In recent years Cyprus has evolved into a business hub, mostly because of foreign investments that aid the Country’s growth and call for the operation of different businesses to manage them. Although a small country, Cyprus appears to be a preferable option for investors. The island provides good reasons for investment to both companies and individuals.
Individuals could benefit from investing in Cyprus through the acquisition of Permanent Residency. It can be acquired by investing a minimum of 300,000EUR in Property. The scheme grants the applicant and their family visa-free entry to Cyprus, permanent residency, and the right to reside in the country and open a business. The permanent residency is valid for life but the applicant can also apply for Cypriot citizenship and a passport after 7 years. A point to consider is that Cyprus offers personal tax exemptions for new residents and non-domiciled individuals.
Companies can enjoy a tax system that agrees with EU and international regulation but also provides for one of the lowest corporate income tax rates. Not only is the tax rate low, but there are ways to reduce the tax payable. Cyprus has agreed to more than 60 treaties preventing double taxation. The law also provides for a number of tax exemptions. For example, foreign-sourced dividends, profits of foreign branches, and foreign exchange gains excluding Forex.
Cyprus follows a common law system and the country’s corporate statutes are modelled on the English Common Law systems which is one of the most frequently selected jurisdictions for corporate dispute resolution due to its clarity. Significantly due to its EU status, all EU regulations have direct effect in Cyprus, the state can be challenged in European Courts, and all EU benefits can be enjoyed by legal and natural persons. Cyprus is also a member of the United Nations, the World Bank, the World Trade Organisation, the Council of Europe, and the British Commonwealth.
To set up a company in Cyprus the company needs one Director, Secretary, and Shareholder. There is no requirement for the Director and Shareholder to reside in Cyprus and the minimum shared capital is 1EUR. There must be a reservation of the company’s name, preparation of supporting documents, filing for registration, a corporate bank account opening, and fulfilling the tax and auditing obligations. Our firm can guide you through every step of setting up your company in Cyprus.
Our team has experience in company incorporation and fiduciary services. We set up companies, and offer a convenient registered office service, while we transfer any correspondence received in that office to you. We provide a fixed-fee company directorship and secretarial service, providing a fast electronic filing service and communicating directly with the Registrar of Companies. We fulfill the necessary auditing procedures, provide service addresses for directors and work on a fixed-fee basis. Take the first step in setting up your business in an investment-friendly country by contacting us.
An Article by: Andreas Pantelides and Andriana Charalambous, Advocates at Christys & Co LLC.