Cyprus and Israel: A history of friendship & synergy that has laid a foundation for a bright future.

The relationship between Cyprus and one of its esteemed neighbours, Israel, goes far back. Over the years, the two economies have built a strong foundation of understanding that has benefited both nations on political, social, and economic levels.

The very first interaction between the nation of Cyprus and Israel dates long before they were independent states – as far back as the 16th century, when Jewish merchants escaped to the island of Cyprus following the Spanish inquisition. The people of Cyprus had opened their hearts and offered shelter to the people of Israel during their stopover on the island and this has created a mutual bond of respect and friendship between the two countries’ peoples.

For Israel, Cyprus is amongst its top trading partners. Israel imports substantial amounts of industrial products from Cyprus, such as fish products, gypsum board, and cement. Trade relations between the two nations were promoted by the exchange of business delegations between the Israel Export Institute and the Cyprus Chamber of Commerce and Industry. By 2010 the nations' bi-lateral trade reached almost 503 million Euros.

Israeli tech giants have chosen Cyprus due to its low cost of business operations, and the proximity to Europe makes Cyprus an even more attractive location for Israeli business to relocate to Cyprus.  The ties between the two nations felt very natural due to their analogous political structures and similar social values. The bond was strengthened not only because of common benefits but also common understanding between the countries' peoples that lead to the enhancement of business and political ties. Multiple businesses from Israel crossed over to Cyprus, one notable Israeli company being eToro. The social trading company established its headquarters on the island in 2010 and continues to grow its operations.

Aside from eToro, other Israeli companies who relocated to Cyprus include Amdocs, ePlane and Viber Media.

In early 2020, Greece, Cyprus, and Israel signed a deal to build a huge subsea pipeline that will carry natural gas from the eastern Mediterranean's gas field to Europe. This was an imperative event between the nations, signifying collaboration, friendship, and solidarity.

At the same time, both countries face similar challenges due to their geographical positions. An example of that is water scarcity due to climate change and security concerns due to political turbulence happening in the neighbouring countries.

Due to their geographical proximity, Israel and Cyprus are already cooperating in numerous public sectors such as business, tourism, health, innovation, and private sectors, such as their mutual participation in EMGF (Eastern Mediterranean Gas Forum).

Another step in improving the Cypriot-Israeli relations has been a mutually funded project to renovate and revamp the Larnaca Marina and Port.  The project’s budget is set at over 1 billion euros and it’s purpose is to be a true landmark which will transform the city’s identity and contribute an estimated €120m annual increase in Cyprus’ GDP (according to a study by the Finance Ministry). First glimpse of the designs of the new look of the Marina & Port can be seen here.

In fact, the countries' close proximity has created multiple friendly events between the nations, such as the Cyrus – Israel Regatta, an annual event hosted to commemorate the nautical relationship between the two countries which began in 2010. Participants arrive in Cyprus and race around the island's beautiful waters before sailing to Tel Aviv. In 2019, Emerald Group of Companies was one of the sponsors of the Cyprus-Israel Regatta, and was proud to have its brand name associated with the Regatta, as they swept through the Mediterranean sea, from Cyprus to Israel.

For many foreign businessmen, Cyprus serves as an investment opportunity and gateway into the European Union, and Israeli businesses have shown particular interest in this. 

Being a European member state and part of the Eurozone makes Cyprus an even more attractive entry point for Israeli businesses. Cyprus offers an extremely competitive corporate tax framework to inland businesses, which is just 12.5%. In addition to this, a Double Taxation treaty is to be finalized soon between the two nations, which is bound to offer a more effective execution of business activities. But good political relations between the two countries and tax benefits cannot be the only reason why Israelis, amongst other nations, choose Cyprus as their home.

Cyprus is often dubbed as the 'jewel of the Mediterranean' due to its 340 sunny days a year, picturesque beaches, ancient ruins every few kilometres, and an exquisite traditional food and wine reputation. The island offers just a drive from a sandy beach to a mountain top and is recognized for its vast history despite its small size.

Cyprus is known for being a fantastic place to raise a family due to its security and low crime rate. With an assortment of international schools, an abundance of indoor and outdoor activities, great work-life balance, and numerous foreign communities, Cyprus has become a top option for couples, families, and aspiring young professionals. Many Israeli and Russian companies chose Cyprus as the headquarters for their companies and their families' home.

But relocating for most businesses is complex. It requires thorough preparation, along with a number of documents that require to be drafted and forms completed. 

Emerald Group of Companies has collaborated with clients from Israel since 2001. The Group provides clients with strategic and corporate advisory services, focusing on legal matters as well as real estate investing and management. Emerald Group has helped numerous clients set up their businesses in Cyprus, acquire suitable property for their family and advised them furtherly on tax, fiduciary and legal matters. The company's aim is to offer a bespoke relocation transition, curb the complexities of starting fresh in a new country, and create a comfortable, trustworthy haven for their clients.

At the end of the day, Cyprus is not the only island in the Mediterranean, but it is certainly like no other. For some uncertain reasons, people from different parts of the world have selected the little island as their home, just from visiting once or twice, and were unable ever to leave again. The charm of the island lies beyond its convenient tax solutions and sunny rays… it lies in the warmth of the locals, the joie de vivre lifestyle, and of course, the endless heaps of fresh halloumi.