Why are Non-EU and EU individuals more and more interested in Cyprus?
Cyprus is famous for its sunny days, sparkling sea, white sand, clean beaches, and Mediterranean cuisine. As a member state of the EU, Cyprus offers excellent infrastructure and a convenient geographical location. Cyprus provides frequent flights to most European cities as well as several international destinations. Through various Cyprus taxation incentives and benefits, Cyprus has positioned itself well as a country of choice for both individuals and companies.
The ease of doing business in Cyprus and the establishment of Cyprus companies.
Attracting foreign direct investment is at the heart of Cyprus’ development strategy. Investment activity in Cyprus has shown steady growth over the last three decades, as Cyprus is positioned as a hub for businesses.
Cyprus is a common law jurisdiction based on English common law, has an attractive tax regime, a highly skilled workforce, and the same rights and opportunities as other EU countries, and its currency, as in most European countries, is the euro.
The process of setting up a Cyprus company is simple and a Cypriot company can be set up within a week.
Location
Cyprus as a member of the European Union is at the crossroads of three continents providing a safe gateway for European businesses to the Middle East, North Africa, and Asia, while also offering opportunities for non-European businesses and entrepreneurs to invest in Europe.
Cyprus taxation system
Cyprus is well positioned as a country of choice for both individuals and companies through various tax incentives and benefits.
Individuals find Cyprus a tax-efficient location to structure their personal tax positions, taking advantage of the flexible tax resident and non-domicile tax status.
Cyprus Companies pay a single corporate tax of 12.5%, which is one of the lowest corporate tax rates in Europe, while still complying with EU standards and directives and being on the “white list” of the Organization for Economic Cooperation and Development – OECD. Cyprus also has access to all EU directives as well as access to an extensive network of more than 65 double taxation treaties worldwide.
Cyprus residence permits
Cyprus residence permit for Non-EU individuals through an investment
Non-EU individuals can benefit from obtaining Permanent Residence Permits in Cyprus for an investment of 300,000 euros and demonstrating an annual income of €30,000. There are no language requirements and there is only a need to visit Cyprus every two years to maintain relevant status. The Permanent Residence Permit in Cyprus is valid for life and can be transferred to dependents.
Cyprus residence permit for Non-EU individuals through establishing a foreign investment company
The residence permit (Cyprus temporary residence permit) for Non-EU individuals can be obtained by establishing a Cyprus international company. Through this type of Cyrus international company, Cyprus residence permits can be obtained for employees and their family members. Non-EU individuals have then the opportunity to apply for Cyprus citizenship after seven years of residence within any ten-calendar year period.
Cyprus Residence Permit / Cyprus Yellow Slip for EU or EEA individuals
EU or EEA individuals can apply for a Cyprus Residence Registration Certificate (Cyprus Residence Permit or the so-called Cyprus Yellow Slip) allowing them to migrate to Cyprus, stay, and work in Cyprus.
Taxation advantages for individuals
EU and Non-EU individuals choosing to become tax residents of Cyprus are able to minimize or even eliminate their personal taxes. Tax residents of Cyprus who have their tax residence in Cyprus receive a variety of tax benefits, including:
1) The exemption from tax on profits from the disposal of investments, tax exemption on global income from dividends, and interest for up to 17 years, exemption from property taxes, exemption from taxes on the transfer of property, exemption from taxes in cases of property donation and exemption from inheritance taxes.
2) Tax exemption of 50% of income from work for individuals residing outside Cyprus before starting employment in Cyprus for a period of 17 years.
3) Taxation of pension income from abroad at a flat rate of 5%.
Flexible banking options and bank accounts in Cyprus
The Cyprus banking sector has emerged as strong, fully recapitalized, and well-regulated by the economic crisis. There are currently more than 40 Cypriot and international banks operating in Cyprus. Cyprus bank accounts of Cyprus companies (companies based in Cyprus) can be easily managed by persons outside Cyprus.
How can we help
Please contact us if you are interested in moving or doing business in Cyprus and share with us any questions you have.
Contact details
Tel. +357 22 340000
Email: [email protected]
The authors expressly disclaim all and any liability and responsibility to any person, entity, or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of the contents of this publication.
Accordingly, no person, entity, or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances.