The increasing development of start-ups during the recent years has boosted a climate of innovation and growth in Cyprus that could not be overlooked by the government as it is highly promising in creating value for the economy.
The Cyprus government having in mind the great benefits of sustaining such initiatives that promote entrepreneurship and innovation, has announced beneficial enticements especially for start-ups.
The benefits provided by the Cypriot government include Tax incentives for investors in innovative small or medium size companies and the Start-up Visa.
Innovative Company Tax Incentives
Individual investing in innovative start-up companies can enjoy an up to 50% tax exemption on their annual taxable income. Eligible for the tax exemption are individuals investing in an small or medium size innovative enterprise. The investment in such companies should be either be made directly or via an investment fund. The exemption is restricted to a maximum annual amount of €150,000 with the remaining being transferred over a period of 5 years .
The qualified investment in an innovative can be in the form of acquisition of shares, provision of loans or provision of guarantees.
A company is qualified as innovative if:
- It has a valid business plan in place.
- Does not operate in any other market or
- Operates in any other market for a period of less than 7 years from the date of its first sale or
- Needs initial investment for a new product or introduction to a new market of more than 50% of the average turnover of the prior 5 years.
- Has a verification from external auditors that its R & D expenses are at least 10 % of its total operating expenses for 1 out of the 3 prior years.
The “Cyprus Startup Visa” programme allows talented entrepreneurs from third countries, to enter, reside and work in Cyprus in order to establish a startup with a high growth potential. To qualify as investors the following criteria have to be met:
- Is the only founder of an innovative company that has its head offices and tax domicile in Cyprus.
- Has access to €50.000, which may include venture capital funding, crowdfunding or other sources of funding.
- Holds an undergraduate degree or an equivalent professional qualification with good knowledge of either Greek or English.
If you want to work with professionals who provide exceptional quality standards of services in Cyprus, the simplest way is to fill in this contact form.
We will analyze your case and advice you on:
- What company structure suits you best,
- What is the best Tax solution(s) for your business,
- What Banking and cash flows arrangements available.
We will take you through a step by step process from A to Z in creating the perfect business in Cyprus.
Can’t wait any longer? Fill in the form and submit your inquiries make your first step and we will deal with the rest.
Become even more successful by working with accountants you can count on and be among the thousands that already did.
If you want to work with professionals who provide exceptional quality standards of services in Cyprus, the simplest way is to fill in the contact form below.
We will take you through a step by step process from A to Z in creating the perfect business structure in Cyprus.
Can’t wait any longer? Become even more successful by working with accountants you can count on and be among the thousands business that already did.