The pandemic of COVID-19 has affected each and every business in the world. As a result, many entrepreneurs are starting to search for other options such as relocating. Cyprus is one of the most popular countries for relocation since it provides many attractive options.
If you are also considering moving to Cyprus and setting up a Cyprus company, in this article we will explain the benefits of Cyprus headquartering. Cyprus offers various incentives to stimulate companies to headquarter in the island. Some of those incentives are:
Full access to all European markets
Cyprus is situated in a strategic location since it lies at the crossroads of three major continents: Europe, Asia, and Africa making global business process more efficient. Additionally, as a member of the Eurozone since 2008, Cyprus offers full access to all European markets, as well as to more than 40 EU trade agreements.
Attractive Tax Regime
Cyprus offers many taxation advantages; among the main provisions of the tax legislation are:
- A corporate tax rate of 12.5%
- Dividend participation exemption
- No tax on profits from disposal of securities
- No withholding taxes
- No taxation of capital gains (conditions apply)
- Notional Interest Deduction (NID) on investment in Cypriot companies
High Quality of Life
The climate of the island is among the most favourable ones in the world, with 340 days of sunshine, endless areas of golden sand, and the crystal-clear waters of the Mediterranean.
You can read more about the incentives to relocate to Cyprus in our article Why Invest in Cyprus? Here are the top reasons!
The Cyprus Fast Track Business Activation Mechanism is a government scheme to attract international groups to set up headquarters in Cyprus by helping them:
- Establish a company within 7 days
- Become operational by getting the necessary licenses
- Obtain residence and employment permits within 4-6 weeks for third-country nationals
You can read more information in our previous article titled How to take advantage of the ‘Fast-track Business Activation Mechanism’ in Cyprus.
If you need help establishing a company in Cyprus, we introduce you to the Point of Single Contact Cyprus.
What Is the “Point of Single Contact Cyprus” and how can they help you?
Cyprus’ Point of Single Contact (PSC) was established pursuant to Directive 2006/123/EC of the European Parliament and of the Council of 12 December 2006 on services in the internal market and provides information on procedures and formalities for Doing Business in Cyprus.
The PSC provides information on a wide array of service activities, including applications necessary for authorisation from the competent authorities, inclusion in a register, a database, or registration with a professional body or association.
What Services Does the PSC Cyprus Offer?
The PSC Cyprus assumes the role of a coordinator for the gathering of information and the completion of the relevant procedures and formalities. The PSC Cyprus offers many services, such as:
- information regarding procedures and formalities required for the access to, and exercise of, service activities, either through the establishment of a business or through the cross-border provision of services, that fall within the scope of the Services Directive;
- provision of information regarding the horizontal procedures and formalities related to the setting up of a business in the Republic of Cyprus, such as income tax registration, VAT registration, registration of different types of entities;
- provision of a wide range of matters such as the economic and business environment, taxation system, environmental regulations, financial assistance, Cyprus in general;
- provision of information for service recipients;
- provision of information for businessmen interested in expanding a business in Europe;
- electronic submission of applications for certain procedures related to the pursuit of service activities/regulated professions.
Find out more about Cyprus’ PSC by visiting their website and discover more information about starting your business in Cyprus and ways to receive funding.
How can CX Financia help you?
Feel free to get in touch with CX Financia for a free complimentary consultation on how you can materialise your business plans and ideas, but also to find out more about our company formation services.