Since the 1st of May 2004, Cyprus has become a full member state of the EU. The EU membership has transformed Cyprus into a key outpost in the Eastern Mediterranean at the crossroads between Europe, Asia and Africa.
Cyprus` accession in the EU allows European Citizens to conduct business and live in Cyprus with no legal restrictions, thus making the settting up of a business in Cyprus simple and quick.
Cyprus also participates in the internal market of the EU, an area where free movement of goods, services, persons and goods is ensured, and thus sharing in the growth and development of the EU economy.
In addition, on 1st of January 2008 Cyprus has adopted the Euro as its official currency and participates in the Ecomomic and Monetary Union (EMU). The introduction of the Euro has several advantages such as:
- the elimination of exchange rate risk and foreign currency translation costs for trade, tourism and investment among EU member states,
- the promotion of price stability and low inflation growth.
Furthermore, as an EU member state that adopted the Euro, Cyprus is not able to devalue its currency or change its interest rates in response to developments in its economy. The reason for that is because the monetary policy is established by the European Central Bank.