Investing in Cyprus – the little Powerhouse between Europe and the Middle East
Cyprus attracts an annually increasing number of large and small companies for investment in substantial business on the island.
Watch yourself what CEOs of foreign companies say about the advantages of investing in Cyprus, and your image of Cyprus will change:
You may know Cyprus as a tourist destination, you may remember the crisis in 2013, which is well overcome meanwhile. You may think of Cyprus of an address for Russian money, although many large EU countries opened their doors much wider for Russian capital.
But most probably, you did not hear about Cyprus as the little powerhouse at the South-Eastern edge of the European Union.
Cyprus enjoys an increasing influx of substantial foreign investment, especially during the last years. From the shipping industry to fund companies, from energy giants to infrastructure services, from software development to scientific projects or the insurance and banking sector, Cyprus attracts global and regional investors mainly from the EU, the USA and from the Middle East.
Why are foreign investors attracted to Cyprus?
There are many advantages of Cyprus that do attract investors to invest in substantial business and industrial investments in Cyprus:
- Cyprus is a small country where administrative structures are easily accessible and administrative procedures generally straightforward;
- Cyprus has yet a great unsaturated potential for business investments in many areas;
- Cyprus offers a highly educated workforce – 55% of the workforce has a tertiary degree;
- Cyprus has five universities with strong R&D departments and many international R&D cooperation activities;
- Business language is English – 73% of Cypriots speak English;
- Cyprus provides a wide range of services, making starting and running a business easy;
- Labour costs are significantly lower than in most of the European countries, especially for technical and professional staff;
- Office rental rates are among the lowest in Europe;
- Cyprus is a member of the Eurozone since 2008;
- Full access to the European markets;
- Geostrategic position bridging Europe and the Middle East;
- The legal system is closely aligned to the English common law legal system and frequently updated to meet investors' needs;
- Intellectual property is strongly protected in Cyprus;
- Cyprus provides one of the most business-friendly tax systems in the EU, with a corporate tax rate of 12,5%;
- Cyprus provides capital gain tax exemption;
- Taxation on dividend income is exempted on relaxed conditions;
- No withholding tax;
- Gains from trading in securities, including shares, are tax-exempted;
- Notional interest deduction available for equity investment into Cypriot companies;
- The personal tax regime is very attractive, with annual income up to EUR 19.500 not taxable, and additional tax incentives for foreign staff moving to Cyprus;
- No taxation on heritage or succession;
- No immovable property tax;
- Low communication costs;
- Cyprus is the 5th safest country in the world (as per Value Penguin, 2015);
- Cyprus provides the best island economy 2017/2018 lifestyle & human capital (as per fDi magazine);
- Cyprus is a place where many cultures meet and live and work together since centuries – a very friendly approach to foreigners and foreign businesses;
- Cyprus is one of the fastest growing economies in Europe with a robust GDP growth and consecutive upgrades by credit agencies;
- Cyprus offers many schools for education in English language.
And there are many more advantages as per everyone's taste and each business' needs.
You should have Cyprus on your shopping list if you want to expand your business, conquer new markets, set up regional headquarters or plan to re-structure your international group of companies.
Please do not hesitate to contact us if you wish to be guided with your Cyprus related projects and business.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.