Why do Business in Cyprus

With its strategic geographical location and its favourable tax incentives combined with an extensive network of double tax treaties, Cyprus is truly the business bridge connecting Europe, Asia and Africa and a hub between the three continents for business, tourism and residence.

Being a full member of the European Union since 2004 and member of the Eurozone since 2008, Cyprus offers a safe and stable environment for international investors, high net worth individuals and companies, providing access to the European Union market of more than 500 million EU citizens.

Cyprus is ideally suited for international business due to the numerous benefits it has to offer including the following:

Robust economic outlook

• Steady GDP growth and positive macroeconomic forecasts
• One of the fastest growing EU economies
• Consecutive upgrades by Credit Rating Agencies
• Investment and business opportunities in the growth sectors of Energy, Oil & Gas, Tourism, Real Estate, Shipping, Alternative Investment Funds, Education, Start-ups and innovation
• Market access to 500 million EU citizens
• Membership in International Organizations such as the Commonwealth, the World Trade Organization and the International Monetary Fund

Secure Legal and Competitive Tax structure

• Legal system closely aligned with English common law system
• Compliant with EU Directives and Regulations, the Financial Action Task Force on Money Laundering (FATF), OECD, FATCA, the Financial Stability Forum laws
• Corporate tax rate at 12.5%
• Double Tax Treaty network covering more than 60 countries
• Access to over 40 EU trade agreements
• Dividend income exemption based on relaxed conditions
• Capital gains tax exemption (except for real estate situated in Cyprus)
• No withholding tax on outgoing dividend, interest or royalty payments
• Gains from trading in securities such as shares or bonds are tax exempt
• An attractive personal tax regime for international professionals and non-domiciled individuals
• No succession or inheritance taxes
• 2.5% Corporation Tax under the “IP Box” regime where effectively a Cyprus company receives a deduction of up to 80% of the income received from qualifying assets
• Exemption on profits of foreign permanent establishments

Strong and affordable business support services

• Affordable critical business support services
• Lower labour costs for professional staff, in comparison to other EU capitals
• 55% of the workforce has a tertiary degree
• Businesses in Cyprus operate in English and 73% of Cypriots speak English
• Availability of modern and affordable office spaces

Quality of life

• Sunniest European country with over 320 days of sunshine
• Top 5 safest country in the world (Value Penguin 2015)
• Top 4 retirement destination globally (Knight Frank 2016)
• Top 5 best relocation destination in the world (Knight Frank 2018)
• Most blue flag beaches per capita in the EU (Eurostat)
• Best island economy 2017/2018 lifestyle & human capital (fDi magazine)
• Strong private education sector with English taught programs

Please feel free to contact us if you have any question and to discuss how we can be of assistance to you.