Top 15 Reasons to Set-Up Your Business in Cyprus,
Updated: Feb 6
Over the years, Cyprus has become the business hub of Europe. Cyprus is home to a robust start-up community including companies such as Viber (which within a span of a few years became a billion-dollar company). Cyprus is a popular destination and has been fertile ground for tech companies and finance companies (including Fintech, Payment Institutions, E-Money Institutions, forex companies, etc.) to grow not inly within Europe but globally.
Here are the top 15 reasons why more companies are choosing to incorporate in Cyprus:
1. Flat 12.5% corporate tax rate on the net profits (with an effective tax rate of approximately 6%-7%). This is one of the lowest in Europe and lower than many other third nations.
2. Capital gains on the sale of securities is tax exempt.
3. No withholding taxes or tax on dividends for foreigners.
4. Double tax treaties with over 60 countries.
5. No inheritance taxes.
6. Low immoveable property taxes.
7. Option for foreign Permanent Establishment profits to be tax exempt.
8. Tax deductions for investments into startups.
9. Startups can apply to become certified innovative companies which would allow them to receive EUR 75,000 in grants in Cyprus and other grants in Europe.
10. Opportunities to crowdfund for venture capital to grow your business even if your business has received grants.
11. Cyprus is strategically located between Europe, Africa, and the Middle East.
12. Cyprus is an EU Member State which allows your business do freely conduct business with all other EU Member States (this is called “passporting” into the EU).
13. Cyprus’ legal system is based on English Common Law and is also compliant with EU Directives- allowing companies to conduct business and protect its rights with a well-known and trusted legal system.
14. Cyprus has a highly educated labor force and everyone speaks English.
15. The cost of running a business in Cyprus is relatively lower than many other nations.
If you would like to incorporate in Cyprus, please contact our experienced lawyers at Emily@eaglaw.co for more information.