By Roulla Moyseos at Global Consultants
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Cyprus has one of the youngest populations and workforce in the European Union (EU). The country has a strong and fast-growing education system.
Since 2000 enrolment in Cypriot universities has grown faster than in any other EU country. Almost half (46%) of the workforce has a tertiary degree, one of the highest percentages in the EU. Many Cypriots further strengthen their education by studying abroad — more Cypriots earn degrees from foreign universities than citizens of any other EU country. Cyprus has a booming private education sector. A greater proportion of students go to privately funded and managed schools than any other country in the EU.
Cyprus government in a continuous effort of modernising the sectors of the economy contributing to GDP growth introduced an ambitious plan in attracting investment to sectors relating to technology and more specifically to Research and Development. The incentives are aiming in attracting both local and foreign direct investments in the sector of Research and Development (R&D), which are involved in producing innovative products, services and processes.
Easy access to Global Talent – The Cyprus Startup Visa regime allows entrepreneurs from countries outside the EU and the European Economic Area (EEA) to come to Cyprus and establish startups with high growth potential. Work visas for non-EU nationals are available to enable companies to hire from outside the EU whenever the required skill-set is not available locally.
Visa-free access to European Talent– The EU has a workforce of 240 million people, all of whom are eligible to work in Cyprus under EU law. European universities graduate 4.7 million students a year, providing a constant flow of fresh expertise. European qualification frameworks ensure that graduates of European universities have comparable skills, regardless of where they have studied.
Low Business Costs Starting and running a business in Cyprus reduces the costs of launching, giving you a longer runway and more flexibility. The money saved on starting and running costs means that more capital can be put into the growth and development of your business.
Low tax rates- Cyprus has one of the lowest tax burdens in Europe and a highly competitive set of tax incentives for businesses and individuals.
Corporate taxes -The standard corporate tax rate is 12.5%, one of the lowest levels in the EU. Tech companies producing Intellectual Property (IP) can apply for an 80% tax exemption, reducing the corporate tax rate to an effective 2.5%.
Individual taxation -Tax rates for individuals are among the lowest in the European Union. No income tax is required on the first €19,500 of personal income. Non-domiciled tax residents do not pay tax on dividends, interest or rental income earned abroad. Investments in innovative small businesses can be deducted from taxable income, up to an annual limit of €150,000. Dividend payments are exempt from taxation, enabling most tech entrepreneurs to minimize their overall tax burden. Cyprus has signed 62 tax treaties to help ensure that individuals and companies avoid double taxation and can structure efficiently.