Business Relocation in Cyprus

Relocating to Cyprus, whether as a company or an individual professional, offers the advantage of operating securely within an EU territory (while extending services/products globally) and enjoying a favorable tax regime, one of the best in Europe. This move helps in minimizing tax exposure on global income.

Relocating a business to Cyprus provides a strategic advantage for both companies and individual professionals. Cyprus, as an EU member state, offers a secure operating environment within the European territory while allowing for global reach in delivering services and products. The significant appeal lies in the country's favorable tax regime, considered among the best in Europe. This advantageous tax structure becomes a key asset for businesses aiming to minimize their tax exposure on a global scale, contributing to enhanced financial efficiency and competitiveness in the international market.

Moreover, the decision to relocate to Cyprus not only facilitates ease of doing business within the EU but also opens up opportunities to extend products and services to a global clientele. The combination of a secure EU jurisdiction and favorable tax conditions positions Cyprus as an attractive destination for businesses seeking stability, growth, and global expansion.

Reasons for businesses choosing Cyprus for relocation:

1. Access to a tech-savvy EU and international talent pool.
2. Well-educated, highly skilled, multilingual workforce.
3. Revised Immigration & Relocation policy for non-EU tech professionals.
4. Geostrategic location - Europe, Asia, Middle East, Africa.
5. Attractive corporate & income tax regime with incentives.
6. Favourable IP regime as low as 2.5%.
7. Regulatory framework aligned with the EU.
8. Enviable lifestyle in a safe, clean, and healthy environment.

Benefits of Relocation include quick commencement of operations under Cyprus regulations and significant tax advantages, including a corporate tax rate of 12.5%. Options include registering the company in Cyprus or implementing the Substance concept, a well-known tax concept. Apart from a low corporate tax rate, attractive income tax regime, and various exemptions, Cyprus provides a secure legal framework as an EU member state, fostering business protection and growth.

The benefits of relocating to Cyprus extend beyond a swift initiation of operations and significant tax advantages. The corporate tax rate of 12.5% stands out as a major incentive, providing businesses with a competitive edge in the European market. Companies have the flexibility to choose between registering their operations directly in Cyprus or opting for the Substance concept, a widely recognized tax strategy.

Beyond the appealing tax benefits, Cyprus offers an attractive income tax regime with various exemptions, creating a favorable financial environment for businesses. As an EU member state, Cyprus provides a secure legal framework, ensuring that businesses operate within a regulated and protected environment. This not only instills confidence in investors but also fosters long-term growth prospects by aligning with European standards and regulations.

In summary, the relocation to Cyprus presents a comprehensive package of advantages, encompassing tax benefits, a secure legal framework, and the flexibility to choose a registration approach that best suits the business model. These factors collectively contribute to making Cyprus an appealing destination for businesses seeking a strategic and growth-oriented relocation.

Key Features:

• Corporate Tax Rate: 12.5%
• Low Personal Income Tax with deductions.
• Double Tax Treaties with 60+ countries.
• Intellectual Property tax regime.
• No Inheritance tax.
• No Capital Gain Tax on the sale of titles (shares, etc.).

Control your tax exposure, operate worldwide, and deliver services or products under secure EU legislation. Become a Cyprus Tax resident to minimize tax exposure on global income.

Company Relocation to Cyprus:Relocating a company to Cyprus involving the employment of third-country highly skilled nationals is possible. Eligible companies, registered as Entities of Foreign Interests (FIE), can employ Third Country Nationals (TCNs) in Cyprus.

Eligibility Criteria for Companies:

1. Majority shares owned by third-country nationals.
2. Foreign participation equal to or less than 50%, with a value of at least €200,000.
3. Public companies on recognized stock exchanges.
4. Companies of international activities, Cypriot shipping companies, and high-tech/innovation companies.
5. Companies with the majority share capital owned by Cypriot citizenship holders based on economic criteria.
6. Cypriot Private Institutes of Tertiary Education.

Investment Criterion:Companies must prove an initial investment in Cyprus of at least €200,000 (e.g., office purchase, equipment).

High Technology Company Criteria:(a) Established presence in the market.(b) High level of experimental R&D intensity.(c) Developed products related to specific industries.

Employment Requirements:

• Minimum gross monthly salary: €2,500.
• University diploma or equivalent qualification.
• Employment contract duration: at least two years.

Employment Benefits:

• Family reunification for TCN employees' family members.
• Immediate and free labor market access for spouses.
• Eligibility for Long Term Residence Status.
• Transfer of Social Insurance contributions to the home country.
• Renewable work and residence permits with a validity of up to 3 years.

Timeframe for Obtaining Employment Permit: 1 month.

Tax Exemption:

• 50% exemption for new taxpayers/employees with remuneration of 50% of ≥ €55,000 (valid for 17 years).