Situated in the Eastern Mediterranean, the Republic of Cyprus is an attractive location for the development of entrepreneurship, a distribution hub, and a gateway to investment in the European Union, Eastern Europe, Asia and Africa. A population of 80,000 is made up of about 84% Greek Cypriots, 12% Turkish Cypriots and 4% minority ethnic groups such as the Maronites and Armenians. The dissolution of the Ottoman Empire in the 1920s, following the protectorate of Cyprus by the United Kingdom, incited nearly a century of political instability which still divides the islanders. It is therefore important to avoid this sensitive issue with Greek and Turkish communities.
The latest World Bank annual ratings rank Cyprus 53rd among 190 economies for Ease of Doing Business. It has a modern, free-market, service-based economy and a high income per capita, bolstering the consumer market. Importantly, the healthy consumerism has not negatively affected the cost of doing business in Cyprus, as it provides business ventures with one of the lowest set-up and operating costs within the EU. The Government provides a number of policies to encourage foreign investments, and particularly small business opportunities and incentives, with a globally-oriented outlook, such as tax-friendly legislation.
Personal relationships are key when encountering local business peoples. Trust, respect and hospitality should be the primary foundations of these relationships. But the Cypriots are also consistently shrewd and knowledgeable regarding international business.
The World Business Culture website’s expert advice will help navigate the potential risks of the regulatory environment and aid understanding of the cultural characteristics of Cypriot business people, company formation and regulatory legislation.