Cyprus, due to several reasons, is an investment destination for European and foreign investors and business people. The important geographical position, the fact that it is member of the E.U., the low taxation and many other reasons addressed below established the country as a financial hub and professional services centre.
Cyprus’ extensive network of double taxation treaties, along with the European Union membership, the highly qualified and multilingual labor force and the low taxation regime continue to attract Foreign Direct Investment (FDI). Those, along with other reasons, enhance the dynamic of the island as an investment and business centre and this can be drawn from the thousands of companies registered in Cyprus year by year.
N. Mouktaroudes and Associates LLC will assist you to exploit these advantages to your benefit.
Below, some of the basic reasons on why to invest in Cyprus are quoted.
Taxation and Tax planning
Cyprus has the lowest corporate taxation rate in Europe, which is currently 12,5%. That is the major advantage, as companies registered in Cyprus and exercising actual management and control of their business here enjoy the tax regime both for transactions made outside or inside the country.
The tax regime is in conformity with both European Union Law and in compliance with the Organization for Economic Cooperation and Development (OECD).
The lowest taxation rate applies also to copyrights, on literary, artistic and scientific works including film and television royalties. There is no taxation for profit made from the sale of shares, bonds and debentures.
Double Taxation Treaties
Cyprus has signed over 45 double tax treaties and is in negotiation with some other countries for signing even more treaties.
The main reason of double tax treaties is to avoid the International Double Taxation when the same profits of a legal person or of an individual are taxed in two or more countries. Those treaties, along with the low taxation rate, confer stability and certainty in the course of trade.
The position of Cyprus is considered as strategic in geographical terms, as it is positioned in the crossroad of three continents (Europe, Asia and Africa), and is one of the main reasons which established the country as a financial hub and professional services center.
Cyprus proposes excellent possibilities as an efficient logistical and distribution centre in the region, facilitating trade (and business relations) between Europe, Africa, the Middle East and Asia. It is also an ideal transshipment center, with Cypriot companies operating independently or with foreign partners to ship goods into and out of the EU via Cyprus.
Member State of the EU
Cyprus is a member state of the European Union since 2004 and has implemented the EU Regulations and Directives into the domestic legislation. It has gained many benefits both economic and political and has also increased its businesses and investments as a result of the accession into the EU.
Thus, Cyprus is one of the most credible and reliable locations for professional services and offshore activities. Simultaneously, Cyprus enjoys solid bilateral partnerships and excellent relationships with the rest of the world, such as with the US, Canada, Middle East, North Africa, Russia, CIS countries, India, South Africa and Australia. That means the country is also a destination for international business and investments.
Highly trained labor/ Infrastructure
Cyprus has a high quality infrastructure, with well trained personnel and focused on professional services. The labor is well educated, experienced and multilingual.
Cyprus has a very advanced professional services sector, such as legal, accounting and tax planning. This facilitates economic growth and sustainability, which truly makes Cyprus one of the most favorable offshore jurisdictions and financial hubs in the world.