Discusses key economic indicators and trade statistics, which countries are dominant in the market, and other issues that affect trade.
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, and the legal system is based on UK common law. Legal and accounting services for foreign investors are highly developed. With a talented, highly-educated, English–speaking workforce, the ROC offers professional services at competitive prices compared with the EU average. The ROC has a low corporate tax rate of 12.5 percent, and a liberal investment regime with 65 double taxation treaties, including with the United States. Invest Cyprus, an independent, government-funded entity, aggressively promotes investment in traditional sectors including shipping, tourism, banking, 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’ Exclusive Economic Zone (and in the surrounding Eastern Mediterranean region) has driven major new FDI by multinational companies in recent years. The ROC is further developing a fairly advanced telecommunications network and infrastructure, and - prior to COVID-19 - had first-rate air connectivity. U.S. products, services, technology, and brands are well-regarded. The World Bank’s 2020 Doing Business report (http://www.doingbusiness.org/rankings) ranked Cyprus 54th out of 190 countries for ease of doing business. Please visit Invest Cyprus for further information on the ROC market.
Republic of Cyprus by the Numbers
- Population (ROC): 888,005 (2020)
- 0-14 years – 16.1%
- 15-64 years – 67.8%
- 65 and over – 16.1%
- GDP: $23.7 billion (2020), $25.0 billion (2019), $25.2 billion (2018), $22.7 billion (2017)
- Real Growth Rate: -5.1% (2020)
- Per Capita: $23,050 (2020)
- Unemployment Rate: 7.6% (2020)
- Cyprus is an import-dependent economy.
- No significant non-tariff barriers to U.S. exports.
- Exports to the U.S.: $88.3 million (2020)
- Exports from the U.S.: $73.0 million (2020)