Cyprus is no longer just a tourist destination. The island has developed into a real paradise for entrepreneurs and business in Cyprus is flourishing. In this article, we take a closer look at the reasons why Cyprus is so attractive for entrepreneurs.
1. worldwide recognition of the Limited (LTD) company form – corporation tax only 12.5%
The Limited (LTD) company form is very common in Cyprus and internationally recognised. Many companies opt for this legal form as it offers flexibility and legal security. One of the main reasons why entrepreneurs set up their business in Cyprus is the extremely attractive corporation tax. At just 12.5 per cent, Cyprus has one of the lowest corporate tax rates in the European Union.
2. no excessive advance tax payments as in Germany or Austria
In contrast to Germany, companies in Cyprus do not have to make excessive tax prepayments. This leads to better liquidity and less bureaucracy. In Germany, trade tax is often a considerable burden for companies. In Cyprus, there is no trade tax, which significantly reduces operating costs.
3. no taxation of dividends, interest income & rental income for persons with non-dom status
Cyprus offers an attractive regime for individuals with non-dom status. Dividends, interest income and rental income are tax-free. The sale of securities for private individuals and Cyprus LTDs is also not subject to tax. Permanent residence in Cyprus is not required for non-dom status and the associated tax benefits. Entrepreneurs can obtain this status with a minimum stay of just 61 days per year.
4. no Cypriot bank account requirement
Unlike in some countries, there is no obligation to hold a Cypriot bank account in Cyprus. Companies can conduct their banking business internationally and according to their own preferences.
5. strong German-speaking business community
Cyprus has a growing community of German entrepreneurs with business in Cyprus. The exchange of experiences and networks is another advantage that the island offers.
Cyprus has undoubtedly become one of the most attractive locations for entrepreneurs. Whether you want to establish a start-up or internationalise an existing business, Cyprus offers the ideal environment to realise your entrepreneurial goals.