Headquartering in Cyprus

Establish a physical presence with headquarters in Cyprus

So why set up your headquarters in Cyprus?

1. The first and most important reason to consider headquartering in Cyprus are the tax incentives, and more specifically the very low corporation tax rate of 12.5%.

• • The tax regime is simple – it follows a straight-line method of 12,5% on taxable profits with a general rule of expenses being tax allowable when they are connected to the generation of income.
  • Also, there are numerous Double Tax treaties with many countries of the world
  • There are many, many tax incentives for companies, such as tax exemptions from profits generated from Intellectual Property, tax exemptions from profits from trading in securities and many more.
  • And the tax incentives are not only for the companies but also for individuals – for example under certain criteria, individuals may enjoy 50% exemption on Cyprus income tax.

2. Another very important reason is that Cyprus is an uprising economy and is situated in a very advantageous geographical position being the cross road of Europe, middle East and Africa. Thus your Cyprus company can be the channel in to key markets worldwide.

3. The Corporate structuring and actual procedures of setting up a company are simple and also fast. With the right documents, a company can be set up with in a few weeks.

4. Also, Cyprus has an educated and trained workforce and there is access to professionals from all sectors

5. It has a strong legal framework and a strong network of legal professionals

6. If required, key staff members from abroad can be brought to work in the Cyprus business

7. And finally, the obligations of a Cyprus company are specific and can be well managed if a company has a strong and reputable accountant and financial advisor by it’s side.

But beyond the above – It’s not just about establishing a Cypriot company, or setting up headquarters in Cyprus but actually about considering full relocation to Cyprus.

So Why relocate to Cyprus:

1. Cyprus is a small and safe country, one of the safest small countries in the world and one of the best places in the world to live, whatever age you are.
2. It’s a great place to raise a family.
3. The standard of education is high and there are many private English-speaking schools that children can attend and prepare them for University in any country.
4. There are amazing properties available – both residential and commercial
5. There is Great weather all year round – offering from beautiful beaches to traditional villages in the mountains.
6. Cyprus IS the place:
   • For setting up your business
   • Raising your family
   • And having a great life

Headquartering in Cyprus – Fast track Business Activation Mechanism

Headquartering and company relocation in Cyprus is now even more attractive through the introduction of the Fast Track Business Activation Mechanism.

The Fast Track Business Activation Mechanism was approved by the Council of Ministers on 3rd of September 2020 aiming to further attract foreign business to Cyprus as well as to provide fast and efficient services to foreign businesses wishing to establish presence in Cyprus.

Services provided for the Fast Track Business Activation Mechanism

The Fast Track Business Activation Mechanism is operated by the Ministry of Energy, Commerce and Industry and includes the following services:

1. Assistance and accelerated procedures from a single point of contact to obtain all necessary local registrations for the establishment or re-domiciliation of companies in Cyprus, including:

• Company registration and name approval
• Registration with the Social Insurance Registry and Employers’ Registry
• Registration with VAT and Income Tax Registry

2. Guidance for establishment and operation of companies in Cyprus and provision of information for all the necessary permits required by the company to start operations.

3. Facilitation for an expedited issuance of the necessary residence and employment permits in Cyprus for third country nationals and members of their family, required for the operation of companies in Cyprus.

Eligibility criteria for Fast Track Business Activation Mechanism

Companies interested in joining the Fast Track Business Activation Mechanism should meet the below main criteria:

• Companies should have a physical presence in Cyprus including establishment/ operation of independent offices that are separate from any private residence.
• Existing companies should have a minimum turnover of €500,000 per year for 3 out of the last 5 years.
• New companies should provide a reliable 5-year business plan illustrating growth potential.

Revised Policy for the issuance of Temporary Residence and Employment Permits to third country nationals

The Council of Ministers, on the 7th of October 2020, approved a revision of the Policy for the Issue of Residence and Employment Permits for companies of foreign interests registered in the Republic of Cyprus. The revised Policy defines the criteria on the basis of which facilitation services will be provided for residence and employment permits of third country nationals. This applies to both existing and new companies under conditions.

A key pillar of the review is the provision of the possibility of employing a higher number of third country nationals of specific professions and / or skills, for which there is a significant shortage of supply at national level, without a prior labour market test and taking into account the companies’ annual turnover.