Relocating your business in Cyprus: A guide
By: The Accountants in Cyprus Team
Tens or even hundreds of companies chose to open or relocate their business in the Mediterranean Island of Cyprus during the last decade, and this is only surprising to the local residents, that don’t actually understand or value the many benefits their country offers in respect of doing business.
Why a business in Cyprus?
Apart from the obvious low corporate taxation, double tax agreements with over 60 countries, tax exemptions for income and dividends, Cyprus offers some ‘hidden’ advantages that experienced investors, businessmen and corporations value at most. The use of the English language, the simplicity of the legal and tax system, the well-trained and educated workforce, may sound cliché, but here they carry a lot of importance and are really appreciated in the eyes of experienced managers.
Benefits for the shareholders
Cyprus has one of the lowest corporate tax rates in the entire EU and Europe region, a fact that cannot be ignored by the people that want a true return on their investment. At 12.5% (and later, at at least 15%) it can really offer a lot to the shareholders that want to make every euro count. Apart from that, Cyprus can offer a lot more in the form of capital gains exemptions (taxation of dividends), transfer of assets to their origin country, security of their investment and assets, and of course connectivity.
Cyprus sits in the crossroads between Europe, Africa and the East, a fact that may sound over reaching and overstated but also a fact that offers much more. Companies located here can access these three regions with ease, employ from a vast pool of candidates and reach billions of customers.
Last but not least, the simplicity of the legal and tax system, that both derive from the ‘business-friendly’ English systems, can really make the life of the shareholders, investors and managers much easier.
Benefits for the employees
No company can operate, grow or even exist without employees and Cyprus is ideal for people that want to work here. With low income taxation, great climate, learning options and more, this Island seems the perfect place to achieve the famous ‘work-life’ balance. Cyprus is already home to around one hundred thousand (100 000) foreign citizens that work and thrive here, and that, is no coincidence.
Benefits for families
Although ideal for single employees, this small (in size only) Island is perfect for families. With an abundance of international schools and universities, great beaches and mountains, low criminality, hundreds of activities available, multilingual local residents and businesses, a family relocating in Cyprus can feel that they are in a very long vacation, all year round.
The process is simple, but not easy
To relocate your company/business in Cyprus, first you have to register a company in Cyprus. By registering a company, we mean creating a company with all the necessary documents, with the proper procedure and of course trying to do all these with the best cost/outcome ratio. There are specialised companies in Cyprus that can help you throughout the entire procedure but you have to be careful.
You will need a local law firm to register your company to the official company registrar, assist you with the initial steps such us KYC (know Your Client) required by banks, get you a bank account, draft employee contracts and more. These can also be done by an Audit firm that usually offer these kinds of services. Special attention must be paid in choosing your Audit and accounting firm since they are the ones that will guide you and assist you in all your next steps, long after you register your company. They must have a deep understanding and knowledge of your operations, your market, the local and international tax system, transfer pricing, VAT, dividends, payroll, etc.
Your local Audit/accounting firm is the partner you will need in your day-to-day operations since they are the ones that will measure your financial success or failure. Your local audit firm can also assist you in hiring accountants and internal auditors as well as other members of your firm.
Choosing your local partners
Choosing a law firm, an audit firm, or any other specialty firm you company requires to do business in Cyprus, is trickier than it sounds and it may be a critical factor for your success in Cyprus or it may be a source of great discomfort, loss of capital or delays.
Through this website, Accountants in Cyprus, or our affiliated-sister website, Lawyers in Cyprus, you can view, compare, get in contact and get a first impression of what you may need and require to relocate your business in Cyprus. Our listings are selected, vetted, and recommended and we are sure that with our proposals, a bit of research and a few emails and calls, you can find a great selection of local partners to choose from.
The single most important advice before starting
Choosing the right firms to stand by your site is critical for your success. You will need a law firm and an audit firm to start with, but from there on you need your local IT firm, if you are buying or renting an office or house for you or your employees you will need a real estate agent, a hiring agency, a marketing company, and so on. Although these days anyone can make a website with minimum effort, claim to be the best in his field and unleash it in the internet for you to find, our most honest advice regarding doing business in Cyprus and relocating your company, employees, families and dreams here is this: visit yourself the Island, look around, find a good and honest local partner, and then decide.
Our Team here, at Accountants in Cyprus, remain at your disposal if you require any further assistance or guidance in choosing a local Audit firm to assist you in relocating your company here.
For contact please contact us.