Cyprus: The Emerging Business and Tech Hub in the EU
Cyprus has historically been a magnet for international enterprises looking for an alternative business base in the region. Over the past few years, there's been a surge in the number of companies choosing Cyprus as their primary headquartering location, a testament to the island's unique blend of advantages.
Why Companies Are Heading to Cyprus:
Strategic Location: Situated at the crossroads of Europe, Asia, and Africa, Cyprus serves as a regional business epicenter and a delightful personal and tourist destination.
EU Affiliation: Since 2004, Cyprus has been a proud Member State of the EU, providing businesses with access to European markets.
State-of-the-art Infrastructure: Cyprus boasts excellent airline connectivity, international business units in all local commercial banks, cutting-edge infrastructure technology, and a push towards a digitalized economy—a key government priority.
Ease of Company Operations: Cyprus makes it straightforward to establish and run a company. It offers an attractive IP Box regime for IP companies, enticing tax incentives for relocating executives, and the prevalent use of English as the business lingua franca.
Innovation and Research: Outperforming many EU counterparts, Cyprus has a burgeoning research and innovation ecosystem, reflected in its impressive standings in EU research & innovation funding programs.
Pro-Business Legal Framework: Cyprus has crafted a transparent and efficient business-friendly legal framework, modeled on English common law. Its 12.5% corporate tax rate, robust double tax treaty with over 60 countries, tax exemptions on certain profits and dividends, and adherence to global best practices for substance requirements make it highly attractive for international businesses.
Talented Workforce: With an abundant supply of multilingual professionals, many of whom have been educated in the UK and the US, and an efficient migration regime, Cyprus facilitates smooth staff relocations. It also offers tax incentives for relocating employees.
Top-tier Healthcare and Education: Cyprus ranks high in the EU for its university graduates per capita, supported by quality healthcare and a plethora of international schooling options.
Unrivaled Lifestyle: As the sunniest country in Europe with 74 blue flag beaches and the distinction of being the 5th safest small country globally, Cyprus offers a blend of cosmopolitan life with a touch of Mediterranean charm.
Key Industries Flourishing in Cyprus:
Shipping.
ICT.
Fintech and EMI.
Forex.
Gaming and Entertainment.
Crypto and Blockchain.
Private Equity and Investment Funds.
Family Offices.
Making the Move: Immigration to Cyprus:
Entry Protocols:
Schengen visa holders and certain other visa holders can enter Cyprus for short stays without a dedicated Cypriot visa.
Third Country Nationals (TCNs) from specified countries can travel visa-free for short stays. Others may obtain a visa at a Cyprus embassy.
Residing in Cyprus:
Employment of Third Country Nationals: Cyprus allows businesses of foreign interests to employ TCN professionals under specific conditions. One such condition includes depositing €200,000 in a local bank as foreign direct investment.
Temporary Work and Residence Permits: Cyprus permits companies of foreign interests to employ skilled TCN personnel under specific salary conditions. The permit validity can extend up to three years and is renewable.
Permanent Residence: Regulation 6(2) provides a pathway for TCNs to acquire permanent residence in Cyprus, provided they meet certain conditions like a clean criminal record.
For EU Nationals: An EU Registration Certificate is necessary within four months of entry.
Gaining Cyprus Citizenship:
TCNs can be naturalized after 7 years of legal residence or 5 years for certain categories.
Spouses of Cypriot Nationals can apply for citizenship after 3 years of marriage and specific residency requirements.
Conclusion: As an upcoming tech hub and business powerhouse in the EU, Cyprus offers a dynamic mix of strategic advantages, making it an irresistible destination for companies and professionals alike. Whether you're looking to tap into the European market, benefit from a thriving innovation ecosystem, or enjoy a high-quality lifestyle, Cyprus beckons.
The content of this article is valid as of the date of its first publication. It is intended to provide a general guide to the subject matter and does not constitute legal advice. We recommend that you seek professional advice on your specific matter before acting on any information provided. For further information or advice, please contact Klitos Platis by email at klitos@kleanthousplatis.com.