The success of your foreign investment will depend to a large extent on your choice of location. It should be one that offers a conducive environment for your business to thrive. Cyprus is one such destination. It is a gorgeous Island country situated in the eastern Mediterranean, it's a modern, cosmopolitan, transparent business centre offering opportunities for investment across a wide range of sectors. This small but dynamic island nation presents not only plenty of investment opportunities but also a favorable business environment.
Here are our top 7 reasons to invest in Cyprus:
1) Tax System
Cyprus offers an attractive and transparent tax regime, fully compliant with EU, OECD and international laws and regulations.
The tax regime favors holding companies, financial institutions, Investment Funds, IP companies, and value chain transformation companies.
These tax incentives reduce the cost of doing business in this country. For a business owner in Cyprus, this allows for competitive pricing as well as good profits.
Its main features are:
2) Efficient Banking and Professional Services
- One of the lowest corporate income tax rates in the EU at 12.5%
- Dividend participation exemption
- Exemption on disposal of securities (e.g. shares, bonds, debentures)
- No withholding taxes on dividend, interest and royalty payments abroad
- No capital gains tax (except for disposal of real estate in Cyprus or shares of company holding real estate in Cyprus to the extent gains are attributable to the real estate holding)
- No succession taxes
- Attractive IP regime
- Tonnage tax for shipping companies
- Notional interest deduction for investments into Cyprus companies
- Personal tax exemptions for new residents and non-domiciled individuals
- More than 60 double tax treaties with countries all around the world
Cyprus has a large number of highly educated and skilled certified public accountants and registered advocates ready to offer their services. Their competence is boosted by their multilingualism. They speak English, Greek, Turkish, and Russian. Therefore, you can easily get access to top-notch legal services, accounting, management consultancy, and financial advisory.
Additionally, Cyprus has a well-organized banking system which takes care of the diverse needs of individuals and companies. These banks offer these services; asset management, syndicated loans, retail banking, custodian services, private banking, and investment banking.
3) European Union and Eurozone Member State
Cyprus gained membership into the European Union on 1st May 2004 and adopted the use of the Euro in 2008. Membership to the European Union is a vote of confidence which is useful in guaranteeing stability and safety for investors. Moreover, businesses in Cyprus have complete access to European Union markets and the associated benefits.
4) Advanced Infrastructure
Cyprus has invested heavily in telecommunications, shipping and road and air transport. It is home to sophisticated roads with multiple lanes which allow for faster and efficient movement between points. These roads complement their two world class international airports;
one in Larnaca and the other in Paphos which see approximately 10 million visitors come to the island. These airports also play a pivotal role in linking Cyprus with numerous global destinations.
It also has two deep sea ports located in Larnaca and Limassol. Limassol is a popular pause point for international cruise liners. Besides, it handles freight cargo, and it utilizes advanced logistic solutions which reduce costs and increases efficiency.
This country is considered a telecommunications center because it has satellite and submarine fiber optic cables which connect it to the rest of Europe, Asia, and the Middle East. The Eastern Mediterranean Island also has fast internet connectivity.
Furthermore, an English-based system of education, reliable and affordable health services, booming tourism industry as well macroeconomic stability boosts Cyprus’ credentials as a desirable investment destination.
Having established why you should invest in Cyprus, it is imperative you determine investment opportunities available for exploitation in the country. You can invest in the construction industry, insurance brokerage,
web design and web hosting, auto mechanic services, transport business, travels and tours, clearing and forwarding, real estate, and educational consultancy services.
5) Strategic Location
Cyprus is geographically located between three continents; Africa, Europe, and Asia. This strengthens its position as a major Eastern Mediterranean trading post as well as a renowned international business and services center. This vintage positioning allows Cyprus to act as a point of exchange between these three continents, therefore, offering businesses easier access to new markets. This positioning also makes the island an active transshipment center that facilitates the shipment of goods into and out of the European Union effectively qualifying it as a business hub.
6) Strong Shipping Credentials
Cyprus is an internationally acclaimed shipping center. It has more than 140 shipping related firms. It has one of the largest shipping registries in the European Union. Additionally, the country is the biggest third party ship management center in EU.
Cyprus’ diverse and robust maritime sector that accounts for more than 7% of the country’s Gross Domestic Product (GDP) is attributed to its strategic location on active trade sea routes as well as latest shipping infrastructure and shipping-favorable legislations.
Shipping companies may opt to pay tonnage tax rather than income tax on profit derived from ship management or chartering activities, under easily met conditions.
The country’s Tonnage Tax System makes the country a desirable destination for such business. Other shipping friendly-regulations include:
- Favorable ship registration fees and costs
- Cyprus is a signatory to maritime conventions on pollution reduction, safety, and security.
- There are no nationality restrictions on ship crew.
Therefore, a shipping-related investment is one which promises good returns. Besides, Cyprus’ shipping success guarantees an efficient flow of goods in case your business relies on importation and exportation.
7) Attractive Legislation for Citizenship
Foreign investors in Cyprus are given a unique opportunity to obtain a Permanent Residence Permit or EU/Cyprus citizenship
which can be secured within 3-4 months in comparisson with similar schemes from other countries which can usually last 6 to 8 years. Before being granted a permit or citizenship, the government carries out rigorous procedural due diligence.
The upside of both arrangements is that an investor needn’t reside in Cyprus and neither do they become tax residents. Oikos group can assist and guide you with all your investment needs and requirements, we offer the most reliable services with desireable results.
For more information please get in contact with us to receive a free consultation.