Cyprus has been known throughout history as the island from where Venus emerged for the first time from the sea. The beautiful island of Cyprus can be found in the eastern Mediterranean Sea and is the third-largest and most populous island in the Mediterranean. At the moment, the island has been known for its warm climate and its amazing long sandy beaches and serves as a fantastic holiday destination for thousands of tourists each year. However, this once totally "touristy" destination is currently undergoing a significant transformation, a "techy" one.
In the last couple of years, many International Technology corporations register and operate their companies in Cyprus. More than 65 Tech companies currently have their headquarters based in Cyprus, leading Cyprus to a new regional technology hub. According to government officials, the plan is to "brand" Cyprus into a regional technology hub and offer leadership and direction on all strategic issues.
The country's stable economic environment and rising prospects in various industries, strategic location, and high quality of living are just a few of the many reasons ICT companies choose Cyprus as a relocation destination. As a member of the EU and Eurozone, Cyprus provides investors with security and stability, as well as market access to more than 500 million EU citizens. Several internationally successful technology organizations, including FinTech, RegTech, and Entertainment tech (gaming sector) firms, have already relocated or expanded in Cyprus, using the island as a base and gateway to and from the European Union.
Cyprus offers a range of incentives making it the perfect choice for a lot of international companies. Innovative research, a rapidly growing ecosystem and a highly educated and experienced human talent are amongst the best reasons to move your company to Cyprus. At the same time, applied research is encouraged through EU or national funding, giving any company an excellent opportunity to apply for it. After the pandemic, the European Union provides a series of funds under the Reconstruction and Recovery Fund
Furthermore, for the establishment of Intellectual Property (IP) holding, exploitation, and/or development for corporations, Cyprus offers a very effective IP tax structure. The country's emerging research and innovation ecosystem, IP Law and favorable tax framework make the country a preferred business destination and IP hub while, at the same time, achieving the protection afforded by the EU Member States and by the signatories of all major IP treaties and protocols.
In regards to corporate taxation, Cyprus offers one of the most attractive tax regimes in Europe, fully compliant with EU and OECD regulations. A Cyprus tax resident company can enjoy several tax benefits. A corporation is considered to be a Cyprus tax resident if it is managed and controlled from Cyprus. In general, the (worldwide) business profits of a Cyprus tax resident company are subject to corporation tax at the rate of 12.5%, whereas, a number of income sources are exempt from tax. All these favorable provisions make Cyprus an ideal location for doing business in the region.
But the taxation benefits do not stop at the corporation level. When it comes to personal taxation, the country is considered one of the most favorable jurisdictions within the EU. The Cyprus individual income tax rates are progressive, ranging from nil to 35%, on taxable income exceeding ?60,000. Income of up to ?19,500 is not subject to tax. Cyprus offers significant tax incentives to expatriates to either take up employment in Cyprus or become Cyprus tax residents.
Last but not least, it is significant to mention that a the moment, Cyprus offers a number of programs - most of them sponsored by big corporations, businesses, or bank institutions- to encourage innovation and entrepreneurship. All these programs aim to incentivize aspiring entrepreneurs and give them the support they need to successfully develop their business ventures from ideas to concepts but also to provide residents with invaluable learning opportunities. Through most of these programs, participants have the opportunity to be mentored by industry experts and receive guidance from accomplished entrepreneurs.
Cyprus has everything it takes to become the world's next high-tech hub. The strategic location, the beautiful climate, the talented workforce, the EU membership, the robust legal framework, a more relaxed way of living and business-friendly environment, the safety, and the competitive tax regime make Cyprus the ultimate place to accommodate the crème de la crème of technology companies that are willing to move and register their companies here. The once known only as a "touristy destination" island is slowly turning to a "Techy Hub."
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.