Discover the advantages of Cyprus for business and residency

The third-largest island in the Mediterranean, Cyprus is uniquely positioned at the crossroads of Europe, the Middle East, Africa and Asia. Known for its stunning landscapes and rich cultural heritage, Cyprus offers a compelling mix of modern amenities and historic charm.

The island enjoys over 340 days of sunshine annually, making it the sunniest country in Europe and the ideal destination for those seeking to combine business opportunities and a high quality of life. The island’s skilled, English-speaking workforce adds to its appeal.

Why Cyprus?

Strategic Location and Infrastructure

Cyprus’s location makes it a gateway to three continents, providing strategic access to diverse business markets. A full member state there European Union, Cyprus boasts highly developed infrastructure, including modern telecommunications, reliable utilities and advanced transportation networks.

Additionally, Cyprus offers high-quality educational institutions and healthcare centres, contributing to its appeal as a prime destination for foreign investors and their families.

Multicultural and Skilled Workforce

Cyprus is a multicultural environment. The labour force is well-educated, versatile and fluent in English, ensuring effective communication and business operations. Cyprus’s safety record is exemplary, having been ranked the safest country among those with fewer than five million citizens.

Quality of Life

Cyprus has been ranked as the 5th best place for lifestyle among major European cities and other competitive destinations. Cyprus has a Mediterranean climate along the coast, while the higher mountain areas offer a cooler and moister environment. Coupled with a balanced, healthy way of life, it attracts expatriates who seek to enjoy a high standard of living while pursuing their business interests.

Sovereign Cyprus Services

Corporate Services

Sovereign Cyprus aims to be your ‘one-stop shop’ for Cyprus company registration. Our services include Cyprus company formation, provision of registered office address, and ongoing administration and management. Our comprehensive package covers bookkeeping, accounting, VAT, human resources and payroll services, corporate bank account opening and legal services. We can assist with company redomiciliations, helping clients transfer a foreign company to Cyprus.

Intellectual Property Services

Cyprus’s IP Box regime offers significant tax advantages, with royalties taxed at an effective rate of 2.5% or lower, one of the lowest rates in the European Union. This regime applies to patents and software, making Cyprus an attractive option for companies involved in technological development and innovation to manage their intellectual property rights.

Residency and Immigration Services

Sovereign Cyprus offers various residency options to suit different needs. The Golden Visa programme provides a permanent residence permit for non-EU citizens who invest €300,000 in real estate, business or investment funds. We can also assist with permanent and temporary residence permits for both EU and non-EU citizens, tailored to different financial capabilities and time frames.

Why choose a Cyprus Company?

Tax Benefits

Cyprus has some of the lowest tax rates in the EU. Holding companies benefit from zero tax on dividends and no withholding tax on dividends paid to foreign shareholders. Investment companies enjoy zero tax on capital gains from the disposal of shares, bonds and other securities. Operational companies are subject to a fixed corporate income tax rate of 12.5%, one of the lowest in the EU. IP holding companies benefit from a low effective tax rate on royalties.

Flexible Business Structures

Cyprus offers various corporate structures to suit different business needs including limited liability companies and partnerships. Whether you need a holding company, investment company, operational company or an IP holding company, Cyprus provides a flexible and favourable environment for a wide range of business entities and business activities. Cyprus Companies Law is largely based on the UK and, importantly, Cyprus is a common law jurisdiction.

Intellectual Property and Tax Planning

Cyprus’s IP Box regime offers one of the most favourable tax environments for intellectual property. The regime applies to patents and software, with royalties taxed at an effective rate of 2.5%. This makes Cyprus an ideal location for companies involved in technological development and innovation. Additionally, Cyprus’s extensive network of double tax treaties ensures that royalties received in Cyprus are subject to minimal or no withholding tax.

National Interest Deduction (NID)

For assets that do not qualify for the IP Box regime, Cyprus offers the NID, which allows businesses to deduct a notional interest expense from their taxable income. This can reduce the effective tax rate to as low as 2.5%, providing significant tax savings for companies with substantial new equity.

The ‘60-day’ Non-Dom Tax Residency Scheme

Cyprus offers a highly beneficial tax residency scheme known as the ‘60-day Rule’. This is available to qualifying, non-domiciled individuals – both non-EU and EU nationals – who reside in Cyprus for at least 60 days a year and are not tax resident in any other country. The benefits include:

• No income tax on dividends and interest: For 17 years, individuals do not pay income tax on dividends or interest earned.
• No tax on profits from securities: There is no capital gains tax on the disposal of shares, bonds, and other securities.
• Low personal income tax rates: The first €19,500 of annual income is tax-exempt, with a progressive tax rate applied thereafter.
• 50% tax exemption: On income earned from employment in Cyprus for 17 years, provided the annual income exceeds €55,000.
• Favourable pension taxation: Overseas pension income exceeding €3,420 is taxed at only 5%.

Additional Residency and Immigration Options

Golden Visa

The Golden Visa programme is ideal for non-EU citizens who can invest €300,000 in real estate, a new Cyprus company, or a licensed Cyprus fund. This visa offers a fast-track option, with processing times as short as two to three months.

Permanent Residence Permit

For those who do not wish to make a significant investment, Cyprus offers a permanent residence permit suitable for EU citizens. This permit requires proof of residence and provides the right to live and work in Cyprus, with same-day issuance for eligible applicants.

Temporary Residence Permit

Non-EU citizens can apply for a temporary residence permit, valid for one year and renewable annually. This permit includes the main applicant’s spouse and children under 18 and requires proof of a secure and steady annual income from abroad.

Cyprus stands out as a premier destination for business and residency, offering a strategic location, favourable tax regime, and high quality of life. Sovereign Cyprus is dedicated to providing comprehensive services to meet all your corporate and personal needs. Contact our professional team at info@sovereigngroup.com to explore how we can assist you in making the most of what Cyprus has to offer.