Cyprus - Country Commercial Guide
Investment Climate Statement

The Investment Climate Statement Chapter of the CCG is provided by the State Department. 

Last published date: 2021-09-30

The U.S. Department of State 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.

Topics include Openness to Investment, Legal and Regulatory systems, Dispute Resolution, Intellectual Property Rights, Transparency, Performance Requirements, State-Owned Enterprises, Responsible Business Conduct, and Corruption.

These statements highlight persistent barriers to further U.S. investment.  Addressing these barriers would expand high-quality, private sector-led investment in infrastructure, further women’s economic empowerment, and facilitate a healthy business environment for the digital economy.  To access the ICS, visit the U.S. Department of State Investment Climate Statement website.

Republic of Cyprus:

Cyprus is the eastern-most member of the European Union (EU), situated at the crossroads of three continents – Europe, Africa, and Asia – and thus it 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.

Area Administered by Turkish Cypriots:

The Government of the Republic of Cyprus is the only internationally-recognized government on the island, but since 1974 the northern third of Cyprus has been administered by Turkish Cypriots.  This area proclaimed itself the “Turkish Republic of Northern Cyprus” (“TRNC”) in 1983.  The United States does not recognize the “TRNC” as a government, nor does any country other than Turkey.  A substantial number of Turkish troops remain in the northern part of the island.  A buffer zone, or “green line,” patrolled by the UN Peacekeeping Force in Cyprus (UNFICYP), separates the two parts.  The Republic of Cyprus and the area administered by Turkish Cypriots are addressed separately below.

U.S. citizens can travel to the north / Turkish Cypriot area, but as of November 2020 COVID-19 restrictions have made transit between north and south difficult for non-residents.  U.S. companies can invest in the north but should be aware of legal complications and risks due to the lack of international recognition, tensions between the two communities, and isolation of the north from the eurozone.  Turkish Cypriot businesses are interested in working with American companies in the fields of agriculture, hospitality, renewable energy, and retail franchising.  Significant Turkish aid and investment flows to the “TRNC.”  A political settlement between the communities would be a powerful catalyst for island-wide Cypriot economic growth and prosperity.