10 Reasons why to relocate your Headquarters in Cyprus
Headquartering in Cyprus can offer various benefits to businesses, making the island an attractive destination for companies looking to establish their headquarters. Here are some key advantages:
1. Access to European Markets
Since 2004, Cyprus has been a full member of the European Union, joined the Eurozone in 2008, and is an integral part of the European Single Market, enjoying the free movement of goods, services, and capital. This grants companies in Cyprus unfettered access to European markets, coupled with the advantages of over 40 EU trade agreements and 64 double tax treaties.
Cyprus benefits from exceptional telecommunication links and air connectivity facilitated by two modern international airports. With 76% of the population proficient in English, the business language in Cyprus is predominantly English, encompassing a wide range of functions. Many university programs in Cyprus are conducted in English, recognized globally. Numerous high-standard educational institutions affiliated with British or American universities offer instruction entirely in English, further enhancing Cyprus's appeal as a destination for international business and education.
2. Strategic Location
Cyprus is strategically located at the crossroads of Europe, Asia, and Africa. This makes it an ideal location for businesses aiming to access markets in these regions. The country's time zone also allows for convenient business operations with various global markets.
3. Tax Advantages
Cyprus boasts one of the most appealing tax regimes in Europe, aligning with EU standards since its membership in 2004 and complying with OECD requirements. The island's tax framework is particularly favored for headquarters and international tax arrangements, featuring key attributes such as:
a. A low corporate tax rate of 12.5%.
b. Full compliance with EU and OECD regulations, offering access to EU directives and a dividend participation exemption.
c. No taxation on profits from the sale of securities and capital gains, subject to specific conditions.
d. An attractive Intellectual Property (IP) Regime and favorable income tax.
e. Tax exemptions for new residents, including tax-free dividend income under the non-domiciled scheme and tax exemption on profits from the sale of shares and securities.
f. Reduced VAT (as low as 5%) on the acquisition of new residential properties.
g. Abolishment of Immovable Property Tax (IPT) from January 2017.
h. A 50% tax exemption for new employees with an annual salary of at least €100,000.
i. A low 5% tax rate on overseas pensions.
j. Special reduced VAT rates for private yachts.
k. No withholding tax on outgoing payments, including dividends, interest, and royalties.
These features collectively position Cyprus as a highly favorable jurisdiction for businesses seeking tax efficiency and international tax planning.
4. Business-Friendly Environment
Cyprus offers a business-friendly environment with a well-established legal system, transparent regulatory framework, and efficient business procedures. The government is committed to creating a favorable atmosphere for businesses, encouraging entrepreneurship and foreign investment.
5. Access to Skilled Workforce
Cyprus has a well-educated and skilled workforce proficient in various languages, including English. This makes it easier for businesses to operate and communicate globally. Additionally, Cyprus has a growing pool of professionals in sectors such as finance, technology, and legal services. skilled and seasoned professionals. Cyprus stands out by providing visa-free access to European talent, positioning itself as a hub to tap into the youngest population and workforce in the EU, where 55% of the workforce holds a tertiary degree from renowned institutions in the UK, USA, and Europe.
The private education sector is experiencing significant growth, boasting three public and five private universities of exceptional standards that attract students worldwide each year. Cyprus offers a multilingual workforce at highly competitive rates, further enhancing its appeal as a destination for diverse and skilled professionals.
6. Infrastructure and Connectivity
Cyprus has modern infrastructure, including reliable telecommunications, transportation, and energy networks. The country's two international airports facilitate easy travel, and its ports enhance connectivity for businesses involved in international trade.
7. Quality of Life
Cyprus offers an excellent quality of life, with a Mediterranean climate, beautiful landscapes, and a rich cultural heritage. This factor can be attractive for companies looking to attract and retain international talent.
8. Intellectual Property Protection
Cyprus has robust intellectual property protection laws. Businesses benefit from a legal framework that safeguards trademarks, patents, and copyrights, providing a secure environment for innovation and creativity.
9. Investment Promotion and Incentives
The Cyprus Investment Promotion Agency (Invest Cyprus) actively promotes and facilitates foreign direct investment. The government also provides various incentives and subsidies to attract businesses, especially in sectors like technology, research and development, and renewable energy.
10. Ease of Doing Business
Cyprus provides an extensive array of services, making the initiation and operation of a business a straightforward endeavor characterized by minimal setup costs and swift filing processes. The island's business landscape and economic model cater to a diverse range of industries, including Banking & Financial Services, Investment Funds, Shipping, Tourism, Health & Wellness Tourism, Real Estate, Start-Ups & Innovation, and Energy. As an established International Business Centre with over 30 years of experience, Cyprus boasts a substantial professional infrastructure. Choosing Cyprus as a headquarters location signifies tangible substance, a critical factor considering the transparency of financial reporting and the Republic of Cyprus' adherence to Common Reporting Standards.
It's important for businesses to carefully consider their specific needs and industry requirements when deciding whether to establish their headquarters in Cyprus. Consulting with legal and financial professionals can provide valuable insights into the regulatory and operational aspects of such a move.
We look forward to meeting you at our offices, where we offer advice, assistance and insights into relocation opportunities in all Cyprus cities!
Contact phone: 25507001 / 8000 7000
www.remax.com.cy
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X.N. United Property Brokers Ltd
Licensed Estate Agent Reg No: 758, License 410/E