Capital movement is governed by the Capital Movement Law of 2003 the purpose of which is to harmonise the Cyprus legislation with the acquis communitaire and specifically, with Articles 43 (Freedom of Establishment) 49, (Freedom to provide services), 56 to 60 (Free Movement of Capital) and 119 and 120 (Safeguard Measures) of the Treaty establishing the European Community.

Specifically, the Law, inter alia –

• (a) liberalises the movement of capital and payments in accordance with the aim of establishment of an internal market within the European Union, between residents of the Republic and residents of member states of the European Union as well as between residents of the Republic and residents of third countries, with the exception of the acquisition of real estate as well as the carrying out of direct investments by nationals of third countries
   
• (b) repeals the Exchange Control Law