Merry Christmas and a Happy New Year
As 2022 comes to a close I would like to wish all my readers, their families and their loved ones a Merry Christmas and a Happy New Year.
As a final message for the year, I thought to recap the year and what I have been doing with this website and the content I dish out every so often. As well as a few messages for what I expect to be coming in 2023.
2022 in Review
UBO Register came but quickly left within 6 months – The ECJ decision completely terminated the possibility to access the UBO register claiming it was against the charter establishing the European Union.
CySEC launched the register of Crypto Asset Service Providers – Attracting crypto giants like Binance and Revolute. CySEC regulates Crypto Asset Service Providers so that they apply AML and KYC in their dealings. On the other side, crypto giants hope to passport licenses to the rest of EUROPE once MICA kicks in.
Record Assets under Management – Cyprus managed to attract globally recognized Investment Funds such as Aramco and other global players. This has led to another boom year for the Cyprus Funds sector and further established the jurisdiction as a key location for funds.
Shipping Limited Liability Company – With its very own shipping company regime the Cyprus shipping industry has solidified its foothold as a ship-owning jurisdiction in 2022. This means that more and more ship owners will be registering with the Cyprus Department of Merchant shipping. Also in 2022, a number of high-profile events and gatherings were held in Cyprus.
Techisland (brand) and in practice – Cyprus tech is booming. Developers have been pouring into the island. Mostly driven by tax breaks at the corporate and personal level, the existing government has managed to make the unthinkable, actually turning Cyprus into a business centre for a niche industry. As I understand it a group of high-profile and prominent companies launched Techisland in a way to give a voice and a venue to the tech and start-up ecosystem of Cyprus.
Real Estate – Its not all about the passport. We saw the end of the nationalization by investment in 2022 and although we thought it would be catastrophic to the real estate industry locally 2022 has been a record year for deals submitted to the department of land registry. The number of deals is of the same level as in 2009 or YoY had an increase of 30% compared to last year.
I believe that:
2023 Elections – Irrespective of the outcome of the elections in 2023 the government will be challenged by the geopolitical uncertainties in the area, think Turkey, Siria, Ukraine, Russia, Nato, etc.
Spending Contraction – With interest rates expected to normalize in 2023, we will see household income spending being under pressure more and more. This will create the following phenomena:
- Uncovered checks to increase
- Foreclosures and repossession of property
- Bills will be falling in areas
Inflow of new business – As cost increase more and more businesses will be looking for lower-cost alternatives to existing operations. Cyprus’s lower cost of living and high calibre of the workforce will increase its market share with respect to financial services and related products. This will be in the sector of funds management, fund admin, crypto business, R&D and other similar none industrial productions.
Real Estate – Real estate will continue strong in 2023 because of market conditions and it is not expected to change in trajectory, with the hottest real estate being offices and residential dwellings.
Shipping – with the reopening of China and the reduction in rates of container shipping I expect to see more international trade. More trade needs more ships which might lead to more registrations in Cyprus, however, taking into account strong inventories and a reduction of purchasing power of European consumers (increased expenses in energy and interest) might not materialize.
Tell us what you think!
Tell us what you think about restricting access to the UBO register
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