Here’s an interesting fact: According to a report by Doing Business, Cyprus scores 92 out of 100 for starting a business.
Cyprus is a beautiful island nation in the Mediterranean Sea and the third largest island in the region. The climate here ranges from mild winters to warm summers. Moreover, a large chunk of the population is foreign.
The strategic location, lenient rules for businesses, and low tax rates are one of the few reasons why Cyprus lists high on any foreign investor’s list.
Perhaps it’s time you get help from business relocation services in Cyprus and start relocating. Wondering why?
Let’s see the seven astonishing reasons to relocate your business to Cyprus.
Before You Relocate, Get Help from Business Relocation Services in Cyprus
Whether you are a travel company, recruitment agency, or individual contractor relocating your business to Cyprus, your business should comply with local tax regulations.
Although setting up and relocating your business is easy, taxes can be painful. While the Cyprus government favors and has instituted low tax rates, it is essential that you follow the rules and don’t mistakenly commit any illegal activities.
We recommend you get consulting services from Access Tax and Accounting. They are chartered accountants and tax advisors with offices in Cyprus, the UK, and Ireland.
They can help your business with tax planning, compliance, secretarial, and back-office services.
The Benefits of Moving Your Office Location to Cyprus
Off we go with the top reasons you should think about moving your office location to Cyprus.
1. Hassle-Free Relocation with Fast Track Business Activation Mechanism
If you plan to relocate your company to Cyprus, then The Fast Track Business Activation (FTBA) mechanism can help you. The goal is to provide quick and effective services to foreign businesses looking to set up a business or relocate their companies to Cyprus.
You can get the benefits of company registration, social insurance registry, employer’s registry, VAT, income tax registration, and the issuance of residence and employment permits for non-EU residents.
The entire process can be done within seven working days. The essential criteria for eligibility for FTBA are:
- Companies should have a physical presence with their operational offices inside the country.
- The company must have a minimum turnover of €500.000 per year for three out of the last five years.
- Businesses have to submit a reliable five-year business plan with the company’s goal, operations, and strategy.
2. Lowest Corporate Taxes Among Europe Union Countries
The second most crucial aspect of business relocation to Cyprus is its corporate tax rates. The country offers an attractive tax rate of 12.5%, the lowest of all other EU countries.
They have a Double Taxation Avoidance Agreement or DTAA with more than 60 countries to increase foreign investments. DTAA ensures employees and taxpayers don’t pay taxes twice—once to their resident country and the other time where they serve.
There are no succession taxes and earnings from the sale of stocks are excluded from taxation, therefore making investing even more appealing.
Even the income tax slab is relatively low. So hiring employees will not be a deep concern. Also, income from immovable property located outside Cyprus is exempt from capital gains tax and estate duty.
If it’s time to relocate your business, do it by using one of the business relocation services in Cyprus.
3. Widely Spoken English Makes It Ideal
In Cyprus, you don’t have to worry about language barriers. More than 70 percent of the country’s population speaks and understands English. You will see the English language used on street signs, advertisements, and public announcements inside the country.
Approximately 80 percent of the country’s GDP comes from service sectors, including tourism as the leading sector. Also, more than half of the population holds a degree qualification, making hiring talent for your business even more convenient.
4. Low Cost and High Standards of Living
The low cost of living makes relocating your business to Cyprus feasible.
The island nation offers world-class healthcare and free education up to age 15. Further, the cost of dining, education, renting a property, or owning a property is relatively low compared to other European countries. Transportation and telecommunications services are also affordable.
Moreover, with about 20 percent of the population being foreigners, the country has the second-highest percentage of foreigners in the European Union.
5. Your Entry to European and Asian Markets
Cyprus is at the crossroads of Europe, Africa, and Asia. The country has healthy relationships with European and Asian countries.
Therefore, setting up a business in Cyprus will open doors to Asian, European, and African markets. Further, there is no fiscal and bureaucratic pressure in the country.
6. Low Crime Rates
According to Numbeo, the crime index is 30.93 and the safety index is 69.07 in Cyprus, which is low, according to the agency.
The people of the country are warm and friendly. They heartily accept foreigners; that’s why 20 percent of the population is non-Cypriots.
All these factors favor relocating your business to Cyprus.
7. Cyprus Laws Are Investor-Friendly
The country’s advanced infrastructure, stable economy, and transparent legal system guarantee safety and stability for foreign investments. Cyprus Securities and Exchange Commission (CySec) is a government body that ensures investor protection and asset development for all
investments and financial services.
Foreign investors have the same constitutional protection as domestic investors regarding fundamental rights. The country also offers an attractive tax rate, citizenship via investment program, reformed banking laws, and tax exemption on dividends.
Now, if you are convinced, reach out to any business relocation services in Cyprus and ask how you can relocate your business.
We have covered the seven astonishing reasons to relocate your business to Cyprus. Hopefully, these reasons will help you understand and take you to new heights in your industry. Don’t hesitate to get help from business relocation services in Cyprus to relocate your business swiftly.
Running a business is hard. And when a country’s authority permits and takes specific actions to make doing business easy, it’s a good sign.
We hope to see your office in Cyprus soon!
- Why do companies move to Cyprus?
Cyprus is a business-friendly country that offers a low corporate tax rate of 12.5 percent with many tax exemptions. The quality yet low cost of living, easy business relocation, low crime rate, and investment opportunities make it an ideal place to relocate your business.
- Is Cyprus a good place for business?
Yes, Cyprus is a good place for business. It is one of the fastest-growing economies with advanced infrastructure, a high consumer market, and demanding service-based businesses that attract international investors.
- Is it easy to start a business in Cyprus?
Starting a business in Cyprus is relatively easy with the Fast Track Business Activation (FTBA) mechanism. It makes the whole procedure easy and convenient. It includes registering a company, understanding the tax rate, residency, and immigration process.