About Cyprus
ABOUT CYPRUS
Corpera Partners, based in Cyprus, offers a unique blend of international accessibility and a business-friendly environment. The country’s tax regime, robust legal framework, and European Union membership provide a stable foundation for businesses seeking global reach. Corpera Partners provides clients with globally informed yet locally nuanced strategic insights and solutions. Operating within Cyprus’s dynamic economic landscape, Corpera Partners leverages fiscal benefits, legal protections, and its strategic geographic position to offer comprehensive services. This synergy between Corpera Partners’ expertise and Cyprus’s business ecosystem allows them to offer efficient, reliable, and strategically advantageous services for businesses looking to thrive on both local and international scales.
What makes Cyprus a favorable place for organizations and entrepreneurs
With a strong combination of benefits that make it a desirable location for investment and business, Cyprus is a shining example for businesses and entrepreneurs across the globe. Here are some key reasons why many choose Cyprus:
- Cyprus’ strategic location at the crossroads of Europe, Asia, and Africa offers unparalleled access to major markets, facilitating easier trade, business expansions, and diverse market access.
- Cyprus’ favorable tax regime, including low corporate tax rates, extensive double tax treaties, and advantageous policies for intellectual property and dividends, optimizes tax liabilities and enhances profitability.
- Cyprus, a member of the European Union since 2004, enjoys stability, security, and market access, adhering to EU regulations and standards, and providing a reputable operational base.
- Cyprus’ educated, multilingual workforce provides businesses with skilled professionals across various industries, making it a significant attraction for expertise and innovation.
- The legal system in Cyprus, based on English common law, is both robust and business-friendly. Coupled with a comprehensive regulatory framework, it ensures the protection of business interests and intellectual property, making it a secure environment for investment.
- Cyprus offers a high quality of life with beautiful landscapes, a Mediterranean climate, vibrant culture, safety, friendly communities, and excellent healthcare and education systems, making it an ideal location for professionals and families.
- Cyprus offers various investment incentives, such as grants, funding, and support services, to stimulate growth, innovation, and entrepreneurship in startups and established businesses.
- Cyprus, known for its open economy and welcoming business culture, has become an international hub, attracting companies and investors globally, making it an ideal choice for European and Middle Eastern market presence.
These reasons, among others, highlight why Cyprus is a preferred destination for businesses and entrepreneurs seeking growth, stability, and opportunity in a supportive and strategic environment.
An Overview of Taxation in Cyprus
- Cyprus provides a unique tax system that is particularly advantageous for businesses and individuals who live in or work there. This framework includes regulations for the shipping sector under the tonnage tax system, as well as the Special Defence Contribution (SDC) and Corporate Income Tax (CIT). Below is a condensed summary of these elements:
Special Defence Contribution (SDC)
- SDC primarily applies to dividend, passive interest, and rental income for Cyprus tax-resident entities and non-resident entities’ permanent establishments, with non-residents without Cyprus PEs exempt.
- Dividend incomeexempts from SDC are available under participation exemption criteria.
- Active interest income, derived from regular business activities, incurs CIT at 12.5%, while passive income incurs SDC at 17% but is exempt from CIT.
- Rental income is subject to a 3% SDC after a 25% deduction, in addition to the standard CIT rate on the net amount.
- As of September 13, 2023, rental income from self-catering accommodations listed on online platforms is considered business income, subject to CIT, and exempt from SDC under certain conditions.
Tonnage Tax System
- The favorable tax regime benefits shipowners, charterers, and managers, affecting ships registered in the EU/EEA and other jurisdictions under certain conditions.
- Entities pay a net tonnage tax instead of CIT, offering reductions for eco-friendly ships and exempting dividend distributions and sale profits from taxation.
- The mandatory regime for Cyprus-flagged ships is in effect until December 31, 2029, while it is optional for other ships.
Local Income Taxes
- Cyprus eliminates local government income taxes, simplifying tax obligations for businesses and individuals in the country.
Geographical Position
Due to its strategic location at the meeting point of three continents—Africa, Asia, and Europe—Cyprus offers unmatched access to and from key international markets. Due to its advantageous position, it serves as a major center for global trade, allowing companies to easily expand and link across continents.
Regulation and Law
The legal and regulatory environment in Cyprus is robust and business-friendly, grounded in English common law. This framework provides a secure foundation for commercial operations, intellectual property protection, and dispute resolution, making it conducive to business growth and investment.
High-Tech Infrastructure
With its modern telecommunications network, extensive port and airport facilities, and ongoing investments in technology and transportation, Cyprus offers advanced infrastructure conducive to business operations. This infrastructure supports efficient logistics, connectivity, and innovation.
Financial Outlook and Development Possibilities
Cyprus's economy exhibits resilience, growth, and diversification. With industries like banking, travel, shipping, and services growing, there are a lot of growth and investment prospects on the island. Cyprus's prospects are further enhanced by the government's dedication to economic reform and innovation, which makes it a viable site for future growth.
Member States of the EU and the Eurozone
Full EU membership since 2004, Cyprus's EU and Eurozone membership offers a stable legal and economic environment enhanced by EU-wide standards, laws, and market access, attracting financiers and business owners for safety and legitimacy.
Specialist Services
Cyprus boasts a highly skilled, multilingual professional workforce, offering expert services across various sectors, including financial, legal, and consulting. This talent pool, combined with a strong tradition of professional excellence, ensures businesses have access to top-tier advice and support.
Standard of Living
Cyprus offers an enviable quality of life, characterized by its sunny climate, beautiful landscapes, safe environment, and vibrant cultural life. The high standard of living, excellent healthcare, and education systems make Cyprus an attractive place for professionals and their families to live and work.
