After the financial crisis Five years ago that rocked the nation and with the recent covid-19 pandemic, Cyprus continues to proves that it remains one of the most attractive business jurisdiction for International Companies.
In fact, a recent survey conducted by Invest Cyprus, who are the investment promotion agency for Cyprus, found that 92% were either ‘satisified’ or ‘very satisfied’ with the way the Government has handled the crisis with a staggering 88% acknowledging that most service providers in the Islands, including lawyers, accountants and the banking sector, had accomplished a major goal to ensure business stability.
Cyprus is currently becoming one of the best investment destinations in the world today for entrepreneurs. Cyprus location between the three continents, (Europe, Africa and Asia) offers investors the opportunity of easy access to and from each region.
Important points to know when investing in Cyprus
Foreign investors can benefit from several attractive strategies when commencing the process of company formation in Cyprus. Many restrictions related to the foreign direct investments have been removed.
Some of the main magnetisms as to why you should invest in Cyprus are as follows:-
- A Key benefit is that Cyprus has one of the lowest corporate tax rate for companies in the European Union, which is currently at 12.5% on the companies taxable profits;
- It offers a dividend participation exemption (which is subject to conditions);
- There is no tax on the sale of shares (certain conditions);
- No taxes withheld taxes on interest and dividends;
- No Controlled Foreign Company (CFC) rules;
- Cyprus has signed with over 60 countries double tax treaties, amongst them are Austria, Belgium, Germany, France, Greece, Italy, Malta, Poland, The Czech Republic, Russia, Estonia, Canada, Kuwait, Egypt, India, Qatar, Luxembourg, Mauritius, Singapore, South Africa, US and the UK;
- EU VAT registration which makes it easier for EU trading
- The Cyprus Companies Law (Cap.113) is based on the UK Company Law which is known for providing transparency and reliability in business practices;
- An investor, either from the EU or a third country – that registers a company in Cyprus can therefore participate in business activities without restrictions;
- A company is a to be tax resident in Cyprus if its business is managed and controlled within the Island but the company does not though have to limit its operations only to Cyprus. Additionally, there is no restriction in relation to the residence or the ethnic group of the owner;
- The Cyprus Government has now introduced two schemes to enable foreign nationals to invest in the Island.
- Cyprus citizenship (e.g. passport) can be obtained (which means EU citizenship) for investors and their families who are willing to invest €2m in Cyprus;
- Confidentiality is protected by legislation and shares can be held by nominees and anonymity is safeguarded;
The above and much more are major reasons to invest in Cyprus.