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Scheda Paese

 

Scheda Paese

The Cypriot economy is characterised by the small size of the domestic market and of economic operators, by openness to international trade and by a significant dependence on its performance. The economy is oriented towards services, which represent about 80% of GDP; the main sectors are: finance and business support, tourism, transport, construction.

The most attractive factors of the island are its strategic position, political stability, low taxation for natural and legal persons, a dense network of agreements against double taxation with the Middle East and Eastern European countries, the good quality of infrastructure, the efficiency of the shipping industry (facilitated by the introduction of a tax treatment based on the so-called "tonnage tax"). Today the intermediate country around 60% of the commerce in transit from and for the Middle East (often it deals with re-exports) and its fleet is between the first ten to the world for tonnage (third in the European Union).

The entry into the European Union and the implementation of the OECD agreements have led to the progressive dismantling of practices that made the island a tax haven, and in July 2010 the island was officially removed from the black list of the MEF.

Very close relations with Russia, from which come significant investments (started in the early '90s) that often return to the country in the form of foreign capital-clothes, making Cyprus, for years now, one of the first investors in the Asian country.


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