Freedom Finance Europe announces another step in its growth trajectory with the inauguration of 3 new offices in the Netherlands, Austria, and Bulgaria, reflecting the company's commitment to deliver advanced investment solutions to diverse European markets. Following the official launch of Freedom24, Freedom Finance Europe’s investment platform across the EU in 2021, the company has already opened 6 representative offices over this year.

The new office in Amsterdam will focus on developing the Dutch market and serve as the Benelux hub, a region where the company has seen a 162% client growth over the past 12 months.

"We find ourselves in a pivotal phase of growth for Freedom Finance Europe," said Nathan Civile, Head of Representative Office in the Netherlands. "As we navigate this development, our primary objective is to expand our footprint in strategic markets. The Netherlands holds a unique and integral position in our long-term strategy, and the much-anticipated establishment of our Amsterdam office marks a significant step in our efforts to solidify Freedom Finance Europe's enduring presence across the entire Benelux region. I am glad to use my knowledge and experience towards bringing an extensive range of financial products, services, and technologies to an ever-growing client base in the Netherlands and beyond."

The decision to open a branch in Austria is followed by solid growth numbers, with Freedom Finance Europe’s client base seeing a 164% increase just over the last year.

“I am pleased to share our strategic move into the Austrian market," stated Shanna Strauss-Frank, Freedom Finance Europe's spokesperson for the DACH region. “With the opening of our new office in Vienna, we are eager to further intensify our client-centric approach. By tailoring our expertise to meet the unique financial needs of the Austrian market, we aim to strengthen our position as a trusted financial partner in the country."

In this strategic expansion initiative, the Bulgarian representative office is set to reinforce the company’s presence in Southeast Europe.

“I am pleased that Freedom Finance Europe has decided to establish a representative office in Sofia. As we extend our reach to Bulgaria, our goal is to provide our current and prospective clients with transparent, value-focused solutions, showcasing the depth of the company’s mission to make investments available to a broader range of retail clients", said Alexandr Buyukli, Head of Representative Office in Bulgaria.

The new offices signify a step forward in the company's mission to enhance accessibility for investors and establish itself as a trusted financial partner across the European markets. Freedom Finance Europe, which currently operates in 10 EU countries, is committed to further strengthen its market foothold in 2024 by opening representative offices in other international destinations seen as promising for the company’s long-term growth.

Materials are presented by Freedom Finance Europe.

Какие доходы не облагаются корпоративным налогом на Кипре? Какие расходы могут уменьшить налогооблагаемую базу? Подробно разберем, что стоит учесть при расчете корпоративного налога в 2024 году.

Кипр традиционно является привлекательным местом для регистрации компаний, и одна из причин этого – то, что ставка корпоративного налога в стране долгое время оставалась одной из самых низких в Евросоюзе – 12,5%. В соответствии с директивой ЕС, с 1 января этого года во всех государствах блока, включая Кипр, была введена новая минимальная ставка налога на прибыль корпораций – 15%. Нововведение коснется только крупных корпораций с выручкой свыше 750 млн. евро в год, зарегистрированных или имеющих дочерние подразделения на Кипре. При этом часть доходов компаний полностью или частично не подлежат налогообложению.

Корпоративные доходы, не подлежащие налогообложению

· Прибыль от продажи ценных бумаг.
· Доходы в виде дивидендов.
· Доходы в виде процентов от неосновной деятельности компании.
· Прибыль постоянного представительства компании за рубежом.
· Доходы от разницы в курсе валют, за исключением доходов от биржевой торговли.
· Доходы от производства фильмов, сериалов и других аналогичных программ.

Корпоративные расходы, уменьшающие налогооблагаемую базу

· Расходы по выплате процентов, понесенные при приобретении 100% акционерного капитала дочерней компании. В расчет идут только те расходы, которые относятся к активам дочерней компании, непосредственно используемым в бизнесе.
· Роялти и иной доход, полученный от нематериальных активов. Вычет не должен превышать 80% чистой прибыли.
· Налоговая амортизация любых затрат капитального характера, связанных с приобретением интеллектуальной собственности.
· Налоговая амортизация любых затрат на научные исследования и НИОКР.
· Пожертвования в официальные благотворительные организации.
· Взносы работодателя в фонд социального страхования, ГеСИ и утвержденные фонды заработной платы сотрудников.
· Взносы работодателя в фонд медицинского страхования сотрудников и в страховой пенсионный фонд.
· Расходы на содержание старого жилого фонда (не более €1 200, €1100 или €700 за квадратный метр в зависимости от размера здания).
· Представительские расходы (не более €17 086 или 1% от валового дохода компании).
· Инвестиции в инновационные малые (20%) и средние (10%) предприятия. Вычет действует с 14 февраля 2022 г. по 31 декабря 2026 г.
· Расходы на технологическое оснащение в аудиовизуальной отрасли (20% и 10% для малого и среднего предприятия соответственно).

Корпоративные расходы, которые нельзя использовать для получения налоговых вычетов

· Затраты на приобретение личного автомобиля.
· Проценты, относящиеся к стоимости приобретения личного автомобиля или любого другого актива, не участвующего в деятельности компании.

Статья подготовлена по материалам компании PwC.

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Налог на доходы физических лиц на Кипре в 2024 году

Генеральный директорат по развитию Министерства финансов отчитался об успешном освоении европейских средств на сумму 880 млн евро. Они пошли на совместное с государством финансирование различных проектов развития в период с 2014 по 2020 год. Общая стоимость этих проектов составила более 1 млрд евро.

Кипр остается в числе стран Европейского союза, которые на 100% освоили средства из европейских фондов, максимально используя возможности по финансированию проектов экономического роста, занятости и социальной интеграции. При поддержке ЕС были завершены проекты, которые формируют будущее страны и оказывают положительное влияние на общество и окружающую среду. Экономический эффект от освоения европейских средств также заметен. Они увеличили валовый внутренний продукт на 5% и создали 24 000 новых рабочих мест.

На европейские деньги были реализованы следующие проекты:
― информационный центр Университета Кипра;
― инновационный хаб в историческом центре Никосии;
― онлайн-платформа для ГеСИ;
― инициативы по поддержке и продвижению предпринимательства среди молодежи и женщин;
― проекты по энергосбережению в домах и на предприятиях;
― проекты по управлению водными ресурсами и твердыми отходами;
― открытие новых учебных программ технического и профессионального образования, практической подготовки юристов и молодых ученых;
― создание инфраструктуры и услуг для социальной интеграции уязвимых групп населения;
― благоустройство торгового района между улицей Стасикратус и проспектом Архиепископа Макариоса III в Никосии;
― благоустройство площади Свободы (Элефтериас) в Никосии;
― создание многофункционального центра социальной помощи им. Зеты Эмилианиду;
― реконструкция площадей Джона Кеннеди и 28 октября в Пафосе;
― реконструкция здания муниципального рынка и благоустройство площади Зухури в Ларнаке;
― реализация проекта городской мобильности в Айя-Напе;
― создание линейного парка вдоль русла реки Гариллис в Лимассоле.

В 2021-2027 году в рамках программы «Талия» Кипр получит от ЕС 1,8 млрд евро.

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МВФ призвал Кипр вести разумную финансовую политику
 

Evgeniy Tyapkin, Executive Director of Freedom Finance Europe, discusses the development of the financial sector in Cyprus over the past 10 years and shares his thoughts on what to expect in 2024.

Where did it all start?

I’ve been in Cyprus since 2014, initially leading another brokerage firm, and joined Freedom Finance in 2017. At that time, we were essentially a start-up – just 8-10 people in an office set in a villa. We were learning to work in a completely new country and a new European jurisdiction, trying to meet all the local requirements. On one hand, we were focused on training and compliance. On the other hand, we always had a robust IT team, which, alongside operational activities, created and developed a trading platform, still in use today.

Did you initially plan to develop and maintain the platform yourselves?

Absolutely. We had the expertise for both. Now, we operate two companies. We attract and serve clients through Freedom Finance Europe. And there is Freedom Finance Technologies, which focuses on the development and support of our trading platform, used not just by our group’s companies but also by other professional market participants, including those in Cyprus.

Over these years, there have been both highs and lows. In the Cypriot economy and in the government’s relations with various types of business. How has the attitude of the Cypriot regulator towards your business changed?

It can be asserted that Cyprus is now one of the most regulated jurisdictions among European countries. In an effort to shed its offshore reputation, Cyprus has introduced very serious regulatory measures since 2014. However, as we grew gradually, we consistently integrated these measures into our operations without much stress.

If you were to describe the activity of Freedom Finance Europe in Europe in one sentence, how would it sound?

Freedom Finance Europe is a brokerage firm that provides direct access to international stock markets, where any client can quickly purchase real shares and other securities.

A significant advantage of your company is that you have reached a wide retail market. So, any person, regardless of the amount they have, be it 1,000 or 100,000 euro, can use your platform and trade shares?

You are absolutely right. There are minimal lots on the exchange, but they are usually insignificant, allowing us to execute client orders for almost any amount.

How did you come to this approach?

At the start, we had two main tasks. The first was to create a technological platform, and the second was to establish the corresponding infrastructure. Unlike many companies that do not route client orders to the stock market, we need to have relationships with clearing agents, depositories, exchanges, and prime brokers. For example, we have direct membership on the Athens Stock Exchange, and orders are executed through the Greek bank Piraeus, where clearing and delivery of securities also occur. All this must also comply with legislative requirements, which are constantly becoming stricter.

What is your abmition when it comes to the market share in Europe?

We are just beginning our active growth phase. Our marketing has gained sufficient strength, and our client base is expanding. However, our overal share across Europe is still modest. It is worth mentioning that our clients, which now amount to around 400,000, are serviced by a relatively small team: our platform is designed so intuitively that clients can easily understand everything on their own. Therefore, we won’t have issues with scaling.

Similarly, we won’t have problems complying with legislative norms and rules. We report to more than one regulator and more than once a year. Our primary regulator is the Cyprus Securities and Exchange Commission.

We also report to the U.S. Securities and Exchange Commission, where reports are required quarterly.

Additionally, we work with auditors from the “Big Four”, who are also PCAOB-certified. These specialists are authorized to work with public companies.

Are you a public company?

Yes, for four years now. Shares of our holding are traded on the Nasdaq Exchange. It’s important to note that the reporting of a public company is much stricter than that of a private one.

However, your reputation was negatively impacted by a few publications from an American company…

Indeed, there are certain ill-intented practices when fake information is fabricated and delivered in the form of research. When published, the authors count on the market reaction and take short positions in the targeted company. After the research is published and the stock price drops, the position is closed, and money is made that way.

It’s quite common in the U.S. to play the stock market not for a rise, but for a fall. We have responded and dismantled all of the accusations publicly, making it clear that this was a fabricated attack. To be fair, we don’t see a significant impact of these publications on the value of our shares. There was some decline, but then the value returned to approximately the same level as before the publications.

What about the reputational hit?

As of now, we are not facing any difficulties. None of our partners have broken off relations with us. We have always conducted business openly with both counterparts and clients. This was our principle even before we became a public company, and we continue to strictly adhere to it. We inform, warn, explain… Even when we make a mistake, we always talk about it.

I can assume that because of this situation, some might have chosen not to partner with us, but all those who were with us earlier have stayed. Importantly, in our experience, the larger the participant and counterpart we cooperate with, the fewer questions they have.

How challenging is it to work here, in Cyprus, considering the situation with Cypriot banks?

Cypriot banks prefer to do nothing, to refuse everyone, to prohibit everything, just to avoid taking responsibility. But sooner or later, they will have to move out of this state, or they will remain on the sidelines of business.

Staying in such a state for a long time is not sustainable as competition doesn’t stand still. Neobanks, which also operate within the law without violating any requirements or rules, are already posing serious competition to traditional banks, and this trend is only going to intensify.

Can you predict the main events of 2024 in various sectors? Let’s start with the regulator. What changes do you foresee here?

I believe the regulator has reached its optimal level in terms of performing its functions, and it will only improve the processes that already exist. For instance, the quality of reporting, which we are already seeing improve.

What about the securities market?

I don’t anticipate any significant changes in the near future. Over the past few years, all companies in this market have achieved an optimal level of compliance with current regulatory requirements. Sanctions do add some complexities, but they are not something that can seriously affect the market. Everyone has learned to operate in these circumstances.

In terms of market dynamics, it’s hard to expect significant growth under current conditions. However, the market never stands still; it’s always moving. This means there are opportunities for profit in trading.

And finally, what’s your forecast for the development of Cyprus? What direction will it take?

Cyprus is a unique place. It has always been fortunate. Just look at the island’s history. Initially, it was an offshore zone, providing the state with earning opportunities. Then, when Cyprus joined the EU, those opportunities disappeared, but new ones emerged, like the IP-Box tax regime. This brought in a lot of talent, a surge in intellectual property creation, and the opportunity to earn royalties. The real estate sector began to grow, along with investment opportunities and residency options... What did this lead to? An influx of investment and funds into the economy, the development of the construction sector and development companies, an increase in demand for labor, and much more. Most likely, this trend will continue in the future, meaning the economy will grow.

What is Cyprus lacking?

Undoubtedly, Cyprus needs digitalisation, e-government, and advanced fintech services. We’ve already started meetings to discuss how we can emulate experience that we’ve accumulated in Kazakhstan, where our holding is among country’s key financial institutions, advancing banking, insurance, brokerage, and e-com businesses in close collaboration with the state’s digital infrastructure. For instance, in Cyprus, it took me 2.5 months to process a mortgage, while in Kazakhstan, it’s done in an hour. Their databases are so well digitized that most official matters are resolved in just minutes.

I would like Cyprus to also become a developed digital country. Of course, this is a challenging and slow task. There isn’t a country in Europe where this issue is fully resolved yet. But that doesn’t mean we shouldn’t move in that direction. And we are ready to help. We have a large team with very serious, long-term experience. We were the first company in Kazakhstan to launch digital credits. Now we even have digital auto loans there. We are ready to share our expertise to create a high-level digital government in Cyprus.

Materials are presented by Freedom Finance Europe

With a grand celebration spanning an entire week in December, Limassol-based Exness marked its 15-year anniversary. This occasion, titled ‘15 Years of Exceptional Moments’, wasn’t just a celebration of Exness’ achievements and its rise as a greatly prominent global retail broker; it was a tribute to the people who were instrumental in its journey – employees, clients, and partners.

In a grand gesture of appreciation and recognition, Exness flew almost one thousand people who are integral to its success, to Cyprus. The week was packed with extraordinary events, featuring a blend of gala and corporate dinners, island tours, and lively parties.

Attending the events were also prominent figures of Cyprus’ political and social scene. The Minister of Tourism, Kostas Koumis, took the stage at one of the week’s many events, held at Limassol’s City of Dreams, delivering a commendatory speech, acknowledging Exness’ business achievements and thanking the company for what he characterised as one of the biggest events of the past few years.

Central to the celebrations was a series of talks by Exness’ senior managers on the “Future of Exness”. These unveiled Exness’ strategic vision, brand evolution, plans for partnerships, and role in the capital markets.

During these talks, Exness’ guests had an exclusive preview of a major announcement coming at the end of January 2024.

These talks showcased that while Exness has an ambitious vision for the future, it remains true to its founding values of innovation and ethical practices. Exness’ commitment to these values is evident in its entire approach to product development. The company, specializing in facilitating access to the financial markets, leverages technology and data science to constantly improve the trading experience for its clients.

But the highlight of the celebration was the climactic Cyberness Party, an unprecedented event for Cyprus, showcasing a stunning display of retro-futurism, and offering attendees an immersive entertainment experience. Taking place at Limassol’s revamped Kolla Factory, the party combined spectacular culinary, musical, and visual experiences, symbolic of the company’s products and milestones. With creativity and innovation at its core, the event was reflective of Exness’ character and ethos. Incredible musical and dance performances were given by international stars Who Made Who, Satori, Alma Linda, Playtronica, Curiosity Media Lab, and Context. Diana Vishneva. The party was also attended by key Cypriot socialites and influencers.

Exness CEO, Petr Valov, commented: “Hosting this celebration in Cyprus and bringing together our partners, clients and key contributors to our success was tremendously moving and surreal. Our anniversary was a great opportunity to come together, celebrate our collective achievements, and share our vision for the future, all on this beautiful island we now call home. We are ready to embark on the next 15 years and a new exciting era for both Exness and Cyprus.”

The blend of technological advancements and ethical practices Exness employs, has propelled the company’s expansion in over 100 countries and its growth from monthly trading volumes of $10 billion in 2010 to nearly $5 trillion in 2023. Its global footprint is supported by a workforce of more than 2000 world-class employees and a network of 119,000 dynamic partners and 600,000 clients worldwide.

Beyond its reputation as a top employer in Cyprus, Exness significantly contributes to Cyprus’ community. The company’s corporate social responsibility focuses on education, the environment, and emergencies. Notable initiatives of the past years include the €1,000,000 donation for COVID relief efforts, a €600,000 contribution to the Department of Forests in Cyprus, and full Cambridge scholarships to top students in science and tech-related fields. As a founding member of Tech Island, Exness is also instrumental in transforming Cyprus into a Mediterranean tech hub, strengthening the competitive advantage of the local economy and workforce.

The 15-year milestone was an exceptional moment for everyone involved in Exness’ success to celebrate and look forward to the future. The celebrations were not just about commemorating past achievements but also about setting the stage for Exness’ future steps. As Exness is poised to enter a new era, it is committed to remaining true to the same principles of tech-driven product development and ethical practices that have been instrumental in its rise to becoming an incredibly prominent global broker.

Materials are presented by Exness

На Кипре и по всему Евросоюзу унифицирован нижний порог налога для крупных транснациональных компаний. Теперь они будут платить налог на прибыль по ставке 15% (до этого на Кипре было 12,5%)

Республика Кипр является страной с одной из самых низких в мире ставок на доходы корпораций (налог на прибыль компаний) – 12,5%. Из стран ЕС ниже ставка только в Венгрии – 9% и в Болгарии – 10%. Например, на Мальте ставка – 35%, Португалии – 31%, Германии – 29%. В крупнейших неевропейских экономиках мира: в США – 25,77% (немного отличается от штата к штату), в Бразилии – около 34%, а в Канаде – около 26%.

Зачем ввели минимальный налог?

В 2021 году США выступили с мировой инициативой ввести единую минимальную ставку корпоративного налога – 15% для крупных компаний и их дочерних обществ, чтобы предотвратить утечку фирм в юрисдикции с низкими налоговыми ставками. С реформой согласились 136 стран, на которые приходится 90% мирового ВВП.

На сколько и для кого изменится ставка налога?

С 1 января 2024  данная директива вступила в силу на территории ЕС. Кипр должен будет привести свое налоговое законодательство в соответствии с требованиями Евросоюза. Ставка налога на доходы повысится с 12,5% до 15%. Изменение будет касаться корпораций с выручкой свыше 750 млн. евро в год, зарегистрированных или имеющих дочерние подразделения на Кипре. Под данную налоговую модификацию могут попасть некоторые банковские институты Кипра, дочерние компании крупнейших логистических, технологических, IT и аудиторских гигантов, работающих на острове.

Сроки реализации

Однако, по информации от надежных источников правительства, реализация этой меры на Кипре может немного задержаться из-за прохождения законопроекта через юридическую проверку. Предполагается, что законопроект будет представлен в парламент в январе или в начале февраля. Незначительная задержка не вызовет проблем с европейскими властями, так как ожидается, что принятый закон вступит в силу к концу 2024 года и будет иметь обратную силу начиная с января 2024 года.

Изменения налоговой политики Кипра являются ответом на глобальные инициативы по созданию более справедливой системы налогообложения. Для крупных корпораций эти изменения могут увеличить налоговые обязательств, однако в целом приведение налогового законодательства в соответствие с европейскими директивами поможет укрепить экономическую стабильность и улучшить международный имидж Кипра.

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Республика Кипр не берет налог с первых девятнадцати с половиной тысяч евро, заработанных ее налоговым резидентом. Затем применяется ставка от 20% до 35% от суммы дохода за год. В данной статье рассматриваем ставки на различные виды дохода, в том числе, пенсионный доход, проценты по вкладам, дивиденды.

Налог на доходы физических лиц (или подоходный налог) на Кипре в 2024 году рассчитывается следующим образом:

Пенсионные доходы

Доход в виде пенсии, получаемой за рубежом, облагается налогом по фиксированной ставке 5% на суммы свыше €3 420.

Пенсия вдовца (вдовы), полученная из источников на Кипре, облагается налогом по фиксированной ставке 20% на сумму свыше €19 500.

В обоих вышеуказанных случаях налогоплательщик может ежегодно выбирать опцию платить по обычным налоговым ставкам.

Доходы, не подлежащие налогообложению

· Доходы в виде дивидендов.

· Доходы в виде процентов от неосновной трудовой деятельности.

· 50% или 20% (но не более €8 550) от вознаграждения за осуществление любой трудовой деятельности на Кипре физическим лицом, не являвшимся налоговым резидентом Республики до начала трудовой деятельности на Кипре. Эти две льготы имеют разные условия и срок предоставления. Они не могут применяться одновременно. Подробнее о них здесь. 

· Прибыль от продажи ценных бумаг.

· Вознаграждение за услуги, оказываемые за пределами Кипра в течение более чем 90 дней в налоговом году. Услуги должны быть оказаны работодателю, не являющемуся резидентом Кипра или иностранным постоянным представительством работодателя-резидента Кипра.

· Единовременные пособия по выходу на пенсию, пособия на погребение, страховые выплаты, связанные с получением травм или смертью.

· Доходы, полученные из резервных фондов.

· Доходы от производства фильмов, сериалов и других аналогичных программ.

Суммы, уменьшающие налогооблагаемую базу

· Взносы в профсоюзные организации.

· Убытки текущего года или предыдущих лет.

· 20% от доходов по сдаче недвижимости в аренду.

· Пожертвования в официальные благотворительные организации.

· Расходы на содержание старого жилого фонда (не более €1 200, €1 100 или €700 за квадратный метр в зависимости от размера здания).

· Взносы в фонд социального страхования, ГЕСИ, частные фонды медицинского, пенсионного страхования или страхования жизни. Ставки налоговых вычетов зависят от вида взносов.

· Инвестиции в одобренные инновационные малые и средние предприятия. Взносы должны быть сделаны не ранее 1 января 2017 года. Суммы списываются в процентном соотношении и не должны превышать 50% от налогооблагаемого дохода в год, когда была сделана инвестиция.

· 20% от инвестиций в инфраструктуру и технологическое оборудование в аудиовизуальной отрасли.

· Расходы на научные исследования.


Статья подготовлена по материалам компании PwC.

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Кабинет министров одобрил создание платформы для общественных консультаций и нормативную базу, регулирующую ее работу. Об этом объявил глава Министерства финансов Макис Керавнос.

Платформа призвана стать единым порталом для всех публичных консультаций и каналом коммуникации и взаимодействия государства и общества. Ведомства будут загружать на платформу новые законопроекты и другие документы, по которым смогут высказаться все пользователи. По сути, платформа повторяет функционал института общественных консультаций, которые вплоть до недавнего момента проводились только вживую.

Ожидается, что платформа будет способствовать совершенствованию нормативно-правовой базы, доминированию принципов верховенства права и прозрачности, более широкому участию жителей в работе министерств.

Платформа уже работает, она доступна по адресу https://e-consultation.gov.cy/

На главной странице есть поисковик, который помогает найти нужный законопроект. Поиск можно провести по ключевым словам, ведомствам, виду документа (стратегия, законопроект, план действий, регламент) или теме.

Также на главной странице находится лента загруженных документов. Кликнув на любой из них, можно перейти на страницу обсуждений и оставить комментарий.

Руководство по пользованию платформой можно прочитать здесь.

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Заработала система электронного правосудия

С какими странами у Кипра подписаны соглашения об избежании двойного налогообложения? Предлагаем вам ознакомиться с полным списком, актуальным на январь 2024 года.

Полные тексты соглашений доступны на сайте Министерства финансов по ссылке

Примечания:
* Договор между Кипром и Социалистической Федеративной Республикой Югославия продолжает действовать.
** Договор между Кипром и Чехословацкой Социалистической Руспубликой продолжает действовать.
***Договор между Кипром и СССР продолжает действовать.
**** Договор приостановлен, но продолжают действовать некоторые статьи, о чем мы писали ранее. 

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The global conflicts of 2022-2023 have shaken all countries, including Cyprus. Price fluctuations, rapid migration, and total uncertainty have been a test of strength for all businesses. Demos Mouskis told “Successful Business Magazine” about how the only aluminium plant in Cyprus operates, how his company and the island’s economy are living through the crises, and what prospects he sees for the next year.

How was 2023 for the construction industry?
It can confidently be said that the year was successful. This is evident in our cities. Limassol is developing at a rapid pace. Nicosia and Paphos are also being actively built up, especially Larnaca, which will continue to develop rapidly in the next 2-3 years.

How have global challenges faced by the World impacted the manufacturing sector?

I can speak from the perspective of the aluminium industry, where I work. We’ve never seen such an incredible increase in prices as in 2022. This was a serious problem, especially considering that aluminium production is very energy-intensive. Fortunately, during 2023, prices stabilised and almost returned to their previous levels. The new norm is a bit higher than before, mainly due to electricity prices, but it can’t be called critical anymore.

As far as I know, Cyprus has always been one of the most expensive countries in the world in terms of electricity costs. Compared to other European countries, our electricity was 4-8 times more expensive. At our production facility, we cover 40% of our needs through a photovoltaic park in which we’ve invested significantly. It provides us with 2.5 megawatts, allowing us to maintain our product prices at a very reasonable level.

How competitive is Cyprus in terms of aluminium products?

In Cyprus, we are known as manufacturers of aluminium products for the construction industry. There are simply no other consumers of our products on the island. There’s no automotive industry, shipyards, or airplane manufacturers. But in other countries we’re not limited to just aluminium profiles for construction. We serve all kinds of industries worldwide.

Our factory is considered state-of-the-art in terms of technology, machinery, and of course our knowledge of aluminium. Our production capacity exceeds by 3 times the entire possible demand of the Cyprus market, so exports have always been essential to our development.

Demos Mouskis with daughters Emily and Anna Mouskis. Photo sb-cyprus.com

Here in Cyprus, we offer 50-60 different systems for the construction industry. The choice for consumers is vast. To explain to your readers, an aluminium system is a set of various forms of aluminium from which a specific product is created. For example, imagine a sliding window. Each rail in it – top, bottom, side... – is part of the system. Additionally, the block into which the glass is fitted, as well as accessories – all together constitute the system of a specific type of sliding window.

Such a window might have 10 different profiles. Altogether, MUSKITA holds thousands of industrial drawings, copyrights and patents, and produces around 6,500 items, which are sold in 55 standard colours. Moreover, we proudly received several innovation awards and industrial recognitions for products such as THÉA, interior partitions, facades, as well as for energy conservation and solar power production.

How are logistics managed with such a wide range of products?

We can produce and deliver any combination of products to the customer within 10 working days, if it is in stock. Usually, 50% of our items are in stock. If something is not available, we can produce the required items and deliver them to the customer within a maximum of two working weeks.

I believe this is our competitive advantage, which keeps us successful at all times, in addition to the high quality of our products that meet European standards. We supply to Germany, the Netherlands, England, and Ireland. The production technology we use can easily compete with European manufacturers in all parameters, including price. We have the perfect combination of quality, price, and service.

Are the systems intended for Cyprus different from those for other countries?

Certainly. The climatic conditions on the island are not the same as, for example, in Germany or the United Kingdom. We develop systems that take into account the nuances of construction in Cyprus and are designed to function for a very long time without any problems.

For clarity, let me explain with an example. During 24 hours, the temperature in Cyprus can fluctuate with a very large delta. During the day, we have strong sun, and all surfaces, especially metal ones, heat up a lot (up to +55-90 degrees Celsius). At night, the temperature drops to +20-25 degrees Celsius. Thus, the temperature delta on the surface of a window block can be up to 70 degrees Celsius. In other countries, such significant temperature fluctuations are almost never observed, so the load on components and their wear differ significantly. That’s why, when developing systems for different markets, we take into account local climate features.

For example, in Mauritius, we are market leaders. The island is located in the Indian Ocean and often experiences cyclones. When calculating and supplying materials for this market, we take into account the need for the structure to withstand wind speeds of up to 300 km/h. This is critically important, as one or two cyclones occur annually in Mauritius with extreme rainfall and extreme wind load.

Our company has accumulated all this knowledge over the years. Now we can adapt our systems faster and more efficiently than our competitors to any local climatic conditions.

Where do you purchase raw materials for production, and in what form are they supplied?

\We mainly buy metal from the UAE, where the quality of materials is exceptional. Usually, aluminium comes to us in the form of a solid cylinder similar to an electric pole.

In production, we use primary metal in various alloys and then heat it for processing. The alloys differ, affecting the hardness of the aluminium. For example, one alloy is used for producing car components, and a completely different one for producing structural components for shipyards.

Am I correct in understanding that you don’t melt but heat the metal?

Absolutely right. We heat it. This process is called extrusion. Then we push and force it through a die to create various shapes. As I mentioned, we have about 6,500 such shapes. In principle, we can create absolutely any shape you can imagine. It’s both a curse and a blessing.

Foreign architects and interior designers along with SBL Club members had a tour around MUSKITA plant. Photo sb-cyprus.com

Why?

Because on the one hand, we have an unlimited horizon of possibilities. On the other hand, we constantly think about what other shape we can come up with. Sometimes, I even wake up in the middle of the night thinking about a new idea. They seem to come out of nowhere. But then, when they come to life, you realise that anything is possible.

Do you work in any way with those who install your systems?

Naturally, we train specialists who assemble our systems. Additionally, we have teams of technicians who ensure the specifications are met.

Keep in mind, that the fabricators who will cut, assemble and install MUSKITA systems, are the exact same people who also fabricate and install any other companies’ systems, whether these are “German”, “Greek” or “Cypriot”.

What sets us apart is our adaptability and most importantly the fact that everything needed to add, adapt or to accommodate an architects’ special request is produced in house by us at our facilities in Cyprus. Anyone can come to us and see how we work, get advice. We plan to continue developing on the island and are ready to produce everything necessary for Cypriot buildings, both now and in the future.

Due to conflicts, many people are arriving in Cyprus, new buildings are needed…

A lot was built in 2023. Despite various scandals related to visas and golden passports, it pleases me that Cyprus has created its infrastructure. In Limassol, a self-sustaining economy has formed. The island has enough local business and local activity to increase and secure its economic stability.

Regarding the population increase, especially in Limassol: this city has historically welcomed new cultures and people and gradually blended them. This area has been a place of cultural and civilization mix, exchanging ideas and experiences since ancient times. The situation in 2022-2023 has, of course, affected both real estate prices and the amount of available housing. But, in any case, every city always has areas with more expensive and cheaper real estate. Limassol is developing, expanding its borders, and I think the trend to expand northwards – up the hills – will continue. We already see that schools and hospitals are being built in that area and the infrastructure is improving. In my opinion, this trend will continue. It’s the normal evolution of a modern city.

What do you expect in 2024 in the industrial sector?

I think the impact of geopolitical conflicts will continue, on the whole world, including Cyprus. We are in a relatively safe place, even despite the Cyprus problem, so I assume that the flow of people and businesses to the island will increase, from Russia and Ukraine, as well as from Israel. In my opinion, our main task in this regard for next year is to keep Cyprus as a safe and pleasant place to live and do business.

On the positive side, there are many new projects and new products in development.

Since our business projects are always long-term, I can already forecast the demand for the next 12 months, and in some areas even for 2025. Therefore, unless there are even bigger force majeure events in the World, I am confident that 2024-2025 will be years of new opportunities for our company and – in general – for the Cypriot industry and construction.