Cyprus is a fantastic destination for businesses. Listed by the UK government as one of the best stops for business development, it’s also been named by Entrepreneur magazine as one of the top countries for digital business. As a result, immigration applications have risen 50% over 18 months in the Mediterranean country. As tempting as Cyprus is to the outside investor, new business or digital nomad, it has a particular legislative framework in place to regulate businesses. Being au fait with the intricacies of the legal system is crucial. Understanding this, either as a business owner or as an adviser to new business will help you to profit. Understanding the taxation system Despite generous rates of taxation – Cyprus’ 12.5% corporation tax rate is one of the best in Europe – the authorities are no slouches when it comes to enforcement. This is tied to new EU measures which are tightening the net on tax avoidance. Given the difficulty of tackling large size businesses, expect to see small and medium businesses targeted first to make an example.
Plan ahead – learn money management skills to provide yourself with stability. Keep a meticulous log of your business activities so you don’t fall foul of any new measures and are able to provide an accountable case for your profits and activities. The foundations of a businesses Cypriot business law is similar to many countries the world over. The majority of businesses will be registered as private limited companies. According to Thomsons Reuters, this is the most popular business vehicle on the island nation. One of the alternatives is the Public Limited Company.
This is a good option for larger businesses, as many digital companies find themselves; you will need at least 7 shareholders with a minimum share capital of 25,000 euros, according to government guidelines. Crucially, you will need to be registered with the Cyprus Registrar of Companies or risk legal liability. Future prospects to watch for Cyprus is well integrated with the European Union, and according to CyprusProfile.com, has an aim of becoming a financial centre for the region. As a result, it has enacted several pieces of legislation to provide significant fiscal strength and tackle any adverse behaviour. Expect further integration of the island into European law and the uptake of new initiatives at early opportunities. Business laws like the controversial Article 13 and Directive 2017/1132 will have a quick, clear and significant impact on intellectual property rights and trading regulations. The best option is to stay absolutely aware of new laws as they develop; be aware of developing trends in the EU and how they will interact with your industry.
Cyprus is a fantastic location to move your business. Modern, progressive and with laws and regulations in place that benefit the growth of businesses, the island can be your sandbox to achieve your business goals. However, EU law is a key and indelible part of the business landscape; stay aware so that you can continue to grow without attracting the ire of regulatory bodies.
Published by: Jennifer Pitman
