Cyprus, a member of the European Union, is not only a great destination for holidays, but also a great place to set up a business. It might be amongst the smallest countries in the world, but it offers a variety of business opportunities to both foreigners and locals. Here are five reasons why you should set up a company in Cyprus.
The government has introduced many tax incentives, created citizenship and residency by investment programmes, introduced the non-dom status for foreigners and reformed banking laws to provide a business-friendly environment and legal certainty. It is also important to mention that Cypriots communicate in English effectively in everyday business situations.
Favourable corporate tax legislation
The business-friendly tax system of Cyprus is one of the main reasons why the island has become a great destination to set up a business. Companies whose management and control takes place here are considered to be resident and domiciled in Cyprus, therefore benefit from corporate tax rate which at present stands at 12,5% – the lowest in Europe!
Beneficial tax environment
Apart from the low corporate tax rate, the Cypriot tax law provides multiple tax benefits, including relatively low income tax, limited capital gains tax, no inheritance tax, no withholding tax on, interest and loyalties, as well as dividends to shareholders are tax free.
The company registration process for any type of business – limited liability business, public limited, company limited by guarantee or general and limited partnerships – is simple and straightforward. Once all documents have been submitted and fees paid, the company is usually incorporated within 4-5 working days, making it one less hassle for you to worry about.
Double tax treaties with over 60 countries
Thanks to the territorial tax system, Cyprus offers relief from double taxation of corporate earnings. This means that Cyprus helps ensure that individuals and companies are saving money on taxes.
The above reasons are enough to convince even the most skeptical of business owners to choose Cyprus when looking at establishing business presence in Europe. If you have any questions about setting up a business in Cyprus, the team at Predeevo would be happy to provide advice regarding the local tax legislation and company formation procedures. You can contact us on +357 70 008812 or firstname.lastname@example.org.