Legal security to foreign investors

The question of legal security for foreign investors in general is vital in all countries, its need being patent, since in many countries, nationalization and expropriation has often taken place. Such dangers are obviously a deterrent to foreign investments. In Cyprus, however, no nationalization of any sector of the economy has ever taken place and no expropriation of foreign property has ever been ordered. On the contrary, the State often quarantees foreign investments jointly and severally with the local participants. This is consistent with the efforts to create a favourable climate for such investments.

International conventions

Legal security is also ensured by international conventions, unilateral or multilateral, that have been signed and ratified by the Republic of Cyprus. The most important of these conventions is the "World Bank Convention on the Settlement of Investment Disputes between States and Nationals of other States", which was ratified by law No. 64 of 1966 as part of Cypriot domestic law.