The United States market is one of the most demanding and decisive markets globally for attracting international investment.
With high expectations in terms of legal certainty, regulatory framework, speed of procedures and tax predictability, American companies seek jurisdictions that combine stability, efficiency and international credibility. For Cyprus, engaging with this market is not merely an opportunity but a strategic choice that requires continuous upgrading of its business and institutional environment.
These issues were at the forefront of the 10th Professional Services Conference presented by the Bank of Cyprus, where participants stressed that Cyprus is at a critical turning point of transformation. Taxation, the speed of justice delivery and the digitalisation of the state are shaping the next phase of its investment profile. They underlined that the country needs to move from being an “attractive jurisdiction” to becoming a “strategic investment platform.”
George Constantinides, Partner, International Tax Services at PwC Cyprus, estimated that American multinationals place particular emphasis on three key pillars: a stable legal system, tax predictability and the speed of justice delivery. As he noted, Cyprus already possesses significant advantages, such as its common law system and competitive corporate tax rate, but requires substantial improvement in dispute resolution timelines and administrative procedures.
He also stressed that large US corporations, particularly Fortune 500 groups, are looking for jurisdictions that help reduce their effective tax rate within the framework of international rules such as Pillar Two. He noted that Cyprus must ensure its domestic tax framework remains compliant and competitive within this new global environment.
He made particular reference to the need for simplification of the business environment, pointing out that American companies tend to avoid overregulation and prefer jurisdictions with digitalised and fast procedures. As he explained, Cyprus has made significant progress in the digitalisation of the state, through the Tax Department and the Registrar of Companies, but there is still room for acceleration, especially in day-to-day administrative operations.
Within the same context, he referred to Cyprus’ role as a regional hub for US companies, which use the country as a base for activities in Europe, the Middle East and Africa. At the same time, he noted that Cyprus’ forthcoming inclusion in the Visa Waiver Program acts as a strong signal of trust towards the United States and enhances the country’s international image as a reliable partner.
Petros Krasaris, Partner, International Tax and Transaction Services and US Geography Leader at EY Cyprus, emphasised that taxation remains an important factor, not as the sole criterion, but as part of a broader competitiveness package. As he stated, Cyprus already meets key requirements of US businesses, such as the corporate tax rate at 15%, the framework for investment incentives and alignment with international tax developments.
However, he pointed out that the new global environment following agreements on the international tax framework creates additional expectations for simplification. American multinationals, he said, expect a unified tax base, limited bureaucratic requirements and the avoidance of parallel national mechanisms that increase administrative burden.
According to Gerasimos Douskas, Board Member, Technology Consulting at KPMG Cyprus, Cyprus is now in a phase of strategic upgrading of its relationship with the United States, not only as an investment destination but also as a partner in sectors such as technology, defence and innovation. He referred to cooperation initiatives already underway and underlined that the country must make more active use of its role within the European Union to strengthen its position as a bridge to the US.
At the same time, he noted that Cyprus needs further improvement in connectivity and infrastructure, which directly affect the country’s attractiveness for international companies seeking physical presence and an operational base in the region.
The discussion was moderated by the Executive Director of the American Chamber of Commerce in Cyprus, Pantelis Pantelides.
