Dorita Yiannakou
A policy study by the American Chamber of Commerce in Cyprus (AmCham), which is part of the Cyprus Chamber of Commerce and Industry (CCCI), focuses on specific initiatives to further strengthen and deepen relations between the Republic of Cyprus and the United States.
Building on significant progress in recent years in security, energy, defense, technology and trade, the study identifies five policy areas that could strengthen economic cooperation, mobility, investment and strategic links between the two countries.
The study aims to contribute to discussions between the relevant authorities in Cyprus and the United States and put forward concrete proposals to support the further development of their bilateral partnership.
AmCham’s priority is Cyprus’ admission to the U.S. Visa Waiver Program (VWP). Its other objectives are to modernize the Cyprus–U.S. double taxation treaty, explore a bilateral social security agreement, known as a Totalization Agreement, establish direct commercial flights between the two countries and assess the feasibility of a U.S. Customs and Border Protection (CBP) preclearance facility in Cyprus.
Progress in these five areas would bring mutual economic benefits, facilitate travel and mobility, strengthen security cooperation and consolidate Cyprus’ role as a reliable democratic partner of the United States in the Eastern Mediterranean, AmCham says.
Regarding admission to the Visa Waiver Program, the study emphasizes that Cyprus has undertaken significant reforms to meet the program’s requirements. These include improvements to biometric passports, digital data-sharing capabilities and the legal framework supporting security cooperation.
Cyprus also already meets a key numerical requirement: its visa refusal rate stands at 2.16%, below the required 3% threshold. An assessment by the U.S. Department of Homeland Security is expected to be a decisive step toward completing the process, AmCham notes.
Admission would facilitate travel, help attract investment and strengthen Cyprus’ diplomatic and strategic standing. The United States would also benefit from increased revenue generated by Cypriot tourists, business delegations and academic partnerships.
The study also stresses that Cyprus’ admission to the program would serve broader U.S. geopolitical objectives, strengthen democratic alliances and deepen cooperation in defense, technology and counterterrorism.
Modernizing the Cyprus–U.S. double taxation treaty, another AmCham priority, is expected to strengthen the country’s competitiveness and investor confidence.
The existing treaty was signed in 1984, ratified in 1985 and entered into force in 1986. Although it remains operational, it no longer fully meets modern international tax standards. Among other matters, it covers income tax, capital gains tax, special contributions, withholding taxes, non-discrimination provisions and the exchange of tax information.
The third policy pillar concerns a social security, or Totalization, agreement. Cyprus has social security agreements with several countries, but no equivalent agreement with the United States.
U.S. Totalization Agreements aim to prevent workers from having to pay social security contributions in both countries and to preserve pension entitlements for those who divide their careers between them.
For Cyprus, the benefits would include avoiding double social security contributions for Cypriot workers and employers operating in the United States, making it easier for Cypriots to work there without that additional financial burden, and protecting the rights and continuity of pension entitlements of Cypriots working abroad.
AmCham also calls for the establishment of direct flights between Cyprus and the United States to make the island more accessible to American visitors, complementing efforts to join the Visa Waiver Program.
Shorter travel times would also strengthen corporate, defense, academic and technology partnerships, while improving the competitiveness of Larnaca and Paphos airports as regional aviation hubs.
Finally, AmCham wants to explore the establishment of a U.S. CBP preclearance facility in Cyprus.
CBP preclearance currently operates at 15 international locations, allowing travelers bound for the United States to complete immigration and customs checks before departure. U.S. legislation permits such facilities to be established through bilateral agreements and reciprocal legal arrangements.
A preclearance facility could turn either Larnaca or Paphos airport into a leading regional gateway, allowing passengers to arrive in the United States having already completed the required checks.
It would also increase airline interest and improve the viability of new routes, supporting tourism and business travel while demonstrating Cyprus’ commitment to high international aviation security standards.
Progress across the five priorities would strengthen trade, investment and tourism, support the mobility of workers and students, reinforce regional stability and shared security, enhance Cyprus’ role as an important democratic partner and strategic hub, and expand U.S. presence and engagement in the Eastern Mediterranean, AmCham says.
