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Cyprus’ national strategy, implemented as part of the Vision 2035 Framework, aims to make Cyprus one of the world’s best countries to live, work and do business in.


A number of steps have been taken in the last few years to implement a world leading model nation with a thriving, resilient economy and a just, inclusive society. These have yielded tangible results, setting Cyprus apart as one of the fastest-growing economies in the EU:

 

In the second quarter of 2024, Cyprus recorded the third-highest annual GDP growth rate in the EU at 3.7%, significantly above the EU and Eurozone averages of 0.8% and 0.6%, respectively

 

Cyprus has recently received significant upgrades in its credit ratings, underscoring its growing economic stability and attractiveness for investment. Moody’s elevated Cyprus’ rating to A3, the first time it reached this level since 2011. This two-notch upgrade reflects prudent fiscal policies, a stabilized banking sector, and reforms driving robust public revenue growth

 

This enhanced economic profile has positioned Cyprus as a hub for foreign direct investment, especially in sectors like energy, healthcare, education, and ICT. The country’s strategic focus, under initiatives like its National Recovery and Resilience Plan (NRRP), continues to enhance its appeal to international businesses.

 

In 2023, Cyprus attracted a record-breaking €3.2 billion in FDI, marking a 129% increase compared to previous years. This surge highlights Cyprus’ growing appeal as a hub for global business activities, particularly in sectors like technology, finance, and sustainability.

 

More than 800 tech companies now operate in Cyprus, with over 250 of them established in just two years. These investments have contributed to the creation of thousands of jobs and enhanced the country’s
knowledge-driven economy

Innovative research, a rapidly growing start-up ecosystem, highly educated and experienced human
talent and a range of incentives render Cyprus a perfect choice to start and scale companies. Applied
research is encouraged through EU or national funding. Cyprus offers a highly efficient IP tax regime for
the establishment of Intellectual Property (IP) holding, exploitation and/or development for corporations.
Cyprus’ emerging research and innovation ecosystem, IP Law and favourable tax framework make the
country a preferred business destination and IP hub whilst, at the same time, achieving the protection
afforded by EU Member States and by the signatories of all major IP treaties and protocols. 

The Government’s Strategy: “CYPRUS VISION 2035”

There are many reasons that prompt ICT companies to choose Cyprus as a relocation
destination:
• As a member of the EU and Eurozone community, Cyprus ensures safety and stability for investors, while also offering them market access to more than 500 million EU citizens.
• Stable business environment and emerging opportunities in multiple sectors,
• Strategic EMEA access. Good geographical location between the EU,
CIS Middle East and Africa regions.
• Ease of doing business, supported by a pro-business tax and legal system,
modelled on English Common Law
• Included in OECD’s White List of jurisdictions with more than 60 countries

- Substance requirements as per global best practices
- Attractive Corporate Taxation. The corporate tax rate is 12.5%. Strong double tax treaty network
- Profits from trading in qualifying “titles” (e.g. shares, bonds, debentures) exempt from tax
- Dividend income generally exempt from tax
- Payments to non-Cyprus or non-domiciled Cyprus tax residents generally with
no withholding tax
- Good taxation regime for relocated professionals (50% tax discount from 55,000 gross salary).
- Intellectual Property (IP Box) regime which allows payment of just 2.5% tax on royalties.
- No dividend tax for non-domicile UBOs. Owners of businesses can become tax residents staying
just 60 days in Cyprus.

- High availability of multilingual, high-quality professionals, mainly UK and US graduates
- Efficient migration regime that allows smooth relocation of Executives and families.
- Capacity to transfer large numbers of employees
- Attractive tax incentives for employees relocating to the island

- High quality healthcare
- High quality international schooling from kindergarten to university
- Cyprus is amongst the top in the EU for university graduates per capital

- A cosmopolitan island with a great lifestyle
- Ranked as the 5th safest small country in the world
- The sunniest country in Europe with 64 blue flag beaches
- Relatively low cost of living compared to other European business hubs

 Cyprus Key Facts and Figures - Key Highlights 

Ethnic Composition

75% Greek Cypriot Community
10% Turkish Cypriot Community

15% Foreign Residents

Developed infrastructure

Cyprus has highly developed
infrastructure, high quality educational
institutions and medical centers

SHIP MANAGEMENT

Largest
Third -party Ship
Management centre
in the EU

THE SUNNIEST COUNTRY
Versatile labour force

Cyprus possesses a well-trained and
versatile labour force that speaks
English fluently

Multi-cultural society

Cyprus is a multi-cultural society with
a number of ethnicities other than
Greek-Cypriot.

International competitive business environment

Cyprus combines an international competitive
business environment with a pleasurable
and balanced way of life. The expatriates who
relocate to Cyprus can enjoy a high quality of
life with their families

in Europe with over 340 days of sunshine annually

5th BEST PLACE
to relocate globally
CREDIT RATINGS/ OUTLOOK FOR CYPRUS

• DBRS: BBB / Stable
• S&P: BBB / Positive
• Fitch: BBB / Stable
• Moody’s: Ba1 / Stable

DIGITAL NETWORK

Fully developed digital network, with reliable high-speed internet, international connectivity and excellent
telecommunications infrastructure

LEGAL SYSTEM

Based on the English Common Law, with civil modifications

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Headquartering & Business Relocation to Cyprus

Under the Auspices of

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Ecosystem Partner

Knowledge Partner

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Organiser

Aigaleo 5, 2057, Strovolos | P.O. Box 21185, 1503 Nicosia, Cyprus |  +35722505555 | events@imhbusiness.com

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