Transcript Cyprus Investment Promotion Agency

Cyprus Investment Promotion Agency (CIPA)
Investing in Cyprus, an ideal gateway to Europe
for the Arab world
20th June 2014
Charis Papacharalambous
Director General
Cyprus Facts
Location:
Total area:
Population:
Time Zone:
Currency:
Capital:
Languages:
Political System:
35 N and 33 E
9,251 km2
866,000 (2012)
GMT+2
Euro
Nicosia
Greek, Turkish, English for business
Presidential Democratic Republic
Cyprus Investment Promotion Agency (CIPA)
Promote Cyprus as an attractive international investment
and business centre in key priority economic sectors
Provide investor facilitation and support to new and
existing investors
Advocate reforms in order to improve the regulatory and
business environment and infrastructure
Recent facts about the Cyprus economy
• All four TROIKA assessments - “Program is on track” - ECB, IMF, EC
• Resilient economy: Contraction of 5.4% v initial est. of 8.7%
• Return to growth by 2015 - European Commission’s forecast
Economic Indicators
GDP Growth (% change)
6
5.1
3.6
4
2
*
1.3
1.9 *
0.9
0.4
0
2007
-2
2008
2009
-1.9
2010
2011
2012
2013
2014
2015
-2.4
-4
-6
-8
Source : Cyprus Ministry of Finance
* estimated forecast
-5,4
-4.8
*
2016
Economic Indicators
Source : Cyprus Ministry of Finance
* estimated forecast
Recent facts about the Cyprus economy
• All four TROIKA assessments - “Program is on track” - ECB, IMF, EC
• Resilient economy: Contraction of 5.4% v initial est. of 8.7%
• Return to growth by 2015 - European Commission’s forecast
• Fiscal deficit is much lower than originally expected
• Private consumption decline was less than originally expected
• 40% of Foreign Investors planning to expand investments within the next
3-5 years - CIPA survey Dec 2013
• Cyprus successfully returned to the markets 18 months before forecasted
Ratings
•
•
•
•
In November 2013, Standard & Poor’s first upgrade for Cyprus
On 22nd March 2014, Moody’s has upgraded Cyprus’ Government and
financial institutions credit worthiness from negative to positive, citing the
Cyprus stronger-than-expected fiscal and economic performances in 2013 and
the authorities’ track record of meeting conditions under the Troika funding
program.
On 25th April 2014, Standard & Poor's raised the long-term foreign and local
currency sovereign credit ratings on Cyprus to 'B' from 'B-'.
S&P affirmed the short-term foreign and local sovereign credit ratings at 'B'.
The outlook remains positive.
Cyprus 10- Year Government Bond Yield
Source: Ministry of Finance
Economic Sentiment Indicator (ESI)
Source: Eurostat last update: 28/05/2014
2013 Global Competitiveness
39th out of 189 countries
Ease of Doing Business
32nd out of 161 countries
Best Countries for Business
31st
Corruptions Perceptions Index
out of 176 countries
29th out of 140 countries
The Travel & Tourism
Competitiveness Report
27th out of 145 countries
Best Countries for Business
27th out of 142 countries
The Global Innovation Index
21st out of 140 countries
Best Travel & Tourism
Environment & Infrastructure
1st out of EU28
Bathing Water Quality
11
Cyprus, the Gateway into
Europe and beyond!

Strategic Location: Cyprus has been an
important trading hub since antiquity!
Cyprus
Cyprus, the Gateway into
Europe and beyond!

Strategic Location: Cyprus has been an
important trading hub since antiquity!

Ease of Doing Business: Introduction of
numerous structural reforms

EU and Eurozone: Full harmonization of EU
legislation and Directives

Tax System: Possibly the most attractive tax
systems in Europe - Double Taxation Treaties
Cyprus: Attractive Tax System
Exempt from tax:
Dividend income
Profits from overseas
permanent establishments
Profits from the sale of securities
No withholding tax on:
Dividends
Interest
Royalties paid from Cyprus
 Most international transactions are
exempt from VAT
 Double Tax Treaties with 50 countries
 Intellectual Property (IP) regime with
an effective tax of less than 2%
Cyprus, the Gateway into
Europe and beyond!

Strategic Location: Cyprus has been an
important trading hub since antiquity!

Ease of Doing Business: Introduction of
numerous structural reforms

EU and Eurozone: Full harmonization of EU
legislation and Directives

Tax System: Possibly the most attractive tax
systems in Europe - Double Taxation Treaties

Robust Legal & Regulatory Framework: Based
on English Common Law Principles
Cyprus: Legal System
•Based on the English Common Law
Principles
•Transparent
•Fully harmonized with international
standards
•High quality legal services
•Collaboration with international law firms
•Application of EU Directives
Cyprus, the Gateway into
Europe and beyond!

Incentives: Wide range of investment incentives
for foreign companies
Infrastructure: Well advanced and modern
Infrastructure

Value for Money Services: “Centre of
Excellence” – First country in the world to train
“UK Chartered Accountants and “CIMA
Accountants” outside the UK


Human Talent: Highest tertiary education
percentage in the EU
Quality of Life: Weather, History & Culture,
Gastronomy, International schools - More than

85% of existing foreign investors value the high
quality of life in Cyprus - source: CIPA survey Dec.
2013
Cyprus ranks 5th best country to relocate
Source: www.knightfrank.com
Key Economy drivers
• Professional Services  Market has created opportunities
• Banking & Financial Services  Niche sectors like ship financing, energy
project financing
• Tourism  Well developed infrastructure. World’s most Blue flags per
coastline km & cleanest waters in the EU (100% success)
•Research & Development  Innovation in Medical Research projects
• Renewable Energy  2 projects awarded the EU funding NER300 program
and over 20 new licenses
Key Economy drivers
International Shipping Center
• The ONLY EU approved tonnage tax regime
with benefits for ship-owning, ship-management
and crew management
• Largest Ship Management Centre in EU
• 2nd largest Ship Management Centre globally
• 3rd largest merchant fleet in EU
• 10th largest fleet worldwide
 More than 1,022 registered vessels with 21 million
gross tonnage are registered under the Cyprus flag
 More than 140 ship owning and ship management
related companies are operating from Cyprus
Key Economy drivers
Large Scale
Development Projects
Potential Opportunities:
Luxury Real Estate Developments
Marinas
Leisure & Theme Parks
Luxury Resorts & Golf Courses
Health & Wellness Tourism Projects
Education & Universities
Key Economy drivers
Upcoming opportunities
in Privatizations
Ports
Energy
Telecommunications
Key Economy drivers
Hydrocarbons in Cyprus
Note: 60 tcf NG would fully cover Cyprus’ domestic energy needs for approximately 6,000 years
- There are also indications for the existence of oil
Existing Foreign Investor survey by CIPA – Dec. 2013
Confidence Index Outlook on Cyprus’ Economy
4
3
2
1
0
2014
2015
2016
2017
2018
2019
2020
Sentiment
Thank You!
Tel: +357-22-441133
[email protected]
www.investcyprus.org.cy