In view of the latest global economic changes and the great uncertainty that the financial crisis has undoubtedly caused to worldwide investors and markets, the question whether Cyprus still is a great place to start business needs to be revisited. Does the Cyprus accounting and tax system remains attractive and how?
Cyprus is an independent sovereign republic located in the extreme northeast corner of the Mediterranean Sea.
In March 1960, Cyprus gained its independence from Britain and the following year became a member of the Commonwealth. In July 1974, Turkey invaded and occupied 37% of the northern part of the island and established an illegal Turkish Cypriot political entity recognized only by Turkey.
Despite the fact that the “Cyprus Problem” remains unresolved, there is no political uncertainty or violence, and day to day business and private life is unaffected by this issue. Negotiations for the resolution of the “Cyprus Problem” are in progress by the leaders of the Greek Cypriot and Turkish Cypriot communities.
In May 2004, Cyprus became a full member if the European Union. Significant structural and economic reforms were undertaken in order to complete the harmonization with the European Union, which transformed its economic landscape and created an open, modern and dynamic business environment.
In January 2008, Cyprus joined the Eurozone and adopted the Euro as its currency, replacing Cyprus Pound.
Top 10 reasons to invest in Cyprus
· Strategic Location
Cyprus's strategic location at the crossroads of three continents has been a major factor in shaping its history throughout the centuries and its development into not only a major eastern Mediterranean trading post but also a reputable international business and services centre.
· European Union Member State.
Cyprus is enjoying all the financial and other benefits of Euro zone, such as price transparency, elimination of exchange risk, regulated prices and monitored competition. In addition, the strict application of the EU laws and regulations has enabled Cyprus to achieve and enjoy economic growth.
· Lowest EU Corporate Tax Rate
The tax reform that took effect on 1 January 2003 introduced major changes to the Cyprus Taxation system. There is a uniform Corporation Tax Rate at 10%, which is the lowest in European Union and there is no distinction anymore between local and international companies. The maximum tax rate for resident individuals is 30%. The old, complex tax regime was replaced by a new system that eliminates discrimination and differential treatment between different categories of business and is simple and transparent. In addition the increase in the rate of VAT to 15% (still the lowest rate in Europe) made possible a reduction of certain taxes and the abolition of others.
· Efficient provision of legal, accounting and banking services
Cyprus law system is based on Common Law. The system comprises of experienced and competitive individuals who are well trained and can provide professional advice on local and international law. The legal profession is growing substianally and most of the providers are establishing worldwide offices in order to improve the quality of their services and provide a solid network to their clients and associates.
The accounting profession is represented by both international and local audit and accounting firms. These companies employ highly qualified accountants who must be members of either the Institute of Chartered Accountants (ICAEW) or the Association of Chartered Certified Accountants (ACCA) and the local body of Accountants (ICPAC). All firms are strongly regulated by the local authority of accountants and are subject to regular quality reviews. The international presence of Cyprus accounting and auditing firms is strong as they represent multinational investment companies.
The banking sector is also well developed and comprises of commercial banks and financial institutions that offer a wide range of services on a personal and corporate level. The range of services offered varies from insurance, leasing, factoring, loans, mutual funds, hire purchase etc. Financial advisors and bankers are well trained professionals with a vast international experience imported in the local industry.
· Strong economic performance
The island has a fantastic tourist and property sector that continues to grow yearly. The island’s economic stability is further enhanced by a very strong economic performance that has been bolstered not only by its tourist and business markets but also by its property market. As the table below indicates, unemployment and inflation are still at low levels.
· High Foreign Direct Investment performance
Cyprus indicates an interesting FDI performance as it attracts foreign investors and represents a great investment opportunity with a great potential. In the latest years the top FDI sectors were: Financial and Insurance Activities, Real Estate Activities, Professional, Scientific and Technical Activities and Wholesale and Retail Trade. The medium to long term FDI indicators are still positive and provide us with reasonable assurance that Foreign Direct Investment in Cyprus remains promising.
· Advanced and Solid Infrastructure
Currently there are 2 international airports in the island, serving the needs of world business travellers and providing connections to almost every corner of the world. Around 40 airline companies operate in the new Larnaca and Pafos airport. The new Larnaca airport was completed in 2009 and its advanced and innovative infrastructure facilitated and improved the international transportation in the island.
Additionally, the huge investment in modernizing and installing the Limassol port has constitute Cyprus as an international shipping centre with almost all large international companies establishing representative offices in the island. Istos Global Limited can help you to Register Company in Cyprus and other jurisdictions, banking, corporate and fiduciary services
Finally, Cyprus Government has invested a significant proportion of its funds in establishing an excellent telecommunications network. Currently the island enjoys and excellent communications network with Europe, Middle and Asia. Furthermore, the continuous attempts to improve the network in the island, have resulted in the installation of seven satellite dishes that provide companies with global connectivity.
· Natural Gas
In Dec 2011, Noble energy announced that Cyprus may hold up to 8trillion cubic feet of natural gas, with a gross mean of 7 trillion cubic feet. The field covers about 40 square miles (100 square kilometres). The gas discovery in the exclusive economic zone of the country creates great prospects for Cyprus and its people.Cyprus will be in a position to strengthen the energy security of the EU at a time when the EU seeks new sources of natural gas.
· Highly qualified, educated and multilingual labour force.
The availability of a young, highly educated, hardworking and multi lingual labour force creates unlimited opportunities for current and future employers. The country is devoting around 6% of its GDP on public Education. Currently, there is Cyprus educational system is harmonized with the European educational System, whilst achieving the lowest ration of teacher to student in Europe. Additionally, English is taught as a compulsory subject in both public and private schools at the age of 7. In 2010, 32.3% of the population of Cyprus between the ages of 25-64 held a Bachelor, Masters, or PhD degree. Finally, there are three public Universities in the island, including one Open University, and four private Universities. Cyprus has more than 30 colleges and 200 accredited study programs
· An island for all seasons
Cyprus offers a wonderful working and living environment and a high standard of living. With a pleasant weather, all activities can be undertaken throughout the year, golf, cycling and the most popular one, swimming. Cyprus cuisine is popular for its culinary treasures based on a healthy Mediterranean diet ranging from fresh salads and vegetables, excellent fish dishes, skewed pork and traditional deserts made of fruits.
People living and working in Cyprus enjoy reduced stress levels as the crime rates are low and most of the business relationships are characterized by a personal and professional friendliness of the local people. Finally, arts and culture have a long and strong tradition in Cyprus with festivals, concerts, theatres and operas taking place throughout the year.
Cyprus is an independent sovereign republic located in the extreme northeast corner of the Mediterranean Sea.
In March 1960, Cyprus gained its independence from Britain and the following year became a member of the Commonwealth. In July 1974, Turkey invaded and occupied 37% of the northern part of the island and established an illegal Turkish Cypriot political entity recognized only by Turkey.
Despite the fact that the “Cyprus Problem” remains unresolved, there is no political uncertainty or violence, and day to day business and private life is unaffected by this issue. Negotiations for the resolution of the “Cyprus Problem” are in progress by the leaders of the Greek Cypriot and Turkish Cypriot communities.
In May 2004, Cyprus became a full member if the European Union. Significant structural and economic reforms were undertaken in order to complete the harmonization with the European Union, which transformed its economic landscape and created an open, modern and dynamic business environment.
In January 2008, Cyprus joined the Eurozone and adopted the Euro as its currency, replacing Cyprus Pound.
Top 10 reasons to invest in Cyprus
· Strategic Location
Cyprus's strategic location at the crossroads of three continents has been a major factor in shaping its history throughout the centuries and its development into not only a major eastern Mediterranean trading post but also a reputable international business and services centre.
· European Union Member State.
Cyprus is enjoying all the financial and other benefits of Euro zone, such as price transparency, elimination of exchange risk, regulated prices and monitored competition. In addition, the strict application of the EU laws and regulations has enabled Cyprus to achieve and enjoy economic growth.
· Lowest EU Corporate Tax Rate
The tax reform that took effect on 1 January 2003 introduced major changes to the Cyprus Taxation system. There is a uniform Corporation Tax Rate at 10%, which is the lowest in European Union and there is no distinction anymore between local and international companies. The maximum tax rate for resident individuals is 30%. The old, complex tax regime was replaced by a new system that eliminates discrimination and differential treatment between different categories of business and is simple and transparent. In addition the increase in the rate of VAT to 15% (still the lowest rate in Europe) made possible a reduction of certain taxes and the abolition of others.
· Efficient provision of legal, accounting and banking services
Cyprus law system is based on Common Law. The system comprises of experienced and competitive individuals who are well trained and can provide professional advice on local and international law. The legal profession is growing substianally and most of the providers are establishing worldwide offices in order to improve the quality of their services and provide a solid network to their clients and associates.
The accounting profession is represented by both international and local audit and accounting firms. These companies employ highly qualified accountants who must be members of either the Institute of Chartered Accountants (ICAEW) or the Association of Chartered Certified Accountants (ACCA) and the local body of Accountants (ICPAC). All firms are strongly regulated by the local authority of accountants and are subject to regular quality reviews. The international presence of Cyprus accounting and auditing firms is strong as they represent multinational investment companies.
The banking sector is also well developed and comprises of commercial banks and financial institutions that offer a wide range of services on a personal and corporate level. The range of services offered varies from insurance, leasing, factoring, loans, mutual funds, hire purchase etc. Financial advisors and bankers are well trained professionals with a vast international experience imported in the local industry.
· Strong economic performance
The island has a fantastic tourist and property sector that continues to grow yearly. The island’s economic stability is further enhanced by a very strong economic performance that has been bolstered not only by its tourist and business markets but also by its property market. As the table below indicates, unemployment and inflation are still at low levels.
· High Foreign Direct Investment performance
Cyprus indicates an interesting FDI performance as it attracts foreign investors and represents a great investment opportunity with a great potential. In the latest years the top FDI sectors were: Financial and Insurance Activities, Real Estate Activities, Professional, Scientific and Technical Activities and Wholesale and Retail Trade. The medium to long term FDI indicators are still positive and provide us with reasonable assurance that Foreign Direct Investment in Cyprus remains promising.
· Advanced and Solid Infrastructure
Currently there are 2 international airports in the island, serving the needs of world business travellers and providing connections to almost every corner of the world. Around 40 airline companies operate in the new Larnaca and Pafos airport. The new Larnaca airport was completed in 2009 and its advanced and innovative infrastructure facilitated and improved the international transportation in the island.
Additionally, the huge investment in modernizing and installing the Limassol port has constitute Cyprus as an international shipping centre with almost all large international companies establishing representative offices in the island. Istos Global Limited can help you to Register Company in Cyprus and other jurisdictions, banking, corporate and fiduciary services
Finally, Cyprus Government has invested a significant proportion of its funds in establishing an excellent telecommunications network. Currently the island enjoys and excellent communications network with Europe, Middle and Asia. Furthermore, the continuous attempts to improve the network in the island, have resulted in the installation of seven satellite dishes that provide companies with global connectivity.
· Natural Gas
In Dec 2011, Noble energy announced that Cyprus may hold up to 8trillion cubic feet of natural gas, with a gross mean of 7 trillion cubic feet. The field covers about 40 square miles (100 square kilometres). The gas discovery in the exclusive economic zone of the country creates great prospects for Cyprus and its people.Cyprus will be in a position to strengthen the energy security of the EU at a time when the EU seeks new sources of natural gas.
· Highly qualified, educated and multilingual labour force.
The availability of a young, highly educated, hardworking and multi lingual labour force creates unlimited opportunities for current and future employers. The country is devoting around 6% of its GDP on public Education. Currently, there is Cyprus educational system is harmonized with the European educational System, whilst achieving the lowest ration of teacher to student in Europe. Additionally, English is taught as a compulsory subject in both public and private schools at the age of 7. In 2010, 32.3% of the population of Cyprus between the ages of 25-64 held a Bachelor, Masters, or PhD degree. Finally, there are three public Universities in the island, including one Open University, and four private Universities. Cyprus has more than 30 colleges and 200 accredited study programs
· An island for all seasons
Cyprus offers a wonderful working and living environment and a high standard of living. With a pleasant weather, all activities can be undertaken throughout the year, golf, cycling and the most popular one, swimming. Cyprus cuisine is popular for its culinary treasures based on a healthy Mediterranean diet ranging from fresh salads and vegetables, excellent fish dishes, skewed pork and traditional deserts made of fruits.
People living and working in Cyprus enjoy reduced stress levels as the crime rates are low and most of the business relationships are characterized by a personal and professional friendliness of the local people. Finally, arts and culture have a long and strong tradition in Cyprus with festivals, concerts, theatres and operas taking place throughout the year.
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