The Economy and Competitive Council has recommended the establishment of a special fund to be financed by revenue from Cyprus’ passports-for-investments scheme and which will invest in research, innovation and development.
Money from the fund should also be used for investments with long-term development prospects, it added.
In its first policy proposal to the government on investments aiming to bolster sustainable growth through productive investments, the Council said it recognised the benefits to the economy from the passport scheme but urged the government to direct some of the revenue to productive investments with long term benefits to the economy.
The passport scheme has managed to attract significant investments, contributed to a revival of the real estate market and led to construction which had improved the employment market, profitability and tax revenue it said.
It noted that the benefits from the passport scheme are not restricted to the property market but affect economic activity more generally, but said they tended to have a short term rather than a long term impact, primarily because they investors tend not to set up home and operations in Cyprus.
The Council also proposed the establishment of a One-Stop-Shop offering simplified electronic procedures for permits, facilitating access to specialised human resources, linking potential investors with universities and professional networks and promoting economic and tax incentives to continue to attract foreign investments.
It also considers efforts to attract foreign companies to set up their headquarters or regional offices in Cyprus as significant as beyond the economic benefits, this could help create new high paying jobs.