Commercial Incentives
Upon membership of the Republic of Cyprus to the European Union since 2004 and eventually to the €uro-Zone, new horizons have widely opened for entrepreneurial activities on the island, both for residents as well as for non-residents. The business opportunities under the ‘single market - single currency’ environment are countless, as trade is free of any custom and foreign currency controls.
Perhaps one of the fastest growing business opportunities in Cyprus in the recent years is the development of the ‘import-re-export businesses’. Many new and old businesses, both of foreign and local interest, are now establishing Cyprus as their ‘custom gate’ to the EU. Goods mainly from the Far East and the Middle East countries are imported into Cyprus, custom-cleared and re-exported to other EU countries under a new and legitimate EU status, free of any duties and VAT.
When the above opportunity is combined with low taxation and a generally favourable tax framework, along with other advantages offered by Cyprus, then it is easy for analysts to see and understand the commercial and tax planning opportunities appearing for their clients in Cyprus.
It is also very important that the ‘import-re-export businesses’ activities in Cyprus are backed up by an excellent network of highly equipped and efficient logistics services. The strategic geographical location of the island and the excellent shipping connections, to all over the world, are offering an additional competitive edge to these specific commercial opportunities.
Late December 2011 official government announcements have established Cyprus highly on the World’s Energy Map, as an area with one of the world's richest natural gas reserves. This factor alone is expected to give a great boost to Cyprus economy in the coming years, with vast investment opportunities both for local and foreign investors.