Cyprus is situated in-between Europe, Africa, and Asia. And it is specifically near the trade routes of each continent. Thus, Cyprus is located at a strategic position that appeals to people in business worldwide and has developed the island into an international business center. Cyprus accession to the EU on 1 May 2004 has helped establish the country as the ideal gateway for EU inbound and outbound investments. Here are the benefits of starting a business in this lovely country.
A company’s rights are owned exclusively by Cypriot citizens or foreigners located in Cyprus, ownership, possession. The Constitution of Cyprus guarantees related rights (such as contract freedom and the practice of any profession, trade or business, etc.). Also, you are protected by international treaties ratified by Cyprus, which subsequently form parts of its Laws. As a result of the Constitution of Cyprus and other relevant laws, both foreigners and citizens of Cyprus, are guaranteed the fundamental rights. So, no discrimination between Cypriot citizens and foreigners.
In addition to a Cyprus business owner’s legal security, the following are also comprised of entitlements; protection by the State and support by the Government and other State organs on an international level. For more information seek legal counseling from prominent business law firms based in Cyprus such as Oikonomakis Law.
Eligibility for Work Permit or Visa
Owners, shareholders, or directors of innovative businesses are eligible for a work permit or a visa, depending on their country of origin. European Union citizens can relocate, live, and work in Cyprus by obtaining a work permit for the EU nationals (MEU1) certificate easily. People from Non – European Union countries can obtain a working permit visa as part of Cyprus. When your business is approved, you are entitled to reside and operate in Cyprus for a year. You also get the opportunity to renew for at least another year. Cyprus gives you the chance to become a prospective resident in the country without any restriction.
Tax Deductions and Incentives
Business owners with an annual income of over €100.000 and whose residence was previously out of Cyprus and now employed in the country are entitled to a 50% tax deduction. This deduction refers to income deriving from Cyprus and is valid for the next ten years starting on the day of his employment in the republic. Cyprus has the lowest tax rate in the European Union after Ireland. Non-resident companies in Cyprus are subject to tax only on their income derived in Cyprus. Therefore, only their profits arising from their permanent establishment in Cyprus will be taxed.
Low Cost of Doing Business
One of the advantages of starting a business in Cyprus is the availability of human capital. There is the availability of a well-educated and versatile work-force. Citizens of Cyprus are among the most highly educated citizens in Europe, and they are multilingual. The cost for professional and technical talents is much lower than in other major cities around Europe. Though English is not a part of Cyprus’s official languages, it is still prevalently spoken and is the official business language. You also have access to several business facilities, resources, and equipment purchases at reduced prices.