2021 was yet another challenging year, marked by the effects of the Covid-19 pandemic in both the private and public sectors. 

Restart the Cyprus economy after Covid-19 crisis

March 15, 2022 | xpath.global

2021 was yet another challenging year, marked by the effects of the Covid-19 pandemic in both the private and public sectors. 

One unavoidable consequence of the Covid – 19 pandemic was the economic impact on Businesses and Government. But what might that mean for growth and stability going forward? What additional policy responses might be necessary, to protect macroeconomic stability, the efficacy of the banking sector, and the viability and vitality of the corporate sector?

The real question here is how to Restart Cyprus’s economy, how do we proceed with the new normal?

The Tourism Pillar

Tourism has been one of the top economic performance indicators for decades. But what can they do to promote more tourists after covid? 

Focusing on both sun and sea but also the mild and green winter, attracting tourists all year by expanding the tourist’s visiting season.  Following global trends like health and wellness tourism, nautical and cultural tourism, fosters investment opportunities in the tourism and hospitality sector. 

The government is introducing ongoing incentives for the restoration of old houses in villages (up to 60% back of approved renovation cost). Plus, they are as well as providing incentives to tour operators and agents.  These incentives are crucial for the financial viability of the tourism sector.

Taking advantage various funds are available

Cyprus has a big Sponsorship Plan for Enhancing New Business Activity for younger people but also for investing in Technology upgrades in existing business etc. 

R&I funding has been among the most impactful tools at the EU level to tackle the Covid-19 outbreak.  

Popular Cyprus and EU funds for businesses:

  • Digital transformation
  • Youth entrepreneurs
  • Employee / Unemployed hires
  • Industrial equipment
  • EU larger programs like Horizon 2020 and many more.

There are many funding opportunities and we are more than willing to assist you. Feel free to access our newsletter and stay up to date with the latest developments and schemes.

Investing in Technology 

The pandemic highlighted the crucial role of research, innovation, and technology in finding solutions. Teleworking, distance learning, online sales, ordering platforms are some of the examples. Research and Development drive, enable, and accelerate the digital and ecological transformation of our societies, with a focus on the Cyprus Green Deal.

Firms and their staff have adapted and are in a position to work remotely from everywhere in the world. This brings more new tech individuals such as software engineers and developers to the island. In addition to the non-dom status, low company taxes, and high-quality lifestyle Cyprus’s international population is growing year on year. 

Moreover, Cyprus is amongst the very few countries to introduce 5G (for better or worse) which brings new possibilities in the technological era. In addition, the headquarters of technology companies in Limassol, Nicosia, and Paphos signal that Cyrus is becoming a new technology hub.

Attracting quality investors with a physical presence.

Lastly, the fourth pillar of development must be the redefinition of Cyprus as an investment destination. The emphasis is on attracting quality investors with a physical presence on the island. In this way, we will increase the size of the real economy in the long run and ensure quality work for our young people.

In conclusion, the above are some of our views. We do believe that strategic collective planning, policy-making based on the above pillars, consultation, and alignment of all stakeholders, political leadership, and the private sector, will be the catalyst in building and succeeding our new economic model. 

References:

Non Domiciled – Tax Benefits

Cyprus Tax Benefits

Funding Schemes 

EU Funding Schemes

EU Research and innovation

CCCI Suggestions 2020

Article written by our partners at Cyause Audit Cyprus. Contact them HERE for more information.

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