Cyprus is an island country that is the third largest after Sardinia and Sicily. Foreign entrepreneurs have long begun to consider this place for doing business because it is here that they encounter the full support of the state. Cyprus has a relatively small area of land and a small stock of minerals. Because of this, the country was forced to change its domestic policy and resort to foreign investment. All conditions were created for this – preferential taxation and special government support programs. In this article, we will discuss in detail why it is worth considering opening a business in Cyprus, the benefits, and the unique features of running your own business in this country.
Business In Cyprus: Highlights
Many people who want to start a new business choose Cyprus because this island is near most major international organizations. In addition, it is a full member of the European Union. Many business people want to ensure that the Cypriot legal regulation model is precisely what it is described as.
One of the main features of doing business in Cyprus is the favorable tax system. Of course, mandatory payments must be made, but their amount will be much lower than in other EU countries. The following are the main aspects of the taxation system:
- there is no tax on royalties, dividends, and interest;
- all transactions with securities are not subject to taxation;
- there is a zero rate on income derived from foreign real estate transactions;
- VAT is 19%, and corporation tax is 12.5%;
- there is no inheritance tax.
Because of the relatively liberal tax laws, many think Cyprus is an offshore zone. However, this is not the case. This is evidenced by the fact that all financial statements must be submitted to special authorities. There are deadlines for its submission, as well as the frequency of the audit, depending on the type of company. It is worth noting that currency transactions in Cyprus are not subject to any accounting. This means the company can even send significant sums of money in foreign currency to various accounts.
List Of Business Ideas For Cyprus
Since Cyprus is a highly sought-after area for opening a new business, choosing a niche that will arouse the interest of islanders is essential. It will bring a lot of income to its owner. The first thing to remember when determining the type of business is that this state is one of Europe’s tourist activity centers. The table below shows some ideas for making money in Cyprus, which can help the owner increase his capital and build his own empire.
| Hotel | Since most of Cyprus’ income comes from tourists, opening a hotel is an excellent investment. This option can be called a win-win. the country’s convenient location means that millions of people from all over the world visit it every year. If you want, you can open a hotel not from scratch but become part of an existing franchise. An average hotel services business will cost a potential businessman 25 million euros. |
| Retail | Another great option for opening a business in Cyprus is retail. Small stores or even supermarkets with a variety of goods are sure to be of interest to tourists and locals alike. However, it is important to note that before starting to work, you will need to get a number of permits, such as a license from the Ministry of Trade, Industry, and Tourism. In addition, it will be necessary to coordinate the technical documentation with the Cyprus Tourism Organization (CTO). |
| Cafe | Restaurants, cafes, and bars are profitable businesses in any country. In order to get the maximum profit from this type of activity, it is important not only to arrange the premises and the work of cooks and waiters but also to choose the right location. It is important to note that launching the operation will also require coordination with the COT. There you will be able to get all the requirements for the premises, the number of employees, sanitary norms, and other necessary details. |
| Beauty salons | Beauty services and medical care are two sectors that are well-developed in Cyprus. This type of business can definitely bring good dividends but it is worth understanding that opening a salon will require a lot of effort and money. If you choose the right location and provide high-quality services such an investment can pay off after a year and a half of fruitful work. |
| IT | Cyprus is a prime location for IT businesses looking to establish themselves in Europe. With a skilled and multilingual workforce, favorable tax rates, and a thriving business environment, Cyprus offers the perfect setting for tech innovation.
One potential idea for an IT business in Cyprus could be the development of cloud-based software solutions for small and medium-sized businesses. With many businesses looking to streamline their operations and improve efficiency, there is a growing demand for cost-effective and easy-to-use software solutions that can help automate processes and increase productivity. |
Each of these business options will suit those who have decent cash capital in their supply. If you understand you have a modest budget, the best solution is to make quick money. To do this, you only need to choose one or more of the best online casinos in Cyprus on Slotsup and try your luck. Gambling entertainment can significantly increase your capital within a short period. It is essential only to choose a safe and reliable establishment that will pay out all won funds without delay and protect users’ personal data.
Advantages Of Opening A Business In Cyprus
Cyprus is a beautiful environment for doing business. Every year, many companies open branches there, and investors pour money into constructing new hotels, restaurants, and other places of interest for residents. A list of the following advantages can easily explain such high interest on the part of foreign entrepreneurs:
- simple company registration procedure;
- low credit rates;
- high-tech labor market;
- lack of bureaucracy and corruption;
- excellent infrastructure.
The advantageous location of Cyprus deserves special mention. It is at the crossroads between Europe, Asia, and Africa, opening up sea and air trade routes to all these parts of the world. The island itself is also a fresh market with plenty of opportunities for new ideas.
Another plus worth highlighting when starting a business in Cyprus is the educated workforce. This state has the most significant percentage of EU residents between the ages of 25 to 35 years who have completed their higher education. At the same time, there are people of different nationalities, from Chinese and Arabs to Americans. Thanks to the above, you can quickly and easily find foreign translators and other specialists, depending on the requirements of the business.
Low compensation is another advantage that attracts investors. Even though Cyprus has implemented the EU legal framework regarding labor relations, salaries in Cyprus are relatively low compared to other countries. This is an advantage for entrepreneurs because most of the money can be spent on the development of the business rather than on the payment of wages to hired workers.
The final significant advantage which makes many entrepreneurs decide to open a business in Cyprus is the possibility of obtaining citizenship. People who want to invest in real estate, businesses, various projects, and funds can get a chance to become a citizen of the country. This, in turn, will provide even more benefits for doing business.
Conclusion
Cyprus is an island in the Mediterranean Sea that impresses with its high quality of life. It is attractive not only for tourists but also for investors. Every year there is a growing number of business projects. There are several reasons for this phenomenon. The first one is the convenient location of the country. The second reason is the favorable tax system. And the third is the absence of currency control. Because of the above factors, many entrepreneurs open their businesses in this country.