Why Do Business In Cyprus: In doing business in any country it is important to have a democratic and stable Government. The Government of Cyprus is a presidential democracy with an elected President and an elected Parliament. The President appoints the ministers. The term of office of the President is 5 years and so it is the term of office for the Cyprus MPs. Cyprus has 4 major political parties, which dominate the political life of the country. Major towns of Cyprus, have mayors, while smaller towns and villages have Councils. The Government of Cyprus exercises all the powers given it by the 1960 Constitution which is the source of the Cyprus Law and Constitutional rights of the Cypriot nation. The Cyprus Government is a democratic government which takes care to protect the human rights of all its citizens, be they indigenous, or aliens. So it safe to do business in Cyprus as there is a very stable political system. For any foreign investor doing business in Cyprus the Government of Cyprus is always offering opportunities and infrastructures. The tax system is very friendly and the taxes are low. The corporate tax is only 12.5%.
The Capital of Cyprus is Nicosia. A Very Ancient City
Why do business in Cyprus: Many foreign investors prefer to do business in Nicosia the capital of the country. If offers a lot of choices and opportunities for doing business in Cyprus. The Capital of Cyprus is Nicosia. It`s located more or less in the middle of Cyprus and it`s population is about 130 000 people. In Nicosia are situated most of the Cyprus Government ministries and other Government services, and most of the foreign embassies and consulates. The USA, China, Russia, the UK, France, Italy, Germany, and dozens of other major and not so major countries all have embassies in Cyprus. The Capital of Cyprus is the only divided Capital in Europe, since the bloody invasion and occupation of Cyprus by the Turks in 1974. The Capital of Cyprus is modern city which has to offer a lot to the visitor. Until now the main financial activities of the country were concentrated in Nicosia.
Why do business in Cyprus: Things are now changing rapidly, because Larnaca now with the new super modern International Airport, the huge gold course being built, the 1 billion Marina, in which there going to be Hotels, the Municipal Palace, Luxury Villas, Luxury Apartments etc, the completion of the Sea Front, a major project taking it to the vicinity of the Airport, a Seven Star Hotel smack in the middle of town, a huge 700 acre thematic park a few kilometers from the center of Larnaca, made Larnaca much more attractive. Foreign businessmen now prefer Larnaca, and because of the dense and inhuman traffic of Nicosia, and the high costs or running their business in Nicosia.
Why Do Business in Cyprus: Cyprus`s Economy
The Economy of Cyprus has been growing very fast in the last five years. Cyprus Economy has stagnated for the last two years because of the Global Economic Crisis like many other much larger economies. The Cyprus Economy`s main activities are centered around agriculture, light industry, tourism and services. The Cyprus merchant fleet is one of the biggest in the World! However now with the discovery of big gas and oil deposits offshore, Cyprus economy is looking forward to a bright future, and it will not be an exaggeration to say that Cyprus could become a big energy player! Already relevant agreements have been signed with Israel, Syria, Egypt, Lebanon and soon with Greece for the delineation of each Country`s rights, and for the extraction of the gas in partnership with Israel. Many international energy companies, have applied to the Cyprus Government for acquiring the rights to one or more of the sea sectors. Great opportunities for doing business in Cyprus will emerge soon on the energy and banking sectors and the complementary services. Cyprus Economy has a bright future.
Cyprus Tax Regime Favorable For Doing Business in Cyprus
Why do business in Cyprus. In Cyprus the tax regime is very favorable to foreign investors. The corporate tax in Cyprus is only 12.5% and there in NO TAX on Dividends. Also in Cyprus there in NO TAX on revenues from trading in securities, a big advantage to foreign businesses. Further revenues from patents, trademarks and other IP is only taxed at 2.5% ! There are capital gains tax exemptions, stamp duty exemptions and a whole battery of Double Taxation Treaties signed by Cyprus with third countries since 1956! Double Tax Treaties are key to your International Tax Planning as they allow credit for any corporate tax paid in Cyprus to your taxes in your country of tax residence. Cyprus Tax Rates are generally very favorable to the foreign investor. Follow this link to get an idea about Cyprus Tax Rates.
The Currency – Exchange Rates of Foreign Currencies
A foreign investor doing business in Cyprus can access the whole EU area as Cyprus is a member of the EU and the Euro-zone! The Cyprus Currency today is the Euro. Cyprus joined the Euro zone in 2008. That is great advantage not only for the Cyprus people but for the visitors and for the businessmen, because of all those well known reasons. Before joining the Euro, which today is the official Cyprus Currency, the Cyprus Money was the Cyprus Pound. The Pound was left to Cyprus by the British after independence in 1960. It was divided into 20 shillings and each shilling was divided into ten pennies. Cyprus Money went through various stages. However Cyprus Money and the Cyprus Pound was very steady and it was accepted as an international trading currency in many countries including Syria, Egypt, Greece, Turkey, and many others. The exchange rates in Cyprus are secured according to the international rates. So a visitor or a businessman looking to exchange some other currency into Euro in Cyprus, will be treated fairly and will be in a position to secure exchange rates equal if not better to those of any other country. Cyprus Banks are of the most advanced in the World and always offer Exchange Rates, and other services at very reasonable costs.
Population – The Cyprus Society
Why do business in Cyprus: In Cyprus there are about 800.000 people only. Most of them are Greek Cypriots, about 60% , then there are about 20% Turkish Cypriots, 7% British Nationals, 6% Russian Nationals and the rest are various races, all living together in harmony without any racial discrimination or conflict. The crime rate is very low and it evolves mostly in offences against property. The Legal System is very fast and concise and the Courts are just and unbiased. Everyone feels very safe in Cyprus. You can leave the keys on your car lock and nobody will try to take it. Children are safe to play alone in the streets. There has not been a child abduction in Cyprus for many years. The educational system is very modern and everyone in Cyprus has the opportunity to get an education. Cyprus has a modern University, of the highest standards, with thousands of students. Many students come from as far as China, India, Europe and the U.S.The illiteracy rate in Cyprus is one of the lowest in the world.The local language is Greek, but English and Turkish is widely spoken. There are schools for all kinds of taste to learn Greek and English and many other languages. Cyprus has one of the highest rates of University educated people in the world. The cultural heritage of Cyprus comes from ancient Greece. That is why Cyprus has a lot of traditions in Religion, Dancing, Poetry, Food, Hospitality, Sea Sports, a lot of ancient monuments, etc. Cyprus is one of the biggest islands in the Mediterranean Sea. It is situated in the middle of the Mediterranean and is a gate to Europe, the Balkans, Africa and Asia. It has a coastline of almost nine hundred kilometers. It gained its independence from the British in 1960, and since then it has a steady democratic government, with a President and a House of Parliament.
Why do business in Cyprus: Its legal system is based on the British legal system which is one of the best in the world. It is very extensive, solid, fair and predictable. In the Cyprus courts justice is dealt fairly for all litigants independently of politics or other irrelevant factors. The Cyprus legislation is modern, concise, and precise and covers all the aspects of modern society, trade, business, administration and so on, so that you feel secure in doing business and establishing your company in Cyprus.Recently the republic of Cyprus has adopted a free market economy which gives you immense opportunities for international business and of course for your financial and tax planning. Our telecommunications are as much developed as any other European country. It offers you all the latest high technology and an extensive and very fast internet. There are air links from the Larnaca International Airport, which is a brand new super modern airport, to all destinations in the world, every day, making it simple, fast and cheap to travel to and from Cyprus, anytime without any fuss or delay.