Headquartering

Consider Cyprus as an appealing choice if you're seeking a fresh site to commence or broaden your commercial operations.

Being an EU member, Cyprus boasts a strategic geographic location, a tax system that works in your favor, a proficient labor force, and a superior standard of living. In this article, we'll delve into some of the advantages and perks that Cyprus extends to international businesses and individuals who desire to relocate to the island.

Headquartering in Cyprus can offer many benefits and incentives to foreign businesses and individuals who wish to relocate to the island. The main of them:

1. One of the main advantages is the low corporate tax rate of 12.5%, which is one of the lowest in the EU. Moreover, Cyprus has an extensive network of double tax treaties with more than 60 countries, which can reduce or eliminate withholding taxes on dividends, interest, and royalties paid to or from Cyprus.
2. Cyprus does not impose any tax on dividends received by a Cyprus resident company from another Cyprus resident company or from a foreign company (subject to certain conditions), nor on profits from the disposal of securities (such as shares, bonds, debentures, etc.).
3. Another benefit of headquartering in Cyprus is the simplified and attractive policy for the employment of third country nationals by eligible companies in Cyprus. As of 1 January 2022, the Business Facilitation Unit (BFU) of the Ministry of Energy, Commerce and Industry in Cyprus will be responsible for approving and issuing temporary residence and employment permits to employees of foreign companies that operate or intend to operate in Cyprus. Eligible companies include public companies listed on any recognised stock exchange, international business companies (ex-offshore companies), Cypriot shipping companies, Cypriot high-tech innovative companies, Cypriot pharmaceutical or biotechnology companies, and companies that belong by majority to persons who have obtained Cypriot citizenship on the basis of economic criteria.
4. Headquartering in Cyprus can also provide access to various funding opportunities and incentives for research and innovation activities. For instance, Cyprus participates in the Horizon Europe programme, which is the EU's key funding programme for research and innovation with a budget of €95.5 billion for 2021-2027. Cyprus also offers tax deductions for expenditure on research and development activities, as well as tax credits for investment in innovative enterprises.
5. Furthermore, headquartering in Cyprus can enhance the reputation and credibility of your business, as Cyprus is a well-regulated and transparent jurisdiction that complies with international standards and best practices. Cyprus is also a signatory to various conventions and agreements that protect intellectual property rights, prevent money laundering and terrorism financing, and promote arbitration and mediation as alternative dispute resolution methods.
6. Headquartering in Cyprus can improve the quality of life for you and your employees, as Cyprus offers a mild Mediterranean climate, beautiful natural scenery, rich cultural heritage, excellent health care and education systems, and a safe and friendly environment.

If you're considering setting up headquarters in Cyprus, there are a few key things you should know. Here are the top 5 tips for searching for headquarters in Cyprus:

Consider the legal and regulatory framework

Before you establish your search headquarters in Cyprus, it's important to familiarize yourself with the country's legal and regulatory framework. Cyprus is a member of the EU and has implemented all relevant EU directives and regulations. The country also has a well-developed legal system that is based on common law principles. You'll need to register your business with the Cyprus Registrar of Companies and comply with all applicable laws and regulations. It's also important to seek legal advice before making any significant business decisions.

Choose the right location

Cyprus offers several locations for businesses looking to establish their headquarters. The capital city, Nicosia, is a popular choice, as it offers excellent transport links and a well-educated workforce. Limassol is also a popular location, particularly for companies in the shipping and finance sectors. Other options include Larnaca, Paphos, and Famagusta. When choosing a location, consider factors such as transport links, access to talent, and the cost of living.

Take advantage of the favorable tax regime

Cyprus offers a favorable tax regime for businesses, which includes a corporate tax rate of just 12.5%. The country also has a double tax treaty network with over 60 countries, making it an attractive location for international businesses. Cyprus also offers a range of other tax incentives, including tax exemptions for dividends, interest, and capital gains. It's important to work with a tax advisor to ensure that you're taking full advantage of the available tax incentives.

Hire the right talent

One of the key factors in the success of any search headquarters is the talent of its workforce. Cyprus has a well-educated and multilingual workforce, with a high proportion of university graduates. When hiring, look for candidates with relevant experience and language skills. You may also want to consider offering training and development programs to help your employees reach their full potential.

Build strong partnerships

Establishing strong partnerships is key to the success of any business, particularly in a new market. Cyprus offers a range of networking opportunities, including industry events and business organizations. It's important to take advantage of these opportunities to build relationships with potential partners, suppliers, and customers. You may also want to consider working with a local business consultant who can help you navigate the local market and connect with relevant stakeholders.

In summary, search headquartering in Cyprus offers a range of benefits for businesses looking to expand into the EU and beyond. By familiarizing yourself with the legal and regulatory framework, choosing the right location, taking advantage of the favorable tax regime, hiring the right talent, and building strong partnerships, you can set yourself up for success in this dynamic and vibrant market.

Conclusion

Commercial operations in Cyprus can be highly advantageous for businesses and individuals seeking to establish a presence in the European Union. With its strategic geographic location, favorable tax system, proficient labor force, and superior standard of living, Cyprus is an ideal location for businesses to headquarters.

Overall, search headquartering in Cyprus can provide businesses and individuals with numerous benefits and incentives, making it an attractive location for those seeking to expand their operations in the EU and beyond.