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A place to be

Cyprus Foreign Direct Investment - A place to be!Cyprus is situated in the eastern corner of the Mediterranean Sea, lying at the hub of Europe, Africa and Asia and close to the busy shipping and air routes linking Europe with the Arab world and the Far East.

Its strategic position has played a major role in the development of the island as a base for many of the world’s leading multinationals.

Cyprus is the obvious choice for companies wishing to manage their international activities effectively.

Free market economy

The country has a market-orientated economy in which the private sector plays a dominant role.

The Cyprus economy is characterised by macroeconomic stability, combined with high real growth, low inflation and full employment conditions.

The standard of living is among the highest in the EU and the performance of the economy compares favourably with that of most European Union member states.

Favourable tax system

  • Low market tax: All companies are subject to a uniform tax rate of 10%.
  • Tax on Dividends: Companies resident in Cyprus are exempt from income tax in respect of dividends received from other Cyprus resident companies.
  • Tax treatment of Losses: Tax losses can be carried forward and set off against future profits indefinitely. Group relief has been introduced.
  • Double Tax Treaties with 41 countries.
  • Bilateral Investment Agreements with 17 countries.


Cyprus advanced telecommunication infrastructureDue to its advanced telecommunications network and the superb regional and global connectivity on offer, the island is considered as one of the most important telecommunication hubs in the Eastern Mediterranean and the Middle East region.

The multi-purpose ports of Limassol and Larnaca are the country’s main sea gateways for seaborne cargo and passenger traffic. Both ports have turned into important regional warehouse and distribution centres.

Cyprus has also developed an advanced road system with 4 lane highways linking all central destinations.


Cyprus offers a well-educated, multilingual labour-force. Due to its long-standing commitment to education, Cyprus ranks among the first countries in the world in terms of university degree holders in relation to the population.

Since Cyprus became a full EU Member State, it has adopted the European Union’s legislative framework regarding labour relations. However, labour costs are significantly lower when compared to the EU average.

Liberal FDI Policy

The Foreign Direct Investment (FDI) policy has been recently liberalised for both EU and non-EU nationals. As a result, foreign investors can now participate in most sectors of the economy with equity participation of up to 100%, without a minimum level of capital investment.

Consequently, foreign companies now have the opportunity of investing and establishing business in Cyprus on equal terms with local investor.

Administrative procedures have been simplified and measures have been taken to streamline the infrastructure regarding foreign investment, thus reducing the level of bureaucratic intervention and fostering improved economic activity.

A significant number of international companies are already operating in Cyprus, further enhancing the productive and positive nature of the national economy.

For further information and updates please refer:

Foreign Investors Service Centre One-Stop Shop
6 Andreas Araouzos street
1421 Nicosia
Tel.: +357 22 867100 / 867239
Fax: +357 22 37554
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
URL: www.investincyprus.gov.cy

Investing in Cyprus - A Guide for Foreign Investors - foreign direct investment

For further information, please download:

Investing in Cyprus - A guide for foreign investors