What this tiny island of the Mediterranean has to offer to high profile professionals, entrepreneurs and investors from all around the world.
Many international businesses are relocating in Cyprus to setup a company, a branch, a holding company or other structures like partnerships and trusts. There are many factors that make Cyprus an attractive environment for doing business.
A geographic location with a great potential for investors to reach new markets. Cyprus as it lies at the crossroads of Europe, Asia and Africa is close to the busy shipping and air routes linking Europe with the Arab world and the Far East, representing a strategic hub for business activities in the region. In addition Cyprus itself is a fresh markets with great opportunities for new businesses and ideas.
Cyprus has a solid and friendly infrastructure for businesses. English language is widely used as the main business language but one of the biggest advantages of Cyprus is the legal system which is based to the English law making it very effective and suitable for entrepreneurs. Nicosia and Limassol host the two main business centers of the island. Limassol hosts the main port of the country. Two airports are located in Larnaka and Pafos.
Cypurs exhibits the highest percentage among the EU of people between the ages 25-35 possessing tertiary education qualifications. Another important advantage of Cyprus human capital is that the country has various foreign communities such as Russians, Chinese and Arabs thus making it easy to recruit foreign speakers, translators, or generally professionals according to the nature of the business.
The favorable tax system.
Cyprus today constitutes a world service center. Business people benefit from the country’s simple tax legislative framework with competitive tax rates, also in line with the E.U acquis and governed by a wide range of double taxation agreements with other countries.
Some of the main provisions of the Cyprus Tax legislation are:
All companies are subject to a uniform tax rate of 12.5%. The lowest tax rate in the European Union.
Personal Income Tax
One of the lowest top statutory personal income tax rate based on the Eurostat΄s data. Individuals are subject to a scaled assessment rate on their annual income, starting with 20%, 25%,30%, ending at 35%, with the first €19500 of income being non-taxable.
Double taxation agreements
Cyprus has developed a wide network of Double Tax Agreements with over 60 countries, achieving and avoiding the assessment of the same income twice.
Cyprus is considered to be one of the most competitive shipping centers in the world. Income from Ship Management is assessed under Tonnage Tax subject to rules and conditions.
Value Added Tax
Liable to V.A.T. tax are those entities selling goods or providing services within the Republic of Cyprus, and those importing goods from other member states and Third countries.
V.A.T. rates are:
- Standard rate: 19%
- Reduced rates: 9% / 5%
- Zero rate: 0%
Other important advantages.
Modern banking and high level of professional services. Cyprus offers a complete range of integrated professional services, capable to contribute in any field of legal entity including the areas of Accounting, ial Services, Business Consulting, Computing & IT, Design, Education, Engineering, Legal Services.
Low labor costs.
Cyprus as a part of the EU has implemented the European Union’s legislative framework as regards to labour relations. Nevertheless, labour costs are considerably lower in Cyprus in comparison with the EU average. Correspondingly, office and living accommodation is relatively inexpensive with substantial choice, whilst the overall standard of living is high.
Quality of life.
Surveys show that Cyprus towns possess one of the lowest costs of living within a developed nation. The high quality of life, combined with the low cost of living in Cyprus, have transformed the island the Mediterranean’s third most well-linked destination for European property buyers.
Investment schemes and business incentives.
Cyprus has introduced investment scheme for third country nationals. Investors and property buyers can invest in businesses, projects, property or funds making them eligible for acquiring the Cyrus citizenship.In addition several other programs such as re-domiciliation (offering tax incentives and exemptions to individuals) and schemes that promote the startup formation in Cyprus providing residence visas, tax exemptions, and other benefits to investors, owners and employees.