Cyprus is one of the most attractive business destinations in the world due to its location, taxation systems and friendly legislation. It is located at the crossroads of three continents (Europe, Africa and Asia providing investors with the opportunity of easy access to and from each area. Also, due to the country’s membership in EU and the Economic and Monetary Union all foreign investors have to opportunity to access the EU market.
Taxes in Cyprus
The Cypriot tax regime is effective, transparent and fully compliant with the EU regulations. What makes it extremely appealing to foreign investors is the amount of exemptions provided by law. For example profits from sales of securities or from overseas permanent establishments are completely exempt from tax. Also, there is no withholding tax on dividend, interest and royalties paid from Cyprus. Almost all international transactions are VAT exempt. Furthermore, there are over 48 countries that signed double tax treaties with Cyprus. All these make the country a tax heaven and an appealing destination for investors from all around the world.
Legislation in Cyprus
All commercial regulations in Cyprus are based on Common Law, accounting and legal transparency. The entire legal system is based on the Common Law principles available in the UK but also aligned with the EU directives, leading to a pro-businesses mentality.
Friendly business environment in Cyprus
The country represents a business center in its own right. Entrepreneurs opening their businesses here can benefit both from top quality services like audit, accounting, legal and funds management but also from low operating costs due to the friendly taxation system the country offers. Also the workforce here is very well trained, statistics showing that almost 40% of the Cypriot population aged between 25-64 has acquired tertiary education. The high-end telecommunication services and the easy way of getting around also add to the attractiveness of the country.
In addition, Cyprus is one of the few countries able to combine the competitive business environment with a pleasurable lifestyle. The standard of living is one of the highest in Europe and investors can also enjoy here the beautiful nature, culture and art in safe environment.