Home Оффшорные обзоры Cyprus. All about Cyprus

Cyprus. All about Cyprus

Print PDF

Cyprus is situated in severo-eastern basin of the Mediterranean Sea at the crossroads of three continents: Europe, Asia and Africa. Its strategic position along with a variety of tax benefits has been and remains the main factor of economic development of the island, forming it into an international center of business and professional services. The Cyprus economy - an economy of free markets.

Cyprus has invested heavily in the development of telecommunications. As a result, the island may claim to be among the most advanced in this respect, countries in the world.

State structure of Cyprus is similar to the structures of other western democracies where human rights, political pluralism and private property were amply protected by law.

The Republic of Cyprus is a member of the United Nations and its specialized organizations, a member of the Council of Europe and the British Commonwealth of Nations. In accordance with the Agreement on Customs Union with the EU, which entered into force in January 1998, Cyprus has progressively abolish customs duties on most goods imported from the EU, and joined the Common Customs Tariff EU. This means that the duties that in Cyprus, imposed on goods from countries outside the EU, will be the same as the duties that the EU applies to the goods from third countries. Cyprus is a full diplomatic missions in 27 countries, 9 major international organizations and has 6 consulates general in various parts of the world.

Additional advantages that attract foreign investors:

════════ Significant tax benefits.

════════ Low cost of registration and maintenance of offshore companies.

════════ Free translation of foreign currency.

  • The presence of agreements on avoidance of double taxation with 28 countries, including CIS, USA, UK, Germany, Russia, Norway, Sweden and Greece.
  • The availability of modern and efficient services in the field of legal and financial affairs, based on British practice.

════════ Availability of qualified personnel at all levels of service.

  • Possibility of acquiring premises for business or for residence of foreign personnel.

════════ Excellent telecommunications facilities.

more ...

Introduction

Cyprus is situated in severo-eastern basin of the Mediterranean Sea at the crossroads of three continents: Europe, Asia and Africa. It is 65 km south of Turkey, 328 to the west of Israel, 385 to the north of Egypt, 980 south-east of Athens.

Its strategic position along with a variety of tax benefits has been and remains the main factor of economic development of the island, forming it into an international center of business and professional services. With an area of 9,251 square meters. km, Cyprus - the third largest island in the Mediterranean in the following Sicily and Sardinia.

The Cyprus economy - an economy of free markets. The island is often referred to as a European country in the Middle East. Cost of living is significantly lower than in most countries offering a comparable standard of living. The economy is mainly based on tourism and services sectors and is supported by many export-oriented industries.

Cyprus has invested heavily in the development of telecommunications. As a result, the island may claim to be among the most advanced in this respect, countries in the world.

State structure of Cyprus is similar to the structures of other western democracies where human rights, political pluralism and private property were amply protected by law.

The Republic of Cyprus is a member of the United Nations and its specialized organizations, a member of the Council of Europe and the British Commonwealth of Nations. In accordance with the Agreement on Customs Union with the EU, which entered into force in January 1998, Cyprus has progressively abolish customs duties on most goods imported from the EU, and joined the Common Customs Tariff EU. This means that the duties that in Cyprus, imposed on goods from countries outside the EU, will be the same as the duties that the EU applies to the goods from third countries. Cyprus is a full diplomatic missions in 27 countries, 9 major international organizations and has 6 consulates general in various parts of the world.

Additional advantages that attract foreign investors include:

════════ Significant tax benefits.

════════ Low cost of registration and maintenance of offshore companies.

════════ Free translation of foreign currency.

  • The presence of agreements on avoidance of double taxation with 28 countries, including CIS, USA, UK, Germany, Russia, Norway, Sweden and Greece.
  • The availability of modern and efficient services in the field of legal and financial affairs, based on British practice.

════════ Availability of qualified personnel at all levels of service.

  • Possibility of acquiring premises for business or for residence of foreign personnel.

════════ Excellent telecommunications facilities.

Population

The estimated population of Cyprus - 820.000. Greek Cypriots form is certainly the largest ethnic group, accounting for nearly 80 percent of the population. Turkish Cypriots, British, Armenians, Maronites and other ethnic groups make up the remaining 20 percent.

History

Cyprus has a long and varied history. The foundation was laid by the Greeks in about 1200 BC Strategic position made it an island the object of competition among the great powers in the world in different time periods. As a result, the island was occupied for many generations of different dominant forces, such as Egyptians, Roman Catholics, Byzantines, Franks, Venetians, Ottomans and British. Each of these nations has distinguished its own individuality, has left its mark on the island but the Greek character of the island remains dominant. The British, who were the last colonizers of Cyprus before the island eventually became an independent democratic republic in 1960, left their mark on the way of doing business in the basics of the legal system, the structure of public service - all developed by the British model. Cyprus joined the EU on May 1, 2004

Political and social environment

Cyprus - an independent republic with a presidential system of government. The president-elect of the Republic - Head of State and has priority Republic. The term of his reign, set in over five years, but he may be reelected for an unlimited number of terms. Legislative power in the hands of the House of Representatives, 56 of whose members hold office for five years.

The legal system in Cyprus was established in the English style. Case law is close to English and all statutes regulating business matters and procedures are based essentially on English law.

The Cyprus economy

The Cyprus economy is based on the free enterprise system. Private sector - basis for economic activity, with a particular role the government limited the control of the economy and working conditions of public utilities, although with the accession of Cyprus to the EU, the privatization of public utilities is inevitable.

In recent years the economy has been growing with an average annual rate of 4 percent.

Inflation in recent years has remained relatively low average level - 3.5 percent. The per capita income of Greek Cypriots in the range? 20.000 - today one of the highest in the Mediterranean. This

- An impressive performance, taking into account also the key Socio-economic factors, such as the excellent living conditions, low crime-free ══ Pollution

- Which are not reflected in the index of per capita income

Currency

Currency - Cyprus pound (CP or CYP) - a stable convertible currency. Its gold content is maintained at a stable level. With all the fluctuations of floating exchange CYP1 little more than USD2 (in November 2006 CYP1 = USD2, 22590). In the Cyprus pound into 100 cents. Circulate banknotes of 20, 10, 5, 1 and 0.5 pounds and coins - 50, 20, 10, 2, 1 and half a cent.

Society

Cypriots have earned a reputation sebe, hardworking people with a flair for business. Tradition and family ties are still strong in that is also a liberal and pluralistic society. On the island to a high standard of education, and one of the highest percentages of university graduates in the world. Many professional and academic qualifications may be obtained at a local university or college, but mainly in the EU and U.S. universities. Cypriots enjoy a high standard of living. As an example, approximately 70 percent of homes occupied by their owners, and no homelessness. The crime rate is low on the island, doing so, Cyprus an ideal place for tourism and residence.

EU non-residents wishing to live after retiring in Cyprus, providing a residence permit if the conditions of their stay on the island meet the requirements of the authorities, such as estate sufficient income from abroad to support their stay in Cyprus.

Hospitality - lifestyle in Cyprus. Combination with perhaps the best type of Mediterranean climate with about 340 warm and sunny days a year makes Cyprus idelnym place to stay and rest. Cyprus and the EU

The Republic of Cyprus joined the European Union on May 1, 2004. The accession of Cyprus to the EU and adoption of acquis communittaire gave rise to new changes and opportunities in the business world of Cyprus. In addition, many new funding opportunities become available due to the influx capital from the EU, seeking mainly to support the development of business activities in manufacturing, agriculture and agro-tourism, as well as modernization of human resource and rural development of the island.

Cyprus has recently joined the European Exchange Mechanism (ERMII). The Cyprus Government has already announced the implementation of the strategic plan for the preparation of the euro. Companies in Cyprus are now faced with changes aimed at something, to take all necessary actions ensure their smooth adaptation to the euro.

Transit trade

Container business development and logistics in Cyprus began in the late 1970's. Thanks to the strategic location of the island, efficient port facilities, minimal customs formalities, developed business infrastructure and a stable political environment, the scope of container traffic has significantly increased capacity and expanded in their capabilities.

It is widely accepted that Cyprus offers a safe and secure gateway to your geographical sector and that it may play a significant role in the work of reconstruction and general development of this area of business.

The island is situated at the crossroads of major international trade routes between Europe, Asia and Africa. This makes it a natural center of the intersection ══ shipping lines and cargo delivery to any combination of European and Middle Eastern ports in the Mediterranean. In addition, the island can act as a central warehouse for distribution of goods markets in Europe, the Middle East, Gulf and North Africa. Services sector

The service sector is becoming more and more important, as indicated by its nearly 70-percent contribution to gross domestic product and its share in employment, while the importance of agriculture and production steadily decreases.

Services include banking and financial services, insurance, advertising, legal services, architecture and civil engineering, accounting and auditing, consultancy, design, electronics and mechanical engineering, film production, market research, medicine, printing and publishing, public relations, education , software development, tourism and related services, telecommunications, transportation and other services. The size and rate of growth of this sector, which was the fastest in recent years, led observers to call Cyprus' economy service. "

Transit trade

Container business development and logistics in Cyprus began in the late 1970's. Thanks to the strategic location of the island, efficient port facilities, minimal customs formalities, developed business infrastructure and a stable political environment, the scope of container traffic has significantly increased capacity and expanded in their capabilities.

It is widely accepted that Cyprus offers a safe and secure gateway to your geographical sector and that it may play a significant role in the work of reconstruction and general development of this area of business.

The island is situated at the crossroads of major international trade routes between Europe, Asia and Africa. This makes it a natural center of the intersection ══ shipping lines and cargo delivery to any combination of European and Middle Eastern ports in the Mediterranean. In addition, the island can act as a central warehouse for distribution of goods markets in Europe, the Middle East, Gulf and North Africa. Sector services

The service sector is becoming more and more important, as indicated by its nearly 70-percent contribution to gross domestic product and its share in employment, while the importance of agriculture and production steadily decreases.

Services include banking and financial services, insurance, advertising, legal services, architecture and civil engineering, accounting and auditing, consultancy, design, electronics and mechanical engineering, film production, market research, medicine, printing and publishing, public relations, education , software development, tourism and related services, telecommunications, transportation and other services. The size and rate of growth of this sector, which was the fastest in recent years, led observers to call Cyprus' economy service. "