REVERA Cyprus Digest №2
"Bad tenant register" as a measure against rising rental prices
Council for Registration of Real Estate Agents president Marinos Kineyirou recently commented on the increase in the cost of renting in Cyprus and noted the idea of creation of a register of problematic tenants, “a tool which similar as an idea to that of the Artemis system, which the country’s financial institutions have at their disposal to view borrower credit information”. According to Mr. Kineyirou, this will allow legitimate real estate agents to be aware of and manage any clients with a bad track record when renting a property.
Foreign direct investment in the IT sector in Cyprus increased by 600% in 2022
As reported in the seventh edition of the Greenfield Foreign Direct Investment Performance Index of the FDI Intelligence for 2021, Cyprus is going up from 68th to 18th place among other countries in attracting foreign direct investment. It is worth noting the increase in investments in software and information technology by a 600% in 2022 compared to the corresponding period in 2019.
Cyprus bank imposing stricter lending criteria
According to the Central Bank of Cyprus Bank Lending Survey, banks have tightened credit standards in the second quarter of 2022, while net lending demand declined, reflecting the uncertainty in the global economic environment in this year. The CBC further stated that survey’s results are consistent with the expectations of Cyprus banks recorded in the previous quarter. Finally, lending criteria are expected to be tightened more during the next quarter.
Business entities may face an obligation to notify about foreign direct investment and obtain approval for an investment transaction
A corresponding bill has been introduced to the Cabinet of Ministers. The document, in addition to the stated responsibilities, describes the criteria and factors that can be taken into account during the foreign direct investment control. The bill would further allow the respective Finance Minister to have a say on the approval of foreign direct investments from third countries in Cypriot companies. Following the Cabinet’s approval of the bill, it will then be submitted to the House for further discussion and approval.
Revolut: one more step to provide crypto services in Cyprus
Grant Thornton Cyprus has successfully completed the registration project of Revolut as a Crypto Asset Service Provider (CASP) with the Cyprus Securities and Exchange Commission. Revolut will receive the right to offer additional services and products related to cryptocurrencies throughout the European Economic Area (EEA).
Cyprus recognized as a "Strong Innovators"
According to the European Commission's annual European Innovation Scoreboard 2022, Cyprus is now in the Strong Innovators category. In particular, Cyprus ranks 10th in the overall ranking. Innovation activities include internal and external research and development, capital expenditures, human resource development, market design and development.
The European Innovation Scoreboard captures and provides a comparative analysis of EU Member States' innovation performance based on 32 performance indicators in the 4 following sections:
- Framework conditions,
- Innovation activities,
Cyprus performs well in Public-Private Collaborative Publications, Innovative SMEs Collaborating with Others, International Scientific Collaborative Publications, Population with Tertiary Education and Trademark Applications, while being ranked as a leading country in the dimension "Connections", "Innovations", recording the highest performance with an increase of 77% since 2015 compared to the EU average of 35%.
According to Kyriacos Kokkinos, Deputy Minister of Research, Innovation and Digital Policy, this is natural evidence of the dynamics of our local ecosystem, in which Cyprus has invested over the years.