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Investing in Cyprus
Τhe Republic of Cyprus became a full member of the EU on 1st May 2004. In 2008 Cyprus joined the European Monetary Union. Consequently it promotes Foreign Direct Investment opportunities in the priority economic growth sectors.
The Capital Movement Law 115(I)/2003, which came in force at the same time that Cyprus has joined the EU, has liberalized the Foreign Direct Investment (FDI) Policy not only for EU citizens but also for investors from third countries in most sectors of the economy as from 1st October 2004. Limitations related to the minimum level of investment and foreigners' participation percentage have been abolished, in most sectors of the economy, allowing for up to 100% equity participation, in registering companies or acquiring shares in existing companies. The Central Bank of Cyprus has issued a number of regulations to all the banks in Cyprus in accordance with the Exchange Control Act, Cap. 199 and the Capital Movement Law 115(I)/2003.
However, there are some restrictions with regards to the non-resident participation, for example the acquisition of property (The Acquisition of Real Property (Foreigners) Law, Cap. 109) by non-EU investors.
Trading of shares by non-EU nationals on the Cyprus Stock Exchange (CSE) is as easy as on any modern stock market. Foreign investors are subject to the same rules and regulations of the Cyprus Stock Exchange as Cypriots or other EU nationals, regarding capital distribution.
Article 10 of the Capital Movement Law 115(I)/2003 allows for direct investments in Cyprus by non-EU nationals. Additionally, according to Article 11, the participation of Non-EU investors requires the prior approval of Minister of Finance which is an easy procedure to follow.