Why invest in business in Cyprus

Outstanding advantages of setting up a company in Cyprus

Tax incentives:

• Corporate tax rate of 12.5%: One of the lowest in the European Union.
• 0% tax on dividend payments: Applicable to dividends from Cyprus companies to foreign shareholders.
• 0% tax on dividends received: From subsidiaries worldwide (with some conditions).
• 0% tax on profits from trading stocks and securities.
• 0% tax on dividends, interest and royalties abroad.
• No tax on capital surplus: Except for real estate in Cyprus.
• There is no principle of limiting capital transformation and exchange control.
• Extensive network of double taxation avoidance agreements: With more than 50 countries.

The Republic of Cyprus is the third-largest island nation in the Mediterranean, with Greek and Turkish being the official languages, but English is also widely spoken. Cyprus’ economy is diverse, with key industries being shipping, tourism, real estate leasing and services.

The recent discovery of oil and natural gas has opened up great opportunities for Cyprus’ energy sector, attracting the interest of international investors.

With a favorable business environment, an attractive tax system, and diverse growth potential, Cyprus is an ideal destination for investors who want to establish and expand their business.

7 reasons to invest in business in Cyprus

Preferential tax

Cyprus offers significant savings opportunities for investors thanks to its attractive tax system. Corporate tax is only 12.5%, profits below 17,088 euros are not subject to capital gains tax, along with a double taxation avoidance treaty with more than 50 countries (including the United Kingdom).

Benefits of being an EU member

Cyprus’ strategic geographical location at the crossroads of three continents and its membership of the European Union facilitates the movement, trade and export of visa-free goods to EU countries and many other countries.

Reliable legal system

The Cypriot legal system is based on British standards, ensuring transparency and safety for property ownership and business operations. The process of buying real estate is clear and transparent with a reliable land registry.

High standard of living, affordable

The standard of living in Cyprus is comfortable with a much lower cost of living than other EU countries, the US and Japan, helping to balance quality of life and business efficiency.

Low crime rate

Cyprus prides itself on being one of the safest countries in Europe, with a low crime rate. Cypriot people are friendly, peace-loving, creating a safe business environment, not worried about security and order issues.

Mild climate

With more than 320 warm sunny days per year, Cyprus offers a mild climate that is ideal for both life and business. Favorable weather makes transportation, trade, and outdoor activities easier and more comfortable.

Developed infrastructure and social utilities

Cyprus is proud to own a synchronously developed infrastructure, from roads, housing to social utilities. A high-quality education system, in accordance with British standards, and a multicultural learning environment with the presence of international students, will help your child develop comprehensively in language and thinking.

Medical facilities in Cyprus are equipped with modern equipment, applying advanced technology and a team of professional and dedicated doctors to ensure the best health care for residents.

The workforce in Cyprus is highly educated and well-trained, meeting the recruitment needs of businesses. The widespread use of English on the island makes it easy for foreigners to integrate and communicate in all fields, from business, healthcare, education to daily life.

6 potentially profitable business sectors in Cyprus

1. Construction

The construction industry in Cyprus is encouraged and supported by the government, especially high-end real estate projects, creating many profitable investment opportunities.

2. Real estate rental

The demand for renting real estate in Cyprus is increasing, especially in the types of offices, event venues and parking lots. Investing in office complexes in busy commercial areas can bring great returns.

3. Educational consultancy

Cyprus is an attractive destination for international students thanks to its high-quality universities and English-language learning environment. Educational consultancy services, supporting students in admission, visa application and finding accommodation have strong potential for growth.

4. Transport

Cyprus is an island nation that relies heavily on imports, creating a great demand for road, water, and air transport services. Although the initial investment cost is high, with good management, the transportation industry can bring stable profits.

5. Travel and travel

Cyprus’ tourism industry is growing strongly, attracting a large number of international tourists. Diverse tourism and travel services, from organizing tours and hotel reservations to providing unique travel experiences, have high potential for profitability.

6. Web Design and Web Hosting

Many small businesses in Cyprus do not have a website or have not taken full advantage of the benefits of the website. Professional web design and web hosting services, aimed at small businesses, can be a potential business direction.

Conclude

With a safe, comfortable living environment and many opportunities for development, Cyprus is truly a “paradise of peace” and a “land of opportunities” for those who want to settle and do business. The Cyprus Immigrant Investor Program opens the door for investors and their families to obtain permanent residency and citizenship, enjoying the special benefits of becoming a Cypriot citizen.