Foreign Investment in Cyprus: Why Investors choose here

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Foreign Investment in Cyprus

Foreign investment in Cyprus has thrived over recent years with significant interest from the US, Asia, Russia and the Middle East. Foreign investors from the EU and non-EU member countries continue to consider Cyprus with each of its sectors seeing foreign interest every year. Global companies are moving their operations here and the tourism industry is welcoming international hotel chains.

There has been a combination of reasons as to why investors have chosen Cyprus. These range from its positive economic standing and tax system along with the lifestyle Cyprus offers. In this article we will also discuss the legislation of foreign investment in Cyprus as well as the impact Brexit has had.

investment buildings Cyprus

Why Investors choose Cyprus

Foreign investment in Cyprus has been on the rise due to a number of appealing reasons over the years. Some of the reasons that motivate foreign investors are as followed:

In 2004 Cyprus became a member of the European Union. This created even more positive opportunities for foreign investors. For example, individual or business investors who are located in Cyprus are covered by the Double Tax Agreements of the island. This happens to be a very extensive list of countries, mainly EU state members. Prevention of the same income being taxed twice is surely only a positive attribute to foreign investment in Cyprus.

The island has multiple sectors appropriate for investors. These include startups, real estate, the energy sector and more recently, the film and entertainment industry. Each sector is well established with positive growth forecasted. For more information you can view a recent article where we discussed each sector in depth.

Foreign investors are not just drawn to Cyprus for business benefits. Investors find positive qualities for their personal life as well. The island offers a beautiful landscape of cosmopolitan city life as well as relaxing beach front locations.
Investors choosing to relocate their families are able to find numerous outstanding private schools that educate their students in English. Each major city in Cyprus has private schools so no matter where you chose to relocate, children have access to an ideal education system.

Foreign Investment in Cyprus: Legislation

If you are familiar with the legal system in the UK then you are at an advantage. Cyprus bases its entire legal system on the UK system meaning it has a pro-business mentality. Because of the EU advantages, investors will find Cyprus has low start-up and maintenance and operation costs. The Cypriot government helps investors set up businesses with tax incentives and work permits throughout the process. More recently Cyprus has been ranked 6th out of the top 20 countries in the Global Finance magazine’s ‘FDI Superstars 2018’ for Foreign Direct Investments also known as FDI performance and appeal. The inflow of foreign investment in Cyprus is partly due to the nation’s improvement of credit ratings by international credit ranking agencies as well as numerous large-scale projects that have recently taken place.

The legislation of the investment market in Cyprus is pro-EU and non-EU members. This can be seen as another reason for its improvement. Although there are different legalities for investors with different nationalities, all are welcome and the government offers support with authority dealings. The island is tendered to its own laws as well as that of the EU and international laws. These laws cover domestic investment legislation, investment treaties and contracts. Business men and woman looking to invest within Cyprus should be aware that there are application processes for each investment sector such as the ones mentioned above. These processes are taken into account separately but of course, very seriously.

Finally, after news of Brexit, many wondered how it would shape investment within Cyprus. It has confidently and positively affected the market. Brexit has provided many opportunities and continues to do so. Major shipping investments have been announced due to the UK leaving the EU along with other such investments.

investment chart


Foreign investment in Cyprus has seen continuous interest and growth from investors. These investors are from all across the globe including the US, Russia and the Middle East as well as a number of European countries. The influx of investors from different regions has seen all the large sectors in Cyprus flourish. With global companies moving their operations here the island has seen a rise in commercial office space needed. Furthermore, the tourism industry remains confident with welcoming international hotel chains. Both these investment examples have created thousands of jobs for residents of Cyprus and have helped further improve the economy.
Business men and women continue to favor Cyprus due to its taxation system, UK based law system and government support for all types of investment. There is no doubt that Cyprus is well deserving of the title ‘FDI Superstars 2018’ for Foreign Direct Investments performance and appeal.

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