Cyprus, the third-largest island in the Mediterranean Sea, is conveniently located at the center of three continents – Europe, Asia, and Africa. It is one of the most promising business hubs in the European Union linking Europe with the Middle East and the Arab world. There are many advantages to using Cyprus for starting a company, investment, and other business purposes. Therefore, if you are looking for new business opportunities we advise you to consider Cyprus.
3 reasons to do business in Cyprus
Cyprus has a favorable tax system and conditions for investors. Corporate tax rate is 12,5 %. It is one of the lowest corporate tax within the EU and the lowest non-offshore jurisdiction corporate tax rate in the world (alongside Irelands). However, Cyprus is not an offshore tax haven. The Cypriot tax regime and tax legislation are in full conformity with both EU Laws and Directives and OECD.
Wide double tax treaty network. Currently, Cyprus has more than 65 double tax treaties with various jurisdictions and always seeking to enlarge its Double Tax Treaties with even more jurisdictions.
The Cyprus Income Tax Law provides for a number of exemptions for many and varied types of income, profit, and gain. For example, dividends received from other Cyprus tax resident companies are exempted from all taxes.
Things to know about doing business in Cyprus
Types of business entities in Cyprus. Business entities in Cyprus can operate as a Limited company, Branch, Sole proprietor, partnership, or European Public Limited Company. Most economic activity in Cyprus takes place in the private sector and the economy in Cyprus is based on free enterprise. The service sector accounts for about half of employment and almost two-thirds of its GDP.
Re-domiciliation. The re-domiciliation of foreign companies to Cyprus and another way around is possible so companies may migrate from another jurisdiction to Cyprus (and another way around). They don‘t need a transfer or takeover of assets to another company that is already registered in the destination country.
Starting company in Cyprus. Registration of a new company in Cyprus is quite fast. In order to register a company in Cyprus you need the approved name of the company, registered office, at least one registered shareholder, share capital (standard practice is for private companies to issue share capital of 1000 EUR), at least one director, and a secretary.
If you have any questions concerning doing business in Cyprus contact us and we will guide you every step of the way.