Setting up Your Business in Cyprus

Thousands of entrepreneurs and companies are moving to Cyprus every year. They prefer to set up their business in Cyprus for many reasons, be it the lifestyle in Cyprus, the ease of doing business, the moderate taxation and tax-incentives for newcomers, or any of the many other reasons.

We are assisting our individual and corporate clients in setting up their business in the most efficient way and getting localised.

They focus on their business.

Why do entrepreneurs and companies choose Cyprus?

Being a commercial hub serving Europe, North Africa and the Middle East since more than 3000 years, Cyprus developed a business-minded and welcoming culture and approach, resulting in a cosmopolitan environment with 22% non-Cypriot residents. Today, Cyprus offers a modern lifestyle with high-quality services that cater for both individual and business needs.

Characteristics of Cyprus that relate to your personal life:

• Cyprus is the 5^th safest small country in the world;
• Cyprus is the sunniest country of Europe where you may swim in the sea still at the beginning of November (water temperature 22-24 degrees Celsius, air temperature up to 28);
• English is very widely spoken (more than 70% of the population);
• High-quality international schooling with education in different languages;
• Well-developed health system with many public and private hospitals, some of them engaged in medical research in cooperation with universities;
• Rich cultural life with concerts, art activities, music clubs, galleries and events;
• Immense choice of venues for dining, from basic rustic to fine dining;
• Diversified local culture with many unique and beautiful spots around the island;
• Very well-developed infrastructure, better than in many EU countries;
• Cyprus is served by more than 70 airlines;
• Cool lifestyle in general;
• Persons who are moving permanently to Cyprus are exempted from capital gain tax on income from dividends and interest for 17 years;
• No taxation of income from securities (shares, bonds, fund units etc.);
• Low personal income tax (annual tax-free threshold is EUR 19.500, then 20-35% progressively, each tax rate only applying to its specific income bracket;
• 50% personal income tax exemption for foreigners moving to Cyprus, with an annual income of more than EUR 100.000.

 

Characteristics of Cyprus that forming an excellent business environment:

• Member of the European Union since May 2004, providing entry to the EU market with its population of 500 million people;
• Business-friendly legislation based on English Common Law;
• English is business language; communicating in English is possible with most ministries and other entities of public services;
• Strategic position as a bridge between Europe, North Africa and the Middle East, acting as a regional hub in many business sectors;
• Setting up business is easy and relatively fast;
• Highly educated professionals and workforce (Cyprus has the percentage of university graduates per capita in the EU);
• General salary level lower than in most European countries;
• Corporate tax rate of Cyprus is 12,5%;
• No tax on dividend income on company level;
• No withholding tax;
• No taxation of income from securities (shares, bonds, fund units etc.), also on company level;
• Special schemes for residence and work permits for non-EU citizens, employed by Cyprus companies with foreign interest.

How Shanda Consult may assist you:

Our company is experienced in advising and assisting in business setup and localisation matters since many years. We would be happy to support you in all related aspects.

Be it a new business setup in Cyprus or should you wish to relocate your company to Cyprus, we would strongly recommend you seek for advice at the very beginning. Based on the nature and particulars of your business and based on your goals and expectations, structuring a roadmap for the realisation of your project prior to any steps is highly advisable.

Depending on your specific needs, you may benefit from our advice in the following areas:

Pre-setup and setup

• Evaluating and deciding the right structure of the business and its infrastructure;
• Deciding the physical infrastructure needed in Cyprus;
• Considering various tax consequences as well as ease-of-business factors;
• In case of a fund to be set up: evaluating the best legal form of fund serving the defined purposes;
• Assisting with the formation and registration of the company or fund and its bank accounts;
• Registering the entity as employer, and for tax;
• Assisting in the setup of an office or other place of business, arranging for communication subscriptions, etc.;
• Arranging for necessary business permits and licences, if necessary;
• Assisting in pre-selection of local managers and staff, including interviewing;
• Assisting in the drafting of employment contracts as per the legislation of Cyprus, applying for work and residence permits, registering new staff for tax etc.;
• Assistance in the personal needs of people relocating to Cyprus.

Assistance and support during operation of the business

• Ongoing business consulting as needed;
• Assisting in local business and investment, if required;
• Accountancy and payroll;
• Tax services;
• Arranging for and dealing with independent auditors;
• Communicating with local authorities as necessary;
• Advising in compliance matters related to banks and bank transfers;
• Advising in compliance matters related to tax matters;
• Arranging for full-scope fund administration with our partners;
• Our lawyers may assist in reviewing/drafting legal agreements, as necessary;
• And many more…

The company’s German owner and managing director and our experienced senior team members will be happy to assist you in all above matters and to support you as if your business you would be our business.

Please feel welcome to contact us through the contact form below.