Business Relocation in Cyprus - Tax benefits of relocation

By: H. Priority Trusts Services Ltd

Relocation in Cyprus either as a company or as an individual/ professional enables you to operate safely in an EU territory (and deliver your service/products worldwide) while at the same time, you benefit from the attractive tax regime (one of the best in Europe) and reduce your tax exposure on your worldwide income, and we have identified the TOP-5:#

1. Low corporate income taxes 

One of the most attractive reasons why many companies “move” to Cyprus is the low corporate tax.

• The corporate tax rate is fixed at 12.5% and ranks among the “Lowest Corporate Tax Rates in the EU”. 
• IP-Box in Cyprus 

80% of profits subject to the regime are exempt from taxation. That is, at a corporate tax rate of 12.5%, this could result in an effective tax rate of only 2.5%.

The benefits are not limited to a low corporate tax rate.

Other tax benefits: 

• 0% on dividend income
• 0% tax on inheritance, wealth, gifts
• The tax-free minimum income tax is 19,500 euros/per year.
• Income tax rebate of 50% for foreign professionals relocating to Cyprus when the employee’s salary starts at €55,000.
• Make yourself a Cyprus Tax resident and minimize your tax exposure on your worldwide income.
• Reduce the labor and operational cost of your company. Operate in a cost-effective business region

2. How can you benefit as a company? 

The corporate law of Cyprus regulates streamlined, fast, and simple processes for setting up or moving a business and does not require a presence on the island. You can register a company in Cyprus remotely.

Start operating in a very short time under the Cyprus regime and benefit from the significant tax advantages of Cyprus corporate tax. You can benefit either by registering your company in Cyprus or by implementing the Substance concept which is a widely known tax concept.

The low corporate tax rate, and the attractive income tax regime with multiple tax exemptions and deductions are the most important advantages, but Cyprus has much more to offer. A state member of the European Union, Cyprus provides the opportunity for companies and investors to operate under a secure legal framework and environment, protecting businesses and at the same time promoting their growth.

3. Why businesses and professionals are relocating to Cyprus 

• Geostrategic location with market access to 500M EU consumers with close proximity to MENA region. A crossroad of Europe-Asia-Africa
• Access to tech-savvy EU and international talent pool
• Well-educated, highly skilled, multilingual workforce
• Revised Immigration & Relocation policy for non-EU tech professionals
• Business Facilitation Unit
• Attractive corporate & income tax regime with advantageous incentives
• Favorable IP regime as low as 2.5%
• Regulatory framework aligned with the EU
• Legal system aligned to UK Common Law
• Enviable lifestyle in a safe clean and healthy environment

4. Low cost of doing business without sacrificing quality

 Compared to other EU countries, Cyprus can be 15-20% cheaper for high-quality business and quality living.

By relocating your business to Cyprus, you will be able to cut costs without sacrificing quality. Combined with the low taxes in Cyprus, this can double your profits and that of your business.

5. Easy to combine business and family life in Cyprus 

If you are planning to relocate your business and family, Cyprus is the perfect option.

• In the Mediterranean region, Cyprus has one of the most comfortable climates. This can be one of the benefits of moving your business to Cyprus as you will be able to conduct your business in a comfortable environment.
• Cyprus is ranked 1st among the safest countries with a population of fewer than 5 million people.
• Cyprus has one of the best private education sectors in Europe that teach programs in English.
• Excellent healthcare system providing free healthcare.
• The real estate market is full of affordable residential properties, ranging from luxury high-rise apartments to villas on the beachfront.

The above benefits are not the only ones, the above points are just the highlights that make Cyprus so attractive for business. 

What we can do for You?

We provide hands-on support with: 

1. Location selection process 
2. Setting up a business in Cyprus 
3. Relocation of family members & staff 
4. Opening bank accounts and a full range of services for obtaining a residence permit for the whole family. 
5. Facilitation of newcomers 
6. Aftercare services