Why Do Foreign Investors Prefer Cyprus?
Cyprus is one of the most preferred business destinations in the world due to its location, taxation system and business-friendly legislation. Located at the crossroads of Europe, Africa and Asia, Cyprus provides investors with easy access to each area. In addition, due to the country’s membership in the EU and the Economic and Monetary Union, all foreign investors have to opportunity to access the EU market.
Cyprus offers an attractive and transparent tax regime that is fully compliant with EU regulations, OECD requirements and international laws and regulations. In addition to a low corporate tax at 12,5% and a vast network of more than 40 double tax treaties, the Cyprus tax framework offers various benefits, deductions, and exemptions for both corporates and individuals. Cyprus’ system is widely recognised as a business-friendly and effective system that ensures transparency and reliability in business practices regarding the legal and regulatory framework.
Cyprus joined the European Union in 2004, and the country gives foreign investors a path into the European market.
Cyprus has one of the most attractive tax systems in the world for businesses, with a corporate tax rate of 12,5%. It also offers foreign investors low startup and operational costs. Cyprus government provides business-friendly legislation helping investors in terms of tax benefits, residence and work permits.
The island has a stable telecommunications system, including national Wi-Fi networks and mobile coverage that serves the whole of Cyprus. It also has a strong transportation infrastructure, with two international airports (Larnaca and Paphos) plus two deep seaports. All the cities are linked by a well-maintained and ever-improving highway system.
Located between Europe, Asia and Africa, Cyprus has always been an important place for global trade. The country is also an ideal transhipment center, with many Cypriot and foreign companies working on shipping goods in and out of the EU via Cyprus. Recently, oil and natural gas have been discovered below Cypriot waters, which has bolstered the importance of the island’s location.