Cyprus is mostly known as a tourist destination. However, there is also a business side to it, as many investors choose it to open companies because of the favorable taxation system. Apart from its low corporate tax rate, there are a few more reasons why you should choose it if you are looking for a country to launch a business in, as you will read below.

The prolific business environment sustained by the government

To thrive, a company needs a good environment to operate in. This is what Cyprus offers:

• a stable economy;
• strong legislation based on the English common law system;
• access to professional services;
• diversified workforce, made up of local and foreign employees;
• English as an official language.

These are all key points that will enable you to carry out various activities through a domestic or foreign company with a local presence.

Quick company setup procedure

Since we mentioned that you can operate through a domestic business or set up a local presence for a foreign company, it is useful to know that you can establish:

• private and public companies;
• partnerships;
• sole proprietorships;
• branches and subsidiaries.

This means that you can choose the most appropriate form for your business. As for the registration procedure, it is simple to complete. However, BridgeWest Cyprus can offer all the details on how to form a company in Cyprus, as well as see you through the setup process.

Other benefits of operating a company from Cyprus include full foreign ownership and reduced bureaucracy.

EU market access

Without a doubt, being an EU member state comes with numerous advantages for any country. This is also the case of Cyprus, so if you decide to start a business here, you will gain access to a consumer market of more than 500 million clients. Another advantage is that in most cases, no additional formalities are required to enter other EU states. Where such requirements are in place, the authorization is often simple to obtain.

A great banking system

A country’s banking system and services are important not only for international, but also for local trade. Cyprus offers just that: a strong and reliable financial sector with access to national and international banks, where you can:

• open multi-currency bank accounts;
• have access to modern online banking services;
• manage your accounts from other countries when away.

Geographical location – one of the strengths of Cyprus

The location of a country is often considered when starting a business, as it weighs on its logistics and how quickly products can reach clients in various destinations. From this point of view, Cyprus is at the crossroads between Europe, Africa, and Asia. With maritime access to the Mediterranean and Aegean Seas, it is easy to ship cargo to the remotest countries of Asia.

Great taxation system

When discussing the Cypriot taxation system, the corporate levy is not the only one that is advantageous. The country offers other benefits as well, among which are worth mentioning:

• the access to double tax treaties with more than 60 countries around the world;
• the lack of withholding taxes on dividends, interests, and royalties when paid to non-residents;
• tax exemptions for companies working in various sectors, among which are research and development.

Lower labor costs than in other EU countries

The workforce is one of the most valuable assets in a company, however, its costs can be quite high. Cyprus offers a great combination of access to skilled and unskilled workers and low labor costs in terms of taxes and social contributions. The latter, for example, are divided between the employer, employee, and the State.

Great living conditions

If you intend to start a business in Cyprus, you may also want to check the living conditions, which are great. The warm climate, the vacation vibe all year round, and the access to good education for children and to a good healthcare system are definitely worth knowing if you decide to settle here. Add to that the possibility of accessing a residency by investment scheme available for non-EU investors, and you will obtain a perfect destination to live in.

These are some of the most important reasons to choose Cyprus to establish a business. No matter which one matters the most to you, it is also worth considering the others to have a full picture of why you should decide on this small but very offering country.

*This is partner content.

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