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.
EU and Eurozone As a member of the European Union since 2004 and the Eurozone in 2008, Cyprus enhanced its role as robust and reliable destination for key players in various industries and sectors. 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. Professionals The Cyprus competitive professional industry comprises of highly qualified and skilled human talent, fluent in several languages. The experienced and diverse professionals in Cyprus provide excellent services. Numerous firms offer services for Legal, Tax, Audit, Advisory, Transactional, Technology and Human Capital. Clients seek Cyprus for customised, cost-efficient solutions that will add value and a competitive advantage to their different needs. Law 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 and regulations are formulated to facilitate compliant transactions of businesses smoothly. Tax The national tax framework and incentives as well as international or bilateral treaties with countries worldwide remain useful business structuring tools. Cyprus has a 12.5% corporate tax rate, limitless tax structuring opportunities and contemporary banking infrastructure. Banking Cyprus withstood, quickly overcame and continues to evolve from the most recent financial crisis that struck the island in 2013 and led to the so called bail-in of banks. The amount of non-performing loans remains high but will be addressed effectively and efficiently pursuant to the recently passed applicable legislation and regulations. Local and international banks based in Cyprus adhere to FATCA, OECD, EU Client Due Diligence, AML and Privacy directives and guidelines. Shipping The coastal business centre of Limassol is still a well-regarded and long-established ship registration, finance and management centre. It is home to numerous prestigious shipping companies, agents, distributors and managers. Limassol has a long history as a trustworthy hub for shipping business between Europe, Asia and Africa. Energy Significant prospects for oil and gas investments have sparked interest in leading players of the energy industry. Energy conglomerates have been granted exploration licenses for offshore blocks in Cyprus Exclusive Economic Zone. Bilateral agreements with Israel, Egypt and Lebanon have reinforced the importance of Cyprus as an energy hub of the region. However, geopolitical challenges and risks may continue to stifle advancement in Cyprus energy targets. Alternatively, the potential for solar and wind energy produced in Cyprus is well-known and should be mustered efficiently and effectively. Investment Funds Alternative Investment Funds have picked up substantial momentum as a vehicle of choice for investors and fund managers. The recently revised applicable legislation provides an expedited process for establishing Registered Alternative Investment funds, without authorization by the Cyprus Securities and Exchange Commission: provided that they are externally managed by an alternative investment fund manager. Nonetheless, the RAIFs must be notified to CySEC which will register the fund accordingly. Real Estate The relevant value of real estate and construction projects along with the government incentives for Cyprus residency are substantial encouragement for high wealth individuals requiring to relocate with their families and operate through Cyprus. To sum up, Cyprus strives to enhance its position amongst the pre-eminent international business hubs. 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.
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.