Doing Business in Cyprus
The Republic of Cyprus is an eastern Mediterranean island strategically located at the crossroads of three continents; Europe, Asia, and Africa. A European Union member since May 1, 2004 and a member of the Euro-Zone since January 1, 2008 Cyprus also enjoys excellent business relations and flight connections with the Middle East.
With the lowest corporate tax rate in the European Union (EU) at only 10%, the island is an ideal jurisdiction for Holding Companies. Moreover, it has over 40 bilateral tax treaties, including with the United States. Cyprus has no withholding tax imposed on dividend income, interest, or royalty payments effected to non-Cypriot beneficiaries. Profits from overseas permanent establishments are tax exempt.
The accounting, legal, and financial services sectors are efficient and one of the strong points of the economy. The labor force is largely multilingual and highly qualified and the labor costs are low compared to the EU average. Cyprus has an advanced telecommunications network and infrastructure, as well as, a wide network of air-routes offering excellent connections with Europe, Africa, and Asia, as well as modern ports and first-rate sea connectivity.
Cyprus ranks among the 10 leading maritime nations in the world and is a highly reputable international shipping center with a merchant fleet exceeding 21 million gross tonnage (accounting for 16% of the EU fleet) and nearly 2000 vessels. It constitutes one of the largest ship-management centers in the world with around 50 ship-management companies and marine-related foreign enterprises that conduct their international activities in the country. Cyprus has also developed into a transshipment center for Asia Pacific trade with Europe and with shipping markets situated along the coasts of the Levant and Black Sea, or the North Adriatic. The island is a natural hub for other main-line deep sea trades passing through the Mediterranean, to North Africa and the Middle East.
For additional information, please refer to following websites:
- Cyprus Investment Promotion Agency
- Department of State (Background Notes)
- Department of State (Travel Info)
- Central Intelligence Agency (CIA)
(Note: various points in this country profile were taken from the website of the Cyprus Investment Promotion Agency)
We recommend that you check our Country Commercial Guide for a more detailed description of how to do business in Cyprus. Please note that we are here to assist you in your business endeavors and feel free to contact us to see how we can help you achieve your business objectives.