The World of Business

As mentioned before, Cyprus has a superior business infrastructure. This in connection with the widespread use of English on the island, and its legal system largely based on English law means that Cyprus is an efficient and attractive jurisdiction in which to conduct business.

The three main businesses centers on the island are Nicosia, the administrative capital, Limassol, home to Cyprus’s port, and Larnaca, which is home to the islands main airport.

The many local and international banks operating on Cyprus have set up Offshore Banking Units on the island and are equipped to assist both foreign and offshore companies. The government has created business legislation that includes special offshore regimes for many businesses including insurance companies, shipping companies, and “Offshore Financial Services” companies. Nevertheless, the distinctions between “offshore” and “onshore” companies were abolished in 2003.

The Cypriot government does not tax personal interest income derived from foreign capital that is imported to Cyrus and deposited in a bank that operates in Cyprus. This exemption may be extended to interest income from foreign money capital that has been invested in Cypriot based assets as long as the investment makes a significant contribution to the island’s economic development.

Currency

Official name: Cypriot Pound

Currency code: CYP

Abbreviation: £

Legal tender in: Cyprus with the exception of the self-proclaimed Turkish Republic of Northern Cyprus, Akrotiri, and and Dhekelia

ERM* since May 2, 2005

Replaced by € on January 1, 2008 at a rate of € = £0.585274

Subdivided into: 100 cents

Coins: 1, 2, 5, 10, 20, 50 cents

Notes: £1, £5, £10, £20

Central bank: Reserve Bank of New Zealand

Website: www.rbnz.govt.nz

Current exchange rates:

• http://finance.yahoo.com/currency,

• http://www.xe.com, and

• http://www.oanda.com

* The European Exchange Rate Mechanism, ERM, was introduced by the European Community in March 1979, as part of the European Monetary System (EMS), as a means of reducing exchange rate variability and achieving monetary stability in Europe. The ERM is based on the idea of fixed currency exchange rate margins but with exchange rates variable within those margins.