Why Cyprus?

Incorporating a company in the Republic of Cyprus can provide numerous advantages, particularly for international businesses looking for a stable yet flexible jurisdiction.

Strategic Location:

Cyprus is situated at the crossroads of three continents: Europe, Asia, and Africa. This makes the island an ideal jurisdiction for companies targeting markets in the Middle East, North Africa, Europe. The time zone is also favourable for international businesses, allowing convenient coordination with both Eastern and Western countries.

EU Membership:

Cyprus has been a member of the European Union since 2004 and adopted the Euro in 2008. EU membership ensures compliance with financial regulations, making the country a reliable and reputable jurisdiction. Being part of the EU also offers the advantage of free movement of goods, services, capital, and labour. This not only simplifies trade but also offers a competitive edge when you seek to expand into European markets.

Attractive Tax Regime:

One of the most compelling reasons to incorporate in Cyprus is its favorable tax system. The country has one of the lowest corporate tax rates in the EU at 12.5%. Moreover, Cyprus has double taxation treaties with more than 60 countries, ensuring that the same income is not taxed in more than one country. The absence of withholding tax on dividends, interest, and royalties paid to non-residents offers further tax benefits. In addition, there is no capital gains tax on the disposal of securities, and profits from a permanent establishment abroad are fully exempt from corporate tax.

English Common Law:

The legal system in Cyprus is based on English Common Law, which is known for its predictability and transparency. This legal framework is beneficial for international businesses as contracts and legal documents are straightforward, understood globally, and can often be drafted in English.

Skilled Labor Force:

Cyprus boasts a highly skilled and educated workforce. English proficiency is remarkably high, and many professionals also speak additional languages like Russian, French, or German. This provides a solid foundation for businesses that need expertise in various sectors like finance, law, technology, and shipping.

Competitive Costs:

Operational costs in Cyprus, including office space, salaries, and general living expenses, are relatively lower compared to other Western European countries. This cost-efficiency can be particularly beneficial for startups and small-to-medium-sized enterprises (SMEs).

Intellectual Property (IP) Regime:

Cyprus offers an advantageous Intellectual Property regime, aligned with EU directives. Companies can benefit from substantial tax exemptions on income generated from intellectual property. With the island’s legal framework, your intellectual property is also well-protected, thereby enhancing your competitive advantage.

Strong Regulatory Framework:

Cyprus has a demanding regulatory system, particularly in sectors like finance and banking. The Cyprus Securities and Exchange Commission (CySEC) is known for its stringent standards, enhancing the credibility of companies operating in financial services. Banking institutions are robust, adhering to international best practices.

Quality of Life:

Beyond the corporate benefits, Cyprus offers a high standard of living, including excellent healthcare and education systems, a warm climate, and beautiful landscapes. Such factors can be persuasive when attracting high-caliber staff to your company.

Ease of Doing Business:

The government has undertaken numerous reforms to simplify the procedures for setting up and running a business, including streamlined online methods for company registration.

Whether you're a startup aiming for rapid growth, a family business looking to expand internationally, or an established corporation seeking a tax-efficient and credible jurisdiction, Cyprus should be high on your list of options.