WHY INVEST IN CYPRUS?
Geographical location.
Cyprus geographical position at the crossroads of three continents – Europe, Africa and Asia, plays a key role in the region of the Eastern Mediterranean.
The island is an ideal investment gateway to the European Union, as well as a portal for investment outside the EU, particularly into the Middle East, India and China
Tax in Cyprus.
Cyprus offers one of the most attractive tax regimes in Europe, fully compliant with EU, OECD and international laws and regulations. Some of the features are:
- One of the lowest corporate income tax rates in the EU at 12.5%
- Dividend participation exemption
- Exemption on disposal of securities (e.g. shares, bonds, debentures)
- No withholding taxes on dividend, interest and royalty payments abroad
- No capital gains tax (except for disposal of real estate in Cyprus or shares of company holding real estate in Cyprus to the extent gains are attributable to the real estate holding)
- No succession taxes
- Attractive IP regime
- Tonnage tax for shipping companies
- Notional interest deduction for investments into Cyprus companies
- Personal tax exemptions for new residents and non-domiciled individuals
- More than 60 double tax treaties
EU & Eurozone Member State.
Cyprus has become a full member of the European Union since 1st of May 2004 and on 1st of January 2008 has adopted the Euro as the official currency of the Republic.
Accession to European Union and adoption of Euro has launched a new era of opportunities for Cyprus Companies and Cyprus Economy.
New funding opportunities have been arisen from European funds to support Cyprus Companies. In addition, Cyprus is established as an ideal location for inbound and outbound investments in the EU.
Furthermore, the accession to the EU has provided more advantages for businesses in the single market by using Cyprus tax friendly environment in association with the Parent Subsidiary EU Directive, which provides the opportunity to other Member State Companies to enjoy 0% on profit distributions from Cyprus subsidiary.
Legal and regulatory.Cyprus legal system is formed based on the English legal system which is one of the most efficient and reliable legal systems in the world. The legal system has some minor influences from the continental European legal system but the foundation of the system is in large extent based on the Anglo-Saxon judicial system. Cyprus comprehensive and robust legal and regulatory framework is recognised as a business-friendly and very effective system that ensures transparency and reliability in business practices.
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.
Professional services.
Human talent constitutes one of Cyprus most compelling advantages, complemented by a broad range of high quality professional services.
As a dynamic business center, Cyprus offers an abundance of highly educated and skilled individuals, multilingual in their majority, ready to serve the needs of any business. Cyprus ranks amongst the top countries in Europe for tertiary education per capita.
Cyprus Infrastructure.
Cyprus offers a sophisticated road, air and sea transport solutions and services, which are widely recognised as an important competitive advantage in attracting foreign direct investment.
Cyprus two multi-purpose deep sea ports are located in the coastal cities of Limassol and Larnaca. The Limassol port handles both passenger and freight cargo while offering logistics solutions through advanced facilities for cost-effective transport and processing. In addition, the Limassol port is a renowned cruise liner hub and a popular “stop-over” for international cruise ships.
Two modern international airports in Larnaca and Paphos, offer their services to approximately 10 million visitors per year, connecting the island to the most popular transit hubs throughout the world.
Considerable investment has also been made to transform the island into a major telecommunications hub in the region, connecting Cyprus via submarine fiber optic cable and satellite to other networks in the Eastern Mediterranean basin and beyond
Quality of life.
Cyprus offers best quality lifestyle in a safe, clean and healthy environment with high living standards.
Low crime levels, 340 days of sunshine, centuries of art and culture, and a unique Mediterranean gastronomy all contribute to a high quality of life.
Safety is amongst the biggest advantages of Cyprus, which has been ranked the safest smaller country in Value Penguin’s Safest Countries in the world (2015) and fifth worldwide.
Investment and Growth Opportunities.
The government’s commitment to the continuous introduction of progressive measures for reform and growth has resulted in the impressive recovery of the Cypriot economy, much earlier than expected. Cyprus constitutes today a success story for the EU, a fact enhanced by continuous upgrades from credit rating agencies, such as Standard & Poor’s, Fitch and Moody’s.
By continuously enhancing and developing key economic sectors, introducing structural changes and important reductions in expenses and operational costs, Cyprus has regained its credibility and reinforced its competitiveness as an attractive investment destination offering numerous opportunities and potential.
- Geostrategic location offering market access to 500m EU consumers and close proximity to MENA\
- Fast Track Mechanism for Licensing & Immigration for non-EU nationals
- Access to tech-savvy EU talent pool and a well-educated, highly skilled, multilingual workforce
- Attractive EU-approved corporate tax environment with favourable IP regime as low as 2.5%
- Low cost of doing business for high-quality professional services
- Enviable life style in a safe, clean and healthy environment with high living standards
- Pro-business attitude, strong regulatory framework, legal system aligned to the UK common law
- Special income tax incentives for expat executives and new tax residents of Cyprus
Cyprus has long established itself as a thriving business hub, with a vast array of investment opportunities in key growth sectors of the economy. The island’s ideal strategic location, advanced infrastructure and high quality of life do not only represent key reasons to relocate and live on the island, but are also at the heart of an investor’s choice to invest in Cyprus.
The island is an ideal investment gateway to the European Union, as well as a portal for investment outside the EU, particularly into the Middle East, India and China. As a member of the wider EU and Eurozone community, Cyprus ensures safety and stability for investors, while also offering them market access to more than 500 million EU citizens.
The local infrastructure is ideally suited for business people who need to get things done. Thanks to its modern road network, extensive port facilities and two new international airports, travel and transport in and beyond Cyprus is fast, efficient and cost-effective.
Human talent constitutes Cyprus’ most compelling advantage, complemented by a broad range of high quality professional services. As a dynamic business centre, Cyprus offers an abundance of highly educated and skilled individuals, multilingual in their majority, ready to serve the needs of any business.
