Cyprus stands out as a top destination for investment opportunities and venture capital. Attracting foreign direct investment remains a key objective for the government, who are dedicated to offering a robust regulatory framework, business friendly environment and strategic incentives to achieve this objective.
As a result of its geographic location, Cyprus offers optimal access to markets across Europe, Asia, and Africa. This positioning advantage facilitates trade and investment flows, enabling businesses based in Cyprus to easily access markets across these continents. This also gives investors seeking to establish a foothold in the region the ability to leverage Cyprus’ connectivity to expand their global reach.
Cyprus’ economy is driven by several sectors that present lucrative investment opportunities. Recent GDP data published by Cystat reveals that the ICT sector is one of the fastest growing. Over the past decade, it has maintained an impressive average growth rate of 15%, surpassing all other sectors in the economy. In fact, its contribution to GVA in 2022 amounted to €2.33 billion, a 277% increase compared with the sector’s output 10 years ago.
The island is also quickly becoming a leading investment fund centre in Europe, for investment funds and asset management companies. Notably, in Q4 of 2023 the number of assets under the management of investment funds totalled €6.49 billion.
Entrepreneurship and innovation, wholesale and retail trade, hotels and restaurants, transport and storage, manufacturing, financial and insurance activities, and construction and real estate, are among other sectors that have showed expansion, contributing considerably to the growth of Cyprus’ economy during the first half of 2023. The country continues to maintain a robust maritime sector, enhanced by a strategic legislative and operational shipping infrastructure, and other competitive advantages. The tourism sector, while facing challenges related to the Russia-Ukraine war, the conflict in Gaza, and the more recent US and UK sanctions against Russian individuals and legal entities, also remains a major contributor to the country’s economy.
The demand for real estate continues to rise, from both domestic and international buyers. The property market offers diverse opportunities, ranging from houses and apartments to commercial developments and mixed-use projects. With competitive prices compared to other European destinations, top tier property developers, and an advantageous Permanent Residency by Investment programme, Cyprus has become an attractive destination for homebuyers and investors seeking high return and the opportunity for residency in the country.
One of Cyprus's most appealing features for investors is its favourable tax regime, which offers numerous advantages for businesses and individuals alike. The country boasts one of the lowest corporate tax rates in the EU, currently set at 12.5%, making it an attractive destination for multinational corporations seeking to optimize their tax liabilities. Furthermore, Cyprus has a network of double taxation treaties with over 60 countries, providing additional incentives for international investors.
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