Filenews 5 November 2021
It is no coincidence that according to the latest report of the Management Development Institute for the Global Competitiveness Centre 2020, the ability of Cyprus to attract and facilitate foreign direct investments and the adaptability of its policies, have yielded remarkable results, the President of democracy said at the Round Table Discussion on the Business Attraction Strategy, Nicos Anastasiades.
In particular, as he noted, Cyprus has been declared the most improved country, climbing eleven places and taking the 30th place in the world. "The above results clearly show that over the years Cyprus has evolved into a key destination for international businesses and investments in the region, with significant potential to become a world-class hub. However, we are not complacent and that is why we have prepared this new Strategy, which will enter into force on January 1, 2022, by providing new incentives either for already established companies wishing to expand their activities or for new companies wishing to operate in Cyprus," he said before 100 foreign companies and investors based in Cyprus, the event that aims to present the recent action plan and the government's strategy both for attracting international companies and businesses and for the expansion of the activities of companies already established on the island.
12 actions in five pillars
As the President of the Republic said, the Strategy includes 12 targeted actions in five pillars and takes into account best practices from other European countries, with the ambition to transform Cyprus into a viable business and commercial centre in our wider region, and in Europe.
"Emphasis is placed on the sectors related, among others, to High Technology, Shipping, Innovation, Research and Development, without, and I would like to stress this, excluding any companies or businesses that choose Cyprus as the country of their activities. A strategy that will be fully in line with our 2035 Long-Term Growth Strategy, the new productive model for the future, the European Commission's guidelines and the objectives of the Recovery and Resilience Fund," he added.
"The implementation of the Strategy and the establishment and operation of international companies in Cyprus will provide high and sustainable added value to the economy, through the creation of new jobs and the increased demand for domestic services, but will also help redefine the country's development model.
At the same time, it is expected to positively strengthen an emerging and high-performing sector of the economy, that of University Education, as it will gradually lead to the alignment of education and training with the demands of the economy and the labour market", said the President of the Republic, noting that "in recent years, several international companies of high added value have chosen Cyprus as the country of operation, accommodation and employment, appreciating the comparative advantages offered by Cyprus, such as:
- Its talented human resources,
- Its geographical position and easy access to the markets of Europe, the Middle East and Africa,
- Its strong European legal framework,
- Its transparent tax regime and the various support services it offers."
The motives
Referring to the new Strategy, which will enter into force on January 1, 2022, with the provision of new incentives either for already established companies wishing to expand their activities or for new companies wishing to operate in Cyprus, he said that these incentives include, among others, the following:
- The transformation of the existing Rapid Business Activity Mechanism into a Business Facility Unit, with a central point of contact for businesses and digitization of procedures.
- The revision, enlargement and simplification of the policy for the employment of highly qualified and supportive human resources from third countries, as well as the right to family reunification.
- The simplification and acceleration of the procedure for granting long-term resident status.
- The introduction of visas for Digital Nomads for third-country nationals who are self-employed or employed and work remotely with employers/customers outside Cyprus, through the use of information and communication technologies.
- New tax incentives for existing or new employees who are not based in Cyprus, as well as for investments in innovative companies and for research and development.
- The right to apply for naturalization after five years of residence and work in the Republic, instead of seven, as is currently the case.
