Finance Minister Harris Georgiades told an investors summit on Tuesday that Cyprus had not become complacent about the economy despite strong growth, and that much was still to be done.
The second such summit in Limassol, attracting more than 150 investors from across the globe, was organised by the Cyprus Investment Promotion Agency (CIPA) to present major investment opportunities as economic growth picks up pace four years after the 2013 financial crisis.
Georgiades told participants that Cyprus was a welcoming and safe place to spend a holiday, an excellent place to live, to buy a holiday house, to send the children to school, and to enjoy retirement. “Cyprus is also an excellent place to do business,” he said.
“The Cyprus economy is currently growing at a rate of 3.5 per cent of the GDP per year, much higher than the EU average, and the outlook remains positive,” he added.
“We are not becoming complacent and fully realise that there is more to be done. And likewise, our commitment to continue working for a stable, business friendly economic environment remains equally strong.”
Georgiades reminded participants that the island has a very well developed financial and business services sector and was making strides in the direction of developing into an investment fund management centre. It is also the largest ship management centre in the EU.
He also said there were other significant developing sectors including education, health and energy.
The minister said that even during the crisis years when Cyprus was under an IMF/EU programme, the government did not raise or introduce any new taxes but had maintained the current corporate tax at 12.5 per cent, with new incentives being introduced, such as a notional interest deduction for new equity in any Cypriot company, a tax break for innovative companies, and an attractive non-domicile tax framework.
“Economic policy has been focused on supporting the private sector and in doing so, facilitating the creation of conditions which will result in new opportunities, new business and new jobs,” he said.
Michalis Sofocleous, Director of the Office of the President, said that since 2015 when the summit was first introduced, Cyprus had made remarkable progress, both in terms of modernisation and simplification of administrative procedures, and also in terms of economic performance.
“It is an established and acknowledged fact that our government’s approach is to maintain sound public finances, preserve a stable and competitive tax regime, and provide incentives for new business and investments,” he said.
CIPA Chairman Christodoulos Angastiniotis said that in 2016 the Cyprus economy recorded a notable 9.1 per cent rise in FDI (foreign direct investment) inflow compared with the previous year. This was the second largest increase at an EU level on a backdrop of a 2.8 per cent GDP growth, he said.
He added that in the second quarter of 2017, GDP grew by 3.5 per cent “as a consequence of highly improved economic climate and revived investment interest.”
“You, more than anyone else, know that timing is a determining factor when it comes to investing,” he said.
“Back in 2015, during the first International Investors Summit, we tried to convey the message that it was the time to invest in Cyprus and be part of what we saw becoming a success story of economic recovery. Having been proven right, today we stand before you and reassure you that now is the right time to invest in the country’s strong growth potentials. Not only in the sectors of Property, Real Estate and Leisure, but in all of the economy’s promising industries”.
Natasa Pilides, CIPA Director-General and the Summit Chairperson, referred to nine compelling reasons for investors to choose Cyprus.
She highlighted economic growth, Cyprus’ favourable tax regime, and tax incentives for individual investors and companies “across the board.”
She also referred to the island’s young workforce, 55 per cent of whom have a tertiary degree, access to the EU, Cyprus’ strong business support services with more than 700 accounting firms, more than 2,700 lawyers and 160 law firms, and the high availability of modern affordable office space in all cities.
Pilides also highlighted Cyprus’ low cost of doing business, such as labour costs, technical and professional talent compared with other EU capitals, highly affordable critical business support services, and some of the lowest office rentals in Europe.
15 Comments
Bob Ellis
September 12, 2017 at 17:47I needed a good laugh at the end of the day and this certainly achieved it.
Barry White
September 12, 2017 at 17:24@Cyprus Mail I believe that there has been an editing error. I today posted a recent comparison of bank wire transfer costs by a Cypriot company from a major Cypriot bank(unnamed) to Europe with the same amount wire transfered for the company by a major Bank to Europe. The Cypriot wire costs were 100 times the amount charged by the other Bank.
Surely highly relevant in a discussion on investment in Cyprus?
The post has been removed by your editors. An error?
Terryw45
September 12, 2017 at 17:36All earlier posts seem to have been removed, not PC?
Eye on Cyprus
September 12, 2017 at 17:50I must admit that I was unfair to elephants in my ‘removed’ posting. It was cruel to draw any comparison between the NPLs in Cyprus and those unfortunate pachyderms. Sorry for the effect it seems to have had on others. I’d best not compare those who invest in Cyprus with lemmings.
Kevin Ingham
September 12, 2017 at 17:01So why are Cypriots themselves not taking advantage of this goldmine of a country that is so ripe for investment?
Could it be that the banks are so burdened by NPL’s and the population so financially over extended that the only parties who can pony up the dough for development are the same ones that would buy up the country ? Probably – although given Cyprus’ track that might be no bad thing
Mike
September 12, 2017 at 16:50Other than Bulgaria, Hungary, Gibralter and Montenegro the lowest rate of corporation tax in the area so why wouldn’t anyone invest, assuming their organisations are savvy enough to conduct due diligence and avoid the plethora of scammers. Malta at 35% does well though but they do have a semblence of law abidance, as we do today, to a degree in financial circles. British Virgin Islands, UAE, Caymen Islands, Isle of Man, Bermuda and Bahrain however, with a zero rate, must be a better prospect unless a gateway to European markets are the strategy
konstabo
September 12, 2017 at 16:45its the most wonderful place in the world to invest your money according to geogiades because he lives there and has a nice job with retirement benefits full medical , bonuses , multiple pensions , etc , compliments of the taxpayer and the confiscation of deposits from peoples bank accounts…..
unfotunately for these people they wont have any good job or retiremenrt benefits or medical or any pensions at all because georgiades and his pals took there money to save themselves when they went bankrupt and then claimed it was there fault for not tacking there money out of cyprus to england or america where it would have been safe……
Cydee
September 12, 2017 at 16:09Pilides also referred to __________’Cyprus’ strong business support services with more than 700 accounting firms, more than 2,700 lawyers and 160 law firms’…..she should’ve added ‘but do your homework first’……
Barry White
September 12, 2017 at 15:22There was a recent quote from a major Cyprus bank to wire transfer to Europe €3 million for a company account. It was a ” special rate” for the existing customer due to the size of the transfer.
The transfer costs were to be: € 2850.- The company declined the “offer”.
The transfer was made instead from a very major bank in Europe to the European destination. The cost was €29.00.
Bystander
September 12, 2017 at 15:31My employer does exactly this.
Sergey Krasilnikov
September 12, 2017 at 15:11What about 45+% NPL rate, the highest in the world? Did he talk about that?
Eye on Cyprus
September 12, 2017 at 15:16The herd of elephants in the room.
jobanana
September 12, 2017 at 14:53“Cyprus was a welcoming and safe place to spend a holiday, an excellent
place to live, to buy a holiday house, to send the children to school,
and to enjoy retirement.” I would agree had the haircut not taken most of my savings and pension fund. Perhaps Georgy should remind the investors not to put their money in the banks! And perhaps he could tell me how to enjoy retirement without a pension!!
Eye on Cyprus
September 12, 2017 at 15:00Some action to mean that “buy a holiday house” will grant genuine, legal ownership; complete with Title Deeds; would be a step in the right direction,
Terryw45
September 12, 2017 at 15:30‘Once bitten, twice shy’
But now they have fixed the Title Deeds issue, employing qualified teachers for the children, streamlined the civil service, eased bureaucracy, eliminated corruption, accelerated the judicial system….why not…what can possibly go wrong?