Cyprus

We have been working in Cyprus since 1996. Our second project as Navigator (registered in Greece in 1995) took place for the Association of Cyprus Travel Agents and the Cyprus Chamber of Commerce & Industry in 1996. This began a cooperation that has lasted until this day.

 

In 2016, we took the strategic decision of closing our operations in the UK as a result of Brexit, and relocating and centralizing all operations from Cyprus.

 

Located in Limassol, we are building up consulting capacity and formalizing our business processes and work relationships.

 

In Cyprus, we provide a mix of services to customers and investment founders:

 

  • Digital transformation services, including training, development and support for online migration and management;

  • Investment advisory, including due diligence, business planning, financial modelling, risk assessment and other services;

  • Other core consulting services, such as market analysis, business intelligence, executive training and development.

 

Our thesis for Cyprus is that:

 

  • Since EU entry, the quality of public management, particularly due to the distorting influence of political parties, has been rapidly falling. Successive governments have been more concerned with protecting small groups of supporters and establishing monopolies rather than contributing to real economic development.

 

  • Economic progress in sectors such as energy production, telecommunications, banking and e-government have been stalled and now rank far behind other EU countries, in particular the Baltic countries. The legal system makes contract enforcement nearly impossible for foreign investors.

 

  • Rising input costs (rent, labour) are a key feature of operations in Limassol, Nicosia, Paphos and Larnaca due to the Citizenship by Investment programme. This is a largely artificial investment that has benefitted a few insiders but carries significant costs and productivity issues for the wider economy.

 

  • Every sector in Cyprus is ready for consolidation through mergers and acquisitions. There are too many small providers in each sector. Quality of services is often low while costs are high, particularly for foreign investors.

 

  • The low corporate tax of 12.5% is no longer sufficient to offset low productivity and high costs, especially in light of Cyprus’ falling rankings in terms of international trust.

 

As a result, we advise foreign and domestic investors to exercise caution in terms of operating from Cyprus. While there are attractive sectors and reasons to invest in Cyprus, there are also significant challenges, and these do not appear to be changing in the future.

 

Our business incubator, the Centre for Innovation & Entrepreneurship, is based in Limassol and we are expanding our investments in start-ups.

 

Please note that we work only in the Republic of Cyprus and the territory under the control of its Government. We do not work in Occupied Cyprus.

 

Please contact us for further information