Key to Sustainable Development is Headquarters
Vasilis Zertalis – CEO of Prospectacy LTD
One of the most important achievements of Cyprus in recent years is its establishment as an attractive destination for headquarters of companies from abroad. Organizations with huge, by Cypriot data, turnover and displacement, such as Wargaming, eToro, NCR, 3CX, AMDOCS and UTX, among others, have chosen Cyprus as their corporate base. This is a development that brought to our country important know-how, thousands of jobs and provided significant support to the economy in the midst of crises.
First of all, the country has a wide network of double taxation agreements that is constantly expanding, as well as an attractive tax regime. At the same time, it provides high-quality and low-cost support services, while an important advantage is its geographical location, operating as a regional center with access to developed markets, both in Europe and the Middle East. At the same time, it offers a high level of quality of life, one of the lowest crime rates in the EU, mild weather conditions and qualified human resources.
The government’s recent announcement on the new investment attraction program strengthens the competitiveness of Cyprus, while it is expected that it will also contribute to the redefining of the country’s development model, with a view to sustainable development. In particular, the new investment attraction program focuses on facilitating the relocation procedures of foreign companies, expanding the tax incentives offered to foreign companies, as well as providing employment permits for personnel from third countries working in international companies.
At the same time, it focuses on a sector that is emerging as an important pillar of our economy, that of higher education. Strengthening private and public higher education institutions will contribute to the development of the country’s workforce, and will attract researchers, students and resources from abroad, while effectively linking education to the labor market, which will lead to to the further reduction of unemployment.
In a highly competitive environment, attracting foreign investment remains key to the recovery of the economy and a necessary element for the creation of a sustainable development model. In this direction, it is necessary to emphasize the promotion of Cyprus as an attractive destination for attracting quality investments in various sectors of the economy, such as technology, education and research, health, renewable energy sources, financial and professional services, shipping, sports and the cultural industry. The extraction of know-how and capital in different sectors will lead to the growth and diversification of the productive base of the economy, creating quality jobs for the local population.
To achieve these goals, the private sector and the State must work together to promote the country abroad and highlight its comparative advantages through the organization of international conferences and participation in financial forums.
At the same time, dealing with the bureaucracy, which can be achieved in combination with the digital transformation of the state, as well as the reform of the Judiciary with the aim of speeding up and simplifying the procedures, is of major importance for strengthening the country’s competitiveness.
With flexibility and telecommuting now taking on a central role in the labor market, headquartering and attracting foreign investment are not just additional advantages for our country’s economy, but its components, which ensure stability and sustainable its development.