Citizenship investments program in Cyprus
offers also good profit
Big chance for growth
Cyprus is a country with a small and open economy based on services. Services are also the fastest growing sector, producing 80.5% of the country’s GDP. Industry contributes 17.1% of the GDP, and the share of agriculture and fisheries is systematically decreasing, providing only 2.4% of the GDP of Cyprus. * As recently as the 60s and early 70s, the Cypriot economy was dominated by exports of raw materials and agricultural products, and in the subsequent decade, industrial products. The 80s brought a dynamic growth of tourism and services. The economic landscape of Cyprus is strongly dominated by small and medium-sized, often family-owned, companies.
After it joined the European Union in 2004, Cyprus has undergone a process of great economic and structural reforms, particularly in competition, financial and industrial sectors, which have transformed the country. Interest rates and prices have been freed and investment restrictions lifted. Completely revised and liberalized were the rules of foreign direct investment. Cyprus has become economically open, and its geographic location is conducive to the development of exports and imports, whose share in the GDP accounts for over 90%. The biggest partners are Greece and the United Kingdom.
The opening of Cyprus resulted in a gigantic inflow of financial investments and a dynamic growth of the banking sector, the size of which became a threat to the stability of the Cypriot economy. The result was a very severe crisis, threatening the collapse of the banking sector and, consequently, of the entire economy. The government imposed a special tax on bank deposits, which helped avoid the disaster. At the same time, the great European financial institutions ("Troika") have agreed on a programme to support the island's economy and deep reforms. In 2015, the GDP decline stopped and a small growth was reported; in 2016, the trend is to continue. Also on the real estate market, after the big drop in activity and prices in recent years, a revival has been witnessed.
It seems that the Cypriot economy is facing excellent prospects associated with the planned unification of the north and south of Cyprus, which will eliminate many investment risks and greatly stimulate growth. Above all, however, a huge opportunity for Cyprus is the discovery of large gas deposits in the Levantine Sea. The Cypriot gas, together with Turkish and Israeli gas, will be Europe’s important source of diversification and an instrument of independence from Russia. Thus, the small Cyprus has an opportunity to build a very wealthy country which, thanks to its geographical position, would be an extremely attractive financial, investment, transit and political hub for the East and the West. Those are the ambitions of the Cypriot government. * 2011 data.