A small island in the Mediterranean, Cyprus has grown to become a dynamic business and investment hub that can offer opportunities across a wide range of sectors to professionals, entrepreneurs and investors from around the world. Whether you are looking to set up a company, partnership, or trust, there are a number of factors that make Cyprus an attractive environment for doing business.
Cyprus lies at the crossroads of three major continents; Europe, Asia, and Africa. This privileged geographic location makes Cyprus a strategic business hub and offers great potential for investors to reach major markets in nearby regions. 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.
High Quality of Life
With almost 365 days of sunshine per year, Cyprus enjoys one of the most favourable climates in the world. Surrounded by the sparkling waters of the Mediterranean, Cyprus has the most Blue Flag beaches per capita in the EU (Eurostat), with bathing water ranked as excellent and second-best in the EU. The island was also voted in the Top 5 safest countries worldwide (Value Penguin 2015).
A Favourable Tax System
Cyprus boasts one of the most attractive and transparent ‘onshore’ tax regimes in the world, with competitive tax rates and a wide range of double taxation agreements with other countries. Among the main provisions of the Cyprus 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
- A wide network of highly favourable DTTs.
- Attractive IP Regime
- Exemptions for new residents and non-domiciled individuals
Business Friendly Infrastructure
A solid and business-friendly infrastructure and a wide range of services make starting and running a business in Cyprus a straightforward endeavour. English is commonly used as the main language of business throughout the island, and investors have access to a range of modern and affordable office space in all major cities. The country’s main port is located in Limassol, while the island is also serviced by two airports, in Larnaca and Paphos, making it easily accessible from anywhere in the world.
With more than 55% of the workforce holding tertiary education qualifications – the highest in Europe – Cyprus is home to an outstanding pool of human talent. Moreover, businesses have visa-free access to European talent, as well as professional talent from the many foreign communities living and working in Cyprus, which will allow the creation of a truly multilingual workforce.
Exceptional Regulatory Structure
Cyprus’s modern legal infrastructure is modelled after the English common law legal system, and it is frequently updated to meet the ever-changing needs of investors. This framework is widely recognized as being business-friendly and effective, ensuring transparency and reliability in business practices. Organizations are also assured of strong protection for their investment and intellectual property.
Investment Schemes and Business Incentives
As part of its policies to attract foreign investment to the island, the Cypriot government has established a number of highly successful investment schemes and business incentives. These include the Cyprus permanent residency status, where foreign investors can obtain a variety of tax benefits as Cypriot residents, including as low as 0% tax on dividends derived from abroad. Relocate their head-offices in Cyprus and benefit from tax treaties with 50+, or invest in a local business, projects, property or funds, as well as a number of start-up programmes and funding opportunities, with a focus on bringing innovation to the island.
Positive Economic Outlook
As one of the fastest-growing economies in the EU, Cyprus boasts a robust GDP growth with continuous upgrades by various international credit rating agencies and a generally positive economic forecast.
How we can help:
Whatever your investment needs, CX Financia can offer personalized solutions tailored to both corporations and individuals. Our team of experts and associates have vast experience in a number of areas, from incorporation of business in Cyprus or abroad and incorporation and licensing of funds, investment firms and other entities, to internal and external audit and accounting services and taxation consultancy.
Contact us today to see how we can help you set up your business in Cyprus.