Business opportunities
Energy sector in Cyprus
The recent discovery of significant reserves of natural gas in the exclusive economic zone of Cyprus creates long-term opportunities. Current and future oil and gas projects in Cyprus need expertise in exploration and extraction technologies.
Cyprus also needs to build capacity and develop related sectors including:
Financial and professional services in Cyprus
Cyprus’ shipping sector offers opportunities in:
There are opportunities created by the privatisation of state-owned organisations including accounting and consultancy.
Environmental services sector in CyprusThere are opportunities for UK companies in:
Cyprus’s e-government project offers opportunities for UK companies including:
Opportunities for companies include:
Cyprus is currently developing casinos, museums, marinas and golf courses.
Opportunities for companies in tourism and leisure in Cyprus include:
There are opportunities for:
Cyprus offers opportunities in most sectors. This includes opportunities for specialist products in developed sectors such as:
Doing business in Cyprus is very similar to doing business in the UK. However, there are some challenges including:
The continued political division of the island of Cyprus may affect doing business there. Although Cyprus is an EU member state areas not controlled by the Republic of Cyprus are not bound by the acquis rights and obligations of the EU.
Goods are exported to north Cyprus via Turkey as the north is only recognised by Turkey. Goods are not necessarily physically transported through Turkey unless the importer is a Turkish company and it re-exports to north Cyprus. In reality goods are shipped directly to ports in north Cyprus. However, the documentation needed for the export of goods must have a post code in Mersin Turkey as a destination. This postcode basically represents north Cyprus.
Trade is possible through the Green Line (border between the Republic of Cyprus and north Cyprus).
Starting up in Cyprus
There are several ways of setting up or growing your business in Cyprus:
Legal considerations of doing business in Cyprus
Cyprus’ legal system is based on English Common Law principles. Cyprus has adopted all EU law and regulations known as the acquis communautaire.
Contact the DIT team in Cyprus to help find tax and legal advisers before entering into agreements.
The Cyprus Bar Association can also provide lists of local lawyers.
Standards and technical regulations in Cyprus
Products and packaging for export to Cyprus should meet EU standards.
Food products must comply with Cyprus’s strict labelling law. This requires the product name, ingredients, net contents and country of origin to be in Greek.
A sticker with a Greek translation on the product is acceptable, provided it does not conceal the original label. The sticker must have the approval of the Ministry of Energy, Commerce, Industry and Tourism.
Intellectual property in Cyprus
Trademarks, designs, patents and copyright are the principal forms of Intellectual Property (IP) protection available to companies and individuals.
IP law, especially for patent protection, is not totally harmonised within the EU.
The Department of Registrar of Companies and Official Receiver of Cyprus has responsibility for IP.
Taxes and customs in Cyprus
The UK and Cyprus have signed a double taxation agreement, ensuring the same income is not taxed in more than one country.
Value Added Tax (VAT) in Cyprus
The standard VAT rate is 19%. There are reduced rates of 9%, 5% and 0% on specific goods and services.
Check with HM Revenue and Customs (HMRC) regarding VAT refund of business expenses incurred in Cyprus.
Corporate tax in Cyprus
All companies are subject to a uniform tax rate of 12.5%.
Income tax in Cyprus
Personal income tax rate is set at 35%.
Customs in Cyprus
The internal market of the EU is a single market which allows the free movement of goods and services so no import duties apply.
Cyprus Customs and Excise has responsibility for customs procedures.
Energy sector in Cyprus
The recent discovery of significant reserves of natural gas in the exclusive economic zone of Cyprus creates long-term opportunities. Current and future oil and gas projects in Cyprus need expertise in exploration and extraction technologies.
Cyprus also needs to build capacity and develop related sectors including:
- education and training
- security services
- health and safety
- environmental services
- construction
- transport
- cleaning and catering services
Financial and professional services in Cyprus
Cyprus’ shipping sector offers opportunities in:
- insurance
- education and skills
- security services (new legislation now allows armed security personnel on board)
There are opportunities created by the privatisation of state-owned organisations including accounting and consultancy.
Environmental services sector in CyprusThere are opportunities for UK companies in:
- waste management
- recycling
- carbon emissions reduction
Cyprus’s e-government project offers opportunities for UK companies including:
- consultancy on appropriate systems
- development of software
- implementation
- staff training
Opportunities for companies include:
- consultancy
- management
- equipment
- security
Cyprus is currently developing casinos, museums, marinas and golf courses.
Opportunities for companies in tourism and leisure in Cyprus include:
- consultancy
- design
- management
- equipment
- security
There are opportunities for:
- collaboration on making Cyprus an education hub for the oil and gas sector
- collaboration between UK universities and colleges with Cyprus educational institutions
- provision of training for vocational qualifications
- supply of educational equipment
- development of professional qualifications
Cyprus offers opportunities in most sectors. This includes opportunities for specialist products in developed sectors such as:
- information and communications technology
- food and drink, particularly organic, gourmet and artisan products
- life sciences, particularly medical equipment and pharmaceuticals
Doing business in Cyprus is very similar to doing business in the UK. However, there are some challenges including:
- lack of transparency and possible bias in government consideration of competing bids
- state bureaucracy and slow procedures
The continued political division of the island of Cyprus may affect doing business there. Although Cyprus is an EU member state areas not controlled by the Republic of Cyprus are not bound by the acquis rights and obligations of the EU.
Goods are exported to north Cyprus via Turkey as the north is only recognised by Turkey. Goods are not necessarily physically transported through Turkey unless the importer is a Turkish company and it re-exports to north Cyprus. In reality goods are shipped directly to ports in north Cyprus. However, the documentation needed for the export of goods must have a post code in Mersin Turkey as a destination. This postcode basically represents north Cyprus.
Trade is possible through the Green Line (border between the Republic of Cyprus and north Cyprus).
Starting up in Cyprus
There are several ways of setting up or growing your business in Cyprus:
- appointing a local agent or distributor
- setting up a local branch or office
- franchising
- joint venture or consortium
- direct exports
- e-commerce
Legal considerations of doing business in Cyprus
Cyprus’ legal system is based on English Common Law principles. Cyprus has adopted all EU law and regulations known as the acquis communautaire.
Contact the DIT team in Cyprus to help find tax and legal advisers before entering into agreements.
The Cyprus Bar Association can also provide lists of local lawyers.
Standards and technical regulations in Cyprus
Products and packaging for export to Cyprus should meet EU standards.
Food products must comply with Cyprus’s strict labelling law. This requires the product name, ingredients, net contents and country of origin to be in Greek.
A sticker with a Greek translation on the product is acceptable, provided it does not conceal the original label. The sticker must have the approval of the Ministry of Energy, Commerce, Industry and Tourism.
Intellectual property in Cyprus
Trademarks, designs, patents and copyright are the principal forms of Intellectual Property (IP) protection available to companies and individuals.
IP law, especially for patent protection, is not totally harmonised within the EU.
The Department of Registrar of Companies and Official Receiver of Cyprus has responsibility for IP.
Taxes and customs in Cyprus
The UK and Cyprus have signed a double taxation agreement, ensuring the same income is not taxed in more than one country.
Value Added Tax (VAT) in Cyprus
The standard VAT rate is 19%. There are reduced rates of 9%, 5% and 0% on specific goods and services.
Check with HM Revenue and Customs (HMRC) regarding VAT refund of business expenses incurred in Cyprus.
Corporate tax in Cyprus
All companies are subject to a uniform tax rate of 12.5%.
Income tax in Cyprus
Personal income tax rate is set at 35%.
Customs in Cyprus
The internal market of the EU is a single market which allows the free movement of goods and services so no import duties apply.
Cyprus Customs and Excise has responsibility for customs procedures.
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