Cyprus maintains a strong position as an attractive investment destination due to its many competitive advantages, including its strategic location, said Tuesday President of Cyprus Investment Promotion Agency Christodoulos Agastiniotis.
Speaking at the Cyprus Investors’ Summit in Limassol, he said, the country offers a robust Legal and Regulatory Framework, which stands out as a significant competitive advantage, as it is transparent and based on the English Common Law Principles.
The Cyprus legislation, he noted, is fully compliant with European Union law and all European Union Directives are transposed into national legislation.
`It is certainly not a secret that Cyprus has one of the most attractive and efficient tax systems within Europe, which offers among other incentives tax exemption from Dividend Income and no withholding tax on Interest & Royalties paid from Cyprus. Cyprus tax resident companies benefit from an extensive double taxation treaty network, which has currently 52 agreements in place`, he said.
In addition, Cyprus offers an enviable lifestyle and a great quality of life in a clean and healthy environment with fabulous weather conditions, beautiful nature, art & culture, safety & security for the entire family, as well as a large number of international schools. It is therefore easily understood why foreign investors enjoy and appreciate living in Cyprus so much.
“I strongly believe”, Agastiniotis said, “that our most valuable asset is our human capital. Our professionals have helped develop Cyprus over the years into a quality business centre and play a vital role in the success of our service driven economy.”
The professional services sector, he noted, is widely recognized as a “Centre of Excellence” and has not only held firm, but we have even seen a notable rise in company registration applications during 2014.
`With the new EU regulatory framework that is changing the global funds industry, Cyprus is emerging as an attractive investment fund jurisdiction, providing solutions for the establishment of private and public investment funds. Through transposing into law the two new EU directives, Cyprus offers a European passport to the fund management industry and outstanding possibilities for cross-border and global fund distribution`, he added.
The Cyprus financial services sector, he said, comprises diversity, with a combination of domestic and international banks, insurance companies, and other companies that offer financial intermediary services. Banks located in Cyprus offer a number of services ranging from asset management, private banking, international, corporate and investment banking, retail banking, custodian services, and more.
The potential in the Banking sector, he noted, has already been recognized which is reflected through the recent influx in foreign capital, as foreign investors have been directly involved in the recapitalisation of the biggest local banks.
`A further proof of resilience is the Shipping Sector which for decades has been a key contributor to the Cyprus Economy. Cyprus is an internationally renowned shipping centre and home to some of the world’s leading names of the global shipping industry`, he said.
The Hospitality Industry, Agastiniotis said, has not only proved resilient but has enjoyed steady growth over the past years, as well as witnessed new foreign investment.
`At the same time new sectors are emerging with the Hydrocarbon industry attracting most of the interest, as one would expect. The discovery of natural gas reserves in Cyprus’ Exclusive Economic Zone clearly creates immense prospects for our Economy with new opportunities emerging at every step of the way. The industry holds significant potential for investments, as well as encourages cooperation and partnership between Cyprus and foreign enterprises`, Agastiniotis concluded.
ENDS, CYPRUS NEWS AGENCY