Advantages of Moving Your Business to Cyprus

Lately, lots of companies are relocating to Cyprus, and you might be wondering why – especially if you have a business or want to open one. Before you base your business there, you must know everything about this move.

With that in mind, let’s take a look at some of the benefits of moving your business to Cyprus.

• Great Workforce

Cyprus has a very talented workforce, one that can benefit and grow your business. A notable advantage is people’s ability to speak English. Many individuals speak English at an advanced level. This gives you the chance to employ more people and not fear any language barriers.

Not only that, but the people in Cyprus get great education and training in either local universities or international ones. They are trained in all sorts of fields, so you’re very likely to find talented individuals for your business.

According to statistics, more than 55% of the workforce in this country has a tertiary degree, making it well-qualified. The experienced and qualified individuals also include the younger population.

Larnaca is one of the best places to find workforce in Cyprus, with many businesses operating in this area.

• Pro-Business Attitude

Cyprus has an extremely positive attitude when it comes to business. The country has a very unique geographic location, basically intersecting two continents. So, it offers easy transport links and easy access to different markets. Aside from that, it has a very strong legal system.

In fact, its legal system resembles the one in the UK since it is based on it.

• Wonderful Tax Benefits

Probably the aspect that entrepreneurs love the most about Cyprus is the tax advantage.

Cyprus has the lowest corporate income taxation in the European Union, sitting at just 12.5%. And while it’s low, it complies with the OECD and EU regulations, so no laws are being broken. A company can also bring down the corporate tax rate even more by applying the National Interest Deduction, making things even more convenient.

There are other income sources that are not subject to corporate income tax. These are:

• interest income (as long as it doesn’t arise in the normal business course)

• gains that come from securities disposal

• forex exchange gains from forex brokers in Cyprus, and not only (as long as the forex gains do not come from trading in foreign currencies or a related derivative)

• dividend income

But that is not all. There are also no succession taxes or withholding taxes, so companies can benefit from this relocation to Cyprus even more.

• Doing Business Is Not Pricey

Despite how much you care about doing business, you do not want to spend too much on it and reach a breaking point. Fortunately, Cyprus enables you to do business without breaking the bank. The cost of living and doing business is much lower in Cyprus than it would be in other countries.

Also, the costs differ from one city to another. Larnaca is one of the best picks in this regard, with business costs being 30-40% lower than other cities like Limassol and Nicosia.

The good news is that even if the costs are lower, you will not have to sacrifice quality. Therefore, the business will still run at the highest level, and you can gain more profit and revenue while paying less.

• Cyprus Is in the EU

As you probably already know, Cyprus is an EU state. This gives the country the same rights that other European countries have. The island also has Euro as its currency.

A huge advantage is the fact that it is easy to adjust to Cyprus, mainly because the location is quite westernized – especially if you relocate to a city like Larnaca. You’ll most definitely feel at home there.

• Meeting Other Great Entrepreneurs

By relocating to Cyprus, you can meet like-minded business professionals, make connections, socialize and start learning from each other for the best outcome for your business.

With more entrepreneurs learning about Cyprus and its advantages for companies, the place is home to numerous business owners. For this reason, there are numerous entrepreneurial events, as well as shared offices.

If you love being part of a community and want to form business relationships, Cyprus is the place to be.

• It Is Easy to Start and Run a Business

Seeing that more foreign investors have become interested in Cyprus, the local government has been working on different legal stipulations and corporate regulations for starting and running businesses.

This way, they encouraged more and more entrepreneurs and investors to start a business in Cyprus. These regulations have simplified the entire process. Moreover, Cyprus makes it very safe to run your business here. That is because there are various secure property investments along with strong protection to safeguard intellectual property.

The Council of Ministers has also approved the Fast-Track Business Activation service. So, it is easier and faster for oversea businesses to relocate to Cyprus. Of course, there are a few requirements you must meet to qualify for Fast Track Business Activation. For example, you must have a €500,000 annual minimum turnover for at least 3 years, and you must be physically present in Cyprus.

• It Has One of the Best Climates on the Continent

You would think that weather and climate don’t matter for your business. Still, if you want to run a business in comfortable conditions, you should consider this aspect as well. Thankfully, on top of the tax benefits and the ease of starting and running a business there, Cyprus also has one of the best European climates. Generally, you can expect around 25°C during the day and 15°C during the night. Not to mention that you’ll have the sea by your side.

The Bottom Line

More and more businesses are relocating to Cyprus, and you might be tempted to do the same. There are several advantages to this. You can enjoy a great climate, have access to talented workforce, benefit from tax advantages, and so on. Still, before relocating to Cyprus, make sure to plan things accordingly.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes