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Doing Business in Cyprus

Cyprus has established itself on the forefront as thriving business hub, with a vast array of investment opportunities in all the sectors of the islands economy. The strategic location and together with the islands high quality of life do not only entice investors to relocate and live on the island, but also to set up or even relocate their existing businesses.

Cyprus is a perfect gateway to the EU and a perfect base for investment outside of the EU as it is strategically situated at the cross road to the Middle East, Africa and Asia. As a member of the Eurozone community, Cyprus opens up market access to 450 million EU citizens enduring both the safety and stability for the investors.

The world class infrastructure suits business people who continually need to be on the move thanks to its intricate network of highways, roads, port facilities and two new international airports based in Paphos and Larnaca. Travelling within and beyond Cyprus is fast and painless with immediate access to the Rest of the EU.

Cyprus also covers a range of high-quality financial services backed by highly skilled professionals in a dynamic business centre by educated and skilled individuals that are multilingual and ready to serve any business. Cyprus has the perfect ingredients to maintain a strong and healthy economy due to its productive labour force, business friendly and good free market governance.

The country’s advantages are significantly enriched by a transparent legal framework based on the English common law principles together with an attractive tax regime offering high incentives to both legal and natural persons. This system is widely recognized as a business friendly and efficient system ensuring transparency and ethical business practices. Cyprus’ legal system fully complies with the EU, the Financial Action Task Force (FATF), OECD, FATCA, the financial Stability Forum laws and regulations and European Union AML directives.

Moreover, Cyprus offers a corporate tax rate of 12,5%, one of the lowest in the EU with a network of more than 60 Double Tax Treaties with other countries. The island offers investors both international and domestic the confidence to grow and prosper.

The main features of the Cyprus tax system include:

  • An Attractive IP regime.
  • Exemption from dividend participation
  • Exemption on disposal of securities such as bonds and shares
  • No withholding taxes
  • No inheritance taxes
  • No capital gains tax – except for disposal of Cyprus real estate or shares of a company holding real estate in Cyprus
  • Tonnage tax for shipping companies

Exemptions for non-domiciled individuals and non-resident persons who take up residence in Cyprus are also in place:

  • No tax on dividends and interest for non-domiciled individuals

50% exemption on income from employment of a person that that has not previously resided in Cyprus – this exemption applies for 10 years and provided the income does not exceed €100,000 per annum.