Doing business in Cyprus
Cyprus is one of the most popular business destinations in Europe, due to it unrivalled tax benefits and its stable economy. Hundreds of international business companies are registered and operating in Cyprus. By joining the EU in 2004, Cyprus strengthened its position as a stable and safe investment destination. The services sector is considered to be the driving force of the economy of the island.
Cyprus offers a clear set of both tax and non-tax advantages that attract each year many foreign businesses.
– A corporation tax of 12.5%, one of lowest in Europe
– Low set up and operating costs
– Over 40 double tax treaties
– Tax – exempt profits of permanent establishments abroad, under certain conditions
– Tax – exempt dividend income
– Tax – exempt income from the sale of securities
– A favourable tax regime for international trusts
– Tax advantages available to non-residents including non – E.U. residents
– Tax-relief for group losses
For more information on the tax advantages that Cyprus has to offer, refer to the PWC’s Cyprus Tax Facts and Figures 2015.
– Excellent legal and economic infrastructure
– Member of the EU since 01st of May 2004
– Highly educated workforce, fluent in English
– High safety
– Legal system based on English common law
– Strategic geographical position in the corridor of three continents
– No bureaucracy on administrative procedures
– Efficient and transparent accounting, legal and banking sectors
– Good weather
– EU standards in customer service, transport and telecommunication facilities, food safety etc.
– Freedom of movement of foreign currency
– Tolerant and welcoming environment for foreign nationals, due to historically high number of – expats and tourists in the island
– Availability of many options for foreign nationals to establish residency in Cyprus