European Union Member State

Τhe Republic of Cyprus became a full member of the EU on May 1, 2004. EU accession has launched a new era of opportunities and responsibilities for Cyprus. Cyprus encourages Foreign Direct Investment (FDI) opportunities in the priority economic growth sectors, highlighted in the country’s Strategic Development Plan.

Lowest EU corporate tax rate

Lowest Corporate Tax rate in the EU of 10%

Exemption from Tax:

Dividend income

Profits from overseas permanent establishments

No withholding Tax on:

Dividend income

Interest and royalties paid from Cyprus

Double Taxation Agreements

Cyprus has developed a wide network of Double Tax agreements with 45 countries, ensuring that the same income is not taxed in more than one country. Cyprus is in the stage of negotiating the conclusion or awaiting ratification of Double Taxation Agreements with several more countries.

Highly qualified, well-educated multilingual labour force

Cyprus has a young, well-educated talent pool. The country is committed to education and is focusing on reforms to achieve sustainable growth. Since 2004 Cyprus has consistently allocated over 6% of GDP of public expenditure on Education.

Great value for money

An average annual starting salary for a young graduate with a Bachelor Degree is €22,800. The employee will contribute €1,500 for social security, will pay €4,560 income tax. The employer will contribute €1500 to social security, for an average total labor cost, for such talent, of €24,300 per year.

The educational system of Cyprus is fully harmonized with the European standards & guidelines. Cypriot educational institutes actively participate in EU programs, like the Eurydice Network and the ERASMUS program.

Of all secondary students 88% speak English, 38% speak French. In 2010, 32.3% of the population of Cyprus between the ages of 25-64 held a Bachelor, Masters, or PhD degree. The EU27 average equivalent for the same year was 22.7%. Also, 38% of Cypriot tertiary students studied abroad in 2010. In Lefkosia alone, there are over 1300 researchers, providing ample opportunity for growth in research, knowledge and innovation.

International Trusts

Cyprus International Trusts are widely used as a vehicle for international tax planning, offering the following tax advantages:

Income and gains of a Cyprus International Trust, derived from sources outside Cyprus are exempt from any tax imposed in Cyprus under certain conditions.

Dividends, interest or other income received by a Trust from a Cyprus international business company are not subject to tax nor are they subject to withholding tax.

No capital gains tax is charged on the disposal of assets of an international Trust.

Exemption from taxation in the case of an alien who creates an International Trust in Cyprus and retires in Cyprus under certain conditions.

FDI track record

Cyprus is one of the most attractive locations for foreign investments, indicating both high FDI performance as well as high FDI potential, based on the data of the Central Bank of Cyprus. Cyprus attracted several billions per annum in Foreign Direct Investment (FDI).

 Macroeconomic stability with successful economic performance

Cyprus has a modern, free-market, serviced-based economy with a long record of successful economic performance and positive growth.

Cyprus enjoys macroeconomic stability which is reflected through various indicators including Real GDP Growth, Inflation and Unemployment.

Efficient legal, accounting and banking services

Acknowledging that information and knowledge would be the drivers of sustainable growth in the global economy of the future, Cyprus has undertaken a major role in facilitating the exchange of ideas, services and support among professionals worldwide. In fact, in 2011, more than 80% of the country’s economy is based on the provision of services.

Legal services

Cyprus inherited a legal system based on Common Law. The legal profession is long established and consists of many independent law practices. Highly qualified and well trained professionals can provide expert and reliable advice on all aspects of business and commercial law, both local and international.

Accounting services

The accounting profession is very well represented, with many international companies operating on the island, as well as a number of private individuals providing accounting, auditing and consulting services. Most accountants are British trained and members of either the Institute of Chartered Accountants or the Chartered Association of Certified Accountants.

Banking and financial services

The banking sector is well developed and caters for a wide variety of financial needs of both businesses and individuals. The commercial banks and specialised financial institutions offer full and varied local, national and international services on personal and corporate level. They offer a wide range of services including insurance, leasing, hire purchase finance, factoring, mutual fund management, investment and consulting as well as custody and asset management services. Cypriots and foreigners residing on the island enjoy the benefits of a well developed insurance industry with all types of risk accepted mainly through agents and intermediaries.

Local business and financial consultants have typically trained at European or US universities and many have worked overseas before setting up in Cyprus. They offer advice on the whole spectrum of modern business and investment. Overall, the professional services sector plays a significant and rapidly expanding role in the Cyprus business landscape.

Strategic Location Europe’s Middle Eastern Outpost

Cyprus’s strategic location at the crossroads of three continents has been a major factor in shaping its history throughout the centuries and its development into not only a major eastern Mediterranean trading post but also a reputable international business and services centre.

Upon membership into the European Union, Cyprus is being transformed into a key outpost in the Eastern Mediterranean, facilitating partnerships and serving as the springboard for investments among Europe, Africa, and Asia. Providing the perfect gateway for businesses to penetrate new markets, Cyprus is a heaven for modern business.

Cyprus has become the EU’s key trading post in the eastern Mediterranean, providing a point of exchange between Europe, Africa, and Asia. Τhe island’s location also makes it an ideal transhipment centre, with Cypriot companies operating independently and with foreign partners to ship goods into and out of the EU via Cyprus.

Advanced telecommunications network and infrastructure


Two international airports, a modern road network and multipurpose port facilities have long established Cyprus as a commercial, financial and business center in the region. More than 35 Airlines operate scheduled fl ights from and to Larnaca International Airport (5 km from Larnaca town centre) and Pafos International Airport (15 km east of Pafos town).

A new airport in Paphos was inaugurated in November 2008 increasing arrival capacity up to 1.8 million passengers in 2011. The new airport in Larnaca began its operations in late 2009, increasing arrival capacity up to 5.5 million passengers in 2011. One can be in London, Moscow or Dubai in about four hours from Cyprus. With shipping accounting to 5% of the GDP of Cyprus, ports and shipping terminals are critical components of this contribution.


Considerable investment has been made into transforming the island into a telecommunications hub for the region. Cyprus is connected to a number of advanced technology submarine cables which provide excellent connectivity to Europe, the Middle East and Asia. In addition, seven satellite earth stations provide further satellite telecommunications connectivity making it easy for companies to locate here and be connected globally through an advanced and reliable communications network.

Reputable International Shipping Centre

Cyprus is a highly reputable international shipping centre, ranking among the 10 leading maritime nations in the world. More than 1,000 registered vessels with 21 million gross tonnage under the Cyprus flag. More than 130 ship owning and ship management related companies maintain offices in and conduct international activities from Cyprus collectively controlling a fleet of 2,300 ships with 46 million gross tonnage

Ship Management

Cyprus constitutes one of the largest ship management centres in the world; around 50 ship management companies and marine-related foreign enterprises are conducting their international activities in the country while the majority of the largest ship management companies in the world have established fully fledged offices on the island.

The accession of Cyprus to the European Union has undoubtedly had a considerable impact, both in terms of quality and quantity on the structure of the community fleet. In terms of tonnage, Cyprus accounts for 16% of the EU fleet, thus enhancing considerably the market share of the European fleet in international sea transport.

Cyprus has long developed into a transhipment centre for Asia Pacific trade with Europe as well as with shipping markets situated along the coasts of the Levant and Black Sea, or the North Adriatic. These markets can be easily accessed from Cyprus with minimum diversion from main arterial routes. This development is attributed to the key position of the island, the efficient customs formalities and the reliable handling and delivery system.

Likewise, Cyprus is a natural hub for other main-line deep sea trades traversing the Mediterranean, to North Africa and the Middle East. The main products re-exported from Cyprus are tobacco, processed foodstuffs, beverages, textiles and textile articles, minerals and chemicals. Cyprus could be used as a base for exporting to the Middle East, North Africa and Asia.

Led by its geostrategic position, the island has been a pioneer in the development of purpose-built container terminals in the Eastern Mediterranean, and was one of the first countries in the region to use specialised container gantry cranes.

Notably, Cyprus is classified as a low tax jurisdiction; meanwhile, its fiscal and regulatory regimes as well as its legislation are fully aligned with the EU’s acquis communautaire.

Cyprus is an attractive location for the establishment of shipmanagement companies and companies with shipping related activities. The geographical position of the island, its accession to the main international maritime conventions, as well as the generous tax incentives and the extensive network of bilateral agreements in merchant shipping, have enabled Cyprus to become an ideal shipping centre.

New Shipping Tonnage Tax System

The European Union´s approval of a fully revised and upgraded Cyprus Shipping Taxation System in March of 2010 is a turning point for Cyprus and European Shipping. The new Shipping Taxation System covers the three basic Shipping activities in International Shipping, namely Shipowning, Shipmanagement (including Crew Management) and the Chartering of vessels. The benefits of the new system may soon render Cyprus, the “Shipping Metropolis” of Europe. Shipowners are exempted from Income Tax and are automatically taxed under the Tonnage Tax System. Shipmanagers and Charterers can exercise their option to be taxed under the Tonnage Tax System.

Living and working on the island for all seasons

Cyprus ranks as the 31st highest in the world, with a score of 0.840. Cyprus offers a wonderful environment for a very comfortable     standard of living.

Indicatively, according to the latest publication of the Human Development Index (HDI) which is a measure of the standard of living of a country, published by the UN Development Program (UNDP) in 2011, Cyprus ranks as the 31st highest in the world, with a score of 0.840.

Arts and culture have a long tradition in Cyprus with historical monuments dating back to 10,000 BC. In the capital of Lefkosia there are over seventeen museums showcasing a broad array of archaeological collections, byzantine icons, coinage, paintings, and other cultural treasures. Cyprus boasts several artists and painters and the gallery community has grown steadily in the last few years. The Performing Arts are flourishing. Throughout the year, local and international festivals, concerts of renowned performers and events take place in ancient open air amphitheaters, including international independent fi lm festivals, annual classical music festivals and an opera festival at the end of summer.

In the recent years a burgeoning fashion milieu has grown from numerous young, creative and entrepreneurial fashion designers, many of whom have trained in the world’s renowned art and design institutions and fashion capitals.

Gastronomy and wine have a long tradition in Cyprus. Local cuisine based on the Mediterranean diet provides several culinary treasures ranging from healthy salads, the famous halloumi cheese and vegetable appetizers, to main courses which include goat meat on the spit, pork reduced in wine, and scrumptious honey dipped deserts and fruits preserved with recipes dating back hundreds years.

Stress levels are low and business is still largely done with a personal touch and slower pace of life. Crime rates are very low and the sense of safety and security is quite high across the country.

Commutes are minimal. The island has a developed network of four lane highways linking all main destinations. One can drive from the capital, Lefkosia, to the beach in Larnaca, in about 30 minutes.

With a pleasant weather throughout the year, sports aficionados can ski in February, swim and kite surf until October, bike and play tennis and golf all year!

Simplified administrative procedures for acquiring necessary permits

Low set up and operating costs

Double tax treaties with more than 40 countries

Freedom of movement of foreign currency

European standard of living

Open market economy

feasibility study is an evaluation and analysis of the potential of the proposed project which is based on extensive investigation and research to support the process of decision making. Feasibility studies aim to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats present in the environment, the resources required to carry through, and ultimately the prospects for success. In its simplest terms, the two criteria to judge feasibility are cost required and value to be attained.[As such, a well-designed feasibility study should provide a historical background of the business or project, description of the product or service, accounting statements, details of the operations and management, marketing research and policies, financial data, legal requirements and tax obligations. Generally, feasibility studies precede technical development and project implementation.

We work closely with ADCS INTERNATIONAL LIMITED to prepare full technical, economic, financial and legal feasibility studies for all industries. Whereas necessary we subcontract the technical or other parts of the feasibility study to specialized consulting firms.

A concession agreement is an agreement recording the details of a partnership between a private entity and a public entity, usually a corporation and a government.

Concession agreements usually involve three parties: (1) a government; (2) a private individual or corporation; and (3) a bank or other institution that is financing the private entity’s work. The private individual or corporation is often referred to as the “contractor” or “concessionaire.” The concessionaire is often a consortium of private companies that all have expertise in the area of development needed by the host country.

Concession agreements differ from a private contracts because a government is involved as a party. It differs from a treaty because a private individual or corporation is involved. In the typical concession agreement, the concessionaire agrees to provide capital, skilled labor, and knowledge in order to develop a foreign country’s natural resources or a specific industry. In addition to the development of the country’s resources, another goal is mutual profit.

We have specialist associated lawyers that have experience on all types of concession agreements and can provide support and expertise to governments, contractors and the financing banks.

In collaboration with ADCS CONSULTING LIMITED, we mobilise resources for private enterprises for project financing. The degree of sophistication involved in the funding of a project is usually driven by the project’s size and complexity. In large projects, the debt financing is often provided by a syndicate of banks, which may be made up of both local and international institutions.  There may be several classes of lending banks – international banks lending foreign credit, local banks lending domestic currency and international agencies. Different tiers of lending may also be involved such as secured and unsecured, short term and long term and subordinated. The challenge of structuring the project finance is to establish a mix of debt, equity and mezzanine financing that optimises the use of financial sources.

Equity capital is provided by the sponsors, but also by institutional investors, local or international capital markets and specialised funds.

World financial crisis and tougher competition in all markets and the growing scale and complexity of business are challenges that face management throughout the world today and will intensify tomorrow. To keep pace with these developments and ensure that our clients obtain an increasingly profitable return from their operations, we work closely with our associated consulting firm ADCS INTERNATIONAL LTD (, to provide comprehensive in coverage of activities and international in scope of services.

Our experience, gained in situations where tangible results have been of paramount importance, sharpened and refined by continuous research and development, is drawn upon for the benefit of all clients, large and small to help in the solution of problems and for the successful exploitation of opportunities.

Our services have been utilised by governments, industrial enterprises, financial establishments and development banks, service industries, public utilities and other institutions and entrepreneurs.

We can boast a rich heritage, a strong clientele and exceptional experience in all phases of project identification, formulation, screening, appraisal, financing and follow up.

In collaboration with ADCS INTERNATIONAL LIMITED we undertake the preparation of Screening and Viability Studies. A Screening study is a preliminary investigation of the profitability of the business idea to be converted into a business enterprise. A viability study is an in depth investigation of the profitability of the business idea to be converted into a business enterprise.

A business often conducts a viability study to determine the potential profit that may exist in a new business idea. The study may examine several different angles, so all aspects of a new idea or business are under review prior to implementation. Common areas under a viability study include studies on the market, technical aspects, business model, finance and management. Other aspects may also have inclusion in the analysis depending on the idea and potential for unsuccessful implementation.

Market studies tend to review all the external factors a company often cannot control. Consumer demand, regulatory environment, competition, and resource availability are typically parts of this portion of the viability study. Each individual factor or a number of them can all signal problems for the new idea or operation. In some cases, a company may need to conduct a market study for several regions or international markets as well. Essentially, any area that the company will enter falls under the study.

Technology typically plays a large role in the current business environment. Technical aspects in a viability study may be technology, value, supply chain, integration with current operations, or others. This portion of the study often requires the aid of operational managers who can explain the most technical aspects of changing current operations. Companies may also hire outside agencies to review and cover technical aspects to ensure all issues have answers prior to spending capital on these changes.

A business model describes how a company completes current operations. It often details the process and activities necessary to operate a specific section of the business. A viability study looks at how a current business model may integrate with new operations or if a new model is necessary. Creating new models takes time and capital. The model is often a process that must be started prior to actually implementing new operations.

Management analyses or models are also important parts of viability studies. Companies must determine who is going to guide the new operation during its infancy. While a company may be able to reallocate management resources, hiring new managers may be necessary. A lack of qualified individuals, however, can reduce an opportunity’s chance of success. A thorough review on available manpower is necessary to determine how a company will staff new operations.

Project management is the discipline of planning, organizing, motivating, and controlling resources to achieve specific goals.

The primary challenge of project management is to achieve all of the project goals and objectives while honoring the preconceived constraints. The primary constraints are scope, time, quality and budget. The secondary challenge is to optimize the allocation of necessary inputs and integrate them to meet pre-defined objectives.

Our associated company, backed up with our legal knowledge and expertise, provides project management services.

The success of a development project lies much in a sound designing, efficient implementation and the active participation of project stakeholders.

An efficient implementation requires a deliberate well-planned project management approach:

Create an overall vision and strategy

Assign a program / project manager

Create a project team

Assign key roles

Develop a project plan and manage it effectively

Assign accountability for desired outcomes

Our associated consulting company ADCS INTERNATIONAL LIMITED can provide the above services backed up with our legal knowledge and expertise.

ADCS draws from its associations worldwide, to package large infrastructure projects. Teaming up with some of the world’s top project people, it facilitates the packaging of joint-venture consortiums for:


Road Systems, Highways

Bridges, Dams

Power Plants

Renewable Energy Projects

Water and Sewerage Systems


Mega Stores

Refineries, Petrochemical Plants

Mining Projects

Industrial Concerns

Government Relations is an essential component of any business that is subject to government regulations. At its core, government relations is an educational process of educating business and industry leaders about the governmental process; educating officials about the issues important to business or other constituencies; and educating governmental and business leaders, and the public, about the potential consequences of legislation.

Law has an impact on business, but business professionals do not always comprehend the difficulties of running a country and politicians do not always understand the complexities of running a business, so educating both about the potential effect legislation could have on an industry is an essential part of the law-making process.

Without an understanding of the law-making process, opportunities to shape the outcome of legislation that affects a given business can be missed. Government relations specialists educate clients about the law-making process and identify and monitor important issues – issues that affect their business. Once these issues are identified, government relations specialists offer advice on how to influence the underlying laws and public policy. And, when necessary, ensure that their client’s position is considered in the debate by lobbying public officials, staff, and/or the general public.

Ultimately, we do is to make the case for our client’s business in the public policy arena.

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