WHY TO INVEST IN CYPRUS
Cyprus is the third largest island in the mediterranean sea with an area of 9.251 km² and a population of round 840.000 people. Due to its strategic place, Cyprus has become one of the most famous vacation spots and an excellent place for attracting international businesses. The island has a sophisticated economic system and a high human improvement index (hdi) with regards to living and quality of life as it uniquely offers an enviable combination of climate, business and culture.
Cyprus is known as one of the safest countries to live in, with one of the lowest crime rates in Europe. The warm hospitality of the people makes visitors at once feel welcome. Moreover, Cyprus offers generous tax incentives to expatriates moving to Cyprus.
So take a look at some of the major reasons why you should invest your money in Cyprus.
WHY TO LIVE IN CYPRUS
✓ Cyprus is a EU member state considering 1 may 2004 and adopted the euro as its legitimate currency on 1 January 2008.
✓ The native language is Greek however, English is the principal commercial enterprise language. Russian, French and German are also usually spoken.
✓ British nationals comprise the biggest expat community whilst Russians (specifically within the town of Limassol) and other Eastern European nationals also constitute big expatriate groups.
✓ Cyprus offers a number of professional public and private schools, all offering remarkable levels of education. The nearby schools and universities are recognized worldwide.
✓ The fundamental monetary sports of Cyprus are expert services, tourism, transport, actual property and energy (currently a rising marketplace).
✓ The tax year in Cyprus is the calendar year, 1 January to 31 December.
✓ An individual is considered to be a tax resident in Cyprus if he/she is present in Cyprus for a period exceeding 183 days in a tax year (183 days rule).
✓ All citizens of Europe who desire to reside and work in Cyprus, need to have an EU registration certificate. This is a simple, one-off process which does no longer need renewal.
✓ Non-EU nationals wishing to reside in Cyprus need to apply for a transient employment and house permit at the civil registry and migration branch. These permits are usually issued for a period of 1 year and upon expiry they are renewed.
✓ The private earnings tax rate for individuals begins from a 0 fee (for taxable profits of as much as €19.500) and is step by step growing at a top marginal tax fee of 35% (for taxable income in extra of €60.000).
✓The latest personal tax incentive is 50% exemption from Cyprus personal income tax on the remuneration from any employment exercised in Cyprus by an individual who was not a resident of Cyprus before the commencement of the employment. The exemption is available for five years where the annual remuneration exceeds €100.000.
So why should you invest in Cyprus?
Because International companies are able to enjoy the same low tax rates as local businesses, making the country one of the leading business destinations in Europe and an international financial centre.
The benefits of establishing a base in Cyprus are numerous and a lot of international companies are taking advantage of the many business and taxation benefits the country has to offer.
Your tax benefits are:
✓ Cyprus registered groups pay tax on their global-extensive income on the highly aggressive charge of 12,5% – one of the lowest costs inside the EU.
✓ To date, Cyprus has signed over 55 double tax treaties with different countries.
✓ No withholding taxes on the payment of dividends/ interest/ royalties (except when intellectual property (IP) is used in Cyprus).
✓ No tax on dividend income under certain conditions that generally are easily fulfilled. Also, there are no minimum holding periods and/ or ownership percentages.
✓ No tax on forex (“FX”) profits – either found out or unrealized, except arising from FX transactions of a trading nature;
✓ No tax on earnings springing up from a permanent establishment (“PE”), beneath effortlessly met situations.
✓ No capital profits tax arising from the disposal of overseas immovable property.
✓ No tax on income and gains derived from the disposal of titles (such as stocks, bonds and many others.), irrespective of whether or not the income and gains are considered to be of a revenue or capital nature.
✓ No capital gains tax, income tax or some other taxes arise on the liquidation of a Cypriot business enterprise owned with the aid of non-resident shareholders, regardless of the approach of liquidation.
✓ Companies might also carry ahead their tax losses incurred at some point of a tax 12 months for the subsequent five years, to be offset against taxable earnings.
✓ Beneath the institution remedy provisions of the Cyprus tax gadget, a Cyprus resident group employer may additionally give up its modern-year tax losses to another institution business enterprise – sure situations exist which might be commonly smooth to satisfy.
✓ Notional hobby deduction (“nid”) upon the advent of recent fairness: Cyprus agencies are entitled to nid upon the advent of new equity (e.g. paid-up percentage capital and proportion top rate) under the circumstance that the new equity is issued by way of a Cyprus enterprise and is used in the commercial enterprise. The nid is calculated via multiplying the new qualifying fairness quantity by using a reference hobby fee. The reference hobby fee is equal to the yield of the 10-year government bond of the united states of america in which the budget invested (as of 31 December of the prior year) plus 3% (or the yield of the ten year Cyprus authorities bond plus 3%, if better). The nid is a tax-allowable deduction constrained to eighty% of the taxable profit derived from property financed via the new equity relying on the extent of capitalization of a agency, the nid should reduce the effective tax charge of the company to as little as 2,5%.
✓ No inheritance tax or gift tax.
✓ No internet wealth tax.
✓ Different advantages for traders doing commercial enterprise in Cyprus.
✓ Cyprus organizations can have one shareholder who can also be the manager or a worker of the business enterprise (extra for public groups for which a few regulations observe).
✓ Cyprus agencies haven’t any minimum requirement for wide variety of directors who may be either people or prison individuals (excess for public organizations for which some regulations apply).
✓ No minimum capital is required to set up a private Cyprus agency.
✓ Ordinary buying and selling activity does now not incur stamp duty.
✓ Financial institution money owed presented in more than one currencies to suit you.
✓ Extremely good popular of professional offerings accommodated with the aid of the terrific industrial infrastructure, banking and body of workers talents.
Final Thoughts
As you could see, Cyprus is an appealing destination for plenty group owners and/or companies owners who are gaining all of the benefits stated above. These benefits are one of the reasons that most of them are a success in comparison to a number of their competitors that would choose a different country for his or her corporations.
We can provide professional guidance on how to exploit and benefit from the numerous elements of the Cyprus tax regime, as well as to undertake the set-up of your new Cyprus business enterprise and administer all of your company affairs.