Cyprus is one of Europe’s most attractive and flexible business hubs, combining a strategic location, investor-friendly tax and legal framework, and EU membership.

 

Here is why thousands of companies, entrepreneurs, and HNWIs choose Cyprus:

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1. Member of the European Union

Cyprus has been a full EU member since 2004 and a Eurozone member since 2008, offering access to the single market of over 450 million people. It fully complies with EU regulations, including financial, tax, and company law directives.

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2. Attractive and Transparent Tax Regime

Cyprus offers one of the most favorable tax regimes in Europe:

• 12.5% corporate income tax – one of the lowest in the EU.

• IP Box Regime – effective tax rate as low as 2.5% on qualifying intellectual property income.

• No withholding tax on dividend, interest, or royalty payments to non-residents (subject to conditions).

• Extensive network of 65+ double tax treaties, including with the US, UK, Germany, Russia, and China.

• No capital gains tax on the sale of shares (except in cases of real estate-rich entities in Cyprus).

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3. Strategic Geographical Location

Situated at the crossroads of Europe, Asia, and Africa, Cyprus serves as a natural base for businesses expanding into the EU, Middle East, and North Africa. It’s a prime location for headquarters, regional offices, and holding structures.

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4. Robust Legal and Regulatory Framework

Cyprus’ legal system is based on English Common Law, making it highly familiar to international investors and lawyers. It ensures predictability, transparency, and strong protection for business and property rights. It is also fully EU harmonized.

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5. Efficient Corporate and Financial Services

Cyprus boasts a well-developed ecosystem of licensed professionals:

• Chartered accountants, tax advisors, lawyers, fiduciary and corporate service providers

• Strong compliance with EU AMLD and FATF standards

• Modern and investor-friendly company law, allowing fast incorporation and flexible structuring.

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6. Skilled, Educated, and Multilingual Workforce

Over 55% of Cypriots hold tertiary education degrees, and English is widely spoken (used in 90%+ of business transactions). The workforce is highly skilled in finance, IT, legal, shipping, and tech sectors, and salaries are competitive compared to other EU countries.

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7. Low Cost of Doing Business

Operating costs, including salaries, office space, and professional services, are significantly lower than in Western Europe. This makes Cyprus ideal for:

• Shared service centers

• Startups & scaleups

• Tech and development hubs

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8. Favorable Intellectual Property (IP) Regime

The Cyprus IP Box regime is fully OECD-compliant and provides one of the most tax-efficient frameworks for IP exploitation globally. Eligible income benefits from an 80% exemption, resulting in an effective tax rate of just 2.5%.

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9. Residence and Citizenship Options

Cyprus offers attractive pathways for international investors and their families:

• Permanent Residency by Investment with a minimum real estate investment of €300,000.

• Employment-based residence permits with fast-track processing.

• Access to high-quality healthcare and education under EU standards.

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10. Technology, Innovation & Fintech Hub

Cyprus is becoming a magnet for startups, fintech firms, and R&D-intensive companies. Benefits include:

• Grants and incentives for R&D and innovation

• Digital Nomad Visa and Startup Visa programs

• EU and local funding for innovative SMEs

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11. Modern Banking & Financial Infrastructure

• All major international banks operate in Cyprus

• Full SEPA and SWIFT access

• Emerging fintech and EMI ecosystem

• Strong data protection and GDPR compliance

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12. Safe, Stable, and Enjoyable Living

Cyprus offers one of the highest standards of living in the EU:

• Warm Mediterranean climate

• Low crime rate

• Affordable cost of living

• International schools and universities

• High-quality public and private healthcare