The President of the Republic of Cyprus attends working lunch with the President of Israel

Cyprus is the most reliable neighbor of Israel, said the President of Cyprus Mr. Nicos Anastasiades today, while the President of Israel Mr. Shimon Peres stated that without Cyprus, his country lies far away from Europe.

During a working lunch hosted at noon in Jerusalem by the President of Israel for President Anastasiades and the members of the Cyprus delegation, the President of the Republic stated that “we inaugurate a new era in the relations between our two countries. During my contacts with the Prime Minister and the President of the Parliament it was confirmed that both our countries are committed to work together – we have historical relations and share a common civilization, but also a common blessing, which are the hydrocarbons in our sea.

We will move on with our relations to see how we can support each other, how we Europeans can contribute in anything that concerns you. We need you. I am not saying that you need us, but it is better to have a neighbor close to you rather than a brother far away from you. And you don’t simply have a neighbor close to you but a brother and we will go on this way. We must work together in order to bring peace, stability and welfare.”

On his part, President Peres said that “we are joined in many ways. Without Cyprus, Israel lies far away from Europe.” He added that “we worked together and we will continue to work together. We regard Cyprus as a close friend both politically and geographically.”

In statements to reporters after the working lunch, President Anastasiades said that “the determination both of our side and of the friendly country of Israel is ascertained for a closer relationship, a new era in our relations, which based on the traditional friendship, will strengthen the common efforts for the best possible outcome with regard to our countries.

What creates the new prospects is the discovery of hydrocarbons, which compel such a cooperation that will generate the prospects through strategic alliances for both countries to benefit. On the one hand Cyprus, a member state of the EU, and especially with the decision for the establishment of liquification terminal across from the Suez Canal, will be offering to those who want to take advantage of it,  the infrastructure for exporting to the Far East but also to Europe; and on the other hand, through the agreements we seek on energy security and the agreements for joint exploitation, where the borders seem to coincide, of units that possibly may have natural wealth, for the prospects to be created so that we can achieve the best possible exploitation for the benefit of the welfare, the cooperation and the prospects of the two countries.”

Asked if Israel views the establishment of a terminal in Cyprus in a positive way, the President of the Republic said that “we are in the consultation stage. However, there is the manifest interest on the part of Israeli companies that are involved in the exploitation of natural gas to be also participants in the investment for the construction of the terminal at Vassiliko. This means that, by extension, we will have the cooperation of companies if not of the Government. I don’t want to say more than is dictated by the highest interests of the two countries.”

Address by the President of the Republic of Cyprus at the Tel Aviv Business Forum

Ladies and Gentlemen,

It is my great pleasure and privilege to address today the distinguished members of the Business Communities of Israel and Cyprus.

First of all, allow me to congratulate the Cyprus Chamber of Commerce and Industry and the Federation of Israeli Chambers of Commerce for organizing this event, and, of course, thank all of you for your presence here today which demonstrates that our countries enjoy a solid and mutually beneficial economic partnership, a partnership which we genuinely aspire to move forward.

Dear Friends,

I only assumed office two months ago. In this respect, the fact that my visit to Israel constitutes my first ever visit to a third country in which I am accompanied by my Minister of Energy and a dynamic business delegation, manifests the importance that my Government attributes to further widening and deepening the already excellent relations which Cyprus and Israel enjoy, in order to inaugurate a new era of prosperity between our countries.

At the same time, I am pleased to note that during the extensive meetings I held with all the officials of the Israeli Government it was firmly established that this is a vision that both Cyprus and Israel share: to substantially and strategically upgrade our relationship in all possible fields, especially those of energy, economy, society and security, for the mutual benefit of our two peoples.

Further, we also shared the belief that energy co-operation – taking into consideration our common interests and goals for sustainable development and wealth as a result of the exploration and exploitation of our significant natural resources – can become the driving force for an enhanced partnership between our two countries.

To this end, we reiterated that we remain dedicatedto proceed expeditiously with the conclusion of the Framework Agreement for the joint development of any joint Reservoir and of multilateral Memoranda of Understanding in the energy and water sectors. At the same time, we strongly support the initiative for the ambitious project Cyprus-Israel-Greece submarine EuroAsia electricity Interconnector.

I also conveyed that Cyprus is committed to the construction of a LNG plant.  We are of the opinion that the stability that Cyprus offers and its location opposite Suez Canal are important factors which favour the creation of a regional energy hub in Cyprus for the transportation of natural gas from Eastern Mediterranean countries to the Far East markets, through Suez, at a comparatively low cost, as well as to the European Union market.

Dear Friends,

You are well aware of the difficult economic situation inherited when I got elected to the Presidency of Cyprus and the consequent implications of the coercively imposed Eurogroup Agreement, so I will refrain from embarking on specific related details.

However, I want to assure you that having secured the necessary financial assistance package, my Government is wholly devoted on restructuring and revitalizing the economy and its banking system.

Already, a number of limitations on transactions have been lifted and we hope that really soon conditions will permit for all the restrictions to be abolished, while, following the appointment of the new Board of Directors of the Bank of Cyprus, its restructuring will soon be complete.

Simultaneously, my Government is concentrated on promoting growth, offering favourable tax incentives for existing or new companies doing business in Cyprus, encouraging foreign investments, increasing Cyprus’ competitiveness and creating a more effective and business-friendly environment.

To this end, I have already announced some relevant measures, which might be of particular interest to all of you and your future endeavors and collaborations, such as:

→    Additional tax deduction from taxable corporate income of up to 25% for each additional worker who will be employed in the next year, with a prospect of expanding that period, provided he/she is a permanent legal resident of Cyprus over the last five years.

→    The time needed to issue a Planning Permission for large-scale development projects will not exceed three months.

→ Broadening the range of permitted land development in off limit areas for large projects.

→ Increase of the building coefficients for large scale commercial developments or for large-scale properties in tourist zones.

→   The granting of permits to joint tourism developments, such as condo hotels.

→   Increase of the building coefficient for golf courses and encouraging the immediate implementation of projects for the construction of golf courses, through, amongst others, extending the repayment of 5 million Euros for the issuing of a license.

→    Licencing of casino operation.

→    As regards long-term residence applicants who are third country citizens, it has been decided that:

● Permits will be granted to applicants who invest the total amount of 300.000 Euros for the purchase of more than one residence or other building, provided that they are purchased from the same vendor,

● The legislative framework will become simplified and a fast-track procedure will be adopted for long-term residence permits.

These measures are neither exhaustive nor the only ones to be adopted and other pertinent measures regarding the financial, services and investment sectors, currently under consideration and legal scrutiny, will soon follow, which, as the above-mentioned ones, will aim to encourage foreign investments and promote growth, while at the same time increase Cyprus’ competitiveness.

Dear Friends,

It is important to emphasize that Cyprus, despite its current economic difficulties,with: (a) almost 50 double tax treaties in force, (b) a highly qualified and professional workforce, (c) a fully EU harmonized tax and legal system and, of course, (d) with one of the lowest and most competitive corporate tax rates in Europe at 12.5%, remains an attractive investment destination and a highly -competitive center for International Businesses, offering  them a platform for their operations and a preferential access to markets like Europe, Russia, China and India and Asia in general.

Further, the discovery of natural gas reserves within Cyprus’ and Israelis’ Exclusive Economic Zone creates tremendous prospects for investments and cooperation in the energy sector and auxiliary services, leading to job creation; this should serve as a boost to the economies of all the countries in the region. 

Opportunities also exist with regards to Renewable Energy Sources, a sector in which Cyprus has made remarkable progress. Other promising areas of cooperation between Cypriot and Israeli businesses can be found in the fields of tourism, real estate, telecommunications, shipping, health, innovation and technology and, of course, commerce.

Dear Friends,

The Israeli business community can rest assured that Cyprus will remain a reliable partner to all those entrepreneurs and investors interested in international expansion and will retain its position as a significant international investment hub for Israeli and Cypriot business.

I am also confident that the Cyprus–Israeli business Association, our respective Chambers of Commerce and Industry, our relevant professional associations and bodies, and the extensive network of collaborations developed throughout years of business, trade and investment interaction, will continue taking advantage of Cyprus’ competitive edge in the financial services sector, including the comprehensive legal framework between the two countries, which covers areas of co-operation such as Merchant Shipping, Customs, Promotion and Protection of Investments and Tourism.

To this end, we sincerely hope that the ongoing negotiations for a double taxation treaty will 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.

I wish you every success in your deliberations and a successful conclusion of the Forum. I am confident that all of you – as the most important components of our efforts for further advancing our close economic, investment, trade, commercial and tourist partnership- during the numerous meetings to be held today, and taking into account your entrepreneurial inventiveness and resourcefulness, will identify a number of new joint entrepreneurial and business initiatives, as well as new areas for future co-operation. 

My Government will offer all help deemed necessary towards this end and will facilitate every business and investment activity originating from Israel. 

Thank you for your attention.