Doing Business in Cyprus

Cyprus is found at a crossroad of three continents and is a member of the EU and Eurozone making it an ideal jurisdiction for investments to EU and from EU.  As a member of the EU and Eurozone community, Cyprus ensures safety and stability for investors, and at the same time offers market access to EU citizens.

Cyprus’ legal system, based on English Common Law principles, is widely recognised as a business-friendly and effective system that ensures transparency and reliability in business practices. Offering international businesses, a familiar and reliable framework within which to run.

Cyprus is also fully compliant with the EU Directives and Regulations, the Financial Action Task Force on Money Laundering (FATF), OECD, FATCA, the Financial Stability Forum laws.

Moreover, Cyprus offers an attractive tax regime, supplying access to an extensive network of more than 60 Double Tax Treaties and offering a corporate tax rate of 12.5%, offering international investors the confidence to set up business or headquarters of their business in Cyprus.

Key areas to do Business in Cyprus

• Shipping
• Tourism
• Real Estate
• Energy, Oil & Gas
• Alternative Investment Funds
• Education
• Research & Development of IP
• Starts Ups
• Professional Services
• Forex Trading

Key reasons to do business in Cyprus:

• One of the lowest corporate tax regimes (12.5%) in Europe
• Access to EU directives such as the Parent-Subsidiary
• Double Taxation Agreements with over 60 countries
• Longstanding bilateral relations with a plethora of countries worldwide
• Dividend participation exemption (subject to conditions)
• Exemption on profits of foreign permanent establishments
• Exemption from tax on gains from the disposal of securities such as shares or bonds
• No withholding taxes on interest and dividends (subject to conditions)
• No tax on dividends, interest and rental income of non-domiciled individuals
• 50% exemption on employment income exceeding €100,000 per annum for non-residents taking up employment in Cyprus
• EU-approved Tonnage Tax System with no direct link to corporate tax
• Membership in International Organisations such as the Commonwealth, the W.T.O, I.M.F etc.
• High calibre of multilingual professionals in legal, accounting and financial services
• Market access to 500 million EU citizens
• Attractive, efficient, and transparent tax regime for companies, trusts, funds, shipping, IP, etc.
• Investment opportunities in real estate, alternative investment funds, financial services, etc.

As a conclusion, it must be highlighted the government’s commitment to the continuous introduction of progressive measures for reform and growth to attract new business and to further set up Cyprus as a centre for international business, resulting in the extraordinary recovery of the Cyprus economy earlier than expected.

Cyprus’ key economic sectors are continuously being developed and improved including introducing structural changes and the enhancement of infrastructure and digitalisation of civil services.

These measures have been instrumental in Cyprus regaining its credibility and reinforced its competitiveness as an attractive investment destination offering a wide range of business opportunities and potential.