(Mondaq) -- The Cyprus government has announced that a new draft law is being prepared, aimed at facilitating investment into Cyprus by means of radical changes in the current law and practice to reduce red tape, simplify procedures and create an environment that will be truly investor-friendly.
The new law will focus on investments which are deemed to be significant according to predetermined criteria stipulated by the government. To qualify, investments must meet one or more of the following four criteria:
Capital investment of EUR 5 million or more;
Creation of at least 80 new jobs, or 50 new permanent jobs with aggregate pay exceeding EUR 1 million per year;Investments by so called "anchor companies", meaning applications by well-known multinational conglomerates; and
Investments of at least EUR 1 million in qualifying research and development activities.
The council of ministers will have the power to vary the criteria from time to time so as to ensure that there can be flexibility and freedom to adapt to the continuing needs of the economy and the prevailing circumstances.
The government is confident that the new law will assist Cyprus in attracting large scale new investments and multinational groups seeking to establish a presence in the region.