The E.U. member in the Centre of the World.
Cyprus is also centrally located between 3 continents – Asia, Europe, Africa – making it easy for individuals to commute back home or for business purposes.
Cyprus enjoys a very safe and high standard of living that includes:
- One of the EU’s best all-year climates and one of the best worldwide
- Over 65 Blue Flag status beaches for all tastes (highest % per capita) sports, entertainment, etc
- High level public & private healthcare services
- Short distances – can travel from one side of the island to another in 2 ½ hours
- One of the world’s safest countries with one of the lowest crime rates in E.U.
- Reasonable cost of living
- Real Estate available to cater to all needs – city centre, beach, countryside etc
- High Level of Education – Private schools and private institutions offering a high level of education in English
Advantageous Tax Regime
Cyprus offers many tax advantages and incentives, for companies and individuals, making it very attractive to set up your business in Cyprus.
A Company will benefit from:
- Low corporate tax rate of 12,5% on profit, one of the lowest within the EU with the possibility to enjoy a much lower effective tax rate
- Simple, transparent and EU harmonized tax system following recommended OECD practices
A Holding Company in Cyprus will benefit from:
- No withholding tax on dividends, royalties, and interests paid to non-resident shareholders, whether corporate or individuals
- Tax exemption when a company receives dividends from another Cyprus company
- Tax exemption on dividends Cyprus company receives as a shareholder of other subsidiaries situated abroad
- Tax exemption on any income arising from trading in securities such as shares, bonds, etc
- No withholding tax on royalties paid from Cyprus based companies in respect of intellectual property exploited outside of Cyprus
- 80% tax exemption on any qualifying profits generated by intellectual property owned by a Group of companies in Cyprus
- Group relief laws allowing for Group to carry forward losses
- No Capital gains tax from the disposal of any immovable property held by the Company outside of Cyprus or disposal of shares in companies situated outside Cyprus
- Extensive Tax Treaty network with more than 60 countries
Individuals will benefit from:
- Being considered non-domiciled in Cyprus for a maximum of 17 years once they relocate to Cyprus
- No Special Defence Contribution Tax for non-domicile personnel who become tax residents
- Tax exemption on dividends and interests earned by non-domicile individuals
- The first €19,500 of taxable income being tax-exempt for individuals
- 50% exemption for the remuneration of individuals from employment in Cyprus who were residents outside Cyprus before the commencement of their employment. The exemption applies for 10 years commencing from the year of employment if such income exceeds €100,000 per year
- 100% exemption on lump sum repayments from life insurance schemes or from approved provident funds
- No Capital Gains Tax on the sale of immovable property located outside Cyprus
- No Wealth-tax for High Net Worth Individuals
European Union Member
- At the core of the E.U. is the single market – the programme of freeing up the trade of goods and services and the movement of people between E.U. countries. The aim of the E.U. is that doing business with other EU countries is like doing business within your own country.
- Cyprus has access to 40 + EU trade agreements with countries outside the E.U along with full access to European Markets with free movement of goods, services, capital.
- The E.U. wide technical and safety standards ensure that if you meet Cyprus standards, your Company will also meet the standards of other EU countries.
- European Union directives are fully transposed into Cyprus legislation and E.U. regulations have direct effect and full application in Cyprus.
Banking
- The European Union has a well developed and regulated banking sector, thus opening a bank account with a Cyprus bank will allow companies to enjoy a swift process when opening bank accounts in other E.U. nations.
- Bank transfers or payments from any E.U. bank account can be transferred to any other country in the world without any restrictions or limitations. A Cyprus company will be able to trade and open a bank account in various currencies as there are no exchange control limitations.
Costs
Moving your company to Cyprus reduces your overall set-up costs compared to other EU countries:
- Lower labor costs than other E.U. countries
- Lower office rental costs thus setting up fees lower than other E.U. countries
- Highly skilled support services such as legal and accounting services at lower costs than other E.U. countries
The U.K. Connection
With English being a predominant language spoken between businesses, when setting up your business you can benefit from the island’s high percentage of English-speaking citizens:
- 73% of Cypriots speak English – official language due to British Colonization
- English widely accepted for business transactions, government services, contracts, banking, and other day-to-day functions you’ll be undertaking
- U.K.-Cyprus trade relations existed before the E.U. and will continue strongly after
- Brexit as Cyprus belongs to the Commonwealth and has sovereign British
- Cyprus being an ex British colony, the judicial and legal system is very much aligned with that of the United Kingdom.
- Key legislation such as the Companies law, Contract law, and Tort law are modeled on British law. The Cyprus courts follow the precedents of the English courts and in general, Cyprus can be characterized as a UK-friendly country, this results in more clarity and certainty in the legal system and a preferred jurisdiction for U.K. companies.
