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As the third largest island in the Mediterranean, Cyprus occupies a unique position at the crossroads of Europe, the Middle East, Africa, and Asia. Renowned for its stunning landscapes and rich cultural heritage, Cyprus offers an attractive blend of modern amenities and historic charm.
With over 340 days of sunshine annually, Cyprus is the sunniest country in Europe, making it an ideal destination for those seeking to combine business opportunities with a high quality of life. The island’s skilled, English-speaking workforce further enhances its appeal.
Cyprus’s geographical location serves as a gateway to three continents, providing strategic access to diverse business markets. As a full member of the European Union, Cyprus boasts highly developed infrastructure, including modern telecommunications, reliable utilities, and advanced transportation networks.
Additionally, Cyprus offers high-quality educational institutions and healthcare centers, making it an attractive destination for foreign investors and their families.
Cyprus is a multicultural environment. The workforce is well-educated, versatile, and fluent in English, ensuring effective communication and seamless business operations. Cyprus’s safety record is exemplary, having been recognized as the safest country with a population of fewer than five million people.
Cyprus ranks 5th in quality of life among major European cities and other competitive destinations. The island enjoys a Mediterranean climate along the coast, while its mountainous regions offer cooler and more humid conditions. Combined with a balanced, healthy lifestyle, this attracts expatriates seeking a high standard of living while pursuing their business interests.
Our team in Cyprus aims to be your one-stop solution for Cypriot company registration. Our services include the establishment of Cypriot companies, provision of registered office addresses, and ongoing administration and management. Our comprehensive service package covers accounting, bookkeeping, VAT, HR and payroll services, corporate bank account opening, and legal support. We also assist with company redomiciliation, helping clients relocate foreign companies to Cyprus.
Cyprus’s IP Box regime offers significant tax benefits: royalties are subject to an effective tax rate of 2.5% or lower, one of the most favorable rates in the European Union. This regime applies to patents and software, making Cyprus an attractive option for technology and innovation companies managing intellectual property rights.
Our Cyprus team offers various residency options tailored to diverse needs. The "Golden Visa" program grants permanent residency to non-EU citizens who invest €300,000 in real estate, business, or investment funds. We also assist with permanent and temporary residency applications for EU and non-EU nationals, accommodating different financial capacities and timelines.
Cyprus offers some of the lowest tax rates in the EU. Holding companies benefit from zero tax on dividends and no withholding tax on dividends paid to foreign shareholders. Investment companies enjoy zero capital gains tax on the sale of shares, bonds, and other securities. Operating companies are subject to a fixed corporate income tax rate of 12.5%, one of the lowest in the EU. Companies owning intellectual property benefit from a low effective tax rate on royalties.
Cyprus offers a variety of corporate structures to meet diverse business needs, including limited liability companies and partnerships. Whether you require a holding company, investment vehicle, operational entity, or IP holding company, Cyprus provides flexible and favorable conditions for a wide range of commercial activities. Cypriot company law is largely based on British law, and importantly, Cyprus is a common law jurisdiction.
Cyprus’s IP Box regime offers one of the most favorable tax environments for intellectual property. This regime covers patents and software, with royalties taxed at an effective rate of 2.5%. This makes Cyprus an ideal location for technology development and innovation companies. Additionally, an extensive network of double taxation treaties ensures that royalties received in Cyprus are subject to minimal or no withholding tax.
For assets not covered under the IP Box regime, Cyprus offers the NID, allowing companies to deduct notional interest expenses from their taxable income. This can reduce the effective tax rate to as low as 2.5%, providing significant tax savings for companies with substantial new equity capital.
Cyprus offers a highly advantageous tax residency scheme known as the "60-day rule." It is available to qualified non-domiciled individuals—both non-EU and EU citizens—who reside in Cyprus for at least 60 days per year and are not tax residents of any other country. Benefits include:
1. No Income Tax on Dividends and Interest: Individuals are exempt from income tax on dividends and interest for 17 years.
2. No Capital Gains Tax on Securities: No capital gains tax on profits from the sale of shares, bonds, and other securities.
3. Low Personal Income Tax Rates: The first €19,500 of annual income is tax-free, with progressive tax rates applied thereafter.
4. 50% Income Tax Exemption: A 50% exemption on income from employment in Cyprus for 17 years, provided annual income exceeds €55,000.
5. Favorable Pension Taxation: Foreign pension income exceeding €3,420 is taxed at just 5%.
The Golden Visa program is ideal for non-EU citizens who can invest €300,000 in real estate, a new Cypriot company, or a licensed Cypriot investment fund. This visa offers an accelerated processing time of just two to three months.
For those not making significant investments, Cyprus offers permanent residency suitable for EU citizens. This residency requires proof of accommodation and grants the right to live and work in Cyprus, with same-day issuance for eligible applicants.
Non-EU citizens may apply for temporary residency, valid for one year and renewable annually. This residency extends to the spouse and children under 18 of the main applicant and requires proof of stable annual income from abroad.
Cyprus stands out as one of the top destinations for business and living, offering a strategic location, favorable tax regime, and exceptional quality of life. Our Cyprus team is committed to providing comprehensive services to meet all your corporate and personal needs. Contact our professional team today to discover how we can help you maximize the benefits of all that Cyprus has to offer!
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