Direct and Portfolio InvestmentInvesting in Cyprus
Direct investment as well as portfolio investment in Cyprus from European Union member states were liberalised in January 2000. Investors from the EU are allowed 100% equity participation in any enterprise with¬out a minimum level of capital investment. For direct investments from non-EU countries, certain restrictions are still in force concerning the maximum percentage participation and/or minimum amount to be invested, depending on the sector of the investment. One hundred percent equity participation is allowed in the manufacturing, services and trading sectors. However, only 49% equity participation is allowed in the following sectors: agriculture, hotels, travel, restaurants and rec¬reational centres, agencies representing imported goods or services and companies listed on the Cyprus Stock Exchange.
As regards portfolio investment in companies listed on the Cyprus Stock Exchange, stockbrokers and public companies may carry out the relevant transactions with non-residents (both from EU and non-EU countries), without reference to the Central Bank. Investors who are citizens of EU member states may acquire up to 100% of the share capital of Cyprus companies listed on the Cyprus Stock Exchange. In the banking sector, the maxi¬mum foreign equity participation is 50%.
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