Invest in Cyprus in 2024: How, Why, and Benefits

Are you interested in making a foreign investment? Look no further than investing in Cyprus. Thanks to its prime location offering access to Europe and the Middle East, Cyprus has become one of the most valued places for foreign investment in the world.

Along with this, foreign investors in Cyprus can benefit from the various Government initiatives that seek to expand foreign investment in the republic. In this article you’ll learn more about:

• The benefits of investing in the republic
• The best industries to invest in Cyprus
• Why you should invest in Cyprus in 2024, and much more

Why Invest in Cyprus?

There are many reasons why international investors should consider investing in Cyprus. Let’s take a closer look.

1. Strategic location

Cyprus benefits from its fantastic location. Situated between Europe, the Middle East, and Africa, the republic is a fantastic option for any business within the trade industry.

The well-developed ports and markets make Cyprus the ideal location for multinational companies looking to set up base in a thriving location that places a premium on providing companies with everything needed to run a successful business efficiently.

2. Economic stability

Since the financial crisis in the early 2010s, Cyprus has made the comeback of a lifetime. The Cyprus economy is booming with industries like shipping, tourism, and finances bolstering the economy to even greater heights.

Additionally, Cyprus’ banking system has been reformed, offering foreign investors a safe and stable space to make lucrative investments that are governed consistently. This, along with a $32.19 billion GDP in 2023, the Cyprus economy is only improving year on year.

One of the biggest changes in recent years for Cyprus is the increase in employment. The unemployment rate in Cyprus has slowly but surely been decreasing, increasing investor confidence in the republic.

As you’ll come to see, this change has also brought about a workforce that gives many other European countries a serious run for their money.

3. EU membership

Cyprus is a member of the European Union, a title that comes with many benefits for the republic and its investors. EU membership means that Cyprus has direct unrestricted trade with other EU countries.

As a member of the European Union, Cyprus benefits in some of the following ways:

• Direct shipping routes
• Convenient travel for citizens
• Availability of services
• Access to a world of business opportunities

These points along with the strict governing policies over EU countries mean that the standards are incredibly high. There is transparency and governance at all levels, which provides a positive space for investors to feel confident in investing in Cyprus.  

4. Cyprus taxes

One of the biggest benefits of investing in Cyprus are the corporate tax rates. Standing at 12.5%, Cyprus offers one of the lowest corporate tax rates in the EU. This is a big plus for those looking to start or move their companies to Cyprus.

Cyprus taxes for non-residents varies depending on your personal circumstance. But one swaying factor is that Cyprus boasts more than 65 double taxation treaties. This means you cannot be taxed in both Cyprus and your home country on the same income.

Cyprus also offers a range of tax incentives in growing industries, including tech startups and shipping. It’s best to speak with a tax expert on your specific needs before investing in Cyprus. But overall, the incentives are a massive draw for foreign investors.

5. Quality of life

The quality of life in Cyprus is fantastic. The republic offers a safe and welcoming environment for investors and their families.

The crime rate in Cyprus is one of the lowest in Europe, offering parents peace of mind when immigrating with children. The quality of education in Cyprus is of a significantly high standard, with many international schools and top universities.

Additionally, the private healthcare system in Cyprus for expats is efficient and a lot cheaper than other EU countries. This makes it a popular destination for retirees looking to soak up the sun during their golden years.

A big part of the high quality of life comes down to the weather. The year-round sunshine is a big plus for those that enjoy being outdoors and savoring the sunshine. The stunning natural landscapes, beautiful beaches, and inviting locals are just some of the reasons expats thrive in Cyprus. 

If you want to explore everything Cyprus has to offer, the Cyprus Golden Visa is one of the best ways to obtain residency and eventually citizenship in Cyprus. In exchange for a financial contribution, you can obtain the Cyprus Golden Visa within 7 years, making you a citizen of the EU.

Is It a Good Time to Invest in Cyprus?

The best time to invest in Cyprus is now. As the republic emerges as one of the best investment destinations in the world for certain key industries, and as a top financial center in the Mediterranean.

The Cypriot economy is constantly growing, and it has been projected to continually grow due to the efforts of its government to ensure that investments keep coming in from international corporations, foreign companies, and foreign nationals.

Government incentives

The government is offering a number of generous incentives for anyone looking to place an investment in its economy, which has led to an increase in material resources, as well as human resources. Today, there is a genuine interest in the promotion of innovative ideas that will take the country to the next level.

Less bureaucracy

Entrepreneurship thrives in the Republic’s private sector, as well as in other key economic sectors, as government officials are working tirelessly to curtail government bureaucracy. Procedures for business owners have been streamlined and made easy by removing delays and excess costs.

Rapid increase in foreign investment

Since the presence of foreign direct investment is crucial to the economic recovery of the Republic, many incentives have been placed by the Cypriot government for investors to take part in the growth of its economy and maintain their investments as well. These incentives have been so appealing that they have caused a rapid increase in the number of investors in the country who benefit from the Cyprus Golden Visa program.

The increase in demand for housing, for example, out of a rise in tourism and migration has subsequently led to the growth of certain industries such as construction and real estate.

Benefits of Investing in Cyprus

There are many benefits to be reaped by those who want to invest in Cyprus, from having a high return on investment and enjoying tax benefits, to accessing the EU market and benefiting from internationals laws and easy bureaucratic procedures, among other things — all of which has led the country to increase in popularity among foreign investors.

The most commonly shared benefits are:

1. Efficient Banking and other Professional Services

The Cypriot banking system is properly designed for ease of doing business, which is an added benefit for foreign businesses. Cyprus has a very organized banking system that consistently takes care of the diverse needs of individuals as well as companies.

There is a large pool of highly skilled and educated professionals within the business sector. Services are offered in various languages to accommodate international clients. 

Additionally, the cost of professional services in Cyprus is generally cheaper, providing investors with exceptional services for a fraction of the cost.  

2. Infrastructural development

Cyprus has experienced immense growth in key areas that support the development of domestic companies. With huge investments being placed in telecommunications, shipping, and transportation, the country boasts a world-class infrastructure that makes running a business and managing life much easier.

With transportation networks that provide an easy commute across the entire Republic, two deep seaports located in Larnaca and Limassol, and two world class international airports which play a very integral role in linking Cyprus to other parts of the world, traveling to Cyprus is easy.

3. Connection to Europe

Since joining the EU in 2004, Cyprus has become a key gateway to European markets, attracting investors with its stability and growing investment opportunities. Its advanced telecommunications infrastructure, including satellite and fiber optic connections, have made Cyprus a telecommunication center in Europe, with the digital nomad lifestyle increasing in the republic.

4. Citizenship

Cyprus offers investors a unique opportunity to obtain a permanent resident permit, which can lead to a subsequent Cyprus/EU citizenship and a Cyprus passport. Obtaining citizenship takes seven years through the residency program. However, a major upside to Cyprus residency is that the investor does not need to reside in Cyprus or become tax residents.

Best Industries to Invest in Cyprus

As a member of the European Union, Cyprus is one of the market leaders that are backed up by a stable currency and developed regulations. There are numerous thriving sectors and industries to benefit from when placing an investment; such as real estate, tourism, renewable energy.

1. Tourism and Hospitality

The tourism sector has remained a cornerstone of the economy of Cyprus. Millions of visitors cascade into the republic each year for a chance to soak up the sun in style.

Cyprus has had a boom in popularity among tourists as the republic has made a serious effort in making Cyprus safe, clean, and overall, a fantastic place to have a holiday. This, along with the increasing investments in luxury hotels, resorts, and boutique accommodations have really put Cyprus on the map for one of the top must-visit places in Europe.

The tourism sector in Cyprus is set to hit in heights within the next five years, making it a fantastic opportunity for foreign investments.

2. Real Estate

Cyprus is home to a thriving real estate market that has dramatically increased due to the demand from foreign investment. Not only are foreign investors purchasing property to live in but are turning a profit by renting out their Cyprus real estate during the busy periods.

While residential properties top the list of most in demand, commercial properties are quickly becoming a serious competitor. As the incentives for investing in Cyprus continue to grow, so does the need for business spaces in the republic.

3. Technology

Cyprus is gradually becoming a tech hub, with innovation and development driving the entire industry forward year on year. From fintech and digital marketing to software development and cybersecurity, the technology sector in Cyprus isn’t going anywhere.

Whether you’re considering starting a new tech company in Cyprus or simply want to invest in one of the quick growing businesses, Cyprus has a world of innovation waiting for foreign investors to take the plunge.

Additionally, the government offers a range of incentives and initiative, propelling the sector to new heights. This, along with the push from EU funding is truly setting the stage for this thriving market in Cyprus.

4. Shipping and trading

Cyprus is one of the biggest shipping hubs in the EU, offering a wealth of opportunity for foreign investments. Thanks to the open registry that has opened up the entire market in sectors like logistics and ship investment, the shipping and trading sectors in Cyprus are booming.

The large ports in Larnaca and Limassol are at the heart of the industry, with both offering top tier operations, providing foreign investors peace of mind.

Plus, with the increase in green initiatives from the Cyprus government, the shipping and trading sectors are set to hit an all-time high with sustainable maritime technology and alternative fuels pushing the industry forward.

5. Energy

There is no doubt that Cyprus has made waves in recent years with the government’s push for renewable energy projects. Solar and wind energy are leading the way, with foreign investors seeing a real return on investment.

Cyprus has also gained international attention for the gas reserves found in the Eastern Mediterranean. There is a wealth of opportunity for investment in drilling, ocean exploration, and infrastructure development.

Pros of Investing in Cyprus

You don’t need to look very hard to find reasons to invest in Cyprus for foreigners. The advantages of investing in Cyprus far outweigh the cons. Some of the main advantages include:

High quality of life
Cyprus offers an exceptional quality of life for expats and investors, made even more appealing by its affordable cost of living.

Growing investment in the country
Investment opportunities in Cyprus are on the rise, especially in booming sectors like tourism. With predictions showing a Compound Annual Growth Rate (CAGR) of 2.33% between 2024 to 2029.

Stable economy
Cyprus boasts a stable and robust economy, consistently earning praise from the European Commission and the IMF. This solid foundation makes it an attractive destination for investors seeking long-term security.

Similar legal and financial systems to the UK
Cyprus’s legal and financial systems closely mirror those of the UK, making it straightforward for UK investors to navigate and participate in the market easily.

Cons of Investing in Cyprus

Like with any other location, there are some disadvantages to investing in Cyprus. A common complaint of those who invest in Cyprus is that some parts of the country are not as developed as others. Some other disadvantages include:

It’s necessary to take legal advice
It’s essential to seek legal advice when buying property in Cyprus, as failing to do so could result in purchasing a property with existing debts.

Tourist areas are overcrowded during summer
The popular tourist areas are often overcrowded during the peak of the summer season.

Restrictions on letting out property
Investors often frown upon the restrictions that are put on letting out their property. It’s important to understand the rules and regulations surrounding rental property investment in Cyprus.

Is It Worth It to Invest in Cyprus?

Absolutely! Cyprus has branded itself as a country where foreign investment of all kinds is welcome. Whether you want to start a new company or invest in an already established multinational corporation, Cyprus offers a world of opportunity.
There is significant growth across industries, welcoming entrepreneurs to the republic looking for success within the European marketplace.

Whatever your calling, it’s important to seek legal advice before investing in Cyprus. A great understanding of market penetration within a growing economy will set you up for success.

How Can Global Citizen Solutions Help You?

Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments. 

We guide you from start to finish, taking you beyond your citizenship or residency by investment application. 

Frequently Asked Questions About Investing in Cyprus

Is it good to invest in Cyprus?

An investment in Cyprus will prove itself lucrative to anyone interested in diversifying their portfolio or expanding their business activities. The Cypriot market as well as the Cypriot government are both accommodating to all foreign investors and entrepreneurs looking to streamline business operations.

What sectors should I consider when investing in Cyprus?

Some of the best investments may be placed in Cyprus real estate, as the tourism industry is constantly booming. Some other options include investment funds, renewable energy, government bonds, and technology.

What are the benefits of investing in Cyprus for foreigners?

The benefits of investing in Cyprus for foreigners include the tax incentives for overseas permanent establishments, access to EU markets, a business friendly environment, high quality of life, and fantastic investment opportunities in growing sectors.

How does the Cyprus economy support foreign investments?

The Cyprus economy supports foreign investments with its stable financial environment, favorable tax regime, EU membership, and well-developed legal framework. These factors create a secure and attractive climate for international investors that want to invest in an EU country.

Is Cyprus a good place to invest in property for EU and non-EU citizens?

Yes, Cyprus is a great place to invest in property for both EU and non-EU citizens. The republic offers strong property market growth, a stable economy, and attractive tax benefits. Non-EU investors can also benefit from residency programs through property investment.

How does Cyprus' strategic location benefit international investors?

Cyprus has strong diplomatic ties with Eastern Europe, North Africa, and the Middle East, boosting international trade. The modern transportation infrastructure, including two international airports and advanced seaports only adds to the republic’s strategic advantage.