The Cyprus’ strategic location for clients operating within Europe and the Middle East, its excellent climate, the well developed infrastructure and the plentiful supply of highly qualified and skilled human capital are some of the advantages that placed Cyprus on the map as a successful business centre. In addition its public administration system and defined legal framework have contributed in developing high standard professional services in all areas of business activity – the legal, the accounting, the banking, the tourism sectors.

The economy of Cyprus

The Cyprus economy is based on the free enterprise system. The private sector is the backbone of economic activity, with the Government’s role being limited to monitoring the economy and the provision of public utilities.

Society

Tradition and family-ties are still strong in what is also a liberal and pluralistic society. There is a high standard of education on the island, which has one of the highest percentages of university graduates in the world. Cypriots enjoy a high standard of living. As an example, around 70% of homes are owner occupied, and there are no records of homelessness. The crime rate is low on the island.

European Union

The Republic of Cyprus is a member of the European Union as from 1 May 2004. The accession of Cyprus in the EU and the adoption of the acquis communittaire have given rise to new challenges and opportunities in the business world in Cyprus. Moreover a number of new funding opportunities became available from EU funds aiming mainly to support the development of business activities in the area of manufacturing, agriculture and agrotourism as well as the promotion of human resource development and the development of the rural areas of the island.

Cyprus has entered the European Exchange Mechanism (ERMII) on 2 May 2005 as a first step towards the adoption of the Euro as the official currency on 1 January 2008.

Services sector

The services sector has become increasingly important as indicated by its 70% contribution to GDP and its share in employment, while the importance of agriculture and manufacturing is declining steadily. Services include banking and financial services, insurance, advertising, legal, architecture and civil engineering, accounting and auditing, consultancy, design, electrical and mechanical engineering, market research, medical, printing and publishing, public relations, education, software development, tourism and related services. The size and rate of growth of this sector, which has been the fastest in recent years, has led some observers to call Cyprus a "service economy".