Why is Cyprus an attractive destination for International Headquarters?
Over the last few years, many international groups are looking to re-locate their headquarters and Cyprus, a well-established business hub, has been increasingly popular as a country of choice. This is due to the several benefits associated with setting up offices in Cyprus.
Geographically, Cyprus has a strategic position, acting as a junction between Asia, Africa, Europe and the Middle East, with easy country-wide access to two modern international airports. This position, matched with its long history as a big player in the shipping and trade sector, makes the island an attractive destination for business.
As Cyprus is a European Union and Eurozone member state, international groups based on the island are granted a gateway to the EU, as well as full protection under EU laws and Directives. This, coupled with the operation under a modern and solid legal framework, fully aligned with EU legislation gives additional comfort.
Known for its business-friendly environment, the country has developed a strong services industry, offering a wide range of high calibre lawyers, accountants and other professionals, with extensive experience working internationally.
The English language is widely spoken across Cyprus, making communication effortless, primarily for the conduct of business, but also for the daily life of foreign employees based on the island.
A recent boom in real estate development has led to a large offering of high quality and luxury office space as well as high-end residential space for employees relocating to work here.
Companies and groups looking to re-locate their headquarters to Cyprus, will have access to a well-educated workforce, including graduates from a number of internationally acclaimed local universities as well a Cypriots who have studied in top universities abroad. Further, a number of work permit and visas are available for EU or third country nationals wishing to work in the island.
With a corporation tax rate of 12.5%, which is among the lowest in the EU, an extensive network of double tax treaties and a number of tax breaks and allowances, Cyprus has been known to attract international business due to its favourable tax regime. Among the benefits, is the tax exemption on dividend income for non-Cyprus tax residents.
Another benefit of the tax legislation, for Companies engaging in R&D and high tech industry is the Intellectual Property taxation framework, the so called IP Box regime. Under this regime, a notional expense deduction and an exception to taxable income can bring effective taxation as low as 2.5%.
In the past years Cyprus has also emerged as one of the top EU investment fund centres. The legislative framework of Cyprus came to join the most attractive ones in the EU with regards to the authorization and operation of regulated investment funds and fund managers and has put Cyprus on the map for those looking for investment opportunities.
When it comes to the quality of life, the island’s low crime rate, the sunny Mediterranean weather, the 65 blue flag beaches and the flavoursome local cuisine make Cyprus an ideal base, for the company’s headquarters and its employees alike.
For any assistance and guidance on relocation procedures, our expert team is available to discuss in detail, according to your company’s specific circumstances.