BENEFITS OF INVESTING
Cyprus is Europe's eastern outpost at the crossroads of three continents - Europe, Africa and Asia - providing a gateway to and from each one of them. The country's geographical location has been considered of strategic importance in global trade for thousands of years.
Recently, the discovery of natural gas resources and possibly oil, has further upgraded the strategic importance of the island, which is also considered to be a stabilising factor in the region's political developments.
Due to the Government's commitment to achieving economic recovery and growth, Cyprus has managed to successfully address the island's economic challenges, and establish itself as a thriving business centre.
Cyprus offers one of the most attractive tax systems in Europe. The country provides a simplified, effective and transparent tax regime that is fully compliant with the EU laws and regulations.
In addition, the Organization for Economic Cooperation and Development (OECD) includes Cyprus on its "white list" as one of the 45 countries that have introduced and implemented the highest of internationally agreed standards on harmful tax practices.
Dividend income, most international transactions, profits from overseas permanent establishments and profits from the sale of securities are exempt from tax. Also, there is no withholding tax on dividend, interest and royalties paid from Cyprus.
Cyprus has a network of double taxation agreements with more than 50 countries, including South Africa.
Human Talent & Level of Services
Cyprus is a dynamic business centre that offers relatively lower operating costs while also providing high level and top quality professional services, including accounting, auditing, tax, business administration, legal, investment and funds management.
Various law firms specialize in international work and assist foreign investors with both set-up and contractual formalities, while the world’s leading accountancy and consultancy firms are present on the island.
International recognition of Cyprus' high level of professional services is reflected in the decision of the Institute of Chartered Accountants in England and Wales (ICAEW) and the Chartered Institute of Management Accountants (CIMA) to select Cyprus as the first country outside the United Kingdom to train ICAEW and CIMA accountants.
Human talent is probably Cyprus' most compelling competitive advantage since it forms part of the people's culture and history. Cypriots are highly educated, qualified and almost all are bilingual, if not multilingual. Most importantly, however, business is still done with a personal touch.
Legal and Regulatory Framework
Cyprus has a comprehensive, modern and forward-looking legal and regulatory framework based on English Common Law principles. The country's legal framework is widely recognized as a business-friendly and effective system that allows for reliable and transparent business practices.
The Cyprus Investment Promotion Agency (CIPA) has a leading role in constantly developing and modernizing the country's legal framework by promoting new and improved legislation in a number of areas, always aiming at further improving the overall investment environment.
Naturally, being a European Union member state Cyprus' legal framework is aligned with EU laws and regulations.
Quality of Life
Cyprus offers an enviable lifestyle in a clean and healthy environment, with a high standard of living. Living and working in Cyprus are directly related to fabulous weather, beautiful nature, art and culture, safety, security, and above all, hospitable and warm people. It is the combination of all these factors that makes the experience of living on the island extremely desirable and attractive.
The local infrastructure is ideally suited for business people who need to get things done. Thanks to its modern road network, extensive port facilities, and two international airports, travel and transport in and beyond Cyprus is fast, efficient and economical.
Considerable investment has been made into transforming the island into a major telecommunications hub in the region. By building upon its technologically advanced infrastructure, Cyprus has established an extensive telecommunications network, both in terms of cable and satellite, which ranks amongst the best in the world.
EU Member State and Member of the European Monetary Union
The Republic of Cyprus became a full member of the EU on May 1st, 2004. Accession to the EU was a natural choice for Cyprus, driven by its culture, civilization and history, as well as its unwavering commitment to the values of democracy, freedom and justice.
At the start of 2008, Cyprus joined the European Monetary Union, leveraging a robust economic performance recorded by key economic indicator. Joining the eurozone meant that investors could take advantage of the opportunity to freely access the 500 million EU market, while also benefiting from fewer risks, lower costs and increased price transparency across the eurozone.
Accession to the EU and the eurozone launched a new era of commitment to quality and growth in Cyprus. Furthermore, the country continues to encourage Foreign Direct Investment opportunities in priority economic growth sectors.
Today, Cyprus actively participates in EU programmes, focusing on strengthening growth in various economic sectors, as well as entrepreneurship and innovation across sectors and processes.