Innovative property investments
Investment Property in Cyprus
Buying Guide
Economic Market
Low unemployment
The Republic of Cyprus has a labour force of 370,000 which is divided between agriculture (7.4%), industry (38.2%), and services (54.4%).
The unemployment rate is around 4% while consumer price inflation was running at 2.6% in 2005. The workforce has a literacy rate of 97.6%.
Shipping capabilities
Cyprus has the world’s fourth-largest shipping industry, with 2,758 ships and 25.5 million gross registered tons (GRTs).
It is an open registry, also known as a flag of convenience registry, and includes ships from more than 43 countries.
Varied produce
The main agricultural products produced in Cyprus are citrus fruits, vegetables, barley, grapes, olives, vegetables; poultry, pork, lamb; and dairy products.
Land use is divided between arable land (10.81%) permanent crops (4.32%) and other (84.87%).
Its chief industries are food and beverage processing, cement and gypsum production, ship repair and refurbishment, textiles, light chemicals, metal products, wood, paper, stone, and clay products.
The island’s main natural resources are copper, pyrites, asbestos, gypsum, timber, salt, marble, and clay.
Active trading
As the island is not self-sufficient in food and has relatively meagre natural resources, trade is vital to the Cypriot economy.
As a result, the island’s trade deficit is growing steadily year on year.
Cyprus imports fuels, most raw materials, heavy machinery, and transportation equipment.
More than half its trade is with the EU.
In 1991, Cyprus introduced Value Added Tax (VAT), which is currently 15% in line with the EU minimum.
Water’s significance
A major economic concern on the island is the lack of water - desalination plants and dams are being built to ease the situation.
The levels of tourism the island can support can only grow significantly if the water problem is addressed.
Foreign investment friendly
In February 1997, the Cypriot government changed its policy on foreign direct investment, permitting 100% foreign ownership in certain cases.
It also liberalized regulations on foreign portfolio investment in the Cyprus Stock Exchange and passed a modern banking law in July 1997, incorporating all the provisions and directives of the EU for the supervision of credit institutions.
A significant chunk of Cyprus’s service industry is taken up by more than 1,000 offshore companies, which are based in Cyprus but only conduct business abroad; they qualify for various tax and duty-free concessions.
Cyprus has double taxation treaties with 26 countries, and has lifted exchange restrictions on international transactions.
There are no restrictions on non-residents and foreign investors repatriating the proceeds from investments in Cyprus.
Key facts
- Possesses the world’s fourth-largest shipping industry
- More than 1,000 offshore service sector companies have chosen Cyprus as their base, benefiting from various tax and duty-free concessions
- Cyprus has double taxation treaties with 26 countries, and has lifted exchange restrictions on international transactions
- There are no restrictions on non-residents and foreign investors repatriating the proceeds from investments in Cyprus
Downloadable Reports and Documents
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