Cypriot economy

The main export component is the tourism sector which makes up approximately 40-percent of the GDP. Approximately 20% of exports include citrus fruits, graps and other crops as well as clothing items produced in the island’s southern portion. International shipping services make up roughly 9% of overseas recepits.

Situatied between three continents, Cyprus’ location permits it to serve as an efficient trading center. Cyprus even maintains strong ties with Israel and Arab nations.

While not especially rich in natural resources, Cyprus does have copper and asbestos deposits in addition to marble, wood and salt.

On January 5, 2004 Cyprus joined the European Union which has steadily helped the Cyprus economy improve.





Both central and local governments levy taxes in Cyprus. In 2012, the latest figures available, tax revenue stood at 39.2% of GDP. The primary sources are income tax, social security, value-added and corporate taxes. Each is collected by the central government.




Cyprus Capital Gains (For Corporations)

The standard corporate tax rate is 12.5% for gains from immovable propety or from selling shares in an unlisted business owning these assets.

Also, obligatory contributions for state funding by an employee include:

  • 13% state pension fund
  • 6.5% state health fund
  • 0.5% unemployment insurance

Obligatory contributions for state funds by an employer (capped) include:

  • 11% state pension fund
  • 6.5% state health fund
  • 0.5% unemployment insurance