Search

Search
- Search

Economy & Business

Cyprus' economy is recognized as a high-income country by the World Bank, and the International Monetary Fund added it to its list of advanced economies in 2001.
On January 1, 2008, Cyprus made the euro its official currency, replacing the Cypriot pound at an irreversible fixed exchange rate of CYP 0.585274 per €1.

Cyprus has a service-based economy with some light manufacturing that is open, free, and competitive.
Cyprus markets its geographic location as a “bridge” between East and West, as well as its educated English-speaking populace, low local expenses, good airline connections, and telecommunications, on an international level.

Since 1960, when it declared independence from the United Kingdom, Cyprus has a track record of great economic performance, as seen by high growth, full employment, and relative stability.
The colonial economy's weak agrarian economy has been turned into a modern economy with thriving services, industrial, and agricultural sectors, as well as advanced physical and social infrastructure.

Cypriots are among the wealthiest people in the Mediterranean, with a GDP per capita of more than $29,000 in nominal terms and $42,000 in purchasing power parity in 2021.

Their standard of living is reflected in the country's “very high” Human Development Index,- and Cyprus is ranked 23rd in the world in terms of the Quality-of-life Index.

The establishment of a market-oriented economic system, the government's pursuit of good macroeconomic policies, the existence of a dynamic and flexible entrepreneurship, and a highly educated work force have all been credited with Cyprus' economic success.
Furthermore, extensive collaboration between the public and private sectors boosted the economy.

The economy has changed from agriculture to light industry and services in the last 30 years.
The services sector, which includes tourism, accounts for about 80% of GDP and employs more than 70% of the workforce.
Agriculture accounts up 2.1 percent of GDP and 8.5 percent of the labor force, whereas industry and construction account for about one-fifth of GDP and manpower.

Because Cyprus' legal system is based on English law, most foreign financiers are familiar with it.
In the years running up to Cyprus's 2004 EU membership, the country's legislation was harmonised with EU standards.
Foreign direct investment restrictions were lifted, allowing for 100 percent foreign ownership in numerous cases.
The Cyprus Stock Exchange has also liberalized foreign portfolio investing.
In 2002, a contemporary, business-friendly tax structure was implemented, with a corporate tax rate of 12.5 percent, one of the lowest in the EU.

Cyprus has signed double taxation treaties with more than 40 countries and has no exchange limitations as a Eurozone member.
Non-residents and foreign investors are permitted to repatriate profits earned in Cyprus.

Cyprus is one of the world's largest ship management centers, with about 50 ship management businesses and marine-related foreign enterprises operating internationally from the island, with the bulk of the world's largest ship management corporations establishing full-fledged offices there.

The island nation's strategic location at the crossroads of three continents, as well as its closeness to the Suez Canal, has boosted merchant shipping as a major industry.
As of 1 January 2013, Cyprus had the tenth-largest registered fleet in the world, with 1,030 boats totaling 31,706,000 dwt.