PRESIDENT Nicos Anastasiades yesterday assured the Israeli business community that Cyprus would remain a “reliable partner” to entrepreneurs and investors interested in international expansion and that it would retain its position as a significant international investment hub for Israeli and Cypriot business.
Addressing a business forum in Tel Aviv - jointly organised by the Federation of Israeli Chambers of Commerce and the Cyprus Chamber of Commerce - Anastasiades urged the Israeli business world to keep faith with Cyprus despite the financial crisis here that has all but paralyzed the economy.
The President promised that ongoing negotiations for a double taxation treaty between Cyprus and Israel would soon be concluded, “with the aim of significantly boosting our economic, commerce and investment opportunities, for the mutual benefit of the business communities and peoples of the two countries.
“My government will offer all help deemed necessary towards this end and will facilitate every business and investment activity originating from Israel,” he said.
Anastasiades reviewed a series of steps geared at encouraging foreign investments and creating a more effective and business-friendly environment.
These measures include: an additional tax deduction from taxable corporate income of up to 25 per cent for each additional worker who will be employed in the next year; slashing the time needed to issue a planning permission for large-scale development projects to three months at the most; broadening the range of permitted land development in off limit areas for large projects; increasing building ratios for large-scale commercial developments or for large-scale properties in tourist zones; licensing of casino operation; and relaxations for long-term residency applicants who are non-EU nationals.
Anastasiades said Cyprus is committed to concluding a framework agreement for the joint development of any joint gas reservoirs and of multilateral memoranda of understanding in the energy and water sectors.
Nicosia also “strongly supports” the initiative for an ambitious project for the Cyprus-Israel-Greece submarine EuroAsia electricity cable, he said.
Capital restrictions in Cyprus are liable to affect the operations of Israeli companies in Cyprus, including Mekorot National Water Company and IDE Technologies Ltd. (a joint venture of Delek and Israel Chemicals Ltd.) which are building a desalination plant; BSR Europe Ltd, which owns the country's largest mall in Limassol; and foreign currency trading firms.
Bilateral trade between the two countries stood at €715 million in 2012.