Why Cyprus is worth investing in and getting the Cypriot citizenship

As a part of its policies aiming to further encourage Foreign Direct Investment and to attract high net worth individuals to settle and do business in Cyprus the Council of Ministers, on the 13th of September 2016, revised the “Scheme for Naturalization of non-Cypriot investors by exception” and, thus, established the new criteria and terms based on which non-Cypriot entrepreneurs/ investors may acquire the Cypriot citizenship.

The success of your foreign investment will depend to a large extent on your choice of location. It should be one that offers a conducive environment for your business to thrive. Cyprus is one of such destinations. The island presents not only plenty of investment opportunities but also a favourable business environment.

Why to invest in Cyprus and to get the Cypriot citizenship?

  1. Strategic Location

Cyprus is geographically located between three continents; Africa, Europe, and Asia. This strengthens its position as a major Eastern Mediterranean trading post as well as a renowned international business and services centre. This positioning allows Cyprus to act as a point of exchange between these three continents, therefore, offering businesses easier access to new markets.

  1. Beneficial Tax Systems

This nation boasts of an efficient, transparent and attractive tax structure which fully adheres to EU, OECD, and International regulations. The country’s tax resident companies benefit from its extensive double taxation treaties with over 40 countries worldwide. The country is also in talks for new tax agreements. All this is aimed at facilitating international business.

The tax regime favours holding companies, finance institutions, Investment Funds, IP companies, and value chain transformation companies. These tax incentives reduce the cost of doing business in this country. For a business owner in Cyprus, this allows for competitive pricing as well as good profits.

  1. Efficient Banking and Professional Services

Cyprus has a large number of highly educated and skilled certified public accountants and registered advocates ready to offer their services. Their competence is boosted by their multilingualism. They speak English, Greek, Turkish, and Russian. Additionally, Cyprus has a well-organized banking system which takes care of the diverse needs of individuals and companies. These banks offer the following services: asset management, syndicated loans, retail banking, custodian services, private banking, and investment banking.

  1. Robust Legal and Regulatory Framework

Cyprus has a comprehensive legal structure which traces its origins in the English Common law practices. This structure is friendly to business because it promotes transparency and efficiency in dealings.

  1. A Beautiful Working and Living Environment

Cyprus is safe due to its low crime rates. In fact, in 2015, the country has been ranked the safest smaller country in the world and fifth worldwide by ValuePenguin. The country experiences sunshine throughout the year and hence a conducive place to live while doing business. All these factors, point towards lower stress levels which are known to facilitate success in business.

  1. Attractive Legislation for Citizenship

Foreign investors in Cyprus are given a unique opportunity to obtain a Permanent Residence Permit or Cypriot citizenship which can be secured within 3-6 months. Before being granted a permit or citizenship, the government carries out rigorous procedural due diligence. The upside of both arrangements is that an investor needn’t reside in Cyprus and neither do they become tax residents.

  1. European Union and Eurozone Member State

Cyprus gained membership into the European Union on 1st May 2004 and adopted the use of the Euro in 2008. Membership to the European Union is a vote of confidence which is useful in guaranteeing stability and safety for investors. Moreover, businesses in Cyprus have complete access to European Union markets and the associated benefits.

Sources:

Ministry of Interior, website

Starting Business Library

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