Ever since Britain’s decision to leave the European Union, there’s been talk of where the businesses currently stationed in the UK will relocate to access the free market. Frankfurt? Dublin? We’re here to offer an alternative destination: Cyprus.
More than just a sunny island, Cyprus boasts various advantages, from a preferable tax regime to great citizenship schemes. Here’s why the country is the perfect place to set up your business.
Relocating your headquarters or ultimate beneficial owner from the UK to Cyprus will give you access to a wealth of trade opportunities.
As an EU member state, Cyprus is fully compliant with international guidelines and regulations. Cypriot businesses have access to the European Single Market and can trade tariff-free with the 29 other members.
Even if you want to trade with non-EU countries, you’ll find some perks. Cyprus has advantageous double tax treaties with more than 50 nations, including the United States. Also, there is no Cyprus withholding tax on outbound payments (e.g. dividend, interest, royalties) to non-residents or to resident non-domiciled persons Income received from trading in securities is also exempt from capital gains tax. Therefore, establishing a holding company or stock trading company in Cyprus may not be a bad idea.
Cyprus might not be the most famous EU member state, but it offers some of the most attractive corporate, legal, and tax regimes in the union. Although no longer a tax haven, the country is extremely tax-efficient, with a corporate tax rate of 12.5%. Income tax isn’t as harsh as many European nations, either. Individuals can earn up to €19,500 tax-free, and the rate for the highest tax bracket (over €60,000) is just 35%.
Even if you’re not a citizen of an EU member state, there are various routes to obtaining the right to live and work in Cyprus. The permanent residence permit gives you the right to live in Cyprus and travel to the rest of the EU; it’s also the first step towards obtaining citizenship. To obtain the permit, you must invest €300,000 in a brand-new residential property and have an income of at least €30,000 per annum originating from outside Cyprus. (It takes around two months to receive your permit).
Alternatively, opt for the Cyprus Investment Programme. This requires an investment of €2 million into real estate or business and a donation of €150,000 (in total) to the Government Research and Development Fund and the Land Development Organization. Unlike the permanent residency program, which only awards temporary residency, the government will award you full citizenship after just six months.
A final advantage of doing business in Cyprus is the low costs. Labor costs per hour are €15.97, compared to the average for EU countries of €26.76. Rent is 49.29% lower than the US, and the general cost of living is 17.36% lower. Not bad for a natural paradise! Combined with the tax advantages, this will be welcome news to any employees considering the relocation.
If we’ve convinced you of Cyprus’ potential, perhaps you’re now seriously considering relocating there. For help with the process, contact us at Altus Citadel. We can help you with a range of services including company formation, immigration services, and legal advisory.
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