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International Investment | 23
The volume of foreign trade and the number
of tourists and net tourism revenues paint a
similarly positive picture.
Foreign Trade (Million USD)
Number of Tourists & Net Tourism Revenues
The legal framework for foreign direct invest- exemption from custom duties, and a zero rate of
ment (FDI) in Northern Cyprus is also highly VAT on both imported and locally purchased
favourable. The government policy for invest- machinery and equipment. Tax allowances for
ment is welcoming and supportive. For example, both initial investment and annual depreciation
there are no limitations on transferring proceeds for wear and tear are similarly extensive.
from the island, and the government operates a The growth rate in Northern Cyprus in recent
variety of Investment Incentive Schemes. These years has been nothing short of spectacular, as
include provisions such as generous investment the following illustration demonstrates.
allowances in priority development areas,
Growth Rate in EU Countries and Northern Cyprus (%) (2002-2007)
www.investmentinternational.com January 2009 Investment International
© Ian Poole
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