Cyprus has proven to offer many investment opportunities, even post Brexit and post-pandemic while many strongly suggest relocation to Cyprus!
On January 26th, the Great Britain – Cyprus Business Association held a webinar titled Market overview and New laws for 2021, inviting industry experts to discuss the consequences of Brexit, the real estate market in Cyprus and the UK. Another topic was the unexploited sectors such as Intellectual Property which has a lot of potential and opportunities. Finally, it was discussed whether it is the right time for businesses in the UK to relocate in Cyprus and how transactions and movements between the two countries will be affected.
What did the attendees say?
The attendees gave positive feedback for the webinar, such as: “This is the first webinar I watched from GBCY association. I have to say that it was extremely focused, and the speakers were great”.
Another attendee commented: “It would be impossible not to like the webinar. I have to admit that it was improved significantly along the way. Congratulations on the final outcome and to you personally.”
There was also particular interest for the Intellectual Property speech; more specifically: “I found Nick’s presentation on IP’s quite insightful. I tend to agree with him that it could be the next big opportunity for Cyprus. I am actually doing some research on Accelerator Programs for start-ups, so I found it very interesting.”
The webinar speakers.
CX Financia’s Managing Director, Xenia Neophytou, as a member and supporter of the association, was the webinar’s moderator.
The speakers of the webinar were:
- Andreas Kyprianou, Chairman of the House Standing Committee on Energy, Trade, Industry and Tourism
- Nicolas Karoullas, CEO Karma Group Cyprus
- Panicos Loizides, Director QUEST Property Consultants UK
- Nick Kounoupias, CEO & Founder Kounoupias I P UK
- Alexandra Kokkinou, Advocate Tassos Papadopoulos & Associates Cyprus
Below you can find a summary of the topics discussed:
The Consequences of the Pandemic & the Relocation of Companies to Cyprus Because of Brexit
The welcome speech was about how the tourism, energy, industry, and commerce sectors were affected by the pandemic.
Cyprus will overcome the crisis, since it is a small island and a member of the EU, but also since crisis can produce opportunities such as for foreign investments.
Adding to that, Brexit caused companies to relocate and Cyprus is an excellent option for relocation. The conclusion was that the relationship between Cyprus and the UK will not be affected by Brexit and that he is optimistic about Cyprus’ economy.
An Overview of the Cyprus Property Market and Cyprus Investment Opportunities
Real Estate & Construction is the 3rd biggest sector in Cyprus and constitutes 17% of the market. In 2020 there was an annual decrease of 23% in this sector due to the pandemic, which however is not very pessimistic.
The nationalities mainly investing in Cyprus are Great Britain, Russia, and China. Cyprus is attractive for real estate investment for many reasons, such as:
- Cyprus is a small island with 1 million population
- 4 million tourist arrivals per annum
- One of the best climates in the world
- Attractive tax regime
- Member of the EU
- Good standards of living, healthcare, and education
- Easy access to Europe, Asia, and Africa
Moreover, Cyprus has attracted formidable foreign investment over the last five years, with billions of euros flowing into multiple sectors. There are new large-scale infrastructure projects in Cyprus that are currently in process. Finally, there is a steady growth for real estate in Cyprus, and the market is expected to recover during the following year.
How Was the UK Property Market Affected by the Pandemic?
The next speech was about the UK Property Market. There was a 6.5% increase in this sector in the UK despite the pandemic, and buyers are starting to re-assess their buying needs. Also, there is an expectation that the pandemic will have a lasting impact on the quality of life. The rental levels have been affected in the last 12 months. Some reports indicate up to a 20% drop in market rent.
The pandemic has changed tenant requirements, with more of them now considering that external areas are essential. Eviction restrictions and new regulations affected the buy-to-let market. Regarding retail, the pandemic savaged this already weak sector, and radical changes are required for the future.
Brexit and Intellectual Property, an Unexploited Sector with Many Opportunities
The UK, after Brexit, is now a third country for the EU. Brexit is an opportunity for Cyprus. Cypriots are superb at human capital, as well as at commercializing the products of our entrepreneurship and the EU also recognized that.
Cyprus can cultivate a culture of innovation and creativity, to achieve monetization of the creative output which will lead to economic growth and prosperity. For this to be achieved, the Intellectual Property needs to be protected.
There is an opportunity for investment in Cyprus. Many UK businesses have relocated to Cyprus because they want to be within the EU for business purposes and see all the advantages.
Another topic was Parallel Trade; more exports are expected from Cyprus to the UK than imports coming from the UK to Cyprus. This means that more businesses will choose to set up their operations in the Intellectual Property sphere in Cyprus.
GDPR and Brexit – What Changes for UK Businesses Processing Personal Data?
The last speech was about GDPR and Brexit, and more specifically about the key data protection requirements to be considered by UK businesses at the end of the Brexit transition period in compliance with the provisions of the GDPR.
From Healthcare to Financial Services through Tourism and Banking, all the industries are affected from the free flow of data. UK businesses should have an EU representative since it is easier to communicate with an EU-based entity.
The Great Britain – Cyprus Business Association and how it can help companies from both countries to network
Mr. Savvas Kyriakides, the Founder of the Great Britain – Cyprus Business Association, concluded by saying that there is a need for networking between Cyprus and the UK to enhance the business relationships between the two countries. The association can enable networking by introducing each company to its members and associates. He finally mentioned that there will be even more webinars in the near future.
CX Financia is also committed to those initiatives since we believe that businesses in both Great Britain and Cyprus need to have a forum to network. There is always room for new markets and the association provides its members with the opportunity to reach these markets and grow even more.
A few words about CX Financia
Whatever your investment needs, CX Financia can offer personalized solutions tailored to both corporations and individuals. Our team of experts and associates have vast experience in a number of areas, such as the incorporation of business in Cyprus or abroad and the incorporation and licensing of funds and investment firms. We also have the expertise and have helped companies with their relocation plans.
In more detail, we are specialized in providing the following services:
- Financial Services Licensing
- Compliance & AML Consulting
- Fund Structuring & Licensing
- Taxation Services & Consulting
- Company Formation & Administration
- Banking Solutions
Contact us today to see how we can help you set up your business in Cyprus.