With its favourable location at the crossroads of three continents; full European Union membership, and a legal structure and legislation that are aligned with that of the UK’s, Cyprus remains one of the world’s most appealing business destinations with good reason.
The Republic’s government has a reputation for an accommodating approach to maintaining the island’s favourable business status through concerted efforts and incentives designed to ensure that Cyprus remains an international financial centre with an attractive tax regime – and one that fully exploits its sought-after geographical position.
Aside from its favourable business conditions, the island is also a progressive and modern country that boasts a host of living benefits, from the convenience of English being widely spoken and excellent infrastructure and facilities, to a low crime rate and almost year-round sunshine.
Furthermore, the island has also found its place on the world energy map thanks to recent developments in the country’s Exclusive Economic Zone (EEZ) regarding estimated natural gas reserves.
Business benefits
Established legal system
- Fully compliant with EU legislation, including Generally Accepted Accounting Principles (GAAP) that form part of the EU’s International Financial Reporting Standards (IFRS).
- Models and aligns with the UK’s legal structure and legislation as a result of the island’s colonial past.
Attractive tax incentives
- Flat rate of 12.5 % for corporate tax (among the lowest in the EU).
- Large network of double taxation treaties (DTTs) with over 48 countries - and counting.
- Large network of bilateral investment agreements with over 19 countries.
- OECD compliant, guaranteeing its adherence to the internationally agreed tax standards.
- Tax on dividends at 0%.
- Considerable financial gains for royalties, dividends, IP, interests and more.
Beneficial memberships
- European Union (EU) – A full member since 2004, and also regarded as a gateway for the movement of goods inside/outside European borders for the Middle East region.
- British Commonwealth – Since 1961, standing as one of only three Commonwealth member countries in Europe that are also island states and EU members.
- Council of Europe (COE) – Since 1961, benefitting from actions against money laundering and corruption and the upholding of democracy through law and social rights.
- International Monetary Fund (IMF) – Since 1961, benefitting from the sharing of information on financial, fiscal, economic, and exchange policies that have international ramifications.
- United Nations (UN) – Since 1960, and an active member that contributes to the promotion of the purposes and principles of the UN.
- World Bank (WB) - Since 1961, and one of 189 member countries that are key to its operations.
- World Trade Organization (WTO) – Since 1995, benefitting from changes to trade policy.