Why Choose Cyprus for Business

Snapshot

Corporate Tax

Cyprus maintains a corporate tax rate of 12.5%, which can be reduced as low as 2.5% through the IP Box Regime.

Dividends

Dividend income is generally exempt from tax in Cyprus

Double Tax Treaty

Cyprus’s Double Tax Treaty network covers more than 60 countries.

Sale of Shares

Sale of shares is generally tax exempt.

Why Cyprus?

Cyprus is the third-largest island of the Mediterranean, and the serene country is positioned at the crossroads of Europe, the Middle East, and Africa. A warm, calm place to be, little wonder why the country boasts of high rates of tourist activities. What better place than Cyprus to establish business acquaintances and partners from all over the globe. The country gives you the opportunity to connect with nature and revel in its beauty. I bet you’d love to be woken up by crashes of the sea and the trees swinging along. Or an office with stained glass and a view of the beach, what a fantastic work environment that would be. You would definitely derive inspiration and calmness from nature!

Cyprus has long-standing connections with Europe and the Middle East. This guarantees a wider coast of business partners and international deals. The population of the island is 790,00. It is a multilingual island with three official languages: Greek, Turkish, and English. The island enjoys a pleasant Mediterranean climate of hot, dry summers and mild winters. It is indeed a beautiful place to reside. Peaceful for work and fantastic for fun! A perfect slingshot for two birds with a stone.

Tax Benefits

Cyprus has one of the most attractive tax regimes in Europe, which drives many big multinational organizations and groups, and entrepreneurs to set up bases and incorporate companies in Cyprus.

Net profits of the companies who have their residence in Cyprus are subject to tax at the rate of 12,5%, which is one of the lowest corporate tax rates within the European Union country-members.
Tax residency is based on the management and control concept. Update: From 1/1/2023 tax residency is also based on the incorporation test
Generally, dividends received are exempt from tax.
Disposal of securities are tax exempted (e.g., shares, bonds, debentures).
Cyprus does not levy any withholding taxes on dividends, interest and royalties paid to non-residents of Cyprus except in the case of dividends paid to a company tax resident of an EU ‘blacklisted’ jurisdiction, and in the case of royalties earned on rights used within Cyprus.
No capital gains tax (except for disposal of immovable property in Cyprus).
No Wealth Tax or Inheritance Tax.
IP Box Regime can lower the effective tax rate of your company as low as 2.5%.
There is a Notional interest deduction for investments into Cyprus companies.
A wide network of Double Tax Treaties covering approximately 60 countries.
50% income tax exemption for individuals earning more than €100,000. New law made this exemption starting from €55,000 in 2022.
Full capital gains tax exemption on the transfer or sale of shares in a company, except where the company owns immovable property in Cyprus.
Statutory expenses are tax deductible for Cyprus tax purposes (e.g., audit fees, accounting fees, director fees, etc).
Tax losses can be carried forward and be utilized for the next five years. Tax losses can also be surrendered for group relief (subject to provisions) within the tax year they occur.
Contact us for other tax benefits which may be applicable to your business.

EU MEMBERSHIP

European Union & Eurozone Member State: Cyprus joined the United Nations in 1960 and became a full member of the European Union on the 1st of May, 2004. On the 1st of January, 2008, Cyprus adopted the Euro € as its official currency, departing from the previously used Cyprus Pound £. By joining the EU, Cyprus has achieved, amongst others, greater security and more opportunities for businesses and markets, as well as improved economic stability, growth, and more integrated financial markets. As a member of the EU, a Cyprus Company can enjoy various benefits, some of which are:

Tax-friendly attitude for Companies with non-resident Beneficial Owners.

Access to certain trade routes that facilitate easier trade within Europe.
Non- residency ownership: This means you can be the direct owner of your business, with no need for a nominee.
Asset Protection – that is limited personal exposure to the owners of the Company.

Legal and Regulatory

Cyprus’s legal framework is particularly strong due to mandatory compliance with European Regulations. Cyprus’s legal system is based on the English Common Law and was amended several times to be up to date with current needs and wants and meet several European Union Requirements. Offering foreign businesses a familiar and reliable framework within which to operate, Cyprus legal system is also fully compliant with the EU, the Financial Action Task Force on Money Laundering (FATF), OECD, FATCA, the Financial Stability Forum laws and regulations, and EU AML directives.

TALENT

Cyprus hosts an educated and internationally oriented workforce, with 55% of the workforce being holders of at least a university degree. More than 100,000 workers from EU Countries are based in Cyprus. Employers can take advantage of the entire EU talent pool, as Cyprus is a member state. Talented individuals can easily be found to equip an office in Cyprus across various sectors.

low-cost structures

There are multiple advantages, from the point of view of costs. Cyprus has a low cost of living, lower expenses, low taxes, low cost of services. Based on the purchasing value of $1 in the US, the cost of living in Cyprus is $0.68. This ranks Cyrus at 14th out of 27 EU member states regarding the cost of living.

Cyprus in general offers value-for-money solutions across all fields, from setting up and renting premises, to schools for kids and their education. Contact us for more information and we can assist in finding the best possible solutions for you.

Cyprus as a destination to live and thrive

Beyond the tremendous economic and tax advantages offered to investors, Cyprus also offers an extremely attractive lifestyle and excellent infrastructure. In a glimpse, Cyprus offers:

High-quality tourist facilities, a high standard of living, and superb healthcare.

One of the best climates worldwide. It is the sunniest country in Europe – 300+ days per year.

There is the freedom to move, reside and work freely within the EU.

Entertainment and hospitality. There are multitudes of events with cultural and historical importance.

There is a convenient transportation system all over the island. Cyprus has two international airports in Larnaca and Paphos. The country also has two deep-sea ports in Limassol & Larnaca.

Excellent public and private international schools.

Cyprus is also swiftly becoming a favorite option for medical and sports tourism.

With all these qualities, don’t you dream of relocating or setting up base in Cyprus? Well, if you do, we’re here to make your aspirations come true! Contact us for more information.