Cypriot President Nikos Anastasiadis confirmed that sanctions against Russia have hit areas of the Cypriot economy, in particular tourism, banking and service exports.
“Recent years have been unpredictable and uncertain, the negative social and economic consequences of the pandemic, the rise in energy prices and inflation in the wake of the crisis in Ukraine,” he said in his speech to foreign investors.
He added: “The sanctions that we have imposed on Russia at the European level have also had a negative impact on economic activity on the island, especially tourism, banking and the service sector, given our relations with Russia in these areas.”
He noted that “the authorities of the island remain optimistic and that they will be able to confront the problems that have arisen with the help of prudent financial and economic management, as well as the constant differentiation of the Cypriot development model.”
He explained that “his government has prepared a new package of tax incentives to make the island more attractive to foreign investors and skilled workers”, saying “I hope that the country’s parliament will approve it next week.”
The new incentives include lowering the income requirement from €100,000 a year to €55,000 for those eligible for a 50% tax exemption and extending the exemption period from 10 to 17 years.