Essential Information for Starting a Business in Cyprus
Why Consider Starting a Business in Cyprus?
The Republic of Cyprus was once merely known as a “tax haven.” However, in recent years, the country has taken significant steps to enhance business transparency, earning credibility with financial institutions while maintaining its outstanding competitive advantages.
Cyprus’ corporate tax rate is 12.5%, equivalent to Ireland, placing it among the top European countries with the best corporate tax rates. Its business environment has evolved, becoming more developed, efficient, and “mature.” Notably, the Cypriot government has allocated numerous resources for small and medium-sized enterprises (SMEs) and start-up projects.
Investing in Cyprus also brings the benefit of the double taxation treaty the country has signed with 27 different nations, including most of Europe’s largest economies.
For Vietnamese investors, the fact that Vietnam and Cyprus completed negotiations and signed a double taxation agreement in 2019 is noteworthy. With this agreement, Vietnamese-owned businesses in Cyprus will only be subject to tax obligations in Cyprus.
Cyprus Government Initiative for Non-EU Nationals – A Great Opportunity for Global Investors
One of the most attractive points for entrepreneurs looking to expand or relocate their businesses to Cyprus is the Third Country Nationals (TCN) incentive policy from the Cypriot government.
This framework aims to attract businesses from non-EU countries seeking a business environment with EU-friendly intellectual property regulations.
The policy includes simplified procedures for obtaining work permits, with terms of up to three years for non-EU citizens. Applications for long-term residency and permanent residency (PR) are also simplified.
What to Consider Before Starting a Business in Cyprus?
Seeking assistance from experienced and reputable consulting firms is essential. However, before deciding to “enter” the Cypriot market, investors should consider the following points:
- Office Space: You will need an office address in Cyprus to register your business. This can be easily arranged through office rental or virtual office services.
- Procedures: Although most business registration steps can be completed online via the Cyprus government portal, the final registration step with the Ministry of Labor requires in-person completion. Paper forms must be completed and submitted directly to the Ministry’s office. Therefore, you or your legal representative must be present in Cyprus.
- Small Market Size: Cyprus is still a small country with a relatively small economy. Even with a great business plan, consider whether it fits the Cypriot market. This island nation may not have the resources and business connections available in Europe’s largest economies. Therefore, Cyprus is ideal for investments in industries like marketing, IT, or other office-related jobs rather than high-tech manufacturing investments.
As a team of many years of experience, GlobalCiti is planning to offer a comprehensive A-to-Z consultation for our valued clients. With the Golden Visa in hand, you hold the key to an open door to Europe.
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