AmCham Cyprus calls for deeper economic ties with the US

The American Chamber of Commerce in Cyprus (AmCham Cyprus) has called for closer economic, commercial and strategic ties with the United States, proposing five measures including visa-free travel, a modernised tax treaty and direct flights.

In its latest policy paper, the chamber said the recommendations were intended to build on what it described as substantial progress in Cyprus-US relations in recent years.

The paper, titled “Strengthening Cyprus-United States Bilateral Relations”, focuses on investment, business links, mobility, security and people-to-people exchanges.

“Cyprus and the United States have entered a period of accelerated strategic cooperation, marked by shared interests in security, economic development, energy, technology, and regional stability,” the paper states.

“To consolidate this progress and unlock the full potential of the bilateral partnership, five key policy priorities stand out,” it adds.

The first is Cyprus’ accession to the US Visa Waiver Programme, with AmCham Cyprus noting that the country has already recorded a 2.16 per cent visa-refusal rate, below the programme’s three per cent threshold.

The chamber said Cyprus had also upgraded biometric passports, strengthened digital data-sharing capabilities and taken legislative steps to enhance security cooperation.

“Cyprus has met crucial VWP criteria, including maintaining a 2.16% visa-refusal rate, below the required 3% threshold, and enhancing biometric passport and security data-sharing systems,” the paper states.

“A new US-Cyprus Strategic Dialogue establishes VWP progress as a top bilateral priority and sets the framework for final evaluations by US authorities,” it adds.

AmCham Cyprus said visa-free travel would remove administrative barriers for business, tourism, academic and cultural exchanges, while making Cyprus more attractive to US investors and companies considering regional headquarters.

The paper also argues that greater information sharing before travel would strengthen US security and that Cyprus’ inclusion would signal recognition of the island as a “safe and trusted” partner.

The second priority is modernising the Cyprus-US Double Taxation Treaty, which was signed in 1984, ratified in 1985 and entered into force in 1986.

The chamber considers the existing agreement functional but outdated and no longer fully aligned with contemporary tax standards.

“The current treaty, signed in 1984 and implemented in 1986, no longer reflects contemporary global tax standards,” the paper states.

“Modernisation will increase tax certainty, reduce administrative burdens, and support investment growth,” it adds.

AmCham Cyprus said an updated treaty aligned with OECD standards could strengthen Cyprus’ position as a regional headquarters and services hub, while providing greater clarity for investors on withholding taxes, the digital economy and dispute resolution.

It highlighted potential benefits for shipping, energy, information and communications technology, financial services and fintech, while saying greater tax transparency would also benefit US authorities and companies operating through Cyprus.

The third recommendation is a Cyprus-US Social Security or Totalisation Agreement, which the chamber said could eliminate double social security taxation and protect pension rights for people working between the two countries.

“Cyprus currently lacks a social security agreement with the United States, although it maintains such frameworks with other countries and is actively negotiating new ones,” the paper states.

“US Totalisation Agreements eliminate dual Social Security taxation and safeguard pension continuity for globally mobile workers,” it adds.

AmCham Cyprus said such an agreement would reduce costs for Cypriot workers and employers operating in the US, while making it easier for American companies to deploy employees to Cyprus.

The paper also linked the measure to workforce mobility, innovation and diaspora support, particularly in sectors such as energy, technology, defence and finance.

A fourth priority is establishing direct commercial flights between Cyprus and the United States, with AmCham Cyprus saying discussions with a US airline had taken place but that passenger demand remained a challenge.

“Cyprus was in discussions with a US carrier regarding the launch of direct flights, a major step toward deepening commercial and tourism ties,” the paper states.

“Despite demand challenges, efforts continue, supported by expanded US-Cyprus strategic cooperation,” it adds.

The chamber said direct connectivity would improve access for American tourists, shorten travel times for business and academic partnerships and strengthen Larnaca and Paphos airports as regional aviation hubs.

It noted that current passenger volumes were significantly below the roughly 500 passengers per day typically required for long-haul route viability.

The fifth proposal is an assessment of the feasibility of a US Customs and Border Protection (CBP) Preclearance facility in Cyprus.

“US preclearance operates at 15 international locations and enables travellers to undergo US immigration and customs checks before departure,” the paper states.

“Such facilities are authorised under US law through bilateral agreements,” it adds.

AmCham Cyprus said a facility at Larnaca or Paphos could allow passengers to arrive in the United States as domestic travellers, potentially increasing the airports’ attractiveness and encouraging airlines to consider new routes.

The chamber also argued that preclearance could reduce congestion at US ports of entry while strengthening aviation security and allowing the United States to conduct screening before travellers enter US airspace.

Taken together, AmCham Cyprus said the five measures could boost trade, investment and tourism, improve labour and student mobility and deepen security cooperation.

The chamber said they would also strengthen Cyprus’ position as a democratic partner and strategic hub in the Eastern Mediterranean while expanding US engagement in the region.

“Progress in these domains would generate mutual economic gains, streamline mobility, enhance security cooperation, and reinforce Cyprus’ role as a reliable democratic partner in the Eastern Mediterranean,” the paper states.

“These measures collectively support long-term growth, regional stability, and deeper integration between the two nations,” it adds.

AmCham Cyprus said it was ready to support the Cyprus government and its partners in Washington in advancing the five priorities as part of what it described as a forward-looking bilateral agenda.