The U.S. Department of State’s Investment Climate Statements provide information on the business climates of more than 170 economies and are prepared by economic officers stationed in embassies and posts around the world. They analyze a variety of economies that are or could be markets for U.S. businesses. The Investment Climate Statements are also references for working with partner governments to create enabling business environments that are not only economically sound, but address issues of labor, human rights, responsible business conduct, and steps taken to combat corruption. The reports cover topics including Openness to Investment, Legal and Regulatory Systems, Protection of Real and Intellectual Property Rights, the Financial Sector, State-Owned Enterprises, Responsible Business Conduct, and Corruption. To access the ICS, visit the 2022 Investment Climate Statement.
Executive Summary
Cyprus is the eastern-most member of the European Union (EU), situated at the crossroads of three continents – Europe, Africa, and Asia – and thus occupies a strategic place in the Eastern Mediterranean region.
The Republic of Cyprus (ROC) eagerly welcomes foreign direct investment (FDI). The ROC is a member of the eurozone. English is widely spoken. The legal system is based on UK common law. Legal and accounting services for foreign investors are highly developed. Invest Cyprus, an independent, government-funded entity, aggressively promotes investment in the traditional sectors of shipping, tourism, banking, and financial and professional services. Newer sectors for FDI include energy, film production, investment funds, education, research & development, information technology, and regional headquartering. The discovery of significant hydrocarbon deposits in Cyprus’s Exclusive Economic Zone (and in the surrounding Eastern Mediterranean region) has driven major new FDI by multinational companies in recent years.
The ROC has generally handled the pandemic effectively, mitigating its impact on investment to the greatest extent possible. As of March 2022, around 85 percent of the adult population was double-vaccinated, with many people having received the third dose. COVID caseloads generally follow trends in continental Europe. COVID cases are again rising, consistent with what we are seeing elsewhere in Europe. The government has a highly effective testing regime in place and has demonstrated competence in managing the local epidemic.
The ROC has also demonstrated commitment to promoting green investments, with significant funding allocated to securing a green transition (see Section 8).