CountryProfiler Global Edition | 2016 www.cyprusprofile.com CYPrUs coUntry rEPort 2016 Banking: Fresh capital injections and new legislation restore confidence in Cyprus banks Headquartering: Global need for business substance boosts Cyprus’ appeal as a corporate HQ location Incentives: New legislation set to attract HNWI and expat executives Economy • ForEign DirEct invEstmEnt • sECTOR ProFiLEs • BUsinESS oPErAting EnvironmEnt • BUsinEss DirEctory Tourism: Integrated FDI: Renewed interest Real Estate: Turnaround Energy: Global casino resort tender in large scale projects for sector with new interest in Cyprus attracts bids from key with a focus on tourism incentives to boost reignited by Egypt’s players worldwide infrastructure property sales natural gas discovery The Bank you can trust 20 Years in Cyprus 2015 was a milestone in RCB Bank’s history since it marked its 20th anniver- sary in Cyprus. RCB Bank’s celebrations Trust took place in November with a charity event held at the Presidential Palace of Cyprus. It has also been a year of many awards and distinctions for the Responsibility Bank’s commitment to excellence and responsibility, both towards its clients but also society at large. Dr. Kirill Zimarin CEO of Excellence RCB Bank Ltd receiving the “Best Bank in Cyprus” award BUSINESS AWARD FOR EXCELLENCE 2015 RCB Bank Ltd. Private Company. Our branches are open Registration number: 72376. Registered office: 2, Amathountos street, 3105 Limassol, Cyprus. Monday to Friday 9am to 5pm www.rcbcy.com 800 00 722 The Bank you can trust 20 Years in Cyprus 2015 was a milestone in RCB Bank’s history since it marked its 20th anniver- sary in Cyprus. RCB Bank’s celebrations Trust took place in November with a charity event held at the Presidential Palace of Cyprus. It has also been a year of many awards and distinctions for the Responsibility Bank’s commitment to excellence and responsibility, both towards its clients but also society at large. Dr. Kirill Zimarin CEO of Excellence RCB Bank Ltd receiving the “Best Bank in Cyprus” award BUSINESS AWARD FOR EXCELLENCE 2015 RCB Bank Ltd. Private Company. Our branches are open Registration number: 72376. Registered office: 2, Amathountos street, 3105 Limassol, Cyprus. Monday to Friday 9am to 5pm www.rcbcy.com 800 00 722 Publisher Information CountryProfiler Global Edition | 2016 www.cyprusprofile.com cyPrUs coUntry rEPort 2016 Banking: Fresh capital injections and new legislation restore confidence in Cyprus banks Headquartering: Global need for business substance boosts Cyprus’ appeal as a corporate HQ location Incentives: New legislation set to attract HNWI and expat executives Economy • ForEign DirEct invEstmEnt • sEctor ProFiLEs • BUsinEss oPErAting EnvironmEnt • BUsinEss DirEctory Tourism: Integrated FDI: Renewed interest Real Estate: Turnaround Energy: Global casino resort tender in large scale projects for sector with new interest in Cyprus attracts bids from key with a focus on tourism incentives to boost reignited by Egypt’s players worldwide infrastructure property sales natural gas discovery The Team CountryProfiler Ltd is a specialist publisher of country information that assists corporations managing operations across national borders with trade, investment Kristina Ernst and relocation decisions. CountryProfiler is recognised by senior business Regional Director executives, government representatives, institutions and global organisations [email protected] as a leading provider of informative and insightful country intelligence. Europe Europe 7 Pericleous Ave, Suite 401, Strovolos 2020 Nicosia, Cyprus Tel: +357 22 621 882 North America North America 21-2123 Walkers Line, Burlington Ontario, L7M 4Z9, Canada Tel: +1 905 645 1130 Heidi Marttinen Editor Email: [email protected] Website: www.countryprofiler.com • www.cyprusprofile.com [email protected] Research and Contributions CountryProfiler staff Photography Heidi Marttinen, Jo Michaelides, Alan Carville, Xenofon Gregoriou Printing Cassoulides Masterprinters Victoria Vasiliou Administrative Manager Publication Date [email protected] January 2016 The information included in this publication is for information purposes only and is subject to change. With regard to the licensing of a business, income generation or any other legal or accounting matters, the Publisher strongly recommends that the reader seeks the advice of an appropriately licensed professional. All rights reserved. Reproduction in whole or part is strictly prohibited without written permission. Opinions expressed in this publication are not necessarily those of the editor or publisher. Ramon Micallef All reasonable care is taken to ensure truth and accuracy, but the editor and publishers cannot be Art Director held responsible for errors or omissions in articles, advertising, photographs or illustrations. [email protected] 2 Country Report CYPRUS 2016 LEADING. EVOLVING. ACHIEVING. SINCE 1963. L Papaphilippou & co LLc offers legal services to business, individuals, public organizations and governments. We have a strong litigation team handling also all forms of commercial dispute resolution and have considerable experience in arbitrations. Furthermore, our immigration and citizenship Department is well respected and renowned for leading by example in the field and our high calibre and experienced lawyers together with our chinese speaking personnel ensure first class service and results. in particular, L Papaphilippou & co LLc is the first law firm in the republic of cyprus to have successfully applied, secured and delivered cypriot (EU) passports to chinese high networth individuals and their family dependents through the new citizenship by investment programme introduced by the government of the republic of cyprus. Additionally, being a full service law firm, L Papaphilippou & co LLc is capable of delivering secure and compliant cross-border legal and wealth management solutions, as well as to co-ordinate international business structures, trusts and private banking matters for our chinese clients. L PAPAPHILIPPOU & CO LLC ADVOcateS & Legal CONSUltantS 17 ifigenias street, 2007 strovolos, P.o.Box 28541, 2080 nicosia - cyprus t: (+357) 22 271 000 • F: (+357) 22 271 111 • E: [email protected] • www.papaphilippou.eu SOLVINGOS – PROGRESSTECH GROUP: FUTUREDESIGNING FUTURE Progresstech Group is an international engineering services organisation with its Head Office, Solvingos Services Ltd, based in Nicosia, Cyprus. Solvingos leads ten international offices located in Russia, Ukraine, Armenia, France and the USA. Established in 1991 in Russia, Progresstech has grown into a formidable international player, exporting strong engineering and technology know- how from Russia and the CIS. As a trusted partner providing services to the Boeing Corporation for over 20 years, our engineers and designers have strong analytical and technical backgrounds. Apart from Boeing and other aerospace industry clients, we deliver engineering solutions to automotive and energy generating companies. Progresstech also offers business training to create effective production through LEAN Technology. Land Infrastructure Development World-Class Engineering Expertise u Design, construction, repair, u Aerospace and aircraft testing and certification of manufacturing airfields, runways and facilities u Design of specialist parts u Expertise in airport operations, and interiors for passenger accountancy, software solutions and VIP aircraft and workforce training u Construction and technical u Surface material testing for support for helicopter and strength, evenness, durability business jet remodelling and stress resistance u Remodelling and calculation u Support services for automotive of loading capacity and energy sector companies of cargo aircraft Est. 1991 Clarion Business Centre, 25 Aphroditis Street, Office 203, Nicosia, 1060, Cyprus T: +357 22 479 326 F: +357 22 479 300 Yulia Byus E: [email protected] Director W: www.solvingos.com Solvingos Contents CONTENTS 10 Cyprus at a Glance Key Facts & Figures 14 Country Overview Captivating Past, Dynamic Future 20 Government & Politics Renewed Optimism 24 Interview: President of the Republic of Cyprus Nicos Anastasiades Cyprus: A Show of Resilience 30 Economy Setting New Standards 36 Inteview: Minister of Finance Harris Georgiades Gearing up for Growth 40 Foreign Direct Investment Ripe for Investment 46 Headquartering Regional Hub in the Med 48 Interview: Minister of Energy, Commerce, Industry & Tourism Yiorgos Lakkotrypis Building Momentum 52 Interview: Minister of Foregn Affairs Ioannis Kasoulides A Shared Vision for the Eastern Mediterranean 6 Country Report CYPRUS 2016 www.pwc.com.cy Expertise Solutions Value We support you to create the value you are looking for by providing specialised solutions based on quality. Together we build relationships based on trust and we say things as they are, to assist you to deal with issues that tomorrow will prove important. We adapt our expertise and the power of our global network to your specific needs helping you make the difference. © 2015 PricewaterhouseCoopers Ltd. All rights reserved Contents Sector Profiles 56 Agriculture & Food 90 Insurance Quality Not Quantity Insuring Success 60 Banking 94 International Regaining Confidence Financial Services World-Class Services 70 Capital Markets An Emerging 100 Investment Funds Regional Player A Future in Funds 74 Construction & 104 Manufacturing Real Estate & Industry Real Estate Focus on Innovation Renaissance