Doing Business in Cyprus for 2021
Updated 12 July 2021
Doing Business in Cyprus is the perfect way for your international operations and tax planning to succeed. Your hard work and your hard earned cash will reward you with rich profits. Register your business in Cyprus. Doing Business in Cyprus can be your step-stone to success and can get you a set of powerful tools for your international operations. First tool one of the lowest corporate taxes in the EU of 12.5%.
1.Open a Hotel in Cyprus in 2021
Cyprus is a country with a lot of tourism. Millions of tourists from all over the world visit Cyprus every year. There are rich profits to be made. Getting a license for a Hotel is not difficult or time consuming. Larnaca and Limassol are two of the best areas for building a hotel. Especially Larnaca has many unending sandy beaches. The climate in Cyprus is perfect. We have more than 250 days of sunshine a year.
2.Open a restaurant or chain of restaurants in Cyprus
Opening a restaurant in Cyprus is a child`s play. Find the space and get a license from the Municipality for the restaurant, a license for alcohol and a license for music and begin operation. There is a lot of potential for foreign food such as Chinese, Indian, Mexican, Lebanese and Italian. A chain of pitsa restaurants has a lot of potential. Cyprus being a tourist destination has millions of visitors every year.
3.Fruit and vegetable markets
Cyprus is lacking an chain of organized fruit and vegetable shops and especially organic fruit and vegetable. The first to do that will have a humongous success. Licenses again will not be difficult for the right place. Cyprus produces a lot of its own fruit and vegetables but imports will also be necessary.
4.Open a car service-repairs chain of garages
Cyprus is also lacking a chain of serious and professional garages for all types of cars and vehicles. There are of course garages but they are not organized and they lack expertise and experience.
5.A chain of good quality pubs
A chain of high standard pubs would also be welcome in Cyprus. Especially a well known European name would have good business in Cyprus due also to the high number of tourists every year. Cyprus is of course lately becoming the place of relocation for many Europeans and third countries such a Russia, Lebanon, Israel, Ukraine, China etc.
Our Firm will assist you to get all the licenses needed. We can also assist you to find the right location, town or place you are looking for.
So Doing Business in Cyprus can be a win, win situation. Businesses in Cyprus enjoy a lot of tax benefits and incentives. Cyprus as a member state of the EU offers to the international Entrepreneur the opportunity to succeed and to thrive in the provocative and difficult financial European environment. Access more than 300 M consumers through Cyprus.
Doing Business In Cyprus : Why Cyprus – 2021
Why do business in Cyprus? What does Cyprus offer me by Doing Business in Cyprus? Below are the major tax benefits for the international businessman who operates from Cyprus:
1. Corporate Tax at 12.5%. On Cyprus Corporate Tax Rate please follow this link.
2. No tax on dividends paid out by the company to the Owners or Shareholders of the company.
3. No tax on profits from selling securities such a shares, bonds,futures,Forex,stocks etc.
4. No tax on profits from the sale of real estate abroad i.e. no Capital Gains Tax.
5. No tax from profits of permanent establishments abroad such as a restaurant, a factory, a hotel etc.
6. No profit on inheritance of shares.
7. Only 2.5% tax on profits from revenues from IP.
8. No special defense contribution tax for foreign companies which is 17%!.
9. No stamp duty on may contracts or other documents.
10. No tax on dividends received by the company for shares it owns in other companies. This why the Doing Business in Cyprus can give you the great advantage to use your Cyprus company as a holding company!
Frequently Asked Questions
Is the business environment Friendly?
The business environment in Cyprus is very friendly for the foreign investor. A company is incorporated in 5 days. A bank account is opened in 10-15 days. You can get a license for a Hotel, or a Travel and Tourism office in a few weeks, or a Forex License is 4 months etc. Rents are low, electricity, salaries, vat rates are also low. There is a huge tank of university educated experts to populate your business. So as you can see Doing Business in Cyprus is as easy as pie!
Is starting a business in Cyprus complicated or time consuming?
Starting a business in Cyprus is simple and fast. Our Firm will assist and advise you all the way to save time and money. Cyprus has a lot of qualified experts such as Accountants, Architects, Surveyors, Marketing experts, Business Administration experts and all kind of other callings ready and willing to man your operations. Starting a business of course requires some business plan and if required to get the necessary license. For a Tourism and Travel business you need a license for C.T.O. or for a Forex business a license from SyCEC etc.
What types of business are Viable to Foreigners?
There are no restrictions at all as to what business can foreign investors do in Cyprus. They can do any business they like, unless of course a business requires a special license as above. Most of the foreign investors in Cyprus choose the business of Hotelier, Forex , Restaurants, Renting out flats or villas, trading in all kinds of commodities or electric or electronic services, consultations of all types etc. In fact for most businesses you can be ready to begin in 15-20 days!
Is Cyprus`s Geographical Position Favorable?
Cyprus is situated in a very strategic position in the Mediterranean. It is the crossroads between the Arab Peninsula, Africa, Europe, the Balkans, Russia, the former USSR Countries and Asia. It divides the distances and offers a place of business which could thrive taking advantage of all or any of the following favorable parameters. When Doing Business in Cyprus you will be having another ally. The weather. In Cyprus the weather is stable and mild. We have 360 days of sunshine. No floods to destroy your business offices, your factory, your house! No blizzards, no hurricanes!
Doing Business in Cyprus is made easy by the top communications. You can reach an Eskimo in his tent in the North Pole! Cyprus has very modern, high tech fast and cheap communications to any country of the world, land line, mobile networks, fast internet etc. they make it possible for anyone to register his business in Cyprus and be able to run everything efficiently and cost effectively.
One of your major advantages will be the ultra modern airport and the air links to the four corners of the world. A businessman will be surprised to find a super modern airport at Larnaca and airways to all destinations on the planet. Major airlines like Lufthansa, British Airways, Qatar Airways, Emirates Airline and many more touchdown in Cyprus, giving a wide choice to the businessman to travel fast and fuss free to all destinations. Short distances locally make transportation quick and efficient.
Human resources offer a businessman a large pool of experts to tap, of all qualifications. People educated mainly in the U.K. at the best Universities. There are thousands of Cypriot people with degrees, masters and even doctorates in Mechanical Engineering, Chemical Engineering, Energy, Law, Accounting, Business Administration, Advertising, Graphic Design, Architecture etc. The salaries are also very reasonable and low compared to some developed European countries. Cyprus being a member of the European Union and having Euro as its currency offers great rewards when doing business in Cyprus.
A zone of 27 countries of more than 300.000.000 consumers is at the fingertips of any businessman offering great opportunities! For those who want to set up business in Cyprus and actually trade within Cyprus too, there are no limitations to the type of business he can do. There are no restrictions in Cyprus as to the type of business a foreign businessman can carry out in Cyprus. Some of them require a license, like dealing in securities and offering financial advice to third parties.
Doing Business in Cyprus : Services – Currency
Services make up a big chunk for the Cyprus Economy! About 20 000 businessmen choose Cyprus to register a business. Business registration in Cyprus is regulated by a vast and concise legislation, which is the basic tool for any businessman who chooses to do business in Cyprus. Many business registrations in Cyprus now involve the Forex industry. International companies use Cyprus as their base of activities for the business registration. Forex has lately developed into a huge business industry with high stakes in the international business scene.
Securities such as shares, options, futures, bonds, debentures, oil and gas futures etc also make up a large section of the services industry in Cyprus and Worldwide! You can start a business in Cyprus of this type very easily and comparatively cheap compared to other countries. A license is required which takes about 4-6 months to be issued and it is respected Worldwide for it is strictly regulated. Various and many other choices for doing business in Cyprus.
A Cyprus Holding Company For Lower Taxes
A Cyprus Holding Company is the perfect vessel for your international operations. No matter where your activities are, in the EU or in Russia or Asia a Cyprus Company can be the power tool for your trading operations. There are no limitations. Most business activities are not under restrictions nor is a license necessary! A Cyprus Holding Company offers many and great advantages. The main advantage is that it does not pay any tax on the dividends received or paid out! This is a great advantage!