Cyprus economy is considered to be prosperous. This success of Cyprus economy is viewed to be as a result of the different policies and projects which were undertaken by the government within the Cyprus economy recently. Cyprus economical growth was confirmed by the World Bank which stated that Cyprus economy was high-income.
In 2001, the IMF also included Cyprus economy as one of the most advanced internationally. Cyprus economy became part of the eurozone in 2008 and the Euro was adopted as the official legal tender of Cyprus economy. The Cypriot pound was thus replaced as a result.
Cyprus economy may be best described a service-based as a free market economy. Light manufacturing is also an important sector in Cyprus economy. The investment climate of Cyprus economy has been quite attractive partly because Cyprus inherited its legal system from the British and is readily accepted and recognized by investors internationally, as a result.
Cyprus economy also presents attractive incentives for investors, in that, restrictions which prevented or limited the ownership of property and companies by foreigners were taken away. Cyprus economy now allows for full ownership of businesses by foreign nationals. The Stock Exchange was also opened up while the corporate tax rate of Cyprus economy was put at 10%. Double tax treaties have also been signed between Cyprus and forty other countries which have encouraged more international businesses to open up in Cyprus for access to the tax privileges enjoyed by Cyprus businesses with these signatory countries.
Cyprus economy is recognized for its advanced international business climate. Cyprus economy is this considered a hub for financial transactions and operates as an international financial center. This sector in particular gained a lot of momentum over the years in Cyprus economy and over shadowed many other areas.
The discovery of oil in the seabed between Egypt and Cyprus leaves the promise of major benefits for the Cyprus economy. Cyprus economy houses the fourth largest ship registry internationally. The financial downturn which impacted banking and finance in the Eurozone affected the economy of Cyprus in 2012.