Free Trade Zones in Cyprus
Free Trade Zones in CyprusUpdated on Monday 19th June 2017
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A free trade zone represents a distinct economic area where goods can be stored, made, handled or redesigned and then re-exported according to a strict local customs legislation. Our lawyers in Cyprus analyze briefly, in this article, the free trade zones in Cyprus and different aspects relating to this matter.
Free trade zone types in Cyprus
Cyprus is an economic hub well known internationally for having two types of free trade zones:
• Control type I trade zone: this free trade zone in Cyprus is characterized by controls mainly based on a fence presence. Our Cypriot lawyers can provide more information on this type of free trade zones;
• Control type II trade zone: it is represented by a free trade zone where controls are mainly based on the formalities effectuated according to the regulations of the customs warehousing procedure.
Cyprus entails two control type II free trade zones:
• The main seaport of Limassol;
• The main seaport of Larnaca.
These free trade zones are utilized for transit trade and are treated as not being part of the normal EU customs region. Therefore, non-EU items stored in these Cypriot free trade zones are not taxed on import duties, excise fee or VAT.
The local Department of Customs governs the normal zones, as well as the control type II free trade zones in the country, levying bans or imposing restrictions on certain kind of activities, depending on the item nature. Our lawyers in Cyprus can offer further details on this matter.
The Larnaca free trade zone in Cyprus
The Larnaca free trade zone in Cyprus is the most well known free trade zone in the country and was founded by the Ministry of Commerce, Industry and Tourism, with the set objective of enabling export-oriented investments by creating an even more profitable business environment in the country.
This Cypriot free trade zone was created to complete and subsidize the external trade and international commerce, offering different incentives like the annulment of customs duties and taxes in connection with the goods imported here. Our attorneys in Cyprus can provide further details on this aspect, if necessary.
Businessmen interested in acquiring land in this area may contact the Ministry of Commerce, Industry and Tourism to procure an application form in order to acquire a piece of land in this area.
Another application form has to be forwarded to the Department of Customs and Excise to procure the appropriate approval according to the Customs legislation implemented in 2004.
If you need to find out more about the Cypriot free trade zones, or for any legal advice, please get in touch with our law firm in Cyprus.