Last year, economists found the outlook for Cyprus’ financial state very bad, seeing no new or even reformed model for it. Cyprus took a deep breath and has proved them wrong, in its effort to reconstruct the banking system as well as to create new opportunities. The Cypriots are making a rapid return to growth, inviting investors.

The Cyprus Investment Promotion Agency, in close collaboration with the Cyprus High Commission in Australia, organised a mission to the two major Australian cities, Melbourne and Sydney. CIPA showcased a wide range of attractive business options for future investors from the fields of professional services, energy, large scale projects, state and EU funds, privatisation programs, not to mention the casino’s unlimited investment opportunities. Cyprus has always been an attractive land for investors, but now the government has put in numerous measures to ensure the economy’s development. A board of specialists took questions from members of the audience – the event was open to the public – regarding the island’s legislation, investment policy and taxation.

Neos Kosmos contacted CIPA’s chairman of the board, Mr Christodoulos E. Angastiniotis, who led the delegation, to get more information regarding investment incentives in Cyprus. Mr Angastiniotis offered a clear and rather attractive point of view on the island of Aphrodite’s emerging opportunities.
“Events like this bring us closer together and demonstrate the tireless efforts that are made not just to maintain, but also to strengthen the close ties between Cypriots everywhere,” Mr Angastiniotis said. “Our diaspora, our expats, have always offered a multitude of services to Cyprus with their multidimensional action. Political, economic, cultural and educational action. Actions that keep relations alive, both among expats abroad and between the overseas Cypriots and their homeland,” he added.

Cyprus’ government has taken a vast number of new measures to ensure economic growth with a large capital infusion from international investors. These measures have been designed to reboot the economy in the wake of the massive restructuring of the country’s banking sector.

“The events that took place in our country in March 2013, as you are well aware, shook the foundations of the Cyprus economy. We became the focus of unprecedented international attention. However, we soon began to reverse the negative situation, correcting distortions and restoring the economy’s competitiveness. All of the troika’s assessments since the Memorandum was signed have been positive, while it has been around a year and a half since the March 2013 events and our country is already back in the international markets,” he explained.

More emphasis needs to be given to attracting foreign investment, precisely because it offers opportunities for immediate actions, capable not only of stemming the impact of the crisis, but also creating the conditions for restarting the economy. “We know that our task is not an easy one. Competition in attracting foreign investment is massive in normal times. All the more so in the current context, where our competitive countries have launched a massive effort to exploit the difficult position our country is currently in” Mr Angastiniotis tells Neos Kosmos.

A big advantage for foreign nationals willing to invest in Cyprus – according to the president of the republic – is the easily acquired permanent residency status. Moreover, foreign investors who held deposits prior to 15 March, and who lost at least €3m as a result of the resolution of Laiki Bank and the restructuring of Bank of Cyprus, are eligible to apply for Cypriot citizenship. Determined to stimulate interest toward Cyprus’ promising new businesses or companies, the government has reduced the amount of time required to issue planning permission, to a maximum of one month for small projects and three months for large projects.

In addition, permits for joint tourist developments such as condo hotels will be given, not to mention that the green light for casinos is now on.
Building coefficients have been increased by 30 per cent in residential areas for large commercial developments. The coefficient will be increased by 25 per cent on the outskirts of residential areas for large commercial or office developments. It will increase by 20 per cent in certain tourist zones for large-scale property and from 10 per cent to 15 per cent for areas available for golf courses.

“Even though Cyprus-Australia relations have always been excellent on all levels, there is massive room for improvement in the field of attracting investment. And to achieve this, we need your help. We believe that overseas Cypriots can play a substantive role in our efforts to attract investments and project Cyprus as an attractive investment destination,” Mr Angastiniotis told the audience.

He highlighted the fact that Cyprus retains significant comparative advantages, which need to be showcased and projected, and there is great growth potential in a variety of sectors, such as research and technology, shipping, tourism, major development projects, medical tourism, the audio-visual industry, renewable energy sources, research and innovation, education and, of course, professional services. Furthermore, the energy and hydrocarbons sector is expected to offer a significant boost to economic growth, in the medium-term as well as long-term.

He concluded saying that “the road ahead is a difficult one, but we have a duty to walk it until we reach our final destination, which is none other than economic recovery and the country’s return to growth and progress. We have faced difficulties in the past as well. Like then, we can address them and succeed again. There is vision. There is will and determination”.

The Cyprus Investment Promotion Agency (CIPA), with the knowledge and networking it has amassed over recent years, has taken on the role of central coordinator for all actions aimed at promoting Cyprus, in close cooperation with private organisations and the government.

For more information visit www.investcyprus.org.cy