innovation & latest technology trends. A comprehensive incentives package, designed for the ICT companies relocating to Cyprus, has been launched which includes attractive benefits such as:
- Updated Immigration regime allowing the employment of specialized ICT professionals from non-EU countries
- Tax incentives for individuals relocating to Cyprus
- Intellectual Property Box Regime
- Adoption of Business Facilitation Unit