“The favourable tax regime that Cyprus offers to businesses is one of the most encouraging policies of the government to attract businesses and investment to Cyprus.”
Indo-Cypriot relations are rooted in decades of bilateral partnership and co-operation. How does the future of Indo-Cypriot relations look like?
The future of Cyprus-India relations looks promising, with both countries poised to enhance cooperation across several key areas. Economic ties, particularly in trade, investment, and technology, are expected to grow, with Cyprus serving as a gateway for Indian businesses into Europe and offering an attractive tax regime with one of the lowest corporate tax rate in the EU and double tax avoidance agreements with various countries, including India.
The tourism sector offers potential for Indian tourists, choosing Cyprus as their destination, while cultural, educational and technological collaborations can strengthen through academic exchanges and innovation partnerships. To this end, the two countries are working to renew the MoUs on cultural cooperation and technology and innovation, and to negotiate a new MoU on higher education and research. Geopolitical cooperation at multilateral fora, alongside cultural exchanges and the role of the Indian diaspora, will further deepen relations. In areas like renewable energy and healthcare, both countries can benefit from each other’s respective knowledge and knowhow, making the relationship increasingly strategic and multifaceted.
Cyprus is known for its high-quality education system that meets international standards; offering comprehensive academic programs across various fields. Which are some of the key programs that attract Indian students to Cyprus and government policies for Indian student in Cyprus?
Cyprus has the potential to become an educational hub for international students, including from India. There are several higher education options available in Cyprus, including universities and colleges. Cypriot universities offer undergraduate and post graduate programs in a variety of subjects, including engineering, medicine, management, including travel and hospitality management, law, and humanities.
If we look at the current trends, around 2,000 Indian students choose Cyprus as their higher education destination every year. This number is actually very encouraging in terms of Cyprus- India educational relations and people to people ties. Latest trends also show that Indian students have shown interest and enrolled in medical programs in Cyprus. One of the significant provisions for the internationals students, include the permission to work for certain hours a week, while they pursue their education.
Government of Cyprus has consistently adopted business-friendly policies to position Cyprus as a major investment destination. Can you shed light on some of these initiatives of the government of Cyprus?
As indicated in the beginning of this interview, the favourable tax regime that Cyprus offers to businesses is one of the most encouraging policies of the government to attract businesses and investment to Cyprus. The Cyprus tax regime include a low corporate tax rate (12.5%), no withholding tax on dividends to non-residents, and various tax exemptions, along with a favorable IP Box regime for intellectual property.
Moreover, Cyprus has an efficient legal and regulatory Framework, under which, Cyprus as an EU Member State, offers access to the EU single market, providing businesses with free movement of goods, services, capital, and people across EU member states and provides a stable and reliable legal framework for contracts, dispute resolution, and business operations, as Cyprus follows an English common law-based legal system, while under the ease of doing business policy, setting up a company in Cyprus is simple, with simplified procedures for registration, incorporation, and regulatory compliances.
Through the Cyprus Investment Promotion Agency (Invest Cyprus), the government actively promotes foreign direct investment, providing guidance and support to foreign investors. In addition, the government supports businesses with grants, tax benefits, and a start-up visa program for entrepreneurs, including tax incentives and grants for R&D, and sector-specific incentives for key sectors like tourism, energy, financial services, real estate, and healthcare.
Furthermore, under the Permanent Residency Program, Cyprus offers a fast-track permanent residency program for investors who invest a minimum of €300,000 in real estate, making it easier for non-EU nationals to reside in the country.
Cyprus’s strategic location at the crossroads of Europe, Asia and Africa, its modern infrastructure, including shipping hubs, ports, and strong logistics networks, highly educated, skilled and multilingual workforce, especially in sectors like finance, IT, and shipping, political stability, its Eurozone membership, well-regulated financial sector, no foreign exchange restrictions, are other important factors that make Cyprus as an attractive businesses and investment destination.
Cyprus has been working to attract Indian filmmakers to its film industry with a variety of incentives and initiatives including a film production incentive scheme to attract international producers, including those from India. How do you see these policy decisions bringing a change to the filming industries of both the nations?
Cyprus’ film-friendly policies, including financial incentives, have transformed it into an attractive destination for Indian filmmakers. Filmmakers from Bollywood and Indian regional cinema, have taken advantage of Cyprus’ scenic locations and incentives. Several movies, music videos, and commercials have been shot in Cyprus, showcasing the country’s landscapes to Indian audiences.
This has not only enhanced the Cyprus’ film industry but also boosted tourism, created economic opportunities, and strengthened bilateral relations between Cyprus and India. The collaboration has helped develop local talent, diversify Cyprus’ economy, and promote Cyprus as a new filming and tourist destination, while providing Indian filmmakers with fresh, cost-effective locations for their productions.
India and Cyprus have vibrant cultural relations that are based on common values and a shared history. How best can the two countries further strengthen their cultural bond?
The cultural bonds between the two countries continue to strengthen and will be consolidated even more in the years ahead. Our respective diplomatic missions in New Delhi and Nicosia, complemented by the presence of a large Indian diaspora in Cyprus, and the relevant frameworks of bilateral cooperation will remain the prominent strength and pillar of consolidating the cultural ties between our two countries.
As for the means to further strengthening the cultural ties between the two countries, I believe that the regular organization, and facilitation of cultural events such as exhibitions, film festivals, food festivals, visits of dance groups, musical events etc. are the best ways in this respect, which we normally follow. I am pleased to mention to this end that a Cypriot dance group called “Selas” is currently in Kolkata to perform in the Preview Show of Durga Puja Art 2024.
Cyprus celebrates its Independence Day on October 1st every year to commemorate the country’ independence. How the Cyprus High Commission does marks this day here usually?
The High Commission marks this historical day with a public holiday and with the organization of events, generally in the forms receptions, which is attended by the members of the diplomatic community, Indian officials and businessmen, members of industry organizations, journalists and civil society members.
With the growing Indo-Cypriot relationship, what are the visa and connectivity protocols for the Indians looking a holiday getaway in Cyprus or a business-related trip?
With regard to the visa regulations, Indian citizens intending to travel to Cyprus for official, tourist, business, and visitor purposes may apply to VFS Global, a visa outsourcing company, which has been granted authorization by the Government of Cyprus to receive visa applications. They may also apply directly to the High Commission, as per the existing rules. In bona-fide cases, the process for the issuance of visa is very smooth and rapid, sometimes, within three working days, even though under normal procedure, at least two-week’ time is required. The list of required documents are mentioned in the website of the High Commission.
In recent years Cyprus has emerged as a popular destination for Indian weddings because of its travel and many beautiful locations. In light of the incoming Indian wedding season, how does Cyprus wedding market plans to capitalize on it?
Cyprus has made significant progress and will positively continue to capitalize on its destination wedding market by leveraging its unique offerings such as scenic and diverse locations and venues that include historical sites, vineyards, luxury resorts, Mediterranean seaside venues, picturesque villages, ancient monasteries, favorable weather with over 300 days of sunshine annually, tourist-friendly infrastructure, and streamlined wedding regulations, including simplified marriage laws for foreign couples. It is noted that the marriage certificates issued in Cyprus are legally recognized abroad.
In addition, inclusive wedding services are easily available in Cyprus. Hotels, resorts, and specialized wedding planners offer customized wedding packages, which often include everything from venue arrangements, catering, and photography to legal services and entertainment. Also, Cyprus being a multi-cultural society, accommodates a variety of religious and cultural ceremonies, including Christian, Hindu, and secular weddings, which appeals to couples from different backgrounds.
On the government’s part, the Invest Cyprus and the Deputy Ministry of Tourism actively promote the island as a wedding and honeymoon destination, participating in international wedding expos and showcasing Cyprus’ appeal to global audiences.
Would you like to give any message to our Envoy Excellency readers?
I sincerely thank the readers of Envoy Excellency for their keen interest in exploring Cyprus, in particular, its relations with India.