Cyprus, a member of the European Union and the Eurozone, is a dynamic and modern island with a cosmopolitan lifestyle. The main language is Greek, but English is widely spoken.
Cyprus’ geographical location has been considered of strategic importance in global trade for thousands of years as it is situated in the eastern corner of the Mediterranean Sea, lying at the crossroads of Europe, Middle East, Africa and Asia. It is the third largest island in the Mediterranean.
THE CYPRUS LEGAL SYSTEM:
The legal system of the island is modelled on the English common law system and its primary corporate statutes are based on and have derived from English company legislation. It is recognised as a business-friendly and effective system that ensures transparency and reliability in business practices. On 1 May 2004, Cyprus joined the European Union and since then its legislation is fully compliant with European Union legislation. European Union Directives are fully implemented into local legislation and European Union Regulations have direct effect and application in Cyprus.
Cyprus offers one of the most attractive tax systems in Europe.
It provides a simplified, effective and transparent tax regime that is fully compliant with the European Union laws and regulations, rendering it as the ultimate international business centre. It, therefore, offers international investors and domestic businesses confidence to invest, grow and prosper.
Key features of the Cyprus Tax System:
- One of the lowest tax rates in the European Union.
- Low corporate taxation at 12.5% with zero tax on certain types of income.
- A tax administration that aims at assisting foreign investors.
- A wide network of tax treaties with over 55 countries.
On 1 January 2008, the Republic of Cyprus joined the eurozone. The Cypriot Pound was replaced by the Euro as official currency at the irrevocable fixed exchange rate of CYP 0.585274 per EUR 1.00.
Cyprus has two airports (Larnaca and Paphos) and two ports (Limassol and Larnaca), making Cyprus an important shipping centre and a gateway to the world of international business.
INCENTIVES TO ATTRACT INVESTMENTS:
Due to the gradual transformation of Cyprus into a reputable international business and financial centre, the Cypriot government has introduced a variety of incentives aiming at attracting further investments in industries that will enhance the development and reconstruction of the economy.
Cyprus’ attractiveness as a
business and investment location is based on the following:
- A democratic country with a stable business environment.
- Residents enjoy a high quality of life.
- A broad range of high-quality professional services.
- The island is an ideal investment gateway to the European Union.
- As a member of the wider European Union and Eurozone community, Cyprus ensures safety and stability for investors.
- Since September 2016, a new regime for acquiring the Cyprus Citizenship and Cyprus Passport by Investment is offered. The regime is one of the most competitive Citizenship – Passport scheme in Europe.
- Corporate tax rate at 12.5%.
- Highly skilled, educated and flexible workforce, well acquainted with the use of modern technology.
- Easy access to international markets.
- Lowest crime rates in Europe.
- Competitive banking system.
- Compliance with the European Union Code of Conduct for Business Taxation.