Cyprus a small but dynamic island nation presents not only plenty of investment opportunities but also a favorable business environment.
Here is why you can invest with confidence in Cyprus:
1. Strategic Location
Cyprus is geographically located between three continents; Africa, Europe, and Asia. This strengthens its position as a major Eastern Mediterranean trading post as well as a renowned international business and services center. This vintage positioning allows Cyprus to act as a point of exchange between these three continents, therefore, offering businesses easier access to new markets.
This positioning also makes the island an active transshipment center that facilitates the shipment of goods into and out of the European Union effectively qualifying it as a business hub.
2. Beneficial Tax Systems
This nation boasts of an efficient, transparent and attractive tax structure which fully adheres to EU, OECD, and International regulations. The country’s tax resident companies benefit from its extensive double taxation treaties with over 43 countries worldwide. The country is also in talks for new tax agreements. All this is aimed at facilitating international business.
3. Efficient Banking and Professional Services
Cyprus has a large number of highly educated and skilled certified public accountants and registered advocates ready to offer their services. Their competence is boosted by their multilingualism. They speak English, Greek, Turkish, and Russian. Therefore, you can easily get access to top-notch legal services, accounting, management consultancy, and financial advisory.
4. Hydrocarbon Opportunities
This country and the European Union at large, are highly dependent on energy imports. The EU produces 48% of its energy needs and imports the remaining 52% from Russia, Algeria and Norway. The European Union majorly produces nuclear energy as opposed to oil and natural gas.
The island’s substantial oil and gas reserves could change the European Union’s energy narrative. According to US Geological Surveys, the level of untapped oil and gas reserves in that region is immense. As a result, the government is on course to construct an energy center that will have storage facilities, transit equipment as well as exploitation mechanisms.
Hydrocarbon exploitation will not only solve the countries’ energy deficits but also attract business people from all over the world thereby boosting the countries’ economy.
5. A Beautiful Working and Living Environment
As compared to other global centers of business, Cyprus has a considerably lower cost of living but at the same time ranked 23rd in the world regarding the quality of life.
Besides, Cyprus is safe due to its low crime rates. The country experiences sunshine throughout the year and hence a conducive place to live while doing business. The island’s strong inclination to art and culture adds to its enviable lifestyle.
Vis-à-vis transport, commutes are significantly reduced by the four-lane highways which link all the main points. All these factors, point towards lower stress levels which are known to facilitate success in business.
6. Robust Legal and Regulatory Framework
Cyprus has a comprehensive legal structure which traces its origins in the English Common law practices. This structure is friendly to business because it promotes transparency and efficiency in dealings.
It also gives foreign firms a familiar platform within which they can carry out their activities.
7. Attractive Legislation for Citizenship
Foreign investors in Cyprus are given a unique opportunity to obtain a Permanent Residence Permit or EU/Cyprus citizenship which can be secured within 3-4 months. Before being granted a permit or citizenship, the government carries out rigorous procedural due diligence.
The upside of both arrangements is that an investor needn’t reside in Cyprus and neither do they become tax residents.
8. Strong Shipping Credentials
Cyprus is an internationally acclaimed shipping center. It has more than 140 shipping related firms. It has one of the largest shipping registries in the European Union. Additionally, the country is the biggest third party ship management center in EU.
Cyprus’ diverse and robust maritime sector that accounts for more than 7% of the country’s Gross Domestic Product (GDP) is attributed to its strategic location on active trade sea routes as well as latest shipping infrastructure and shipping-favorable legislations.
9. European Union and Eurozone Member State
Cyprus gained membership into the European Union on 1st May 2004 and adopted the use of the Euro in 2008. Membership to the European Union is a vote of confidence which is useful in guaranteeing stability and safety for investors. Moreover, businesses in Cyprus have complete access to European Union markets and the associated benefits.
10. Advanced Infrastructure
Cyprus has invested heavily in telecommunications, shipping and road and air transport. It is home to sophisticated roads with multiple lanes which allow for faster and efficient movement between points. These roads complement their two world class international airports; one in Larnaca and the other in Paphos which see approximately 10 million visitors come to the island. These airports also play a pivotal role in linking Cyprus with numerous global destinations.
Furthermore, an English-based system of education, reliable and affordable health services, booming tourism industry as well macroeconomic stability boosts Cyprus’ credentials as a desirable investment destination.
Source: Starting Business