Reasons to Invest in Cyprus

24 September 2018

Reasons to Invest in Cyprus

Cyprus is a dynamic, cosmopolitan and transparent business centre offering opportunities for investment across a wide range of sectors. Cyprus is committed to offering a high quality, duly regulated service and unique set of competitive advantages that ensure the best possible experience for investors and business people worldwide.

Location
Strategically located at the crossroads of 3 continents, Europe, Africa and Asia, the location is a central hub for busy shipping and air routes linking the 3 continents.

Positive Economic Outlook
• The Cypriot economy expanded faster than EU average in 2017
• 3.8% growth in 2017
• Consecutive upgrades by Credit Rating Agencies
• Positive EU Commission macroeconomic forecasts – robust growth expected to continue

Attractive Tax System
Corporate Tax
• 12.5% corporate tax rate
• EU & OECD Compliant / Access to EU directives
• Dividend participation exemption
• No tax on profits from disposal of securities
• No withholding taxes
• No tax on capital gains under conditions
• Notional Interest Deduction (NID) on investment in Cypriot companies
• Attractive IP Regime
Income tax for new residents
Income more than €100K/year
• Exemption from personal income tax of 50% for new residents
• Applies for the first 10 years of employment in Cyprus
Income less than €100K/year
• Exemption from personal income tax of 20%, up to a maximum of €8.550 per annum for 10 years
Investor’s tax benefits
• Non-domiciled individuals who are tax residents of Cyprus are not taxed on passive income for income tax or defence tax in the form of dividends and interest.

Access to talent
• The youngest population and workforce in the EU
• 55% of the workforce has a tertiary degree
• Businesses in Cyprus operate in English and 73% of Cypriots speak English
• Booming private education sector with English taught programmes
• Visa-free access to European talent
• Easy access to global talent

Access to markets
• Full access to European markets and 40+ EU trade agreements
• A member of the Eurozone since 2008
• Part of the European Single Market
• 60+ double tax treaties

Strong business support services
• Wide range of services make starting & running a business easy
• 700+ registered accounting firms including all major global firms
• 2,700+ registered lawyers and 160 law firms
• A range of serviced offices & co-working spaces
• High availability of modern and affordable office space in all cities

Low cost of doing business
• Lower labour costs for technical and professional talents than in other major EU capitals
• Among the lowest office rental rates in Europe
• Highly affordable critical business support services

Quality of life
• One of the best climates worldwide
• Top 5 safest countries in the world (Value Penguin 2015)
• Top 4 best retirement destination globally (Knight Frank 2016)
• Most blue flag beaches per capita in the EU (Eurostat)
• Best island economy 2017/2018 lifestyle & human capital (fDi magazine)

Excellent regulatory structure
• The legal system is closely aligned to the English common law legal system
• Frequently updated to meet investors’ changing needs
• Strong protection for investment and intellectual property
• Establishing a business is simple and fast

Freephone:
Head Office Protaras:
Larnaca Office:
Paphos Office: