The Government of TRNC is keen to encourage foreign capital investment, either by joint-venture or independently, through capital commitment or dissemination of improved technology in all sectors.
The Gazimağusa Free Port and Zone covering 115 acres offer foreign investors excellent opportunities for transit trade and manufacturing opportunities for middle-east and near-east countries.
The Free Port and Zone Law states that only ‘Approved Enterprises are entitled to operate and erect concerns in the Free Port and Free Zone Areas.’ An “Approved Enterprise” is defined as one which has received approval from Free Port and Zone Council to function in the Free Port and Zone Areas. Applications for “Approved Enterprise” status are to be submitted to the Free Port and Zone Council on forms supplied by this body.
Operations and activities permitted in the Free Port and Zone Areas are as follows:
- Engaging in all kinds of industry, manufacturing, and production.
- Storage and export of goods imported to the Free Port and Zone Areas.
- Assembly and repair of goods imported to the Free Port and Zone Areas.
- Building, repair, and assembly of all kinds of ships.
- Banking and Insurance services.
- Any other kind of activity approved by the Council of Ministers.
Depends on the activity undertaken, investors applying to the above activities are charged a fee of up to 1000 $.
Incentives provided to businesses established in the Free Port and Zone are as follows:
- All income derived from activities and operations undertaken by investors in the Free Port and Zone are exempt from Corporate and Income Tax. This exemption does not apply to exports of goods and services not manufactured and undertaken in the Free Port and Zone and directed to the TRNC.
- No limit on repatriation of profit and capital
- Exemption from customs duties and indirect taxes.
- Permission to employ foreign experts, engineers, and technical personnel.
In addition to the above incentives, there is an ample supply of skilled and unskilled labor, and wages are reasonable. The handling charges are much lower than the other neighboring ports. A geographically well-located port offers a sufficient covered storage area, experienced stevedoring and good security. A sound and receptive civil service, coupled with a minimum of formalities, provides investors and dealers with a favorable working climate. All types of port types of machinery (forklifts, cranes, etc.) are available.