Cyprus has long been a fundamental, geostrategic location as the third largest island in the Mediterranean crossroads of Europe, Asia and Africa. It is well-regarded for its abundance of sun, exquisite hospitality and a growing, innovative business community. Organisations ranging from private or family businesses, startups and multinationals establish headquarters in Cyprus. Cyprus offers quality, safety, education and culture. These benefits constitute the building blocks for a healthy and prosperous life of individuals and their families. Particularly during the past few years, a myriad of international technology companies have migrated to Cyprus to set up their base as a gateway to the EMEA region.
Business Structuring
The Cyprus legal system is largely based on English common law principles. This provides comfort through familiarity to international executives who conduct local or cross-border business through Cyprus. Cyprus law is formulated to facilitate compliant transactions of businesses smoothly. The national tax framework and incentives as well as international or bilateral treaties with countries worldwide remain useful business structuring tools. Cyprus has 12.5% corporate tax rate and limitless tax structuring opportunities. Dividend income is generally exempt from tax. Attractive tax incentives are in place for instance in relocating employees and no dividend tax for non-domicile beneficial owners.
Cyprus Vision 2035
Sustainable Business: The three pillars of the Cyprus government’s strategy are called a "global model nation", with an efficient state apparatus, an efficient judicial system, a "thriving and resilient economy", based on the green economy and digital transition, and a "fair and inclusive society", with a worldclass education system, accessible healthcare and a rule of law that fights corruption.
Commercial Center: The aim of the strategy is to strengthen emerging sectors in which Cyprus has a comparative advantage, such as the information and communication technology (ICT), higher education, the primary sector with agro-technology, sustainable tourism, health and agri-tourism, professional services, renewable energy and small-scale industry.
Facts & Figures
✓ EU and Eurozone member since 2004 and 2008 respectively
✓ Professional services industry comprising of multilingual, highly qualified and skilled human talent
✓ A contemporary banking infrastructure adhering to FATCA, OECD, EU Client Due Diligence, AML and Privacy directives and guidelines
✓ Largest third-party ship management centre in the EU
✓ A dynamic and competitive economy
✓ Quality healthcare and education
✓ A cosmopolitan island with a multicultural society
✓ Developed infrastructure, telecommunications and digital networks
Grants & Incentives
Innovative research, a rapidly growing start-up ecosystem, highly educated and experienced human talent and a range of incentives render Cyprus a perfect choice to start and scale companies. Applied research is encouraged through EU or national funding. The intellectual property regime allows payment of 2.5% tax on royalties.
Highlights
INTERNATIONAL BUSINESS HUB
Cyprus strives to enhance its position amongst the pre-eminent international business hubs for key players in various industries.
DESTINATION OF CHOICE
It is quickly building on its reputation as a destination of choice for individuals and companies seeking to establish their headquarters at a business-friendly location.
DIGITAL CYPRUS
The professional services industry evolved to cater for businesses of local and international clients, in line with the risks of the Digital Age and the challenges of globalisation.
Disclaimer: This article is intended for informational purposes only and should not be construed as legal advice. For specific legal guidance on Cyprus legal matters, it is advisable to consult with a qualified legal professional. If you have any questions or require any legal advice or assistance, please do not hesitate to contact us at contact@kourtellos.com.