Cyprus: Country and Foreign Investment
There are two Free Zones in Cyprus; they are the Larnaca Free Zone and the Free Port Areas of Larnaca and Limassol (Greek: Lemessos.) Businesses operating within the Free Zones are subject to minimal customs formalities; they may import plant, machinery, equipment and raw materials duty-free, while their foreign employees are liable to only 50% of the normal rates of income tax. For a variety of reasons, the Free Zone has not been very successful.
In addition, in the Turkish-controlled part of the country, Famagusta has 'free port and zone' status.