Cyprus is an island country located in the Eastern Mediterranean. The country is strategically located and offers excellent air links to Asia, the Middle East, and Europe.
The jurisdiction also has a favorable business environment with stable tax policies that attract investors and business owners from all over the world.
If you are considering company formation in Cyprus, then exploring the most popular or beneficial sectors is the best way to go. This blog provides a quick overview of the top industries in Cyprus.
However, before we explore the ideal arenas for you to start a business in this jurisdiction. We should also understand why the location has become so popular with entrepreneurs.
Why Should You Start a Company in Cyprus?
Cyprus is a top-notch jurisdiction that supports foreign direct investment. Here are the top reasons to invest in major industries in Cyprus:
- Strategically located, offering access to the European, African, and Asian markets
- Popular tourist destination
- Business-friendly environment
- Attractive tax rates
- A fast-growing economy in the European Union
- State-of-the-art infrastructure and communications network
Not only this, the economy of Cyprus is steadily growing due to the various steps taken by the government of Cyprus, making it one of the most attractive destinations for company formation.
What are the Top Industries in Cyprus for You to Invest in?
The following are the Cyprus’s main industries that attract investments from all over the world:
Shipping Industry
Cyprus is a well-known shipping center, with about 1,000 vessels registered totaling 21 million gross tonnage. The merchant fleet of the country is ranked 3rd in Europe and 10th globally. Its unique geographic location, advanced infrastructure and services, and attractive taxation make Cyprus an ideal location for ship owning, ship management, ship chartering, and ancillary shipping-related companies. It is one of the major industries in Cyprus.
Energy Industry
Energy is projected to become a crucial source of growth in the island, especially after the discovery of the natural gas reserves in the EEZ (exclusive economic zone) of Cyprus. The country is also considering other options related to natural gas in its territory, including the construction of a liquefaction plant to export natural gas to neighboring countries.
Information and Communications Technology (ICT) Industry
ICT is a very important driver of productivity and growth and is one of Cyprus’ main industries. Cyprus has the knowledge to support Foreign Direct Investment for the expansion and/or development of projects on e-Government, e-Business, e-Learning, e-Inclusion, e-Health, and overall ICT services. The country has also aligned its ICT and innovation strategy with flagship initiatives such as “Digital Agenda for Europe” and “Innovation Union” of the “Europe 2020” growth strategy.
Professional Services
This sector offers numerous business opportunities in Cyprus. The jurisdiction is well-known worldwide for providing excellent professional services, which include accounting and legal services. Cyprus is a sought-after place to establish branch offices. The country provides smooth access to the European market and has strong ties with the countries.
Education Industry
The education sector in Cyprus has seen an increase of 10.5% annually in the total number of students, especially in the tertiary education sector. Almost a third of all tertiary students studying in Cyprus come from abroad. This is a great opportunity for new Universities, colleges, and Research Institutes to be established in Cyprus.
Health Industry
Cyprus welcomes people who are interested in expanding and internationalizing their activities in the health services sector. The country turns out to be an ideal place to attract people from neighboring countries and from European countries seeking high-quality health services at competitive rates.
Banking and Financial Industry
According to the S&P Global's latest report, Cyprus’s banking system has a good reputation with a positive growth outlook. As the global market continues to grow, Cyprus is perfectly positioned to capitalize on this. The island leverages its specialized expertise, a stable financial environment, highly skilled workforce that provides a competitive edge.
Online Gaming
As the population of online gamers continues to grow worldwide, many startups and investors are gradually jumping on the bandwagon to drive sustained business growth and enhanced profitability. Thus, securing a gaming license for your offshore company in Cyprus can be rewarding. However, you must not onboard locals as customers on the gaming platform.
How can BSW help?
There are numerous business opportunities in Cyprus that you can access as an entrepreneur or investor. The industries mentioned above in Cyprus are among the most profitable sectors.
So, if you would like to set up a company in Cyprus or understand the Cyprus tax system, then Business Setup Worldwide can assist you. Reach out to us today and start your entrepreneurial journey in the country.
