Reaching the consumers

Marketing opportunities

Consumer behavior

Consumer behaviour in Cyprus is quite traditional and still subject to changes because of the introduction of the Euro in 2008. Indeed, consumers should be accustomed to prices in Euro and this can have an impact on their purchasing behaviour. Many companies are family owned and Cypriots are attached to local based products although international brand names have successfully entered the market.

Consumer profile and purchasing power

The Cypriot consumer is attached to traditional and local based products but at the same time and above all among young generations foreign brand names are appealing.

Consumers associations

Cyprus Consumers Association

Main advertising agencies

Portal for advertisement in Cyprus

Distributing a product

Market shares

Large scale distribution is still little developed in Cyprus, retail trade being more dominant. According to one of the principal distribution companies of Cyprus, CAP, there are 3,000 distribution outlets (from grocery shops to superstores) in Cyprus. 60% of these distribution outlets are retail shops and they achieve only 23% of the turnover. On the other hand, the 30 superstores of the island alone achieve more than 40% of the sales. 2 types of distribution channels seem to be developing in Cyprus : - Chains of shops (mainly foreign companies). - Franchise shops have been quite successful for the last few years: big fast food shops from America, international car rent companies and big brands of the clothing sector have all set up their franchises in Cyprus. Finally, the government has lifted all prices control except on cement and petroleum.

Organizations in the retail sector

Cyprus International Businesses Association

Market access procedures

International Conventions

Member of World Trade Organisation
Party to the Kyoto protocol
Party to the Basel convention on the Control of Transboudary Movements of Hazardous Wastes and their disposal
Party to the Montreal protocol on Substances that deplete the Ozone Layer
Party of the International coffee agreement 2001

Main International economic cooperation

Cyprus is a member of the European Union, the United Nations, the Council of Europe, the World Trade Organization, the World Bank, the Commonwealth and the International Monetary Fund. It is also well represented by diplomatic missions in foreign countries.

Non tariff barriers

In accordance with its European Union membership since May, 1st of 2004, Cyprus applies the European Union trade policy like antidumping or anti-subsidy measures. The European Union import regime applies to Cyprus. If Cyprus has adopted the main part of the EU regulations on May, 1st of 2004, some transitional measures have been granted to the country regarding some EU rules like the freedom of movement for workers or cabotage inside some countries.
While the European Union has a rather liberal foreign trade policy, some products need import licenses. There are some restrictions, especially on farm products, following the implementation of the CAP (Common Agricultural Policy): the application of compensations on import and export of farm products, aimed at favouring the development of agriculture within the EU, implies a certain number of control and regulation systems for the goods entering the EU territory.
When being introduced in Cyprus, some products must be "CE" marked in respect of the European Directives adopted on the basis of the New Approach and the Global Approach. For further information, please consult the Guide to the Implementation of Directives based on New Approach and Global Approach.

Customs duties and taxes on imports

Trade with Cyprus is totally free from customs duties, provided that the country of origin of the goods is one of the other 27 EU Member States. For the non-European countries, the applicable rate should be checked at the following website about EU Customs.
The duties for non-European countries are relatively low, especially for manufactured goods (4.2% on average for the general rate), however textile, clothing items (high duties and quota system) and food-processing industry sectors (average duties of a 17.3% and numerous tariff quotas, PAC) still know protective measures.

Customs classification

Since its accession to the European Union on May, 1st of 2004, Cyprus has adopted the EU Common External Tariff.
When the country of origin of the goods exported to Cyprus is not part of the European Union, customs duties are calculated Ad valorem on the CIF value of the goods, in accordance with the Common Customs Tariff (CCT). In order to get exhaustive regulations and customs tariffs regarding their products, exporters shall refer to the TARIC code and its database, which includes all applicable customs duties and all customs trade policy measures for all the goods. For further information, please consult the information document published by the European Commission about the impact of EU enlargement on customs policy.

Import procedures

Written declaration should be made for imports. The official document is the "Single Administrative Document". Goods presented to the customs are covered by a summary declaration, which is lodged once the goods have been presented to customs. The procedure is different for agricultural products as phytosanitary certificates are required. 

Importing samples

Goods transiting Cyprus are not subject to duties. It is possible to obtain a  temporary duty exemption for items such as commercial samples and for goods intended for public displays at exhibitions or trade fairs.

For further information

Customs of Cyprus

Organizing goods transport

Main useful means

Cyprus is well connected via air, sea and telecommunications. The multi-purpose ports of Limassol and Larnaca are the country's main sea gateways for seaborne cargo and passenger traffic. Both ports have become important regional warehouse and distribution centres.

Ports

The national company Cyprus Airways
The Cyprus Ports Authority

Airports

Larnaca International Airport
Paphos International Airport

Sea transport organizations

Republic of Cyprus Maritime Centre

Air transport organizations

Department of Civil Aviation

Road transport organizations

Department of Road Transport

Identifying a supplier

Type of production

The service sector is considered as the backbone of the economy, accounting for about 76% of GDP in 2005.
Cyprus has gradually moved from being an exporter of minerals and agricultural products in the seventies to an exporter of manufactured products in the eighties and finally to an international business centre nowadays.
Oil and gas exploration and all the energy sector is an interesting field of the economy where tenders are organized. The health sector is also developing as many projects are currently under way to modernize the system.

Business directories

cypriotdirectory , Cypriot Business Directory
Cyprus Business Directory

Manufacturers associations of the main industries

Cyprus Pharmaceutical Manufacturers Association
Bacchus Association of the Regional Wine producers of Cyprus

Trade Agencies and their representations abroad

Chamber of Commerce and Industry

Enterprises federation

Cyprus Employers and Industrials Associations.