Cyprus is a small country at the meeting point of three continents- Europe, Asia and Africa. Situated in the eastern corner of the Mediterranean Sea, it’s geographical location has been considered of strategic importance in global trade for thousands of years.
Cyprus is a member of the European Union and the Eurozone, and is a dynamic and modern island with a cosmopolitan lifestyle. English is widely spoken, as well as many other languages.
The legal system of the island is modelled on the English common law system and its primary corporate statutes are based on and have derived from English company legislation. It is recognised as a business-friendly and effective system that ensures transparency and reliability in business practices. European Union Directives are fully implemented into local legislation and European Union Regulations have direct effect and application in Cyprus.
Cyprus offers the most attractive tax system in Europe for international business. It provides a simplified, effective and transparent tax regime that is fully compliant with the European Union laws and regulations.
Key features of the Cyprus Tax System:
- One of the lowest corporate income tax rates in the EU at 12.5%
- The “user friendliness” and practically zero tax status of the Cyprus Holding Company
- Wide network of Treaties for the Avoidance of Double Taxation, including some with large countries which have comparatively beneficial provisions
- Absence of withholding taxes on dividends, interest or royalties paid from Cyprus
- Exemption from tax of many types of income
- Many other tax incentives introduced
- No Inheritance taxes.
- No capital gains taxes (except only on immovable property in Cyprus).
Cyprus is not a tax haven. It has strict rules in relation to accounting, audit and tax compliance and is implementing rigorous anti-money laundering measures. International business prepared to accept and comply with these requirements may derive significant benefits in terms of overall reduction of the tax burden.
Cyprus joined the Euro zone as of 1 January 2008. There are no exchange controls in Cyprus.
Other reasons to choose Cyprus as your business location
- A very favorable and welcoming environment to international business.
- Excellent climate and lifestyle ensuring residents enjoy a high quality of life.
- A democratic and free society with a well-established legal system.
- Excellent location for business in the Middle East, Eastern Europe and North Africa.
- Good air connections.
- Excellent telecommunications. (High speed broadband Internet networks cover most of the island)
- A broad range of high-quality professional services.
- Highly skilled, educated and flexible workforce, well-acquainted with the use of modern technology.
- Modern banking system
- Educated, well trained and multi-lingual population. English is widely used in business. Many other important languages are also spoken.
- Excellent residential and office accommodation.
- Low cost of living.
- Crime free society and high quality of life.
- Good education available from elementary schools to university level.
- The membership of the EU enables employment of any EU national without complicated procedures. Non EU personnel may also be employed following the required procedure for securing work-residence permits.
Today, our business-friendly country is a vibrant and cosmopolitan business centre.
Cyprus has also responded remarkably to the Coronavirus outbreak. The government was quick to introduce measures to combat both the public health challenges and the financial threats of the pandemic, significantly mitigating its negative impact on the economy. Today, growth and economic activity are returning to normal rates, with travel restrictions relaxed and numerous flights operating daily, making it an ideal location for business amid the challenges of 2020.
We recommend Cyprus more than ever not just for business but also for pleasure!
The contents of this article should be considered to be of a general nature only not referring to any particular business. Before proceeding with any action, please request further advice relating specifically to your business. We will be very pleased to be of assistance.