In a globalized economy, where multinational companies need to maintain and increase quality while cutting costs to meet increasingly higher client expectations, Cyprus provides a complete value proposition, given the following reasons:
1. EU & Eurozone
Cyprus is an EU-member since May 2004 and an Economic and Monetary Union Member since January 2008. Foreign investors have the opportunity to access the EU market and vice versa via Cyprus.
2. Strategic location
Cyprus is Europe’s eastern outpost at the crossroads of three continents– Europe, Africa and Asia – providing the perfect gateway to and from each one of them.
- a) Cyprus offers one of the most attractive tax systems in Europe. The country provides a simplified, effective and transparent tax regime that is fully compliant with the EU laws and regulations.
b) Dividend income, profits from overseas permanent establishments and profits from the sale of securities are exempt from tax. Also, there is no withholding tax on dividend, interest and royalties paid from Cyprus.
c) Most international transactions are exempt from VAT.
- d) Cyprus has a network of double taxation agreements with more than 48 countries. For a complete listing please visit the Ministry of Finance Double Taxation Agreements Section. Additionally, Cyprus has access to EU Directives that focus on reducing or eliminating foreign withholding taxes.
- Qualified Professionals
2011 statistics demonstrate that 33.6% of Cypriots in the 15 – 64 age group have acquired tertiary education – higher than the EU 27 average of 23.6% and one of the highest percentage in the world.
- Value for Money
Cyprus is a dynamic financial centre that offers relatively lower operating costs while also providing top quality services, including accounting, auditing, tax, business administration, legal, investment and funds management.
6. Legal Framework
Pro-business, based on common law, accounting and legal transparency:
a) The legal system is based on the U.K. Common Law principles and aligned with the EU laws and regulations (Acqui Communautaire).
b) Cyprus provides quality legal services in areas such as international law, corporate administration and management services.
7. Well-developed Infrastructure
Cyprus has a robust telecommunications system, two international airports (Larnaca, Paphos) and two ports (Limassol, Larnaca). Furthermore, the relatively small distances make the island a very friendly and easy to get around business location.
8. Ease of Doing Business
- a) Cyprus has developed into an international quality business centre that offers specialized services and rewarding business opportunities serving the diverse needs of international investors, enhancing the ease of doing business.
b) The World Bank’s Doing Business Report 2013 ranked Cyprus 36th out of 185 countries and 16th out of the 28 EU member states for the ease of doing business.
- c) Forbes Magazine “2012 Best Countries for Doing Business” report ranked Cyprus 25th out of 144 countries.
- Quality of Life
- a) Cyprus offers a wonderful environment with a very comfortable standard of living. Living and working in Cyprus is combined with fabulous weather, beautiful nature, art and culture, safety, security, and above all, hospitable people.
b) Cyprus combines the international competitive business environment with a pleasurable and balanced way of life.
c) The UNDP Human Development Index Report 2013 ranked Cyprus 31st out of 187 countries for the quality of life.
d) Bloomberg’s 2012 Best Countries for Doing Business Report ranked Cyprus 32nd out of 161 countries.
- Residency and Citizenship
- a) Non EU residents have the opportunity to acquire a permanent residency permit with the purchase of an immovable property of at least 300,000 EUR and deposits of minimum 30,000 EUR in a local bank for three years.
b) Non EU residents can acquire the Cypriot nationality with:
- An investment of minimum 2 million EUR in a state company and 500,000 EUR investment in the Research and Technology fund;
- A direct investments of 5 million EUR;
- Bank deposits of 5 million EUR in a local bank for five years;
- Payments of income tax or VAT of more than 500,000 EUR.