Why to invest in Cyprus

CYPRUS COMPETITIVE ADVANTAGES (General)

Geographic / Strategic location advantage and Traditional links
The island's strategic geographical position as it is lying at the hub of three continents Europe, Asia and Africa make it an attractive venue for the setting up of an international business company.

Cyprus currently as the eastern gateway of the European Union (EU) located at the crossroads of major international trade routes between Europe, Asia and Africa offers the ideal opportunity for European Union inbound and outbound investment. This complements the traditional links Cyprus has had with Central and Eastern Europe, Russia, India and China. Traditionally (due to strong political and economic relations with all of these countries and the favorable tax system with double tax treaties that currently exist) investment to those countries was channeled through Cyprus.

Favorable tax system and incentives
Tax system and incentives make Cyprus an ideal place for investment. Under the tax reform companies registered in Cyprus are taxed at the rate of 12.5% on their total income provided that their management and control is exercised in Cyprus. The tax rate of 12.5% and the number of tax treaties with the majority of European and other countries that exist for the avoidance of double taxation make Cyprus the country with the lowest tax burden on the affairs of the company in the European Union.

By applying international planning techniques, this tax can be minimized or even eliminated.
No withholding tax on dividend, interest and royalty (when the right/asset is used outside of Cyprus) payments made to non-Cyprus resident recipients.
Dividend income from abroad to Cyprus is wholly exempt from tax under certain relaxed conditions.

Please see Ideal Tax System for more information on this issue.

Government structure and protection of rights
Cyprus has a presidential system of government with human rights and private property well safeguarded.

Economy
Cyprus has an open free trade economy with the GNP being one of the highest in the Mediterranean. The recent discovery of natural gas and oil within Cyprus exclusive economic zone (AOZ) gives Cyprus fundamental geostrategic role both within the Middle East and the Eurozone with promising growth prospects. 

Excellent infrastructure and services
Excellent business, telecommunication and transportation infrastructure with reliable banking institutions as restructured and highly improved computerised government service department.

Language and communication advantage
The official language of the island spoken by Greekcypriots (the majority of residents of Cyprus) is Greek with English widely spoken. Translation services are also available for a wide variety of other languages so no communication problems or barriers will arise.

High quality of professional and other services
Legal, accountancy and other professional services are of a very high standard.

It is evident from the above that Cyprus has the infrastructure, the know-how, the legal system, the professional services and the expertise to fulfil successfully its new strategic role as a Key financial services provider in the EU.