Relocation of business in Cyprus
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.
Reduce your tax exposure on your income either as a company or as an individual under your employment in Cyprus.
Operate in or out of Cyprus effectively and deliver your services or products from under a secure EU legislation.
Move your company fully to a regulated EU country allowing to operate to anywhere without any restrictions.
Make yourself a Cyprus Tax resident and minimize your tax exposure on your worldwide income.
Reduce your labor and operational cost of your company. Operate in a cost effective business region.
Move to Cyprus with the family and be a part of the large developments and investments happening in the country.
The benefits of relocation in Cyprus.
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
How can you benefit as a company?
LABOR COST
Technology talents costs are below European average.
REAL ESTATE
Office rentals are amongst the lowest in Europe.
Competitive prices for commercial real estate.
COMPANY SETUP
Low company setup and operating companies.
BUSINESS SERVICES
Cost effective and high-quality business support services.
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 with registering your company in Cyprus or by implementing the Substance concept which is a widely known tax concept.
The low corporate tax rate, 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 to companies and investors to operate under a secure legal framework and environment, protecting businesses and at the same time promoting their growth.
- Intellectual Property Tax Regime
- No Inheritance tax
- No Capital Gain Tax on sale of titles (shares etc)
- Corporate tax rate 12.5%
- Low personal income tax with favorable deductions and allowances
- Double tax treaties with more than 60 countries
Relocation of a company with the employment of third country highly skilled nationals.
A Cyprus registered Company whose majority shareholding belongs to TCN (Third Country Nationals) Ultimate Beneficial Owners (UBO/s) or which is a listed Company, is considered as an Entity of Foreign Interests (FIE) and can employ TCNs in Cyprus.
Companies wishing to employ nationals from third countries fall under the criteria of companies of foreign interests, as defined below.
Which Companies are eligible to obtain permit to employee TCN?
Foreign companies operating or intending to operate in the Republic of Cyprus – housing appropriate independent offices in the country:
Cypriot Shipping companies
Cypriot high-tech/innovative companies
Cypriot pharmaceutical companies
Cypriot companies in the sectors of biogenetics and biotechnology
NUMBER OF EMPLOYEES ALLOWED
Eligibility criteria for companies.
1. The majority of the company’s shares are owned by third-country nationals.
2. If the majority of the company’s shares are not owned by third-country nationals (i.e equal to or less than 50%) then the company is eligible if the foreign participation represents an amount of at least €200.000.
In both cases above (1&2), the ultimate beneficial owner (UBO) must deposit or invest an amount of at least €200,000, for the purposes of his/her business activity in Cyprus. If more UBOs exist, then this amount can be deposited or invested by a single UBO or collectively.
3. Public companies registered on any recognised stock exchange.
4. Companies of international activities (formerly off-shore), which operated before the change of regime, whose data are held by the Central Bank.
5. Cypriot shipping companies.
6. Cypriot high-tech/innovation companies*
7. Cypriot pharmaceutical companies or Cypriot companies active in the fields of biogenetics and biotechnology.
8. Companies of whom the majority of the total share capital is owned by persons who have acquired Cypriot citizenship by naturalization based on economic criteria, provided that they prove that the conditions under which they were naturalized continue to be met.
For cases 3-8, the investment criterion is also applicable and the company’s initial investment in the Republic of at least €200,000, must be proven by presenting the appropriate certificates (e.g. bank statement at the time of deposit of the amount or proof of investment (purchase of office space and/or office equipment)).
* An enterprise qualifies as ‘High Technology Company’ if:
(a) it is already established and has a presence in the market, and
(b) it has a high level or experimental R&D intensity, and
(c) it developed product/s that fall into one of the following categories: products related to aviation and space industry, computers, electronic and telecommunication products, pharmaceuticals, biomedical, research and development equipment, electrical machinery, chemicals, non-electrical machinery.
Employment requirements under the relocation criteria.
Highly skilled third country nationals can relocate in Cyprus under employment provided that they meet the below criteria.
Minimum gross monthly salary is at least 2.500.
The employee has a university diploma or equivalent qualification or relevant experience in similar position of at least 2 years duration.
Employment contract is not less than two years of duration.
Obtaining of the employment permit takes 1 month.
The benefits of employement.
Family members of TCN employees can relocate to Cyprus under family reunification
Spouses whose financial supporter has obtained a residence and work permit have immediate and free access to the labor market and can look for employment
Ability to apply for Long Term Residence Status (Category E work permit)
Social Insurance contributions paid in Cyprus can be transferred to the country of origin when the individual decides to return to the permanent residence in his/her country
Tax Exemption of 50% for new taxpayers/ employees with remuneration of 50% of ≥ €55.000 (Valid for 17 years)
Temporary work and residence permits can be issued with a validity of up to 3 years and can be renewed upon expiration
Apply for Cyprus Naturalization
Any Third Country National is eligible to apply for naturalization (Cyprus Citizenship) after completing 7 years of legal residence in Cyprus.
TCNs have the right to submit an application for naturalization after 5 years of residence and work in the Republic or after 4 years if they fulfill the criteria for holding a recognised certificate of Success in very good knowledge of Greek language.
Spouse Naturalization
Foreign spouses who have been married for 3 years with a Cypriot national can apply to obtain the Cyprus citizenship.