Cyprus is the third largest island in the Mediterranean and is positioned at the crossroads between three important continents - Europe, Africa and Asia.For centuries the island has been on the important trade routes between the three and in days gone by was a popular resting place for sailors. Today, with easy plane connections between cities Cyprus may not be such an important stopping point, but for an increasing number of businesses this unique geographical position makes it an attractive business centre.
The Cypriot government has recognised the country's potential and has done its best to create a favourable economic climate for overseas businesses wanting to establish an office in Cyprus. Cyprus has excelled itself as a fast developing and economically strong country since its independence in 1960 and frequently appears in various league tables as one of the countries with impressive trade figures. Cyprus is currently well-ahead with its application to join the European Union, which it is hoped will be in early 2004. Cyprus has had strong ties with the EU even as a non-member for a number of years and the EU is the country's main trade partner. Cyprus put forward its application for membership to the EU ten years ago, with accession negotiations beginning in earnest three years ago.
The country's chief accession negotiator is Mr George Vassiliou, who as well as being a former president of Cyprus is also a prominent businessman who well understands any concerns raised by the offshore community. He is very confident that this business sector has nothing to worry about as he is confident that the future of the offshore sector will be secured in the accession negotiations and cites the examples of Dublin in Southern Ireland and Luxembourg who both have thriving offshore sectors. Mr Vassiliou is certainly adamant that the offshore sector will be protected during the country's accession negotiations as more than 30,200 offshore companies are registered in Cyprus and 1,100 are operational, contributing 11.5% of the country's invisible earnings and employing a large number of Cypriots. As Mr Vassiliou will also point out with its proven successful track record, Cyprus is fast emerging as a
As well as developing as an increasingly important business centre, in recent years Cyprus has also developed as one of the most popular holiday resorts, with EU visitors accounting for 72% of its tourists. Tourism has evolved on a number of different fronts including agrotourism, special interest holidays and the increasingly popular long-stay winter holidays for older holidaymakers - especially in the Paphos area. Cyprus is also an increasingly important business and incentive travel destination, which is closely linked with the country's development as an international business centre. Hotels in all the major resorts able to provide everything needed by businessmen attending conferences including video links and simultaneous translation facilities and a large number of companies, return for second and subsequent conferences to Cyprus because they are so popular and easy to organise because distances are small and the country has two international airports at Larnaca and Paphos with regular flights from a wide number of destinations.
As well as many close trade ties with Europe, Cyprus also maintains close ties with the countries in the Middle East and for centuries has played an important part in their development. Cyprus is an important focal point for the Middle East and deals with an increasing tonnage of re-exported goods. Importantly, for the growing international business community, Cyprus is an international shipping centre and is listed 5th in the list of maritime nations. Cyprus is well known for its excellent levels of service offered in this sector and a government that has ensured that Cyprus is involved with all aspects of seafaring including marine pollution and safety at all levels. The Cyprus government is well known to keep a watchful eye on all vessels flying the Cyprus flag.
The main incentive for foreign business investors to invest in Cyprus is the various tax incentives and the fact that special agreements with a number of other countries ensure that there is no double taxation. The procedures for foreign investment in Cyprus have recently been simplified. Establishing offices in Cyprus is relatively easy as the Cypriots are naturally helpful and hospitable and many practices including banking and legal requirements are based on the British systems, and business running costs including office rental and telephone bills are much lower than in other European countries. The best news of all is despite the warnings of that well-known saying about mixing business and pleasure - in Cyprus they mix perfectly!
* For further details about establishing an off-shore business in Cyprus, in the first instance please contact your local Cyprus Tourism Office.
Chrissie Flint.