Why Cyprus

The E.U. member in the Centre of the World.

Cyprus is also centrally located between 3 continents – Asia, Europe, Africa – making it easy for individuals to commute back home or for business purposes.

Cyprus enjoys a very safe and high standard of living that includes:

One of the EU’s best all-year climates and one of the best worldwide
Over 65 Blue Flag status beaches for all tastes (highest % per capita) sports, entertainment, etc
High level public & private healthcare services
Short distances – can travel from one side of the island to another in 2 ½ hours
One of the world’s safest countries with one of the lowest crime rates in E.U.
Reasonable cost of living
Real Estate available to cater to all needs – city centre, beach, countryside etc
High Level of Education – Private schools and private institutions offering a high level of education in English

Advantageous Tax Regime

Cyprus offers many tax advantages and incentives, for companies and individuals, making it very attractive to set up your business in Cyprus.

A Company will benefit from:

A Holding Company in Cyprus will benefit from:

No withholding tax on dividends, royalties, and interests paid to non-resident shareholders, whether corporate or individuals
Tax exemption when a company receives dividends from another Cyprus company
Tax exemption on dividends Cyprus company receives as a shareholder of other subsidiaries situated abroad
Tax exemption on any income arising from trading in securities such as shares, bonds, etc
No withholding tax on royalties paid from Cyprus based companies in respect of intellectual property exploited outside of Cyprus
80% tax exemption on any qualifying profits generated by intellectual property owned by a Group of companies in Cyprus
Group relief laws allowing for Group to carry forward losses
No Capital gains tax from the disposal of any immovable property held by the Company outside of Cyprus or disposal of shares in companies situated outside Cyprus
Extensive Tax Treaty network with more than 60 countries

Individuals will benefit from:

Being considered non-domiciled in Cyprus for a maximum of 17 years once they relocate to Cyprus
No Special Defence Contribution Tax for non-domicile personnel who become tax residents
Tax exemption on dividends and interests earned by non-domicile individuals
The first €19,500 of taxable income being tax-exempt for individuals
50% exemption for the remuneration of individuals from employment in Cyprus who were residents outside Cyprus before the commencement of their employment. The exemption applies for 10 years commencing from the year of employment if such income exceeds €100,000 per year
100% exemption on lump sum repayments from life insurance schemes or from approved provident funds
No Capital Gains Tax on the sale of immovable property located outside Cyprus
No Wealth-tax for High Net Worth Individuals

European Union Member

At the core of the E.U. is the single market – the programme of freeing up the trade of goods and services and the movement of people between E.U. countries. The aim of the E.U. is that doing business with other EU countries is like doing business within your own country.
Cyprus has access to 40 + EU trade agreements with countries outside the E.U along with full access to European Markets with free movement of goods, services, capital.
The E.U. wide technical and safety standards ensure that if you meet Cyprus standards, your Company will also meet the standards of other EU countries.
European Union directives are fully transposed into Cyprus legislation and E.U. regulations have direct effect and full application in Cyprus.

Banking

The European Union has a well developed and regulated banking sector, thus opening a bank account with a Cyprus bank will allow companies to enjoy a swift process when opening bank accounts in other E.U. nations.
Bank transfers or payments from any E.U. bank account can be transferred to any other country in the world without any restrictions or limitations. A Cyprus company will be able to trade and open a bank account in various currencies as there are no exchange control limitations.

Costs

Moving your company to Cyprus reduces your overall set-up costs compared to other EU countries:

The U.K. Connection

With English being a predominant language spoken between businesses, when setting up your business you can benefit from the island’s high percentage of English-speaking citizens:

73% of Cypriots speak English – official language due to British Colonization
English widely accepted for business transactions, government services, contracts, banking, and other day-to-day functions you’ll be undertaking
U.K.-Cyprus trade relations existed before the E.U. and will continue strongly after
Brexit as Cyprus belongs to the Commonwealth and has sovereign British
Cyprus being an ex British colony, the judicial and legal system is very much aligned with that of the United Kingdom.
Key legislation such as the Companies law, Contract law, and Tort law are modeled on British law. The Cyprus courts follow the precedents of the English courts and in general, Cyprus can be characterized as a UK-friendly country, this results in more clarity and certainty in the legal system and a preferred jurisdiction for U.K. companies.