Cyprus Economy Profile - Doing Business 2019
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Doing Business 2019 Cyprus
Economy Profile
Cyprus
Page 1
Doing Business 2019 Cyprus
Economy Profile of Cyprus
Doing Business 2019 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2019 Cyprus
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2019 Cyprus
Ease of Doing Business in
Region Europe & Central Asia DB 2019 Rank
190 1
Cyprus
Income Category High income 57
DB 2019 Ease of doing business score
Population 1,179,551
0 100
City Covered Nicosia 71.71
DB 2019 Ease of Doing Business Score
0 100
74.33: Turkey (Rank: 43)
72.56: Italy (Rank: 51)
72.34: Regional Average (Europe & Central Asia)
71.71: Cyprus (Rank: 57)
71.24: Bulgaria (Rank: 59)
68.08: Greece (Rank: 72)
Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Cyprus
1
26
28 38
47 49
52
55
70 73
82 94
Rank
109
126
138
136
163
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Ease of Doing Business Score on Doing Business topics - Cyprus
100
91.24
88.44
80.78
78.35
80 75.45
66.67
64.08 63.46
60.00
Score
60
48.59
40
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2019 Cyprus
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
• Preregistration (for example, name verification or
reservation, notarization) The business:
• Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a also collected for the second largest business city.
business or to leave the home to register the
- The entire office space is approximately 929 square meters (10,000 square feet).
company
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card - Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
• Each procedure starts on a separate day (2 - Does not qualify for investment incentives or any special benefits.
procedures cannot start on the same day)
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final The owners:
document is received
- Have reached the legal age of majority. If there is no legal age of majority, they are
• No prior contact with officials assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
• Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 Cyprus
Starting a Business - Cyprus
Standardized Company
Legal form Private Limited Liability Company
Paid-in minimum capital requirement EUR 0
City Covered Nicosia
Indicator Cyprus Europe & OECD high Best Regulatory
Central Asia income Performance
Procedure – Men (number) 5 5.2 4.9 1 (New Zealand)
Time – Men (days) 6 12.9 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 11.9 4.6 3.1 0.0 (Slovenia)
Procedure – Women (number) 5 5.2 4.9 1 (New Zealand)
Time – Women (days) 6 12.9 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 11.9 4.6 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 0.0 2.3 8.6 0.0 (117 Economies)
Figure – Starting a Business in Cyprus and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
92.39: Greece (Rank: 44)
91.24: Cyprus (Rank: 52)
90.02: Regional Average (Europe & Central Asia)
89.50: Italy (Rank: 67)
88.21: Turkey (Rank: 78)
85.38: Bulgaria (Rank: 99)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.
Page 6Doing Business 2019 Cyprus
Figure – Starting a Business in Cyprus – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
6 8
7
Cost (% of income per capita)
5
6
4
Time (days)
5
3 4
3
2
2
1
1
0 0
1 2 3 4 *5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2019 Cyprus
Details – Starting a Business in Cyprus – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Reserve the company name and get initial approval from the Registrar of 1 day EUR 30
Companies
Agency : Registrar of Companies
A standard form application for approval of name is submitted in person or by
mail to the One Stop Shop Cyprus. It can also be submitted electronically to the
Registrar of Companies and Official Receiver, through the E-filing website
(https://efiling.drcor.mcit.gov.cy).
The cost is EUR 30- which is EUR 10 compulsory and additional EUR 20 for
expediting the procedure, which is optional.
2 Prepare the Memorandum and Articles of association by a Lawyer 1 day EUR 1,000
Agency : Lawyer
The Registrar of Companies has no standard form for the Memorandum and
Articles of association. The Companies Law provides a general template
applicable for any kind of activities. It is a statutory requirement to have lawyers
prepare the Memorandum and Articles of Association, who must also sign the
relevant declaration. Since 2016, the Companies Law provides a standard form
of Memorandum which includes objects for general purpose companies which
facilitates the process of preparing the Memorandum of new companies. As for
the Articles, it may be necessary to include tailor-made provisions, to reflect any
agreement between the shareholders
3 Submit documents at the Companies Section of the Department of 2 days EUR 205 registration
Registrar of Companies and Official Receiver fees + 0.6% on the
Agency : Companies Section of the Department of Registrar of Companies and authorized capital +
Official Receiver
EUR 60 for filling
The following documents can be submitted either by hand or online, certified by a
accompanied
registered advocate/lawyer in the Republic of Cyprus:
i) Declaration form (ΗΕ1, a affidavit (sworn) statement of the lawyer and documents + EUR
signature from the Registrar of the District Court); 220 for the
ii) Form concerning the registered office address (HE2); Certificates (optional)
iii) Details regarding the directors and secretary (HE3);
iv) List of persons who consent to act as directors of the public company (HE5, in
case of a public company);
v) Original or scanned copy of Memorandum and Articles of Association (by law
must be written by a approved/registered lawyer);
vi) One Stop Shop Application Cover for Legal Entities Registration (applicable
for submission to One Stop Shop);
vii) Fee of €105,00, plus 0,6% subscription tax on nominal capital, plus €60,00 for
filling the accompanied documents, plus an optional €100,00 for accelerated
procedure (payable in cash, cheque or bank transfer). Please note that One Stop
Shop accepts only applications with acceleration fees and the One Stop Shop
Application Cover for Legal Entities Registration is to accompany the above-
mentioned application.
Upon completion of the registration the "Certificate of Incorporation" is issued.
Upon request, and payment of the amount of €220,00, the following certificates
and/or certified copies can be issued:
(1) A certificate of the Shareholders;
(2) A certificate of the Directors and Secretaries;
(3) A certificate of the Registered Office;
(4) A certified true copy of the Memorandum and Articles of Association;
(5) A certified copy of the Certificate of Incorporation.
4 Register at the Tax Department for Tax and VAT and obtain a Tax 1 day no charge
Identification Number
Agency : Tax Department
Starting July 1, 2014, the Tax Department was formed which integrated the
Inland Revenue Department and the VAT Services.
When registering at the Tax Department the Taxpayer must file in:
- Form T.D.2001- Registration of a Taxpayer, to obtain a TIN (Tax Identification
No). (Form T.D.2001 is available online at www.mof.gov.cy under Forms , Other
Forms, Registration of Taxpayer)
- Form T.D.1101 - only if the taxpayer wants to activate TIN for VAT purposes
The registration at the Tax Department can be done in person or online. Online
registration would require an e-signature and is available at
http://www.businessincyprus.gov.cy/mcit/psc/psc.nsf/All/749FC411823BDD31C2
25785600375018?OpenDocument
Page 8Doing Business 2019 Cyprus
5 Register for Social Contribution at the Ministry of Labor, Welfare and Social 1 day (simultaneous no charge
Insurance with previous
Agency : Ministry of Labor, Welfare and Social Insurance procedure)
Registering for Social Contribution at the Ministry of Labor can be done online at:
https://www.pay.sid.mlsi.gov.cy/sisweb3/index.jsp.
Takes place simultaneously with previous procedure.
Page 9Doing Business 2019 Cyprus
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
other employees who are technical or licensed experts, such as geological or
• Registering and selling the warehouse after its topographical experts.
completion
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
- Will be used for general storage activities, such as storage of books or stationery.
information
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials documentation or getting prior approvals from external agencies, these are counted
as procedures.
Cost required to complete each procedure (% of
- Will take 30 weeks to construct (excluding all delays due to administrative and
income per capita)
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
no sewerage infrastructure, a septic tank in the smallest size available will be
• Quality control before construction (0-1)
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2) gallons) a day.
• Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 10Doing Business 2019 Cyprus
Dealing with Construction Permits - Cyprus
Standardized Warehouse
Estimated value of warehouse EUR 1,090,604.50
City Covered Nicosia
Indicator Cyprus Europe & OECD high Best Regulatory
Central Asia income Performance
Procedures (number) 8 16.0 12.7 None in 2017/18
Time (days) 507 170.1 153.1 None in 2017/18
Cost (% of warehouse value) 1.0 4.0 1.5 None in 2017/18
Building quality control index (0-15) 11.0 12.0 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Cyprus and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
75.46: Bulgaria (Rank: 37)
75.29: Greece (Rank: 39)
73.19: Turkey (Rank: 59)
69.02: Regional Average (Europe & Central Asia)
67.39: Italy (Rank: 104)
64.08: Cyprus (Rank: 126)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.
Figure – Dealing with Construction Permits in Cyprus – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
500 0.4
0.35
Cost (% of warehouse value)
400
0.3
Time (days)
0.25
300
0.2
200 0.15
0.1
100
0.05
0 0
1 2 3 4 5 6 *7 *8
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 11Doing Business 2019 Cyprus
Figure – Dealing with Construction Permits in Cyprus and comparator economies – Measure of Quality
15 14.0
13.0 13.0
12.0
11.0 11.0
Index score
10
5
0
Cyprus Bulgaria Greece Italy Turkey Europe & Central Asia
Details – Dealing with Construction Permits in Cyprus – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Request copy of the site plan 1 day EUR 2
Agency : Department of Lands and Surveys
This document is required in order to prepare the application for the Town
Planning Permit.
2 Apply for the town planning permit at the Town Planning Department 90 days EUR 4,125
Agency : Town Planning Department
In order to apply for this permit, BuildCo must submit the following information:
• Land title
• Site plan, which indicates the plot boundaries and access
• Spatial plan, which indicates the position of the building and any existing
buildings or any buildings to be demolished
• Plans, sections and elevations which show the use of the building, internal
dimensions, the type of construction, and accessibility provisions
• Relevant application form
3 Apply for building permit at the Municipality of Nicosia 100 days EUR 3,983
Agency : Municipality of Nicosia
The application should be accompanied by the following documents:
• Original and recent two sets of architectural plans signed by the owner of the
immovable property and the responsible architect/civil engineer;
• Original and recent two sets of topographical plans signed by the responsible
architect/civil engineer;
• Original and recent title of deeds or bank certificate regarding mortgaged
property;
• Original town planning permit as issued by the Town Planning Department;
• Original and recent certificate of incorporation of company (for legal entity);
• Original and recent certificate of registered office address (for legal entity);
• Original and recent certificate of directors and secretary for legal entity);
• Original and recent certificate of shareholders for legal entity);
• Original and recent certified copy of memorandum and articles of association
(for legal entity);
• Original and recent proxy statement for the company's representative (for legal
entity);
• Declaration of the responsible architect/civil engineer;
• Certificate by the Cyprus Scientific and Technical Chamber regarding the
architectural works, civil engineering works, and authorization of responsibility;
• Application fee (by cash or check) depending on the type of development (see
Regulation 62 of the Streets and Buildings Regulation);
• Three extra sets of architectural drawings, one extra set of sewerage drawings
and one extra set of plans and sections (to be sent to the Fire Department,
Sewerage Department and Electricity Authority to receive their consent).
The Municipality will share the application with several local agencies for
clearance and approval (telecom, sewerage, public works, archaeological
department and fire brigade).
4 Apply for final approval and final inspection 75 days EUR 199
Agency : Municipality of Nicosia
5 Receive final inspection and obtain certificate of final approval 1 day no charge
Agency : Municipality of Nicosia
Staff from the Municipality will visit the construction. During the inspection they
will verify if the construction was completed in compliance with the original
construction plan. Inspectors will also verify if the building is in compliance with
security regulations. The certificate of final approval is issued after the final
inspection and is necessary for the registration of the new building (update of the
land title).
Page 12Doing Business 2019 Cyprus
6 Update land title 240 days EUR 115
Agency : Department of Lands and Surveys
Application package includes:
• Certificate of registration (title) of the property
• Building permit with all plans and terms attached
• Certificate of approval of building
This procedure is required in order to sell property and use property as collateral.
This procedure can take between 6 to 8 months and sometimes up to 2 years.
7 Request and obtain sewerage connection 10 days EUR 100
Agency : Nicosia Sewerage Board
8 Request and obtain water connection 10 days EUR 2,439
Agency : Nicosia Water Board
BuildCo must apply in person but the forms can be downloaded online. BuildCo
must submit the following along with the application: building permit, property
deed and topographic plan.
Takes place simultaneously with previous procedure.
Page 13Doing Business 2019 Cyprus
Details – Dealing with Construction Permits in Cyprus – Measure of Quality
Answer Score
Building quality control index (0-15) 11.0
Quality of building regulations index (0-2) 1.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 0.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections by in- 1.0
(0-2) house engineer;
Inspections at
various phases.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency; Yes, in-
house engineer
submits report for
final inspection.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 0.0
Which parties (if any) are held liable by law for structural flaws or problems in the building No party is held 0.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) liable under the
law.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 4.0
What are the qualification requirements for the professional responsible for verifying that the Minimum number 2.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of
experience;
University degree
in architecture or
engineering;
Being a
registered
architect or
engineer.
Page 14Doing Business 2019 Cyprus
What are the qualification requirements for the professional who supervises the construction Minimum number 2.0
on the ground? (0-2) of years of
experience;
University degree
in engineering,
construction or
construction
management;
Being a
registered
architect or
engineer.
Page 15Doing Business 2019 Cyprus
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and - Has two stories with a total surface area of approximately 1,300.6 square meters
obtaining final supply
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
kilowatt (kW).
• Does not include time spent gathering
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
carried out on public land. There is no crossing of other owners’ private property
Cost required to complete each procedure (% of
because the warehouse has access to a road.
income per capita)
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
switchboard and the meter base.
• Value added tax excluded
The monthly consumption:
The reliability of supply and transparency of
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
• Tools to monitor power outages (0–1) consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
supplier.
• Regulatory monitoring of utilities’ performance
(0–1) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial
warehouse in case study
*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.
Page 16Doing Business 2019 Cyprus
Getting Electricity - Cyprus
Standardized Connection
Price of electricity (US cents per kWh) 14.9
Name of utility Electricity Authority of Cyprus (EAC)
City Covered Nicosia
Indicator Cyprus Europe & OECD high Best Regulatory
Central Asia income Performance
Procedures (number) 5 5.3 4.5 3 (25 Economies)
Time (days) 137 110.3 77.2 18 (3 Economies)
Cost (% of income per capita) 124.2 325.1 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff 8 5.5 7.5 8.0 (27 Economies)
index (0-8)
Figure – Getting Electricity in Cyprus and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
85.28: Italy (Rank: 37)
81.23: Turkey (Rank: 60)
78.35: Cyprus (Rank: 70)
75.97: Greece (Rank: 79)
71.66: Regional Average (Europe & Central Asia)
54.93: Bulgaria (Rank: 147)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.
Page 17Doing Business 2019 Cyprus
Figure – Getting Electricity in Cyprus – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
140
120 120
Cost (% of income per capita)
100 100
Time (days)
80 80
60 60
40 40
20 20
0 0
1 *2 3 4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Cyprus and comparator economies – Measure of Quality
8
8
7 7
7
6
6 5.5
Index score
5
5
4
3
2
1
0
Cyprus Bulgaria Greece Italy Turkey Europe & Central Asia
Page 18Doing Business 2019 Cyprus
Details – Getting Electricity in Cyprus – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application for electricity connection and await estimate 50 calendar days EUR 27,000
Agency : Electric Authority of Cyprus
The customer can apply either in person (at any customer service location) or by
email. The forms for the application are available on-line. Most of the applicants
download the form on-line and apply in person since they can get a follow-up
number. In the application, the customer needs to provide contact information,
description of the location of the premise (land plot number), and provide a copy
of the title deed or lease agreement. The customer will also need to explain the
load requirements and justify the need for the requested load. Finally, they have
to provide an expected time of connection. Usually, the customer applies for the
connection just before starting the construction of the building since the process
can take some time.
2 Await external inspection by Electric Authority of Cyprus 21 calendar days EUR 0
Agency : Electric Authority of Cyprus
An inspector from the Electric Authority of Cyprus visits the premises to assess
the connection costs and prepare an estimate. Someone from the applicant’s
party is usually present during the inspection. After the external inspection by the
utility, the inspector will prepare the “quotation of terms” (estimate).
Before sharing the estimate cost with the customer, the Electric Authority of
Cyprus submits the application for clearance and approval to several government
authorities including: telecom, sewerage, public works, municipality,
archaeological department and fire brigade. At this point the utility also obtains
an excavation permit. After all these clearances are received, the utility will notify
the client and provide him with the estimate.
The estimate of the connection fees can be paid at any customer service of the
utility.
3 Await completion of external works, meter installation and final connection 60 calendar days EUR 0
Agency : Electric Authority of Cyprus
After the estimate is issued - and before the actual connection works can start -
the Electric Authority of Cyprus arranges/prepares for the works. After the
preparation and arrangement stage is over the Electric Authority of Cyprus
completes the external connection works.
4 Sign supply contract with Electric Authority of Cyprus 1 calendar day EUR 82.35
Agency : Electric Authority of Cyprus
The customer can schedule to sign the contract for electricity supply just before
electricity is turned on. He/she needs to give 1 week notice and the contract is
signed in 1 day.
5 Request and receive inspection of internal wiring and external works 26 calendar days EUR 0
Agency : Electric Authority of Cyprus
An applicant can request an internal wiring inspection at any customer service of
the utility.
Inspectors from the utility evaluate compliance of the internal wiring with safety
regulations. After the inspection, the inspector issues a certificate of compliance.
During the inspection, the certified in-house electrician should be present.
Typically, insurance companies in Cyprus will ask for a copy of this certificate
before insuring any building.
The electrician who did the internal wiring submits a signed notification to the
utility upon completion in which they guarantee it has been carried out according
to the regulations. During the inspection the utility also tests the external
installation. The meter is installed at this point.
Takes place simultaneously with previous procedure.
Page 19Doing Business 2019 Cyprus
Details – Getting Electricity in Cyprus – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 8
Total duration and frequency of outages per customer a year (0-3) 3
System average interruption duration index (SAIDI) 0.3
System average interruption frequency index (SAIFI) 0.1
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes
supply?
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online https://www.eac.com.
cy/EN/CustomerServ
ice/Tariffs/Document
s/Industrial%20Use
%20Tariffs%20-
%20Aug%202013.pd
f
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 20Doing Business 2019 Cyprus
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
10 years.
• Each procedure starts on a separate day -
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
though procedures that can be fully completed
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
• Official costs only (such as administrative fees, any kind.
duties and taxes).
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 21Doing Business 2019 Cyprus
Registering Property - Cyprus
Indicator Cyprus Europe & OECD high Best Regulatory
Central Asia income Performance
Procedures (number) 7 5.3 4.7 1 (4 Economies)
Time (days) 9 20.3 20.1 1 (New Zealand)
Cost (% of property value) 10.3 2.6 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 23.0 19.6 23.0 None in 2017/18
Figure – Registering Property in Cyprus and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
81.72: Italy (Rank: 23)
76.58: Turkey (Rank: 39)
75.57: Regional Average (Europe & Central Asia)
69.32: Bulgaria (Rank: 67)
63.46: Cyprus (Rank: 94)
47.59: Greece (Rank: 153)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These
scores are the simple average of the scores for each of the component indicators.
Figure – Registering Property in Cyprus – Procedure, Time and Cost
Time (days) Cost (% of property value)
9 8
8 7
Cost (% of property value)
7
6
6
Time (days)
5
5
4
4
3
3
2
2
1 1
0 0
1 2 3 4 5 *6 7
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 22Doing Business 2019 Cyprus
Figure – Registering Property in Cyprus and comparator economies – Measure of Quality
30
26.5
25 23.0 23.0
Index score 19.0 19.6
20
15
10
4.5
5
0
Cyprus Bulgaria Greece Italy Turkey Europe & Central Asia
Details – Registering Property in Cyprus – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Search the property titles and check for encumbrances 1 day EUR 50; (EUR 20 is
Agency : Department of Lands and Surveys paid for the property
While this Procedure is not required by law, it common practice to perform due
title search + EUR 30
diligence before entering into this type of transaction. In order to request this
is paid for the search
information, the buyer requires an authorization of the Seller. In practice the
of any encumbrances
seller goes with the buyer to the Department of Lands and Surveys and requests
the information on encumbrances on the property for the buyer. (i.e. mortgages,
memos, etc.) on a
specific property)
2 Lawyer drafts the sale agreement 2 days EUR 750; (EUR 500-
Agency : Lawyer 1000)
In order to prepare the sale agreement, the lawyer requires the following
information: names of the parties, amount of transaction, object, bank loan
information (if any), resolution of the assembly of shareholders and/or of the
board of directors approving the transaction (in case of companies), any power of
attorney granted to the representatives of the seller or the buyer, the
memorandum and articles of association of the buyer and the seller, a certificate
of directors and secretary of the buyer and the seller, a certificate of shareholders
of the buyer and the seller and the certificate of registered address of the buyer
and the seller. It is important to point out that the use of a lawyer is not required
by law.
The documents below are required by the lawyer when preparing the sale
contracts:
(1) Notarized Power of Attorney of the Company representatives
(2) Notarized Minutes of the board of Directors
(3)Memorandum & Articles of Association of the Board
(4) Certificate from the Registrar of Companies as to the Directors Secretary
Shareholders (for Private Companies) and the registered address
3 File the contract at the Department of Lands and Surveys 1 day EUR 50
Agency : Nicosia District Lands Office
The deposition of the contract of sale with the Department of Lands and Surveys
is mandatory under The Contract Law, Cap.149 as amended (Law no.99(I)/2013)
and applies to all sales contracts that are signed from the date of the entering
into force of the law, 9th of September 2013 and onward. Furthermore, in
pursuance with the Law No. 81 (I)/2011, the buyer is given 6 months from the
date of signing the contract of sale to deposit it to the District Land Office of the
district where the property is situated.
The objective of this reform is to protect the parties interests, especially the
buyer's in case of violation of the agreement. In particular, the deposit of contract
serves the following objectives:
1) It prevents the seller from selling the same property twice.
2) If the seller does not perform his obligations ( i.e.he does not come to the land
registry to transfer the property), the buyer can apply to the court which issues a
decision requiring the Department of Lands and Surveys to transfer the property
to the absence of the seller - what is called "specific performance" of the contract
( i.e. if the seller refuses or fails to comply with his contractual obligations) etc
Page 23Doing Business 2019 Cyprus
4 Pay transfer Taxes 1 day EUR 31,558.97;
Agency : Tax Department (Stamp duty as per
In order to transfer a title, a certification that all taxes have been paid is needed
following fee
from the Tax Department. The Tax Department provides receipts for the proof of
schedule:
payment of: (1) Immovable Property Tax; (2) Stamp Duty (the Director of which is
0 - 5000 EUR - 0%
also the Stamp duty Commissioner): Stamp duty is paid based on the purchase
price; and (3)Capital Gains Tax: The sale contract is filed for assessment of 5000 EUR - 170,000
capital gains at the Tax Department. The market value of the property is EUR=0.15%
determined by the Director of the Department of Lands & Surveys. CGT is over 170,000
imposed at 20% on gains from the disposal of immovable property. The taxable EUR=0.2% plus 150
gain is calculated by deducting from the sale price the following: (a) Acquisition EUR
cost, or market value at January 1st, 1980 if the asset was acquired before that
date; (b) Expenses incurred to improve the property; and (c) Sale expenses,
Immovable Property
interest on loans and immovable property tax.
Tax as per following
fee schedule:
EUR 1 -
40,000=0.6%
EUR 40,001 -
120,000=0.8%
EUR 120,001 -
170,000=0.9%
EUR 170,001 -
300,000=1.1%
EUR 300,001 -
500,000=1.3%
EUR 500,001 -
800,000=1.5%
EUR 800,001 -
3,000,000=1.7%
Over
3,000,000=1.9%)
5 Obtain Sewerage Board Tax clearance 1 day no charge
Agency : Sewerage Board
The seller should apply and obtain a sewerage board tax clearance from the
Sewerage Board office evidencing the sewerage board tax on the property to be
sold has been paid.
6 Obtaining the certificate of payment of municipal taxes (property taxes and 1 day no charge
refuse collection fees)
Agency : Municipality of Nicosia
As part of the property transfer process, the seller is required to obtain a
document from the Municipality of Nicosia certifying absence of any outstanding
municipal tax obligations (property taxes and refuse collection fees).
Page 24Doing Business 2019 Cyprus
7 Declaration of transfer of immovable property at the Land Registry and 2 days EUR 80,448.23; (The
issuance of the new title deed fees charged by the
Agency : District Land Office of Nicosia Department of Lands
As proposed by the Law No.81(I)/2011, the sale contract must be registered at
and Surveys for the
the Land District office within 6 months after the signature of the contract. The
transfer of immovable
change of ownership takes place when the declaration of transfer is completed
and the property is then registered in the name of the buyer at the Land District properly are as
office. The original and the copy of the contract of sale must be duly stamped. follows:
up to 85,000 EUR =
The buying Corporation is responsible of paying for the Transfer Tax based on 3%
the value of the property as determined by the Director of the Department of from 85,001 -
Lands & Surveys. The fees charged by the Department of Lands and Surveyors 170,000 EUR = 5%
for the transfer of immovable property are as follows:
above 170,000 EUR
up to 85,000 EUR = 3%
= 8%)
from 85,001 - 170,000 EUR = 5%
above 170,000 EUR = 8%
Documents to be provided to the Land District Office are as follows:
(1) Completed Form N270 (Declaration of Transfer of Immovable Property).
(2) The certificate of registration (title) of the immovable property, which is to be
transferred
(3) Completed Form N.313.
(4) Proof of payment of all fees, charges and taxes payable for the property
under transfer.
(5) Immovable Property Tax and Capital gains tax (Receipts of payment for these
taxes are obtained from the Internal Revenue Department)
(6) Sewerage Board Tax (receipt obtained from the Sewerage Board)
(7) Town rate (receipt obtained from the municipality in whose boundaries the
property is situated)
(8) Communal rate (receipt obtained from the community in whose boundaries
the property is situated)
The declaration of registration is done after the evaluator at the Registry
assesses the value of the property, based on the amount stated in the sale
agreement. If the assessed price is higher than the paid amount stated in the
purchase agreement, an inspection will be conducted by staff from the land
registry. This valuation is required in order to prevent fraud (i.e. state in the sale
agreement a lower amount in order to pay less transfer fees).
In case of properties that have an additional Value Added Tax cost on the selling
price, then there is a full discount on the sum for title transfer, until 31/12/2016. In
the rest cases the title transfer fees if paid prior to the 31/12/2016 then 50%
discount is applicable. The changes are due to the amendment of the Transfer
Fees Law, Cap. 219, L.115(I)/2015
Takes place simultaneously with previous procedure.
Page 25Doing Business 2019 Cyprus
Details – Registering Property in Cyprus – Measure of Quality
Answer Score
Reliability of infrastructure index (0-8) 7.0
What is the institution in charge of immovable property registration? The Department
of Lands and
Surveys
In what format are the majority of title or deed records kept in the largest business city—in a Computer/Fully 2.0
paper format or in a computerized format (scanned or fully digital)? digital
Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions Yes 1.0
and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Survey and
Cartography
Branches of the
Department of
Lands and
Surveys
In what format are the majority of maps of land plots kept in the largest business city—in a Computer/Scann 1.0
paper format or in a computerized format (scanned or fully digital)? ed
Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral Single database 1.0
or mapping agency kept in a single database, in different but linked databases or in separate
databases?
Do the immovable property registration agency and cadastral or mapping agency use the Yes 1.0
same identification number for properties?
Transparency of information index (0–6) 2.5
Who is able to obtain information on land ownership at the agency in charge of immovable Only 0.0
property registration in the largest business city? intermediaries
and interested
parties
Is the list of documents that are required to complete any type of property transaction made Yes, online 0.5
publicly available–and if so, how?
Link for online access: http://portal.dls.m
oi.gov.cy/en-
us/pages/newdef
ault.aspx
Government
Gateway (
ARIADNI)
Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5
immovable property registration in the largest business city made publicly available–and if
so, how?
Link for online access: http://www.moi.g
ov.cy/MOI/DLS/dl
s.nsf/dmltransfer
_en?openform
Government
Gateway (
ARIADNI)
Does the agency in charge of immovable property registration commit to delivering a legally Yes, in person 0.0
binding document that proves property ownership within a specific time frame–and if so, how
does it communicate the service standard?
Link for online access:
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the agency in charge of immovable property registration?
Contact information:
Are there publicly available official statistics tracking the number of transactions at the Yes 0.5
immovable property registration agency?
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