WORLD TRADE
ORGANIZATIONS/DCS/W/CYP
24 January 2003
(03-0453)
Trade in Services Original:  English
CYPRUS
Draft consolidated Schedule of Specific Commitments1
Attached is a draft consolidated version of the Schedule of Specific Commitments of Cyprus
in word format.  This document  does not substitute for the legally binding commitments undertaken
by Cyprus in its Schedule of Specific Commitments (GATS/SC/25; GATS/SC/25/Suppl.1;
GATS/SC/25/S uppl.2/Rev.1)
Attached to the draft consolidated schedule is Cyprus's Article II (MFN) Exemption List
(GATS/EL/25) in word format.
The draft consolidated versions of the Schedule and the MFN Exemption List were prepared
by the Secretariat, at the request of Members, to facilitate the process of negotiations, including the
presentation of initial offers.
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1 This document has been prepared, in English only, under the Secretariat's own responsibility and without
prejudice to the positions of Members and to their rights and obligations under the WTO.S/DCS/W/CYP
Page 2
Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
I. HORIZONTAL COMMITMENTS
ALL SECTORS
INCLUDED IN THISSCHEDULE
3) Foreign Investment
The permission of the Central Bank isrequired for the participation of any non-resident in a corporate body or partnership inCyprus.  Foreign participation in allsectors/subsectors included in the3) Foreign Investment
Entities with foreign participation must have
paid up capital commensurate with their financerequirements and non-residents must financetheir contribution through the importation offoreign exchange
Schedule of Commitments is normally limitedup to 49 per cent.  The decision of theauthorities to grant permission for foreignparticipation is based on an economic needs
test, for which the following criteria are used
in general:
(a) Provision of services which are new to
CyprusIn case the non-resident participation exceeds
24 per cent, any additional financing forworking capital requirements or otherwiseshould be raised from local and foreign sources
in proportion to the participation of residents
and non-residents in the entity's equity.  In thecase of branches of foreign companies, allcapital for the initial investment must beprovided from foreign sources.  Borrowingfrom local sources is only permitted after the
initial implementation of the project, for
financing working capital requirements.
(b) Promotion of the export orientation of the
economy with development of existingand new markets
(c) Transfer of modern technology, know-
how and new management techniques
(d) Improvement either of the productive
structure of the economy or of the qualityof existing products and servicesS/DCS/W/CYP
Page 3Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(e) Complementary impact on existing units
or activities
(f) Viability of proposed project(g) Creation of new job opportunities for
scientists, qualitative improvement andtraining of local staff
In exceptional cases, in which a proposedinvestment satisfies most of the economicneeds test criteria to a large extent, permissionfor foreign participation exceeding 49 per centmay be granted.
In the case of public companies, foreign
equity participation is normally allowed to theextent of up to 30 per cent.  In Mutual Fundsthe extent of allowable foreign ownership is40 per cent.
Corporate bodies have to be registered underthe Companies Law.  Same Law requires thata foreign company wishing to establish a placeof business or an office in Cyprus mustregister it as a foreign branch. For the
registration the prior approval of the Central
Bank is required under the
Exchange Control Law.  Such approval issubject to the foreign investment policyapplicable at the time with regard to theCorporate Body's proposed activities in
Cyprus and the general investment criteria
stipulated above.S/DCS/W/CYP
Page 4Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
Purchase of Real Estate
Unbound
4) Unbound, except for the temporary movement
of foreign natural persons who are servicesuppliers or who are employed by servicesuppliers and whose entry into Cyprus issubject to the Aliens and Immigration laws,
regulations and administrative guidelines.
Entry4) Under the Exchange Control Law, non-
residents are not normally permitted to borrowfrom local sources
permits for employment are issued on atemporary basis in fields and occupationswhere no suitably qualified local personnel isavailable, always taking into account the
employment situation and economic needs of
the country.  An application for such a permitmust be made before entry into Cyprus.  Avisa may also be required, which is normallygranted with a minimum of formalities uponarrival in Cyprus.
II. SECTOR SPECIFIC COMMITMENTS
1. BUSINESS SERVICES
A. Professional Services
(b) Accounting, auditing and
book-keeping services1) Unbound
2) None1) None
2) None
3) Access is restricted to natural persons who
have obtained authorization from the Ministerof Finance.  Authorization is subject to aneconomic needs test.  The criteria used areanalogous to those for granting permission forforeign investment (listed in horizontal
section), as they apply to this subsector,
always taking also into consideration theemployment situation in the subsector.Professional associations (partnerships)among natural persons is permitted.  No bodycorporate is allowed.3) None
4) Unbound 4) UnboundS/DCS/W/CYP
Page 5Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(c) Taxation services 1) Tax agents must be duly authorized by the
Minister of Finance.  Authorization is subjectto an economic needs test.
2) None1) None
2) None
3) Access in restricted to natural persons who
have obtained authorization from the Ministerof Finance.  Authorization is subject to an
economic needs test.  The criteria used are
analogous to those for granting permission forforeign investment (listed in horizontalsection), as they apply to this subsector,always taking also into consideration theemployment situation in the subsector.
Professional associations (partnerships)
among natural persons is permitted.  No bodycorporate is allowed.
4) Unbound3) None
4) Unbound
B. Computer and Related
Services
(a) Consultancy services
related to the installation ofcomputer hardware1) None
2) None3) None
4) Unbound except as indicated in the horizontal
section1) None
2) None3) None
4) None
(b) Software implementation
services1) None
2) None3) None
4) Unbound except as indicated in the horizontal
section1) None
2) None3) None
4) None
(c) Data processing services 1) None
2) None3) None
4) Unbound except as indicated in the horizontal
section1) None
2) None3) None
4) NoneS/DCS/W/CYP
Page 6Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(d) Data base services 1) None
2) None3) None4) Unbound except as indicated in the horizontal
section1) None
2) None3) None4) None
C. Research and Development
Services
(b) Research and development
services on social sciencesand humanities1) None
2) None3) None4) Unbound except as indicated in the horizontal
section1) None
2) None3) None4) None
2. COMMUNICATION
SERVICES
C. Telecommunication 
ServicesNote 1: A Telecommunications Policy Review Study was commissioned by the Government which covered the regulatory
framework in which CYTA operatesand the changes which have to take place for the gradual liberalization of the market.  The Council of Ministers is
expected to decide on the specific measures to be taken within 1998.
Domestic and international
services provided using anynetwork technology, in afacilities based or resalebasis, in the following
market segments:1) Unbound
2) None3) Unbound (see Note 1 above)4) Unbound (see Note 1 above)1) Unbound
2) None3) Unbound4) UnboundS/DCS/W/CYP
Page 7Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(a) Voice telephony
(CPC 7521)
(b) Packet-switched data
transmission services(CPC 7523**)
(c) Circuit-switched data
transmission (CPC 7523**)
(d) Telex services
(CPC 7523**)
(e) Telegraph services
(CPC 7522)
(f) Facsimile services
(CPC 7521** + 
7529)
(g) Private leased circuit
services (CPC 7522,CPC 7523)
(o) Other
- Mobile services
- Satellite services
- Paging services1) Unbound
2) None
3) Unbound (see Note 1 above)
4) Unbound (see Note 1 above)1) Unbound
2) None
3) Unbound
4) UnboundS/DCS/W/CYP
Page 8Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
7. FINANCIAL SERVICES
1. It is understood that this schedule should be read in conjunction with the horizontal commitments applicable to all sectors/s ubsectors submitted by Cyprus in its
Schedule of Specific Commitments to the GATS and with the List of Article II (MFN) Exemptions.
2. The following general conditions and qualifications would apply ev en where no limitations or conditions are stated in the sch edule:
(i) Consideration of national security and public policy objectives;
(ii) This schedule does not in any way pertain to services supplied in the exercise of government functions.  Also, it does not affect measures pertaining to trade in
goods which may constitute inputs to a scheduled service or othe r services.  In addition, limitations on market access or natio nal treatment in respect of services which
may constitute inputs to or be used to supply a scheduled service, shall continue to apply.
3. The laws and regulations mentioned in this schedule should not be construed as an exhaustive reference to all laws, and regul ations governing the financial sector.  The
transfer, for example, of information containing personal data, ba nk secret or any business secret is not allowed.  Such transf er is subject to domestic laws on protection
of confidentiality of information of banks' customers.  Furthermore, it is noted that non-discriminatory qualitative measures p ertaining to technical standards, public
health and environmental considerations, licensing, prudential cons ideration, professional qualifications and competency requir ements have not been listed as
conditions or limitations to market access and national treatment.
4. Unregulated financial services and products and the admission to the market of new financial services or products, may be sub ject to the existence or the introduction
of a regulatory framework aimed at achieving the objectives indicated in Article 2(a) of the Financial Services Annex.
5. Due to exchange controls operative in Cyprus:
residents are not permitted to purchase banking services which may involve transfer of funds abroad, while they are physically abroad;
loans to non-residents/foreigners or non-resident cont rolled companies require approval from the Central Bank;
acquisition of securities by non-residents also requires permission from the Central Bank;dealings in foreign currency may be carried out only through bank s which have been accorded "Authorized Dealer" status from the  Central Bank.
A. Insurance and Insurance-
related Services
Direct InsuranceS/DCS/W/CYP
Page 9Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(a) Life Insurance Services 1) No insurer can offer life insurance services in
the Republic of Cyprus unless licensed as aninsurer by the Superintendent of Insurance, inaccordance with the Insurance CompaniesLaws.
2) None1) None
2) None
3) No insurer can operate in or from within the
Republic of Cyprus unless so authorized bythe Superintendent of Insurance, inaccordance with the Insurance CompaniesLaws.
Foreign insurance companies can operate in
the Republic of Cyprus through theestablishment of a branch or an agency.  Theforeign insurer must have been authorized tooperate in his country of origin beforeauthorized to establish a branch or agency.3) None
Participation of non-residents in insurance
companies, incorporated in the Republic ofCyprus, requires the prior approval of theCentral Bank.  The extent of foreign
participation is determined on a case by case
basis in accordance with economic needs.
4) Unbound 4) None
(b) Non-Life Insurance Services
(CPC 8129 other than
81299)1) No insurer can offer non-life insurance services
(except Marine, Aviation and Transit) in the
Republic of Cyprus unless licensed as aninsurer by the Superintendent of Insurance, inaccordance with the Insurance CompaniesLaws.1) None
2) None 2) NoneS/DCS/W/CYP
Page 10Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
3) No insurer can operate in or from within the
Republic of Cyprus unless so authorized bythe Superintendent of Insurance, in accordancewith the Insurance Companies Laws.3) None
Foreign insurance companies can operate in the
Republic of Cyprus through the establishment
of a branch or an agency.  The foreign insurer
must have been authorized to operate in hiscountry of origin before authorized toestablish a branch or agency.
Participation of non-residents in insurance
companies, incorporated in the Republic of
Cyprus, requires the prior approval of theCentral Bank.  The extent of foreignparticipation is determined on a case by casebasis in accordance with economic needs.
4) Unbound 4) NoneS/DCS/W/CYP
Page 11Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(c) Reinsurance and
retrocession1) Any foreign reinsurer approved by the
Superintendent of Insurance (on prudentialcriteria) may offer reinsurance or retrocessionservices to insurance companies incorporatedand licensed in Cyprus.
2) None except as indicated in the horizontal
section1) None
2) None
3) No company can operate as a reinsurer within
the Republic of Cyprus unless so authorizedby the Superintendent of Insurance.
Investment by non-residents in reinsurance
companies requires the prior approval of theCentral Bank.  The share of foreignparticipation in the capital of local reinsurancecompanies is determined on a case-by-casebasis.  Currently there is no local reinsurance
company.3) None
4) Unbound. Natural persons are not authorized
to provide reinsurance services4) Unbound. Natural persons are not authorized to 
provide reinsurance services.
B. Banking
1. It is a statutory requirement and it is applied on a non-discriminatory manner that banks offering services in the Republic o f Cyprus must be legal entities.  Legal
entities include branches of foreign banks/financial institutions which are registered in Cyprus.
2. Direct or indirect ownership or voting rights in a bank by  a person and his/her associates may not exceed 10 per cent unless with the prior written approval of the
Central Bank.
3. Further to the above, in the three existing local banks listed in the stock exchange, direct or  indirect shareholding or acqu isition of stake in their capital by foreign
persons is restricted to 0.5 per cent per individual or organization and 6.0 per cent collectively.S/DCS/W/CYP
Page 12Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(a) Acceptance and deposits
and other repayable fundsfrom the public(CPC 81115-81119)
(b) Lending of all types
(CPC 8113)
(c) Financial leasing
(CPC 8112)1) Unbound/only legal entities licensed by the
Central Bank may offer banking services inthe Republic of Cyprus.
2) Unbound-Residents of Cyprus require
permission from the Central Bank inconformity with the Exchange Control Law
for borrowing in foreign currency or abroad,
for placing funds abroad or for obtainingbanking services that require export of funds.1) Unbound
2) Unbound
(d) All payments and money
transmission services carried out by financial institutions
(CPC 81339)
(e) Guarantees and 
commitments(CPC 81199)3) For new banks the following requirements
apply:(a) A licence is required from
the Central Bank for the carrying out of
banking business.  The Central Bank in
granting a licence may apply an economicneeds test.3) None once established and licensed.
(f) Foreign exchange dealing
(CPC 81333)(b) Branches of foreign banks must be
registered in Cyprus under the Companies
Law and licensed under the Banking Law.
4) Unbound 4) Unbound.  For bank foreign employees 
residence and work permit is required.
C. Securities
Trading for own A/c or forA/c of Customers intransferable securities.Securities broking(CPC 81321)1) None except as indicated in the horizontal
section
2) None except as indicated in the horizontal
section1) None except as indicated in the horizontal
section
2) None except as indicated in the horizontal
sectionS/DCS/W/CYP
Page 13Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
3) Only members (brokers) of the Cyprus Stock
Exchange can undertake business pertaining tosecurities brokerage in Cyprus.  Firms actingas brokers must only employ individuals whocan act as brokers provided that they areappropriately licensed.  Banks and Insurance
companies may not undertake brokerage
business.  However their subsidiary brokeragefirms may do so.
4) Individuals, whether acting alone as brokers or
employed by broker firms as brokers, are
required to meet the licensing criteria for this
purpose.3) A brokerage firm may only be registered as a
member of the Cyprus Stock Exchange if it hasbeen established and registered in accordancewith the Companies Law of Cyprus
4) None except as indicated in the horizontal
section
__________S/DCS/W/CYP
Page 14CYPRUS - LIST OF ARTICLE II (MFN) EXEMPTIONS
Sector or SubsectorDescription of measure
indicating its inconsistency
with Article IICountries to which the
measure appliesIntended durationConditions creating the need
for the exemptionAdditional Commitments
All sectors Permission for limited
numbers of nationals of theEuropean Union (EU)Member States to beemployed or to exercise
professions in specific
occupations in Cyprus inaccordance with criteria tobe established unilaterallyby Cyprus or in futureagreements between Cyprus
and the EU Member StatesMember countries of the
European UnionUntil the time of full
membership ofCyprus in the EUThe aim of the measure is to
deepen existing links betweenCyprus and the EuropeanUnion and to gradually prepareCyprus for full membership in
the EUCyprus has a Customs Union
Agreement with the EU andhas applied for fullmembership.  Thepreferential treatment of EU
nationals, which will
facilitate the exercise ofprofessions and labourmovements, may be grantedto the EU in the future, eitherunilaterally on the part of
Cyprus, or through bilateral
agreement(s) betweenCyprus and the EU MemberStates
All Sectors Waiving of limitations to
market access and nationaltreatment in the area of
commercial presence,
including the movement ofcapital, with respect to thecountries specified undercolumn 3)Member countries of the
European Union and theEFTA countriesIndefinite A gradual liberalization of
commercial presence and inparticular capital flows
between Cyprus and the
European Union is needed as atransitory measure in order togradually prepare Cyprus forfull membership in the EU,
which is expected to be
enlarged soon to include mostof the EFTA countries.Bilateral agreements relatingto the mutual protection andpromotion of investments with
some of the EFTA countries
are under preparation.Cyprus has a Customs Union
Agreement with the EU andhas applied for full
membershipS/DCS/W/CYP
Page 15Sector or SubsectorDescription of measure
indicating its inconsistency
with Article IICountries to which the
measure appliesIntended durationConditions creating the need
for the exemptionAdditional Commitments
Road Transport
- Passenger and 
Freight TransportationBilateral agreements
between Cyprus and thirdcountries on international
road haulage (including
combined transport) andpassenger transport,according to which theprovision of the transportservice between Cyprus and
the contracting parties or
across the territory of thecontracting parties isreserved or limited tovehicles registered in each
contracting party whilst tax
exemption for such vehiclesis also providedEuropean countries,
Jordan, and any countrywith whom an agreement
may be concluded in the
futureIndefinite The need for exemption is
linked to the regionalspecificity of the cross-border
provision of road transport
services
Human Health
ServicesProvision to Cypriot citizensof medical treatment, notavailable in Cyprus, in
selected countries with
which bilateral agreementshave been signed or will besigned in the futureAll countries with whom
medical co-operationmight be desirable.
(Agreements already
exist with medicalcentres in Greece, theUK, and Israel)Indefinite The measure is necessary due
to the existence or possiblefuture signing of new bilateral
agreements between Cyprus
and third countries with whomCyprus has geographicalproximity or other special linksS/DCS/W/CYP
Page 16 Sector or SubsectorDescription of measure
indicating its inconsistency
with Article IICountries to which the
measure appliesIntended durationConditions creating the need
for the exemptionAdditional Commitments
Audiovisual Services
- Transmission & 
Distribution of Radio and 
Television 
ProgrammesNational legislation in radio
and television broadcastingtaken in conformity with
European Union directives
and aiming at extendingnational treatment to worksoriginating in certainEuropean countries and alsoat ensuring that works
meeting specific linguistic
criteria are given minimumscreentime accessMember countries of the
European Union, partiesto the Council of Europe
Convention on
Transfrontier Televisionor other Europeancountries with whom anagreement may beconcluded.Indefinite The measure aims at the
harmonisation with the E.U. inthe broadcasting sector and at
the achievement of linguistic
and cultural policy objectives
Audiovisual Services
- Production & 
Distribution of Television Programmes and CinematographicWorksPermission for service
providers established incertain European countriesto benefit from existing andfuture MEDIA orEURIMAGES programmesEuropean countries Indefinite Cyprus is a participant in the
EURIMAGES programme andhas applied for participation inthe MEDIA programmeThe benefits from the
programmes are mandatoryfor participating countries
Audiovisual Services
- Production & 
Distribution of Television 
Programmes and 
CinematographicWorksGranting of national
treatment on works coveredby government-to-
government framework
agreements on co-productionof audiovisual works, inparticular in relation todistribution or access tofundingAll countries with whom
cultural co-operationmay be desirableIndefinite The aim of the measure is to
promote cultural links betweenCyprus and certain countriesS/DCS/W/CYP
Page 17Sector or SubsectorDescription of measure
indicating its inconsistency
with Article IICountries to which the
measure appliesIntended durationConditions creating the need
for the exemptionAdditional Commitments
Public Social
Security ServicesProvisions of bilateral
agreements on socialsecurity concluded betweenCyprus and certain countriesAustralia, UK, Egypt,
Greece, Austria, Canada,Province of Quebec, andany country with whoman agreement may be
concluded in the futureIndefinite To enable persons who are or
become subject to the socialsecurity legislation of thecontracting parties to maintaintheir social security rights if
they move from one country to
another, or to acquire suchrightsThese agreements which
provide, inter alia, fortotalizing periods ofinsurance or residence in thecontracting States for
purposes of eligibility to
benefits are concludedbetween Cyprus andcountries with whom there ismovement of labour
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