Investing in Cyprus: The Complete Guide

Investing in Cyprus gives you access to the crossroads of three continents - Asia, Europe and Africa. Cyprus' geographical position on the Asian continent, as well as its membership in the EU, allows it to be a bridge between the regions. Together with an attractive business climate and a relatively skilled labor market, Cyprus' geographical advantage makes it an ideal gateway for foreign capital.

Our guide to investing in Cyprus covers real estate, the local HF scene, and the country's small but growing stock exchange. We'll start with a brief introduction, and if you have a specific topic you'd like to learn about, go to it by clicking on any topic in the menu on the right.

Cyprus: The Gateway'. 'Mediterranean prosperity

There are several compelling reasons to invest in Cyprus. Due to its highly strategic position, Cyprus offers unique opportunities for trade and business expansion. These advantages are complemented by tax incentives for foreign investors and the opportunity to become a permanent resident of Cyprus on investment. Real estate, finance and technology are particularly thriving in Cyprus, which offers a wide range of options for investors. The local tourism sector also thrives here. The lifestyle in Cyprus is known for creating a high standard of living, attracting tourists and expats from all over the world.

Cities and Towns

Cyprus is a culturally diverse country. Each town and city has its''s own blend of culture, commerce and lifestyle. Nicosia is the capital and largest city of Cyprus since the 10th century. The city itself has been continuously inhabited for over 4500 years, with a historical role since the Assyrian era. Today, Nicosia is the political and financial center of the country, with a mix of old town and vibrant modern business center. Nicosia's silhouette shows how much Cyprus has developed over the last 50 years. Along the southern coast, Limassol is the financial capital of Cyprus and an industrial port city. The port of Limassol, one of the busiest ports in the Mediterranean, has taken its place as a key center for trade and logistics. Paphos is located on the west coast. It is an idyllic resort town famous for its rich archaeological''heritage, including some of the finest Roman villas in the world. It is particularly popular with tourists, which creates opportunities in hotels and real estate. The third largest city on the island, Larnaca, is located on the southeast coast and is home to the main international airport and the busiest port in Cyprus. Famagusta is located in the northeastern part of Cyprus and is known for its beaches. Due to long term political conflict, the city has been divided into two parts. The northern part of Famagusta belongs to Turkey, including the former thriving tourist area of Varosha. Obviously, we do not recommend investing here - it is too unstable a place.

How to open a company in Cyprus

A company in Cyprus can be wholly owned'. 'foreigner, requiring only one shareholder and director (individual or company). They can be of any nationality. In addition, there are no industry restrictions.... except for media and financial services, which are both heavily regulated. You will need an active registered office address in Cyprus to which all official mail will be sent. Many companies choose an external corporate service provider to fulfill this requirement. Cyprus enjoys one of the most favorable tax regimes for companies in the European Union, with a normal corporate tax rate of only 12.5%. Moreover, Cyprus has a network of double taxation agreements with over 60 countries.

Financial markets and''stocks in Cyprus

The Cyprus Stock Exchange was established in 1996. The total market capitalization of Cyprus is only about 4 billion euros and the stock market is relatively small. Nevertheless, the exchange has been growing steadily since its inception. Most people also find that trading stocks here is a user friendly experience once they have already opened a local brokerage account. There are currently 108 companies from various industries listed on the Cyprus Stock Exchange, which is a relatively small number compared to other major global stock exchanges. Creating an account can be complicated, although it is quite possible to do so remotely. The growing capital market includes firms such as''like Hellenic Bank and Bank of Cyprus. Meanwhile, Eurobank is one of the largest international participants.

The currency of Cyprus: Euro (EUR)

Cyprus is part of the Eurozone and uses the euro (EUR) as its official currency. This allows businesses and investors in Cyprus to use one currency, providing stability and facilitating international transactions.

Industry in Cyprus

Cyprus has a dynamic economy, providing the local and international investor community with many ways to invest in the island. Tourism is a major driving force due to its spectacular coastline, beaches, historical and cultural attractions. Millions of people visit Cyprus every year. Naturally, this means that hotels, restaurants and related services have to keep up with the growing demand. It is also worth noting that Cyprus has one of the most''utilizing renewable energy sources.

Cryptocurrency adoption in Cyprus

The adoption of cryptocurrency in Cyprus is on the rise. Bitcoin, Etherium and other coins have become popular for transactions. Cyprus is also hosting ICOs to raise funds for blockchain projects. Cryptocurrency traders can legally buy digital assets on local trading platforms in Cyprus. Several of these exchanges follow CySEC regulations to provide protection for investors. The early implementation of cryptocurrency legislation makes Cyprus a leading destination for investors looking to dive into this emerging field. Although the industry is still evolving, it offers a solid base for crypto businesses. In addition to cryptocurrency itself, Cyprus is experimenting with the application of''Blockchain technology in real estate, logistics and healthcare.

Buying real estate in Cyprus

The Cyprus housing market has grown continuously over the past decades, especially in the 2000s. The country's strategic location, Mediterranean climate and residence/citizenship by investment programs are all thanks to. The price of frontline and beachfront villas in Limassol can range from €600,000 to €15 million. The Cypriot government is taking steps to encourage foreign investment in the real estate market, and there are a few general restrictions on real estate ownership for non-Cypriots. Foreign nationals and organizations can purchase residential and commercial properties''euro.

Cyprus Passport

The Cyprus Passport ranks 14th in the Guide Passport Index and provides visa-free access to 177 countries. For those who wish to become a permanent resident of Cyprus, the Cyprus Investment Program provides long-term residency to foreigners through real estate investments. Obtaining permanent residency in Cyprus requires spending at least €300,000 on real estate. Prior to its suspension in 2020, Cyprus also had a citizenship by investment (CBI) program for €2 million.

Private equity and venture capital in Cyprus

Cyprus has made significant efforts to develop its private equity and venture capital sector, many of which are funded directly''Government. Dozens of venture capital firms have opened a representative office in Cyprus over the past decade to provide seed and expansion capital. There has also been an increase in the number of incubators and gas pedals in the local startup market. The Cypriot government has created policies to help stimulate innovation. Initiatives such as the Cyprus Research and Innovation Fund (RIF) provide capital to innovative projects, often without many restrictions. Cyprus Investment Funds (CIFs), on the other hand, offer the opportunity to invest in a collection of early and growth stage companies. Here in Cyprus, startups are not hard to find. The technology, e-commerce and healthcare sectors are particularly popular with''European markets - which is nothing special. Cyprus is no longer an emerging economy, and there is not the same potential here as in Southeast Asia, for example. Finally, the ongoing territorial conflict with Turkey is also a concern. However, it is unlikely that anyone would dare to do anything with an EU member. At least for now. Cyprus is certainly worth considering for the right type of investor. It's in the right place for tourism and trade. The legality of the cryptocurrency sector makes anything blockchain related look promising. However, you are still dealing with a small developed market. You will eventually face growth constraints because of this.