CIBA Bemoans Lack Of Government Support For Foreign Investors

by Lorys Charalambous, Tax-News.com, Cyprus

08 July 2005

The Cyprus International Business Association (CIBA), is warning that foreign investors and international businesses are being deterred from investing in Cyprus because of a lack of simple business rules and co-ordination among the various government authorities and departments, according to a report in the Cypriot Financial Mirror.

CIBA has also criticised the current stamp duty regime, company registration fees, the rules on filing financial statements and most especially the restrictions placed on the hiring of skilled nationals from non-EU countries.

"Some members have said that unless this problem is resolved soon, they will need to consider outsourcing whatever business activities cannot be undertaken in Cyprus due to staff shortages," CIBA President Chris Koufaris stated at the association's annual general meeting.

Seemingly in response to complaints from the business community, the Cypriot government has drafted plans for a foreign investment agency which will actively promote the country as an international business centre and act as a 'one stop shop' for foreign investors. The new agency will commence operations once the draft has been approved by the Council of Ministers.

However, reform of the work permit situation is likely to be less forthcoming.

"The problem is very well known to us," a spokesman from the Commerce Ministry said, according to the report, although he went on to add that any action on the work permit situation must be taken in tandem with the Labour Ministry, which has a more restrictive view of the employment of non-EU nationals.

Recommended