#1/invest Cyprus Cyprus Economic Outlook & Investment Climate George Campanellas, Chief Executive Officer X REPUBLIC OF CYPRUS /invest Cyprus#2Mission State Entity responsible for raising awareness of Cyprus as a location for FDI across the globe, providing certainty around all aspects of operating a business in Cyprus & supporting potential investors in developing their business case for investment in Cyprus /invest Cyprus © Copyright Invest Cyprus 2022#3Our Mandate Promotion Facilitation First Point of Contact Businesses and individuals considering investment into Cyprus have a partner on the ground at all stages of the investment cycle Advocate Reform www.investcyprus.org.cy /invest Cyprus © Copyright Invest Cyprus 2022#4Cyprus at a Glance Paphos 95,400 Nicosia 346,400 Famagusta 48,900 Larnaca ☑ 149,000 Limassol 248,300 Total Population 880,00 Republic of Cyprus /invest Cyprus 9.251 km² Area 300+ days of sunshine Euro Currency Time GMT +2 35°N 33°E Location Avg. temp. winter: +13°C Avg. temp. summer: +34°C 1,1 1,3 1,2 HN Distance from Nicosia CAGR +1% 1,0 Larnaca (56 km) 0,9 Limassol (85 km) 0,8 Paphos (150 km) 0,7 Famagusta (87 km) 0,0 1980 1985 1990 1995 2000 2005 2010 2015 2020 Source: Ministry of Finance, Statistical Service, CIA World Factbook, UN World Population Prospects 2019 咋咋 EU Member State 2004/Eurozone 2008 15,7% Children below 15 12,3% Between 15 & 24 47,1% Between 25 & 54 11,9% Between 55 & 64 13,0% Over 65 Greek Official Language English Widely spoken © Copyright Invest Cyprus 2022#5Cyprus Economic Outlook Q3 2021 GDP Real Cyprus 5.6% EU 4.1% Eurozone 3.9% 2022-2024 Economic Recovery GDP average growth rate at 3.7% Reduction in Unemployment rates from 7.2% (2021) to 5.6% (2024) Cyprus stable outlook by International Credit Rating Agencies /invest Cyprus © Copyright Invest Cyprus 2022#6Why Cyprus ? Positive economic outlook Access to talent Access to markets 吧 Attractive tax regime Reliable business support services Low cost of doing business Excellent regulatory High quality of life structure /invest Cyprus © Copyright Invest Cyprus 2022#7CORPORATE TAX Attractive Tax System 01 12.5% corporate tax rate 02 No tax on profits from disposal of securities or or on capital gains under conditions New non domicile employees Tax exemption of 50% for incomes >€55,000 per year - period 10 years Existing non domicile employees / Tax exemption of 50% for incomes > €100,000 per year - period 17 years 01 60 03 04 No withholding taxes Notional Interest Deduction (NID) on investment in Cypriot companies / Tax exemption of 50% for incomes between €55,000-€100,000 - period 10 years 02 Tax-free band of €19,500 for all Cyprus residents 03 /invest Cyprus INCOME TAX © Copyright Invest Cyprus 2022#8Low cost of doing business / Average hourly rate are below EU average Non-wage labour costs are below EU average ✓ Highly affordable critical business support services of the highest quality /invest Cyprus Labour costs Property costs Business services Cost of living / Among the lowest office rental rates in Europe / Competitive residential property prices / The lowest cost of living amongst Western EU countries © Copyright Invest Cyprus 2022#9Low cost of living Cost of living index 90 80.5 80 76.05 75.66 67.84 70 59.03 60 50 40 30 20 10 0 Luxembourg Ireland Netherlands Malta Cyprus Source: Numbeo, 2022 prices /invest Cyprus © Copyright Invest Cyprus 2022#10Quality of life & safety Natural beauty Safety / Top 5 safest country in the world (Value Penguin) / Safest country for young people (Guardian) / Top 4 best retirement destinations globally (Knight Frank) D / Best island economy lifestyle & human capital (fDi magazine) / Most blue flag beaches per capita in the EU (Eurostat) / 2nd best climate in the world (InterNations) Cuisine / 21/169 healthiest country in the world (Bloomberg Healthiest country index) /invest Cyprus Excellence in healthcare © Copyright Invest Cyprus 2022#11Priority Pillars 01 02 Oll 03 /invest Cyprus * International Business Center focus on Tech Direct Investments in Strategic Projects Hospitality & Tourism Healthcare Education Renewable Energy Jurisdiction for Funds and Assets Managers © Copyright Invest Cyprus 2022#12Priority Pillars 01 /invest Cyprus International Business Center focus on Tech © Copyright Invest Cyprus 2022#13Success stories in Cyprus WARGAMING.NET LET'S BATTLE Poine EDT Shipmanagement m SC WHIPPER A Caravel Group Company Fleet Management Limited MARLOW NAVIGATION h INTERSHIP NAVIGATION етого Plus500 DEM COLUMBIA SHIPMANAGEMENT um UNITEAM MARINE LOW LOWLAND INTERNATIONAL 3CX Xexness TSYS S SAFEBULKERS NCR BSM S servers.com BERNHARD SCHULTE SHIPMANAGEMENT a. V.Ships SMC SCHULTE MARINE CONCEPT S amdocs INTERORIENT SHIPMANAGEMENT И MUREX™ 台 U.TX ASBISⓇ SUCCESS THROUGH FOCUS /invest Cyprus XOX nexters LEARN2PLAY iSignthis® Easybrain OSM MARITIME BrainRocket® B RO SCF Unicom MEMBER OF THE SCF GROUP ➤ MUFG Investor Services FinTech#14New incentives for Third Country Nationals (TCNs) Temporary Work and Residence Permits of up to 3 years for TCN employees (renewable upon expiry) 06 01 /invest Cyprus Free access to the labor market for spouses of highly skilled TCN employees earning at least a gross salary of €2,500/month Possibility for support staff to relocate under certain conditions 05 65 0 2 Tax exemption of 50% for new non domiciled employees with employment remuneration of ≥ €55.000 (valid for 10 years) Simplification of the application process for Permanent / Long Term Residence for employment purposes 04 83 03 Digital Nomad Visa for TCN individuals for a period of up to 3 years © Copyright Invest Cyprus 2022#15Priority Pillars 02 /invest Cyprus Oll Direct Investments in Strategic Projects Hospitality & Tourism Healthcare Education Renewable Energy © Copyright Invest Cyprus 2022#16"Project Bank" of available investment opportunities /invest Cyprus Stakeholder Engagement • In collaboration with the public and private sector Project Owner Project Bank • Sector Specific (RES, Tourism, Health, Tech etc) New Developments Existing projects seeking for expansion/capital • Licensed Projects Institutional Investors • Family offices, private equity, sovereign funds Availability & Presentation of project opportunities Investor © Copyright Invest Cyprus 2022#17Investment opportunities in priority growth sectors /invest Cyprus Business Parks & Office Space Healthcare Medical/Healthcare Infrastructure ! 2 Tourism & Hospitality lili. 1 Existing & new thematic projects 3 4 Corporate Housing 5 LO 6 K Higher Education Facilities / Student Accommodation Startups & Innovative Companies © Copyright Invest Cyprus 2022#18Priority Pillars 03 * /invest Cyprus Jurisdiction for Funds and Assets Managers © Copyright Invest Cyprus 2022#19A fast-growing investment funds jurisdiction / Flexible structures: UCITS and AIFs / Passporting to any EU member state 898 ✓ Transparency and investor protection invest Cyprus / Low set-up and operation costs / Fully harmonized and modern legislation / Tax benefits for investors and fund managers © Copyright Invest Cyprus 2022#20A fast-growing investment funds jurisdiction /invest Cyprus 400% / Increase of assets under management from 2013 to 2021 (€11.6bn) 35+ 300% Increase of registered funds from 2013 (74) to 2021 (225) 50+ funds in the process of approval by the Cyprus Securities and Exchange Commission (CySec) ما / Funds listed by Cyprus on the Thomson Reuters funds platform Clearstream expanded its third-party fund processing platform Vestima to include Cyprus-domiciled investment funds © Copyright Invest Cyprus 2022#21EY Attractiveness Survey: Cyprus 2020 99% Quality of life (environment, leisure 90% activities and culture) Telecommunication and Digital Infrastructure 90% Entrepreneurial culture 86% & startup culture 81% Source: CSA Research extract Local labour skills level 80% /invest Cyprus Stable political and social environment Research & Development availability & quality © Copyright Invest Cyprus 2022#22European Innovation Scoreboard 2021 /invest Cyprus Performance has increased the most in Estonia Cyprus Lithuania Italy Greece * European Commission © Copyright Invest Cyprus 2022#23How can we help? Smooth Relocation Process Setting up a business Relocation stages Access to Finding local ecosystem talent Office space Living aspects for expats & families /invest Cyprus © Copyright Invest Cyprus 2022#24How can we help? Direct Investments in Strategic Projects /invest Cyprus Involved in all stages of the investment process Extensive portfolio of available projects Bringing together investors & project owners Site Visits on the projects of interest Licensing procedures Aftercare and facilitation services post- investment © Copyright Invest Cyprus 2022#25Visit our ... Website Twitter in Linkedin Thank you! You Tube YouTube Videos Publications www.investcyprus.org.cy /invest Cyprus © Copyright Invest Cyprus 2022