The Government’s Strategy: “CYPRUS VISION 2035”
The Government of Cyprus has developed “CYPRUS VISION 2035”, a long -term strategy for sustainable growth for the Island. Its main objective is to transform Cyprus to be one of the world’s best countries to live, work and do business in. This will be achieved by becoming a dynamic and competitive economy, driven by research, scientific excellence, innovation, technological development and entrepreneurship, and a regional hub in these fundamental areas. Cyprus will be transformed into one of the world’s leading model nations with a thriving, resilient economy and a just, inclusive society. Developing the Technology and Innovation Ecosystem is central in the Cyprus Government’s objectives and has thus introduced a new strategy for attracting foreign companies and skilled talent to Cyprus. The strategy mainly focuses on high technology, shipping, pharmaceutical, innovation, and research and development companies. This strategy included a series of new incentives concerning residency, taxation, and employment, through a fast, simple, and streamlined procedure.
There are many reasons that prompt ICT companies to choose Cyprus as a relocation destination:
• As a member of the EU and Eurozone community, Cyprus ensures safety and stability for investors, while also offering them market access to more than 500 million EU citizens.
• Stable business environment and emerging opportunities in multiple sectors,
• Strategic EMEA access. Good geographical location between the EU, CIS, Middle East and Africa regions.
• Ease of doing business, supported by a pro-business tax and legal system, modelled on English Common Law
• Included in OECD’s White List of jurisdictions with more than 60 countries
Substance requirements as per global best practices - Attractive Corporate Taxation. The corporate tax rate is 12.5%. Strong double tax treaty network
- Profits from trading in qualifying “titles” (e.g. shares, bonds, debentures) exempt from tax
- Dividend income generally exempt from tax
- Payments to non-Cyprus or non-domiciled Cyprus tax residents generally with no withholding tax
- Good taxation regime for relocated professionals (50% tax discount from 55,000 gross salary).
- Intellectual Property (IP Box) regime which allows to pay just 2.5% tax on royalties.
- No dividend tax for non-domicile UBOs. Owners of businesses can become tax residents staying just 60 days in Cyprus.
- High availability of multilingual, high-quality professionals, mainly UK and US graduates
- Efficient migration regime that allows smooth relocation of Executives and families.
- Capacity to transfer large numbers of employees
- Attractive tax incentives for employees relocating to the island
- High quality healthcare
- High quality international schooling from kindergarten to university - Cyprus is amongst the top in the EU for university graduates per capita
- A cosmopolitan island with a great lifestyle
- Ranked as the 5th safest small country in the world
- The sunniest country in Europe with 64 blue flag beaches
- Relatively low cost of living compared to other European business hubs
75% Greek Cypriot Community
10% Turkish Cypriot Community
15% Foreign Residents
Cyprus has highly developed infrastructure, high quality educational institutions and medical centers
Versatile labour force
Cyprus possesses a well-trained and versatile labour force that speaks English fluently
Cyprus is a multi-cultural society with a number of ethnicities other than Greek-Cypriot.
3rd largest party Ship Management centre in the EU
THE SUNNIEST COUNTRY
in Europe with over 340 days of sunshine annually
CREDIT RATINGS/ OUTLOOK FOR CYPRUS
• DBRS: BBB / Stable
• S&P: BBB / Positive
• Fitch: BBB / Stable
• Moody’s: Ba1 / Stable
International competitive business environment
Cyprus combines an international competitive business environment with a pleasurable and balanced way of life. The expatriates who relocate to Cyprus can enjoy a high quality of life with their families
Fully developed digital network, with reliable high-speed internet on international connectivity and excellent telecommunications infrastructure
Based on the English common law, with civil modifications