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Cypriots’ €4 Billion Card Expenditure In Late 2023

In the second half of 2023, Cypriots spent an impressive €4 billion using credit and debit cards, reflecting a dynamic mix of essential and discretionary spending. Supermarkets, healthcare, and utility payments dominated the expenditure, indicating a prioritisation of necessities amid ongoing economic uncertainties. However, robust spending in the dining, travel, and entertainment sectors also highlighted resilient consumer confidence, suggesting a strong recovery from previous economic challenges.

This spending pattern offers key insights into the Cypriot economy, reflecting both cautious budgeting and a return to pre-pandemic consumer behaviours. The significant expenditure on essentials like food, healthcare, and utilities indicates that Cypriots are focusing on maintaining their standard of living despite inflationary pressures and global economic concerns. Meanwhile, the noticeable rise in discretionary spending, particularly in sectors such as travel and entertainment, signals a renewed appetite for experiences and leisure, which had been curtailed during the pandemic years.

For businesses, this spending data provides valuable insights into consumer trends and opportunities for growth. The strong performance of the hospitality and travel sectors suggests potential areas for investment, particularly as Cyprus continues to attract tourists and as locals increasingly seek leisure experiences. Additionally, the steady flow of spending in essential services underscores the importance of these sectors in the local economy, offering a stable foundation for businesses operating within these industries.

Looking ahead, maintaining this balance between essential and discretionary spending will be crucial for sustaining economic growth. As global economic conditions remain uncertain, Cypriots’ spending habits will likely continue to reflect a mix of caution and optimism, with the potential for further growth in sectors that offer value and experiences. For businesses and investors, understanding these trends will be key to navigating the Cypriot market effectively in the coming months.

Cyprus Showcases Its Business Advantages At 2024 London Event

Cyprus seized the opportunity to present itself as a premier destination for high-net-worth individuals (HNWIs) at the ‘Non-Doms: The Cyprus Private Client Offering Gathering 2024,’ held at the iconic London Stock Exchange. The event attracted over 150 participants, including professionals from the UK and experts from Cyprus, all gathering to explore Cyprus’ business advantages.

The gathering aimed to strengthen ties between the international investment community and Cyprus, highlighting the island’s competitive tax regime and wealth management opportunities. The central focus was Cyprus’ strategic appeal for non-domiciled residents, particularly as changes to the UK’s tax framework prompted many HNWIs to reconsider their tax and residency options.

A Shift in Global Tax Dynamics

With the UK government’s decision to abolish its long-standing non-dom tax regime, Cyprus stands poised to become an attractive alternative. The UK’s new residence-based system, set to take effect in April 2025, could direct more wealthy individuals and businesses toward jurisdictions like Cyprus, known for its fiscal benefits and strategic location in the Eastern Mediterranean.

Marios Tannousis, CEO of Invest Cyprus, and George Pantelis, former Director General of the Finance Ministry, addressed how Cyprus is uniquely positioned to capitalize on this shift. Their presentations underscored the island’s stability, tax benefits, and favorable environment for both personal wealth and corporate operations.

Key Highlights from the Conference

One of the highlights of the event was the panel discussion titled “Cyprus: A Destination of Choice for HNWIs, Their Families, Companies, and Employees.” Experts like Christos Neokleous, Consultant at Tsirides Law, outlined the simplicity of doing business in Cyprus, emphasizing the ease of setting up companies and understanding the regulatory environment.

Andreas Andronicou, Partner at PwC Cyprus, discussed the significant tax advantages for both individuals and corporations looking to operate from Cyprus, especially within the European and global markets. The country’s legal framework, based on the English Common Law system, was another focus, with Melina Dionysiou, Director/Head of Corporate at Totalserve, explaining its business-friendly aspects.

A Strategic Business Environment

Cyprus’ status as an international business hub is further reinforced by its competitive tax rates, skilled workforce, and advantageous legal system. These factors, combined with its prime location, make it an ideal choice for companies seeking to expand into new markets. Moreover, the conference highlighted the island’s growing appeal to foreign investors and companies, with opportunities ranging from tax-efficient corporate structures to residency-by-investment programs.

As the world moves toward greater tax competitiveness, Cyprus is keen to attract international clients seeking efficiency and flexibility. This year’s event comes at a crucial moment, as the UK’s changes to its non-dom tax regime create new openings for Cyprus to solidify its position as a leading destination for wealthy individuals and businesses.

Global Appeal for High Net-Worth Individuals

Cyprus’ tax benefits, wealth protection solutions, and modern legal structures were the focal points of the final panel, which also explored investment opportunities on the island. Experts such as Sara Eojourian, Head of Wealth Management at Athlos Capital, discussed the array of investment solutions that Cyprus offers, particularly for HNWIs. These services not only provide personalized wealth management but also come at competitive costs, making them an attractive option for international investors.

Conclusion: Cyprus, an Attractive Option for International Clients

In conclusion, Cyprus is increasingly recognized as a top destination for both high-net-worth individuals and international businesses. Thanks to its competitive tax system, business-friendly legal environment, and strategic location, Cyprus is solidifying its status as a prime hub for foreign investment. As global tax policies continue to evolve, Cyprus remains well-positioned to provide attractive opportunities for clients and businesses seeking stability, efficiency, and significant fiscal benefits.

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