Advantages that make Cyprus an Attractive Location

TOP QUALIFIED REASONS TO RELOCATE OR OPEN A COMPANY IN THE REPUBLIC OF CYPRUS

The Republic of Cyprus became a member of the European Union as from 1st May 2004:

It has successfully faced the integration challenges and won its EU membership ticket and now is a viable bridge between the EU and the Middle East, North Africa and in the wider context Asia. The Republic of Cyprus will enter into the euro common currency at the end of the current year also.

Strategic location at the crossroads of 3 continents, serving as Europe’s Middle Eastern outpost:

The strategic geographical position of Cyprus is situated right at a key point between 3 continents and therefore, an ideal center for international business.

Successful economic performance:

The economy of the Republic of Cyprus is characterized by macroeconomic stability, combined with high real growth and low inflation.

Favourable tax regime with just 10% corporation tax on profit:

This 10% corporate tax on profits is the lowest in Europe, with Ireland having the second lowest corporate tax rate of 12%. Moreover, for Holding Companies there is no TAX on the payment of dividends for share holders that are non residents of Cyprus.

Liberal Foreign Direct Investment regime:

In order to enhance foreign investment intensity, the FDI policy has been liberalized for both EU and non-EU nationals.

Simplified administrative procedures for acquiring necessary permits:

Since 1st October 2004, administrative procedures have been simplified; hence, foreign investors address directly to the Registrar of Companies for establishing a company, without prior approval by the Central Bank of Cyprus like in the past.

Bilateral investment agreements with 17 countries:

This is a particularly strong point for multinational companies.

Low set up and operating costs:

Staffing, renting of quality accommodation and office space, fuel, telecommunications and setting up a company are exceptionally low compared to most European countries.

Highly qualified, well-educated and multilingual Labour force:

Cyprus ranks amongst the first countries in the world in terms of University degree holders, with 70% of secondary school graduates proceeding to tertiary education. In addition to the above, labour costs are significantly lower compared to the European Union average.

Double tax treaties with 40 countries:

This is one of the main reasons that Russia is a big investor in the Republic of Cyprus. Russia uses Cyprus as an investment platform to invest in turn into other predominantly former Soviet Union Countries with which the former does not have any advantageous agreements.

Freedom of movement of foreign currency:

Liberal in terms of movement of foreign currency without the restrictions often imposed by other competitor investment countries.

Availability of free-zones bonded areas.

The Larnaca Free Zone for example was established in an effort to encourage external trade and international commerce.

Efficient legal, accounting and banking services:

The organization and structure of the legal, accounting and banking sector is similar to the efficiency and reliability of that in the UK’s sector. The reason for this is that Cyprus was a former Colony of the Britain. The only difference being that in Cyprus one does not have to wait in long queues and the cost is notably less.

European standards and quality of living:

This year’s economic annual report, which is executed by the Ministry of Finance, indicates that the Republic of Cyprus is at a 94% of the EU average level of wealth and quality of living.

Pleasant climate and agreeable topography:

The island has a pleasant climate with dry summers and short mild winters, enjoying all the colours of the seasons and around 300 days of sunshine annually.

Excellent telecommunications and road infrastructure:

Due to its advanced telecommunications network and the superb regional and global connectivity on offer, the island is considered as one of the most important telecommunication hubs in the Eastern Mediterranean and the Middle-East region. The Republic of Cyprus has also developed an advanced road system with 4 lane highways linking all central principle cities with minimal traffic compared to most of Europe. Indicatively, the motorway density ratio of Cyprus is 28,6 km/1.000km2 (2001 figures), whilst the corresponding average ratio of the European Union for the same year was 14,3 km/1.000km2.

Political stability and a democratic country with a free market economy:

The Republic of Cyprus enjoys open healthy democratic elections with a liberal market economy attitude.

Low crime rate:

The crime rate in the Republic of Cyprus is consistently one of the lowest in the whole of Europe.

Quality Health care:

The Republic of Cyprus offers quality public and private health care without the queues experienced in most of Europe. Private Health care is also affordable costing under 100 euros per month for someone under 50 at the highest local level.

The wealth of advantages that the Republic of Cyprus boasts assures a best in class rating all things considered for investors considering to open a new European Company or relocating. Moreover, the quality of private life for investors and their families is formidable.

Progress Cyprus Tourism & Business Services Ltd has created a network of trusted lawyers, accountants, educational facilities, banks, health care insurers, real estate agents and consultants covering all investment and relocation needs. Additionally Progress features a virtual office service to base a new business from and can support any new company to set up in Cyprus at low cost. As a rule of the thumb the actual cost of formation of a small new company is under 10,000 euro with approval expected in under a month.