The government has introduced a variety of incentives aimed at attracting investment in industries that will enhance the development and reconstruction of the economy. These incentives are intended to: encourage the development of new high-tech industries and skill-intensive products, reconstruct Cyprus’ traditional economic sectors, improve productivity and labour skills, and attract capital intensive foreign investment.
The following incentives are available:
- low taxation at 12.5% with zero tax on certain types of income
- industrial free zone and exemption from customs and excise charges for operations in the industrial free zone
- industrial training schemes
- subsidised industrial estates
- grants and other financial assistance to investors, particularly in the areas of energy, the environment, industrial development, technology, research and innovation, trade and services