Relocating a business to Cyprus involves moving, starting, or purchasing a business on the island. The Cypriot government offers attractive conditions for foreigners to conduct their business and participate in favorable investment programs. With a focus on providing a comfortable environment for both living and working, Cyprus has become an appealing destination for entrepreneurs worldwide.
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Who Can Benefit from Business Relocation to Cyprus?
Relocating or establishing a business in Cyprus is an optimal solution for the following groups:
- Owners of Foreign Companies: Those looking to reduce tax liabilities and receive additional state benefits.
- Entrepreneurs Seeking to Operate within the European Union: Business immigration to Cyprus allows you to conduct activities within the Eurozone and expand into global markets.
- Remote Workers and Employees: Moving your business to Cyprus offers advantages such as official residence in an EU country, favorable tax rates, and the potential to obtain permanent residency when purchasing property worth €300,000 or more, with the possibility of acquiring Cypriot citizenship after five years of residency.
- Entrepreneurs Seeking Stability: Cyprus provides a stable economic and political environment, low levels of corruption, and minimal crime rates, making it an ideal location for business operations.
Incentives for Supporting Business in Cyprus in 2024
The Cypriot government offers numerous incentives and favorable conditions for foreign companies planning to start or already operating in Cyprus:
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Tax Benefits: The government has extended tax incentives for investments in innovative enterprises and increased tax deductions for research and development expenses. Investments in certified innovative firms are eligible for a 50% tax exemption.
Cyprus boasts some of the most attractive tax conditions in the EU, including:
- Corporate tax rate of 12.5%;
- VAT at 19%, with a reduced rate of 5% on the purchase of the first new property;
- Exemption from dividend taxes for 17 years (Non-Domicile status required), with a 2.65% contribution to GESY on dividends;
- No double taxation agreements with 58 countries.
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Improved Employment Conditions for Non-EU Citizens: Foreign workers can make up 30% of a company’s workforce, with expedited work permit processes for highly skilled individuals. Residency and work permits are valid for two years, with the possibility of renewal. Spouses of employees earning €2,500 per month are also allowed to work legally.
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Digital Nomad Visa: This special visa is for remote workers who collaborate with employers or clients outside Cyprus and have an income of at least €3,500 per month. The visa allows for a one-year stay, extendable for another two years. Family members can also reside on the island with a residence permit.
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Easier Path to Cypriot Citizenship: The new law, effective November 30, 2023, allows foreign businesspeople to apply for Cypriot citizenship after five years of residency (reduced to four years with Greek language proficiency). Permanent residents (visa F, Long Term Residence Permit) can apply for citizenship after five years of total residency days in Cyprus.
How to Establish a Business in Cyprus
To relocate your business to Cyprus or register a new company, you’ll need the assistance of a licensed lawyer to properly prepare the necessary documents:
- Certificate of Incorporation;
- Apostille of the bound set of Constitutive documents;
- Resolution on the appointment of the first director;
- Certificates for Directors, Secretary, Shareholders, and Registered Address;
- Minutes of the first Board of Directors meeting;
- Share Certificates;
- Non-Trading Warranty.
Additionally, the company’s Memorandum and Articles of Association must outline the rules of the enterprise and the responsibilities of directors and shareholders. Comprehensive checks of the beneficial owners are also necessary. The complete set of documents must be submitted to the Cyprus Registrar of Companies for approval, usually taking 2-4 days. Once approved, you will receive a certificate of registration and all necessary documents to legally operate your business in Cyprus.
Challenges and Opportunities for Business Relocation to Cyprus in 2024
Relocating a business to Cyprus in 2024 continues to attract entrepreneurs from around the world, particularly in light of a new government strategy aimed at simplifying the process. However, there are challenges, including bureaucratic hurdles, real estate market limitations, and the need for educational facilities and modern office spaces.
Despite these challenges, Cyprus offers unique advantages, such as a strategic location, a progressive tax system, and a high quality of life, making it a promising destination for international businesses.
Advantages of Relocating Your Business to Cyprus
Cyprus provides several compelling reasons for businesses to relocate:
- Strategic Location: Cyprus is ideally situated at the crossroads of Europe, Asia, and Africa, offering businesses the opportunity to expand into international markets.
- Attractive Tax System: With one of the lowest corporate tax rates in the EU, Cyprus is highly attractive for business immigration.
- High Quality of Life: Cyprus combines modern amenities with a rich cultural heritage, offering an appealing environment for both business and personal life.
For those interested in relocating to Cyprus, thorough research and planning are essential. Professional support and consultation can ensure a smooth adaptation and successful business transition in this promising location.
Our company specializes in facilitating the relocation of your business to Cyprus with professionalism and expertise. We offer turnkey business relocation services, guiding you through every step to ensure a smooth and successful transition. Contact us today to start your relocation journey!
