Over the last year, Cyprus has continuously beat economic estimates and has attracted over €2 billion in foreign investment – proving the country remains an attractive location for direct investment, company formation and international business. The professional services sector has played a fundamental role in shaping Cyprus’ economy and with the downturn milder than initially projected the country has seen increased interest in the jurisdiction and its services.
With one of the most highly educated workforces in Europe and a strong track record in offering quality services to blue-chip companies around the world, Cyprus has an extensive range of expertise and experience to cater to the needs of international business. Auditing, accounting, legal, financial and corporate services have become a cornerstone of the country’s offering to investors looking for a well-regulated and cost-effective EU location from which to structure their investments.
The positive signs of restored confidence in Cyprus’ economy have spurred the country to focus on strengthening its comparative advantages in a bid to attract more international business. Also EU structural funds for the period of 2014 – 2020 will include incentives to private businesses in industry, the services sector and agriculture to support high-risk investor angels. The growing oil and gas sector in particular has been a significant morale booster and the European Bank of Reconstruction and Development recently announced plans to invest at least €100 million annually in Cyprus’ financial and energy sectors, the benefits of which are sure to filter into the wider economy.
The tumultuous events of the 2013 bailout have not shaken the strong foundations of Cyprus’ business centre and the jurisdiction remains a competitive location offering expert services. The EU and Eurozone member state continues to have one of the most advantageous OECD-approved tax frameworks, a highly skilled workforce, an offering of preferential access to high growth markets and has double tax treaties with close to 50 countries. Cyprus’ serviceproviders have extensive knowledge in corporate structuring and international tax planning and the country has one of the most modern and favourable trust regimes in Europe. The investment fund sector is also on the rise, with increasing numbers of private equity funds being set up.
For the last two decades, the professional services sector has been a key driver of economic prosperity in Cyprus and with the service providers’ skill base ever-expanding, the sector is staunchly keeping the country at the forefront of industry developments. The high quality of services offered, coupled with cost-effective fees has established the country as a top location for regional headquartering, shipping activities as well as holding and trading companies from across the world.
Although still facing challenges in rebuilding its economy, Cyprus is set to exit recession in 2015 – a year sooner than expected. Poised for growth and with over 80% of the economy based on services, the Eastern Mediterranean business centre is on track to regain its momentum.
