Foreign Investment
In an effort to encourage external trade and international commerce through the provision of various incentives such as the abolishment of custom duties and taxes in respect of goods imported into the zones, the Cyprus Council of Ministers has established the Larnaca Free Zone in Cyprus under the auspices of the Ministry of Commerce, Industry & Tourism. The Larnaca Free Zone is situated 6 km from Larnaca Airport, 9 km from the Larnaca port, and 48 km from Nicosia. The zone has been landscaped and trees planted to create a modern and pleasant environment for industry and the workforce employed therein.
Within the Free Zone there are 94 Industrial sites of total area 31,2 hectares. Of these, 25 have already been leased representing 25,3% of the total area available for leasing. Various already developed industrial plots are available for rental or acquisition in agreement with the existing leaseholders.
The Free Zone is on the main Larnaca – Limassol highway and is protected on all sides by a security perimeter fence. There is a Customs clearance office at the entrance. A network of service roads leads to the various industrial plots, which have access to water, electricity and telephone networks.
The following incentives are offered to applicants establishing an industrial project in the zone:
- Nominal rental of land for the development of industrial plots is set at a fee of CY£1 per year, over the first five years.
- Following the first five years, nominal rental of land is set at CY£525 per 1000 sqr. meters per annum.
- Free of charge installation of electrical power (maximum demand).
- Free of charge installation of any number of telephone lines.