Cyprus economic and investment climate

Overview

Cyprus is navigating economic transitions related to tax regulations and investment climate. Finance Minister Makis Keravnos recently denied reports of a corporate exodus following the implementation of the OECD Pillar Two 15% minimum tax rate, describing such claims as unsupported by information. The Ministry of Finance is preparing an amending bill to ensure compliance with OECD obligations.

While the government addresses tax compliance and economic indicators—such as a 3.5% Consumer Price Index and fluctuations in unemployment—investor sentiment remains largely positive. An EY Attractiveness Survey indicates that 83 percent of investors view Cyprus as an attractive destination, with 90 percent specifically praising the tax system. However, investors noted challenges including high energy costs, bureaucracy, and limited international connections.

Entities

Nikos Christodoulides · Makis Keravnos · EY · OECD · Cyprus

Timeline

1 day ago

[BUSINESS] 2 sources
Cyprus maintains investment appeal despite energy and bureaucracy concerns
Cyprus attracts high investor interest due to its tax system and stability, though high energy costs and bureaucracy remain significant concerns for business expansion.
8 days ago

[BUSINESS] 2 sources
Cyprus Finance Minister denies corporate exodus over OECD tax rules
Cyprus Finance Minister Makis Keravnos denied claims that the OECD 15% minimum tax rate is causing large companies to leave the country, while noting inflation remains below previous forecasts.

Sources

augsburger-allgemeine.de · cyprus-mail.com · omegalive.com.cy · typos.com.cy