Cyprus is the third largest island in the Mediterranean with an area of 9.251 km² and a population estimated around 1.180.000 people. The strategic location of the island has played an important role in establishing Cyprus as a very popular tourist destination and an ideal location for attracting international business. Cyprus has been a member state of the EU since 1 May 2004.
A total of 180.000 foreign nationals live and work in Cyprus representing 15% of the country’s total population.
Crime rate is very low.
Cyprus is the sunniest country in Europe with over 340 days of sun during the year although snow falls on the highest mountain ranges in winter. According to the World Health Organization the environment in Cyprus is one of the healthiest in the world and is relatively unspoiled by industrialization.
There is a multilingual and highly educated workforce in Cyprus which has the highest percentage of university graduates per capita in Europe. Cyprus is the second top spender in education relative to GDP in the EU and according to Eurostat is ranked top among the EU countries in terms of the proportion of the population with tertiary education qualifications aged between 25-64.
As an EU Member Cyprus offers excellent healthcare services in public hospitals at a cost lower than most other EU countries, as well as in private state-of-the-art clinics and hospitals.
Cyprus offers a range of reputable public and private schools all providing excellent levels of education. Greek is primarily the language used in public schools whereas English is primarily used in the majority of private schools. The local colleges and universities are recognised internationally and for those wishing to further their education abroad, schools following the British education system or preparing candidates for entry into Universities in Europe or the United States are also widely available.
The native language is Greek and English is widely spoken.
The country’s capital, government and business center is Nicosia which is located in the middle of Cyprus. Limassol is the country’s main trade center and one of the busiest ports in the Mediterranean and is located on the southern coast. Cyprus main international airport is located in Larnaca which is approximately 30 minutes away from each of these two main centers.
All citizens of the EU who wish to reside and work in Cyprus need to apply for an EU Registration Certificate. This is a simple one-off procedure which does not need renewal.
Non EU nationals wishing to reside and work in Cyprus need to apply for a Temporary Employment and Residence Permit at the Civil Registry and Migration Department. These permits are usually issued for a period of 1 year and upon expiry they are renewed
Cyprus International Business Company
An International Business Company (IBC) in Cyprus is essentially a Cyprus registered business owned by non Cypriots.
12,5% tax rate on taxable profits.
No withholding tax on dividends paid to non-resident shareholders.
- Dividend income from overseas is exempt from tax in Cyprus irrespective of its source, provided certain conditions are satisfied. Where the exemption does not apply 17% defence tax is payable but credit for foreign tax suffered is given irrespective of the existence of a treaty.
- No tax on the disposal of shares.
- Profits of a permanent establishment maintained abroad by a Cyprus company are exempt from tax in Cyprus under certain conditions.
- Profits on sale of property (other than property situated in Cyprus) are not subject to Capital Gains Tax.
- A long list of countries have signed Double Tax Treaties with Cyprus - over 64 treaties