Why Cyprus?

General

Cyprus is an independent sovereign republic situated in the Northeastern Mediterranean at the crossroads of Europe, Asia and Africa. With an area of 9.251 sq. km it is the third largest island in the Mediterranean. The population of Cyprus is a little over 800.000, of whom approximately 78% are of Greek origin, 18% of Turkish origin and the rest are Armenians, British, Maronite, Latin, and other.

Cyprus joined the European Union as a full member on 1 May 2004.

International Business Center

Cyprus has been developed over the years as a significant International business centre. The generous tax incentives, the efficient legal, accounting and banking system, the European standard of living, the hospitality, friendliness and the high level of competence of Cypriots as well as the strategic geographical location and the good social and industrial infrastructure are among the factors contributing to this success.

Tax Advantages

With the new tax legislation came into effect on 1 January 2003 and the admission to the European Union on 1 May 2004, Cyprus offers very attractive tax incentives to international businesses and foreign investors.

  • 10% corporate tax rate for business profits – the lowest corporate tax rate in the European Union
  • No tax on income earned outside Cyprus for Non-Residents
  • No withholding taxes on dividends, interest and royalties paid to non-residents
  • Tax losses are carried forward indefinitely and tax relief for group losses
  • Income from dividends is exempt from income and corporation tax
  • Profits from the sale of securities are exempt from all Cyprus taxes.
  • No Capital gains or other taxes from the sale of immovable property situated outside Cyprus
  • The attractive platform and tax regime that Cyprus provides for international trusts
  • The extensive network of Double Tax Treaties with more than 40 countries
  • Low personal tax rates for individuals with tax-free amount, significant reduction for first time employment of non-residents in Cyprus and for overseas employment
  • Full adoption of the EU Directives

Other Advantages

Geographical position

Cyprus is located at the crossroads of Europe, Asia and Africa at a flying distance of less than three hours from the important centers of Europe, Middle East and North Africa.

Climate

Cyprus has a healthy and pleasant Mediterranean climate with dry summers and mild winters. Average day temperatures range between 5oC - 15oC in Winter and 25oC - 35oC in Summer and most of the rain falls during the months of November to April.

Infrastructure

  • European standard and relatively low cost of living
  • competent communication system
  • excellent telecommunications
  • modern banking system
  • high quality of professional and management services and availability of skilled and unskilled staff at all levels
  • availability of high standard universities, schools and colleges
  • hospitable and friendly Cypriot people
  • modern and well equipped clinics and hospitals
  • accommodation of a high standard and relatively low cost
  • English language widely spoken and used

International relations

  • member of the European Union
  • independent and sovereign Republic
  • member of the United Nations Organisation
  • member of the Commonwealth

Political and legal system

Under its Constitution, Cyprus is an independent and sovereign republic with a Presidential System of government. The President of the Republic, who is the Head of State, is elected directly from the public for a period of five years. The main executive body is the Council of Ministers, which is appointed by the President. Legislative power lies with the House of Representatives, the members of which are elected for a period of five years.

The Cyprus legal system has been structured on its English Counterpart and the English case law is followed on a rule. The Judiciary Power is exercised by a separate and independent body.

The economy

Cyprus has an open free market and stable economy where the role of the government is limited only to regulation, indicative planning and the provision of infrastructure and public utilities. The biggest contribution to the GDP comes from tourism and services, followed by trade and industry sectors.