Economy in Cyprus

Economy in Cyprus

The Cyprus economy was classified by the World Bank as a high-income economy and at the same time was included by the International Monetary Fund in the list of advanced economies.

Due to the low company taxation system in Cyprus (10%) the country became an attraction for offshore companies which chose Cyprus as their base mainly for the beneficial tax. Offshore companies and tourism (Cyprus attracts about 3 million tourist every year) were the main sources of profit to the economy.

There is no heavy industry in Cyprus and 99% of the local businesses are flagged as small to medium size. However some exports mainly of quality agriculture products take place every year.

The European economic crisis has not left Cyprus untouched but was mainly due to the fact that Cypriot Banks investing in Greek bonds. However a solid plan was design for the exit from the economic crisis which seems to be sooner than later due to the discovery of Natural Gas which is planned to be routed from Cyprus to Europe through underwater pipes.

The present economic state of Cyprus makes it perfect for investments since the prices are currently down, but not for long.